The ongoing stock market slump fuelled by US tariffs could impact domestic tourism sentiment for the rest of the year, including next week's Songkran holiday, with fewer last-minute hotel bookings and tour groups.
Kantapong Thananerngroth, president of the Thai Tourism Promotion Association, said many domestic tour agencies received fewer bookings from local tour groups than expected for Songkran, attributed to weakened spending and travel sentiment.
He said middle-to-lower-income groups are cutting back on domestic trip plans, while the high-spending segment has opted for overseas excursions during the holiday.
Many domestic tourists may still travel within their regions, but will restrict their shopping budgets during the trips, said Mr Kantapong.
"Though people have been cautious in managing their financial discipline, they are concerned about being affected by unexpected events, such as the US tariffs and the recent earthquake," he said.
"People feel more pressure from higher costs despite unchanged income. This will impact tourism, which is not a necessity for life."
Mr Kantapong said he expects domestic tourism this year to decline from 2024, as no more pent-up travel demand exists from the pandemic to help drive the market, while the economic slowdown persists.
Morrakot Kuldilok, president of the eastern chapter of the Thai Hotels Association, said a number of bookings for Songkran were made by Thai family groups in advance.
However, younger travellers that often rely on last-minute bookings might decide to skip visits, staying in Bangkok or their hometown, she said.
Thanet Supornsahasrungsi, president of the Association of Chonburi Tourism Federation, said most hotels in Pattaya and Chon Buri have projected occupancy rates of 80-85% for Songkran thanks to the school break, but the growth rate of last-minute bookings has been slower than expected.
In the aftermath of earthquakes that hit Bangkok and Myanmar, the overall tourism confidence was also weakened.
The association, the mayor of Pattaya and stakeholders in the province held a press conference last week to confirm that Pattaya was safe to visit, insisting that Chon Buri is not located in the risk zones under the 2021 ministerial regulation regarding the areas which require earthquake prevention.
He said high-rise buildings in the city have also been designed to accommodate possible tremors, though they are not located in the risk areas.
Mr Thanet said that since most companies do not allow remote work, domestic guests who cannot return to live in their condos might choose hotels in Bangkok, rather than travelling to Pattaya, as seen during the first few days after the earthquake.
