Episode 11: High Yield Tourism Podcast
Thailand's Tourism Revolution: From Mass Market to High-Value Experiences Discover how Thailand is reimagining its tourism strategy through the innovative "5Fs" concept - food, fashion, festivals, fight (Muay Thai), and film. Former Deputy Governor of TAT, Khun Chattan Kunjara, reveals how the country is moving away from mass tourism towards a more sustainable, high-yield approach.
With:
Gary
Bowerman
Dr Jens
Thraenhart
Chattan
Kunjara
Former Deputy Governor, Tourism Authority of Thailand
Listen to it now on your favourite podcast channels:
Summary
Khun Chattan Kunjara, former Deputy Governor of the Tourism Authority of Thailand, discusses the country’s shift from a mass tourism strategy to a focus on high-yield tourism. He explains that the previous approach of attracting large numbers of visitors was not sustainable, as it overwhelmed the infrastructure and led to environmental degradation. The new strategy aims to target high-spending travelers who can contribute more to the local economy, while still accommodating the mass tourism segment.
Khun Chattan emphasizes the importance of managing carrying capacity and ensuring tourism growth is sustainable, especially in secondary cities and provinces that are being promoted. The pandemic has further accelerated Thailand’s focus on attracting higher-yield visitors as the tourism industry recovers. The pandemic compelled Thailand’s tourism agency, TAT, to rethink its approach. Before COVID-19, TAT focused on driving visitors to the provinces, leaving local governments to manage the experience. But the pandemic forced TAT to work closely with local stakeholders to determine if and how they would welcome tourists back. This collaborative process was essential, as destinations had to weigh the risks and benefits of reopening. Once reopened, TAT shifted its strategy to target specific high-yield traveler segments, rather than opening the doors to everyone. By leveraging Thailand’s strengths in areas like food, film, and festivals, TAT has been able to attract a diverse array of travelers and remain competitive in the regional landscape. The speakers discuss Thailand’s tourism strategy, centered around the concept of “5Fs” – food, fashion, festivals, fight (Muay Thai), and film.
This approach aimed to repackage Thailand’s soft power and promote tangible products and experiences that visitors could easily understand and engage with. The 5Fs allowed the tourism board to focus its marketing efforts, while also empowering local governments and stakeholders to showcase their unique offerings. The speakers highlight how this strategy helped drive higher-yield tourism, as visitors spent more money and the benefits were better distributed across the destination. Through this holistic approach to storytelling and product development, Thailand was able to better showcase its national personality and inspire travelers to immerse themselves in the Thai way of life. The speakers discussed how certain hotels in regional areas of Thailand saw an increase in occupancy and room rates during peak travel periods, such as festivals or holidays in neighboring countries like Malaysia. This suggests that focusing on attracting high-yield travelers to secondary destinations beyond the main tourist hubs can be an effective strategy. The speakers also mentioned the potential impact of the TV series “White Lotus” being filmed in Thailand, which could boost the country’s overall image and appeal. Additionally, the speakers highlighted the need to diversify Thailand’s source markets beyond the traditionally dominant ones, tapping into emerging markets like Israel, Kazakhstan, and Saudi Arabia, which may not have the same scale but can provide high-yield travelers who appreciate the country. The speakers emphasize the importance of diversifying target markets in tourism, while focusing on those who truly appreciate the local culture and hospitality. They highlight the value of both regional travel within Southeast Asia as well as domestic tourism within Thailand, which helped the industry survive during the COVID-19 pandemic. The speakers believe that as neighboring economies grow, increased overland travel and cross-border tourism will benefit Thailand, allowing visitors to experience the country’s unique culture and value. Overall, the discussion underscores the need for a multifaceted approach to rebuilding and sustaining Thailand’s tourism industry in the post-pandemic era. The speakers discuss the challenges facing Thailand’s tourism industry, including intense competition, high consumer expectations for quality and safety, and the need to deliver a consistently exceptional experience for travelers. They emphasize the importance of communication and collaboration between the government, private sector, and other stakeholders in building resilience and weathering challenges like natural disasters and political instability. The speakers suggest that other destinations can learn from Thailand’s ability to bounce back and overcome obstacles through open dialogue and a shared understanding of priorities and solutions. Khun Chattan, a long-time consultant with TAT (Thailand’s tourism authority), shares his extensive experience and insights on the evolution of Thai tourism. As a retired industry veteran, he offers a wealth of knowledge and a unique perspective on the sector’s growth and challenges.
Key Highlights
Thailand is shifting from a mass tourism model to a focus on attracting high-spending, high-yield visitors to contribute more to the local economy.
The COVID-19 pandemic has accelerated this shift, with the tourism agency collaborating with local stakeholders to determine sustainable reopening plans.
Thailand's "5Fs" strategy (food, fashion, festivals, fight/Muay Thai, and film) has helped repackage the country's soft power and promote unique experiences for diverse travelers.
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