UOB Thailand supports growth of SMEs in the tourism sector with its Sustainability Innovation

As sustainability becomes more imperative, UOB Thailand is at the forefront of promoting entrepreneurship in sustainable tourism. UOB’s ASEAN Consumer Sentiment Study 2023 (ACSS) shed light on an encouraging trend: Thai consumers are increasingly committed to sustainability, evident in their growing willingness to spend more on sustainable products and services from daily necessities to holiday travel.

This shift in consumer behaviour presents an opportunity for small and medium-sized enterprises (SMEs), especially those in the tourism sector, to bolster their brand by embracing sustainable practices. However, they face hurdles such as increase in cost of products and services to end-customers that affects their business profitability. Other challenges include lack of proper infrastructure and insufficient knowledge on sustainability to identify and execute the right initiatives.

To help SMEs overcome these challenges, UOB FinLab and its ecosystem partners, including Tourism Authority of Thailand, Tourism Council of Thailand and O2O Forum, have supported over 200 SMEs in the tourism sector through the Bank’s Sustainability Innovation Programme (SIP). The programme offers businesses a comprehensive range of services including sustainability consultancy, digital toolkits, networking opportunities, and funding access.

Mr Banlang Wongthawatchai, Head of Digital Engagement and FinTech Innovation, UOB Thailand, said, “Sustainable tourism development is a top priority, and more Thai consumers are opting for environmentally conscious choices when travelling. Our SIP unites industry experts who can guide SMEs towards new opportunities and UOB provides them with easy access to funding to kickstart their sustainability journey. This enables SMEs to actively participate in sustainable tourism with the help of customised digital tools, financial support for adopting green technology, and expertise in restructuring their business models.”

Key outcomes of SIP

Adopting Green Technology (Greentech): Green technologies will enhance business profitability and customer experience while reducing environmental impact, hence SIP encourages and helps SMEs to integrate green technologies into their operations. They can start small and gradually scale it up, but implementation must be aligned with a clearly defined sustainability strategy. Particularly for the tourism sector, early successes were seen in hotels achieving up to 30 per cent savings in electricity costs by implementing AltoTech’s smart energy management solutions, one of the green technologies offered under the SIP.

Better access to funding for Green initiatives: The UOB Business Outlook Study 2023: Thailand Report indicated businesses need better funding access, connections to industry peers and ecosystem partners to learn from best practices and advisory services to assist businesses in their sustainability endeavours. UOB FinLab, in collaboration with the National Innovation Agency (NIA) and the National Science and Technology Development Agency (NSTDA), provide financial support to SMEs keen on adopting Greentech.

Mr Pariwat Wongsamran, Director of Innovative Entrepreneurship Development Department and Startup Thailand at NIA, affirms its commitment to supporting SMEs with grants, interest-free loans, and further financial support of up to five million baht via loans through a partnership with UOB Thailand.

Ms Sansanee Huabsomboon, Director of Technology Business Incubation Center at NSTDA, underscores its dedication to helping SMEs navigate operational hurdles and progress towards achieving Net Zero objectives by leveraging Greentech and offering financial backing for groundbreaking research.

Financing Solutions for Green Tourism: UOB’s ACSS also reflected that Thai consumers, across all demographics, are likely to spend more on eco-sustainable travel. Mr Banlang Wongthawatchai, Head of Digital Engagement and FinTech Innovation at UOB Thailand, noted the increasing shift in the hospitality sector towards sustainability in areas of construction and operations. UOB offers businesses in this sector innovative financing solutions, such as U-Energy, U-Solar, and U-Drive, which are instrumental in assisting businesses in tourism sector to implement energy-efficient technologies to reduce their carbon footprint and negative impact on the environmental.

The SIP aims to catalyse the transformation of SMEs in the tourism sector into sustainable businesses. By adopting Greentech solutions, SMEs can gain easier access to funding and financing solutions. If you are in tourism industry, visit www.facebook.com/uob.th or https://thefinlab.com/th/thailand for more information and upcoming programme.