“The tourism sector is now facing a double impact from baht volatility and the fighting in the Middle East, which has pushed up airfares,” Sisdivachr said.
“This has raised the overall cost of each trip. At the same time, airlines have announced temporary route cancellations or flight reductions during the summer schedule. Flights that continue to operate have had to raise fares because of higher fuel costs, so foreign tourists are likely to delay their travel plans.”
Sisdivachr said Thailand’s tourism outlook had become extremely difficult to assess on a quarterly basis because the war remained prolonged and uncertain.
If the situation returns to normal, tourism could recover quickly, he said. But if persistent global uncertainty becomes the “new normal”, travellers may choose not to travel.
However, tourism operators cannot afford to stand still, he added. They must continue stimulating travel to support businesses and help sustain the Thai economy.
“We need to monitor whether the Middle East conflict will spill over into the high season in the fourth quarter,” he said.
“International politics is not something that can be resolved easily, and many countries are involved, including the United States, Iran and Israel. If the conflict ends soon, we hope oil prices will fall and tourism will return to normal during the fourth-quarter high season this year.”
