Thailand, the Land of White Elephants That Never Get Tired

One day before the massive Coldplay World Tour 2023-2024 concert, residents around the pointed-domed Buddha Emerald Temple started to bustle with their daily activities. Positioned in the main palace area, it is an iconic landmark of Bangkok that holds millions of natural and cultural tourism experiences.

International tourism is a major contributor to Thailand’s economy. The White Elephant Country has been greatly affected during the Covid-19 pandemic. However, it has managed to overcome this crisis and is preparing itself for the recovery of the tourism sector.

Before the pandemic era, Thailand ranked eighth globally in terms of foreign tourist arrivals (Wisman). Wisman from China was its main market.

The Covid-19 pandemic has severely impacted the volume of air passengers traveling to Thailand. Hotel occupancy rates have even dropped to a mere 9 percent at one point.

However, now Thailand’s tourism is starting to recover. Deloitte reports that until Q4-2023, the top five countries contributing to tourism in Thailand are Malaysia (3.7 million), China (2.8 million), South Korea (1.3 million), India (1.3 million), and Russia (1.1 million).

Also read: Want to be your favorite tourist destination? Learn from Thailand

If you observe closely, Thailand is not much different from Indonesia. There is no difference in terms of time, both have tropical climates, almost similar transportation facilities, and the proliferation of shopping centers in big cities.

Both countries in Southeast Asia have beautiful and mesmerizing natural tourism destinations. Additionally, they both possess a strong culture as a part of prominent life rituals.

However, in the tourism industry, Thailand is much more advanced than Indonesia. The number of foreign tourist arrivals in Thailand is twice as much as those who visit Indonesia.

In 2022, Thailand received 11.15 million foreign tourists, whereas Indonesia only had 5.5 million. In that same year, Thailand’s tourism revenue almost reached USD 16 billion or around IDR 249.47 trillion.

According to the Minister of Tourism and Sports of Thailand, in 2023, Thailand surpasses other ASEAN countries in the number of tourist arrivals by welcoming more than 28 million visitors. This is a remarkable increase, namely 154 percent compared to the previous year.

The number of foreign tourists’ visit to Thailand in 2023 increased by 11.06 million, reaching a total of 28.09 million visitors compared to 2022.

So, what causes Thailand’s tourism industry to surpass Indonesia’s? Despite the fact that Indonesia’s tourism destinations are no less attractive and exotic when compared to the land of the White Elephant.

After the pandemic, Indonesia is still occupied with preparing for the democracy party and does not yet appear to be seriously preparing itself on how to revive its tourism industry.

Thailand highly values Bangkok as it is the most visited city by tourists. Thailand then developed its economy based on the “five-in-one” approach. Apart from tourism which serves as the country’s economic locomotive, the government also focuses on the agricultural industry, manufacturing, retail (fashion and food), and health.

Thailand has been highly successful in managing its food industry. Tom Yam soup, Pad Thai, and a series of fruits or products become “premium” when paired with the word “Bangkok.” Bangkok durian, Bangkok guava, and even Bangkok chicken are included.

Regarding the tourism industry, the tourism authorities in Thailand are implementing a “both/and” approach instead of an “either/or” approach. This means that they are not choosing only one among the various prominent tourism initiatives, but instead applying all options to further develop their tourism sector.

Firstly, Thailand manages both mass tourism and personal tourism well. According to a McKinsey study (2021), the three categories of tourist expenditure are shopping, accommodation, and food and drink.

Also read: Traveling to Bangkok City

For tourists from the lower middle segment, the platinum fashion and grocery shopping center at Pratunam market is always interesting to visit, because the prices are low and negotiable. Tourists from ASEAN countries and India enliven this place. It cannot be denied that Thailand manages low-cost tourism, reflected in the abundance of visitors at this market/retail shopping center throughout the day.

On the other hand, wealthy foreign tourists can buy branded products at Siam Paragon and Icon Siam. The latter has been established for less than a year as a new and innovative shopping center in Bangkok.

In addition to the modern mall, it is also renowned for its stunning architecture, mesmerizing view of the Chao Phraya River, and the fascinating attraction of colorful laser lights from the fountain on the riverbank.

