Allowing tourists to play until 4am helps increase Thai tourism revenue by 44%

Thailand's tourism revenue rose 44% year-on-year to $1.6 billion in December, partly thanks to increased night-time hours for tourists.

Starting December 15, 2023, the Thai cabinet will allow bars, nightclubs and entertainment venues to stay open until 4am instead of 2am as before. Five popular destinations including Bangkok, Phuket, Koh Samui, Pattaya and Chiang Mai will be subject to this policy. The new strategy has already led to thousands of tourists staying longer and spending significantly more, according to Thai government spokesman Chai Watcharong.

Thailand earned 54.4 billion baht ($1.6 billion) from tourism in December, up 44% from the same month last year, according to the Ministry of Tourism and Sports. Sanga Ruangwattanakul, president of the Khaosan Business Association, a popular nightlife spot in Bangkok, said the government’s decision to allow businesses to stay open until 4 a.m. helped tourism at the end of the year.

International tourists on Khaosan Road, an area famous for its nightlife in Bangkok. Photo: Nikkei Asia — International tourists on Khaosan Road, an area famous for its nightlife in Bangkok. Photo: *Nikkei Asia*

Phuket Governor Sophon Suwannarat said the seaside town has become more vibrant and its nightlife has become more vibrant thanks to the return of tourists. About 50,000 visitors have recently arrived on the island on 300 flights a day, especially during the New Year period.

"We expect Phuket to earn 300 billion baht (nearly 8.6 billion USD) this year, almost the same as the amount of tourism revenue before the pandemic," said Mr. Suwannarat.

In the coastal city of Pattaya, hotels were at 90% occupancy as more than 320,000 tourists came to partake in New Year’s Eve and New Year’s Eve parties, spending an estimated 2.6 billion baht ($742 million). Mayor Poramet Ngampichet said staying open until 4am had boosted revenue at bars and entertainment venues by 50% during the year-end period.

Thai officials say the extended nighttime hours could help sustain tourism growth, especially during the Lunar New Year holiday, which coincides with long holidays in several Asian countries, including China and Vietnam. Thailand hopes the new policy will attract more Chinese tourists.

An official from the Tourism Authority of Thailand (TAT) said it plans to attract more visitors from Hong Kong, Taiwan, Singapore, and Malaysia to make up for the shortage of traditional mainland Chinese visitors.

Thailand relies heavily on tourism, which accounts for 18% of its GDP. The government has taken several steps to revive and support tourism businesses since the pandemic began. The latest move is a long-term bilateral visa exemption with China.

In 2023, Thailand will welcome 28 million international visitors, achieving its target. The five largest tourist markets to Thailand are Malaysia (4.4 million), China (3.4 million), South Korea (1.6 million), India (1.5 million) and Russia (1.4 million). However, the figure of 28 million is still much lower than the 39.8 million international visitors in 2019.

Anh Minh (According to Nikkei Asia )

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