Thailand is named as being one of the most popular holiday finishs in South-East Asia. However, international touristry merely contributes 7 per cent to the GDP, which however sums up to a sensible sum of approximately 550 billion Baht ( Tourism Authority of Thailand ) . Hence, the touristry industry is of paramount importance for Thailand. Other of import income generators are the export of industries merchandises ( i.e. electronics and cars ) and agricultural merchandises such as rice, gum elastic, runt and manioc ( China, 2009, 57 ) . Thailand ‘s exports are valued at about 180 million USD annually ( Tourism Authority of Thailand ) , its chief trade spouses are Japan, China and the USA ( China, 2009, 57 ) . Thailand has the 2nd largest economic system in Southeast Asia, while Indonesia has the largest ( Tourism Authority of Thailand ) .

Thailand is promoted over the slogan “ Amazing Siam ” , of which the Tourism Authority of Thailand is in charge of. The Tourism Authority was founded on the 18th of March, 1960. It was the first establishment responsible for marketing touristry in Thailand and still holds the prevailing place. The chief aim of the organisation is the publicity of Thailand as a premium tourer finish, which has resulted in an addition in life criterions due to additions in occupation supply. These alterations have consecutive led to a higher national income and have helped to undertake economic jobs. The Tourism Authority considers the “ Amazing Siam ” run to be “ extremely successful ” , as it had gained “ world-wide acknowledgment ” . In the twelvemonth 2011, the new run: “ Amazing Thailand ever amazes you ” will be launched with a mark end of 15.5 million foreign visitant reachings, and a gross coevals of 600 billion Baht ( Tourism Authority of Thailand ) .

In 1960, the Tourism Authority of Thailand received an initial budget of 2.57 billion Baht to advance the “ Amazing Siam ” undertaking. By 1997, the Tourism Authority had received another 1.13 billion Baht budget payment. The Authority has been criticized for passing big sums of its capital for publicity grounds, while at the same clip non taking into consideration that its “ unethical and morally condemnable selling ballyhoo and commercialization ” amendss Thailand ‘s natural resources and cultural inheritages ( Hall, 2000, 138 ) . Tribe points out that negative outwardnesss derivate from touristry, including air pollution ( touristry histories for 60 per cent of air travel ) , noise pollution ( from vehicles such as jet skis ) , H2O pollution ( wastage coevals from sail ship riders ) and sewage pollution ( stemming from the hard-on of hotels and other recreational installations ) ( 2005, 358 to 359 ) .

Thailand was ab initio a popular touristry finish for US soldiers during the Vietnam War, and from 1980 to 1987, Thailand ‘s touristry industry grew 10 per cent each twelvemonth. By 1987, 3.48 million tourers were sing Thailand. During this same clip period, Thailand ‘s sex concern grew significantly and became universe famous. Thailand ‘s notice has besides been featured in such ways like James Bond “ The Man with the Golden Gun ” and “ The Beach ” , which have increased its visibleness ( Lowe, 2006 ) .

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In 1998, 7.76 million international tourers and 51.68 million domestic visitants spent their holiday in Thailand, which led to a entire gross of 430,074,000 Baht. In the twelvemonth 2007, 14.46 million international tourers and 83.23 million domestic visitants vacationed in Thailand, conveying in a entire gross of 928,199,000 Baht. The sum of tourers that visit Thailand still remains really high, and in October 2010, 1,313,577 international tourers came to Thailand ( Tourism Authority of Thailand ) .

Harmonizing to Euromonitor, the touristry grosss are as follows ( in million Baht ) :











The Impact of Crises Situations on Tourism

The figure of reachings of international visitants in Thailand has unusually risen since 1998. However, incidents such as the SARS pandemic, the Tsunami and political instabilities have lead to some rough beads ( Thaiwebsites, 2010 ) .