Then, top-tier tourists can visit Koh Samui, Phuket, and Chiang Mai for contemplation. This last tourist destination is located in the northern part of Thailand, which is a modern entertainment destination with a traditional lifestyle.

A large number of beautiful temples indicate the importance of religion in this region. This place offers a variety of fun tourist activities such as white water rafting, kayaking, mountain climbing, trekking, cycling, motorbike touring, culinary festivals, observing wildlife and caves, as well as maritime sports. For those who enjoy luxury, this city has many hotels and resorts as well as spas for pampering your body with a complete package of relaxation.

Next, the Thai Government has taken a policy and gone a step further, preparing to launch a long-term residency program. Foreigners with the Long-Term Resident (LTR) visa can live in Thailand for up to ten years with investment opportunities and tax incentives.

The program will target three main categories of travellers, namely global citizens with deep pockets, wealthy retirees and high-skilled professionals. The target is to reach more than one million individuals and generate more than THB 1 trillion in the next five years, starting in 2022. Regarding this initiative, Thailand is implementingdifferentiation/premium tourism.

Second, Thailand manages both common tourism and also experience/unique tourism. Apart from offering mainstream tourist attractions in the form of natural tourism, marine tourism, shopping and culinary tourism, Thailand also offers unique tourist destinations and focuses on enhancing the experience of foreign tourists.

As an example, tourists can stay in villages, learn how to cook Thai food, deepen their knowledge of Muay Thai martial arts, pick grapes right from the vineyards in Khao Yai, as well as socialize with elephants and go cycling in the backcountry of Chiang Mai.

With more differentiated tourism trips as well as ecotourism and other cultural tourism experiences and attractions, the Thai Government hopes that there will be an increase in the length of stay of foreign tourists. In turn, it will reap more income from foreign tourists, as a contribution to the economy.

Third, not only tourism related to individual goals, but also tourism through collaboration goals. As a result of the “We Travel Together” program launched by the government during the pandemic in the form of a program that subsidizes travel through digital mechanisms, this country has succeeded in reaching around 30-40 million users who join and use tourism service platforms.

This opens opportunities for domestic consumer data that is collected and analyzed to provide further information for personalized tourism offers to travelers.

Taking it a step further, tour operators, restaurants, and shopping centers will be interconnected, creating a tourism ecosystem connected to tourist destinations through personalized loyalty programs and service and product offerings throughout their journey.

Apart from that, there are opportunities to carry out product-bundling, such as accommodation (hotels and resorts) with flights, tourist destinations with flights, accommodation with malls, offering cross-selling (sales cross), as well as diversification of other tourist services.

Fourth, Thailand handles both traditional-based tourism and digital-based tourism. There are still many tourist destinations in Thailand managed traditionally. However, the Tourism Authority of Thailand (TAT) recently announced its plans to establish a digital private company in order to create digital tourism infrastructure.

By leveraging big data and artificial intelligence as well as the potential to introduce blockchain-based e-vouchers and non-fungible tokens, tourists are getting more options provided by tourism operators who reach tourists online and offline.

Travel companies can digitize tourist visits from check-in to payment, including providing maps and information. Tourist preferences can be tracked in real time to design better and more relevant visits and necessary services for tourists. Digital marketing can also attract visitors to come back and share their experiences on social media.

Finally, from traditional tourism to ecotourism or sustainable tourism. In its recent presentation, TAT has pledged a strategy to strengthen Thailand’s image and brand as a sustainable and responsible tourism destination.

This official tourism institution also emphasizes Thailand’s future efforts in improving sustainability standards and utilizing Thailand’s cultural assets in offering creative tour packages and enriching the experience of foreign visitors during their stay in this country.

After the pandemic, the recovery and resurgence of tourism in Thailand are being carried out gradually and systematically, involving tourism operators and the government. Thailand has never stopped and is constantly innovating to develop its tourism industry. Indonesia should learn from Thailand how to skillfully manage the paradoxes of its international tourism sector.

Alongside the increasing heat of Bangkok’s city weather, this article ends with a hopeful sentiment that still surrounds us, in the hopes that tourism in our homeland will soon rise and eventually surpass Thailand.

Mohammad Hamsal is a Professor of Strategy and Agility at DRM Binus Business School and a Management of Indonesia Strategic Management Society.

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