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Economic crisis

The economic growing of Thailand ‘s touristry sector stopped in May 1997 when the “ 1997 Asiatic Economic Crisis ” ( AEC ) hit. The crisis arised due to guesss and bad loans, whose ab initio helped Thailand ‘s economic growing, but finally led to the dislocation of the Thai stock- and belongings market. This furthermore led to a rise in rising prices and the devaluation of the Thai Baht. Together with the International Monetary Fund and the World Bank, Thailand issued the “ Economy Recovery Plan ” ; which aims to convey foreign money into the state and reinstate assurance in the economic system. Thus the publicity of the touristry industry played an of import function in reconstructing the economic system, as tourers would convey foreign currencies into the state. A low Baht exchange rate is attractive for foreign tourers, even though unattractive for outbound travelers. If the authorities were able to stabilise the economic system, this would so in bend besides have a positive consequence on the touristry sector. By 1998, the crisis was said to be over, although issues such as the pollution of natural resources and low exchange rates remained ( Hall, 2000, 129 to 132 ) .

Bird grippe

The first transmittal of the bird grippe to a human being happened in Hong Kong in 1997. Over the old ages, many re-occurences of the H5N1 virus appeared and in November of 2003, the first instances of bird grippe in Thailand were reported, whereupon Thailand ‘s authorities declared a pandemic. The first avian grippe decease in Thailand was reported on January 3rd, 2004 ( Pongsak, 5 to 6 ) . The effect was a global jailbreak of anxiousness and craze. The media reported that the planetary human deaths, provided that the H5N1 virus is transmitted to human existences, were estimated to make 50 1000000s, which turned out to be exaggerated ( Bird Flu Facts ) . Nevertheless, Thailand had the 3rd highest figure of septic people worldwide, a sum of 22 septic and 14 casualties. In malice of the hapless handling of the media by the authorities, the Pacific Asia Travel Association ( PATA ) reported that the pandemic had merely a little impact on the touristry of Thailand, as the bulk of off flights during February to March 2004 came from tourers coming from China, Korea, Taiwan, Hong Kong and Singapore ( Pongsak, 5 to 6 ) . However, this information is contradictory to Bird Flu Facts, which stated that the most affected sectors in Thailand were the domestic fowl and touristry industries. Smith estimated the economic loss in instance a planetary pandemic would interrupt out on 200 billion USD per one-fourth. Besides harmonizing to McLeod, both Thailand and Malaysia suffer from a diminution in touristry gross. However, there are no exact Numberss available. Due to contradictory statements, it is hard to measure the impact of the bird grippe on the touristry sector of Thailand.

Severe acute respiratory syndromes

In 2003, the Severe Acute Respiratory Syndrome ( SARS ) epidemic broke out in Asia ( Tourism Authority of Thailand ) . The World Health Organization issued a planetary qui vive on March 12, 2003, but it did non see Thailand as a SARS part, and at that place had been no casualties reported. The virus affected assorted concern sectors, but had the most negative impact on the travel and touristry industry. These effects were besides felt by states such as China, Hong Kong, Singapore and Viet Nam. Particularly from March to June 2003, the SARS epidemic led to a lessening in the touristry and travel GDP, every bit good a lessening in touristry employment ( Steinmueller, 14 to 20 ) . Measured out over the twelvemonth 2003, there was a lessening of international reachings of 7.36 per cent, therefore taking to a lessening of touristry gross of 4.39 per cent ( Tourism Authority of Thailand ) . Furthermore, the economic loss within the states of East and Southeast Asia is calculated to be about 18 billion USD. The GDP touristry rate has significantly increased since the last 20 old ages, but in twelvemonth 2003 it fell back to 5.25 per cent, which was a lower rate than what was recorded in 1980 ( 5.93 per cent ) ( Steinmueller, 14 to 20 ) .

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Steinmueller reported the return of tourers in the month August 2003. The societal and economic effects were non every bit negative as expected. The Tai authorities spent a batch of its financial budget to undertake the SARS job before November 2003, when the extremum season was get downing. The authorities granted every single costless medical intervention and a amount of USD 100,000 in instance of a SARS infection in Thailand. Furthermore, USD 100,000 would be paid to the household members in instance of decease due to SARS ( Pongsak, 2 to 3 ) . The Tourism Authority of Thailand spent 70 million USD to market Thailand as a state with no SARS casualties. Furthermore, the authorities supported loss-making concerns with credits. Pongsak claimed that the Thai authorities were “ throwing money at the job ” , however, Thai authorities stated to hold limited the negative effects with aid of its crisis direction ( Tourism Authority of Thailand ) .


Harmonizing to Israngkura, the 2004 Tsunami killed approximately 165,000 people in Asia, with Thailand describing to hold lost about 5,000 people. The Tsunami affected the 6 Southern states Phuket, Phangnga, Krabi, Ranong, Trang and Satun. Phuket, Krabi and Phangnga are universe celebrated tourer finishs that were visited by more than 9 million international tourers per twelvemonth between 1999 and 2003. Furthermore, the one-year growing rate showed a annual addition of 8 per cent. Therefore, these parts rely really much on the touristry industry. The Tsunami destroyed non merely many installations such as places and schools, but besides capital goods as for case piscaries, harvest, cowss and fruit trees. For illustration 58,550 places were destroyed, and 6,842 houses were damaged. Besides touristic installations such as hotels, eating houses and stores were damaged, which resulted in a entire value of 12,852 million Baht in losingss to private organisations. Another issue was the devastation of natural assets such as corals and rain woods, which besides have an impact on Thailand ‘s touristry economic system, as many tourers visit Thailand in order to bask its nature. Apart from this, Thailand besides suffered a loss of societal public assistance. Israngkura calculated a entire loss of 12,224 million Baht due to the medical intervention of worlds and the decease toll. He estimates the loss of touristry gross to hold been 40,000 million Baht, and the loss of piscary gross to hold been 3,000 million Baht, which so resulted in a diminution of the Thai GDP growing rate of 0.8 per cent. Thailand ‘s crisis direction evolved to concentrate on new executable markets such as China and Russia, and present new merchandises such as for instant watering place vacations and volunteering holidaies. The touristry industry recovered within one twelvemonth and “ by May 2005, the reachings at the Bangkok airdrome were at the same degree as in May 2004 ” ( Pongsak, 3 to 4 ) .

Red Shirt Protests

BBC News reported at 14. March 2010 about red-shirts that occupy Bangkok ‘s fiscal territory to show against the current authorities. The political activities lasted for approximately two months with some intensifying into force ; 40 people died and a shopping promenade every bit good as a Television station were burned down. An exigency grade was raised in the states of Bangkok, Nonthanburi, Samut Prakan and Pathum Thani. Although the British Foreign and Commonwealth Office discouraged tourers from going to Bangkok, the UK travel agent Abta reported that non many tourers cancelled their holiday in Thailand, but alternatively would normally rearrange their holiday and visit topographic points that are non affected by the protests ( such as Phuket and Ko Samui ) . However, the protests led to a lessening in hotel business in Bangkok to 20 per cent in times when rates such as 80 or 90 per cent would be achieved. In add-on, the Thai Retailer ‘s Association reported that stores and shops in the Rachaprasong territory had lost about 1 billion Baht daily. Thailand ‘s Finance Minister estimated the economic growing of 2010 to be 4.5 to 5 per cent, the protest were estimated to hold lowered this anticipation of 0.3 per cent. As Thailand ‘s economic system is really much dependant on exports, the growing rate will finally be influenced by the sum of exported goods ( BBC News, 2010 ) . Bangkok Post reported on 19. May 2010 that the political instability was expected to take to a loss of 100 million Baht in 2010, as merely 12 to 13 million tourers were expected to pass their holidaies in Thailand harmonizing to appraisals of the Tourism Council of Thailand. Furthermore, the Tourism Council stated that “ political force had battered the full touristry industry ” , to the consequence that several touristry concerns had fallen into bankruptcy.

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The graph highlights the lessening of reachings from April to May 2010, but besides shows that the industry recovered rapidly, as reachings from July to September 2010 were higher than in the old ages 2007 to 2010.


Tourism is a really vulnerable industry. Thailand, as a semi-developed state, is really dependent on its touristry sector. Even though there were several incidents that have discouraged tourers from going to Thailand, it is noticeable that Thailand ‘s touristry industry normally recovered rapidly. This might be due to the fast changing nature of the industry ‘s environment, every bit good as the evidently immense budget the Tourism Authority of Thailand spends for advertisement, positioning and stigmatization.

Due to the sometimes contradictory statements by Thailand ‘s authorities, the existent losingss of the examined incidents are hard to measure. Furthermore, variables such as loss of repute as a safe state or the impact of pollution connected to touristry are non simple to mensurate. However, it is incontestable that crises state of affairss have a direct negative impact on the figure of Thailand ‘s touristry industry.


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