Thailand discourages discounts; Focusing on selling premium packages

Government ministers stated on Monday that Thailand’s hotels, companies, and private clinics should avoid from giving significant discounts to entice travelers and instead concentrate on enhancing the value of the nation as a premium tourism destination.

In the first half of this year, Thailand welcomed around 2 million international tourists, marking a gradual recovery after the country’s tourism sector nearly collapsed owing to the epidemic and more than 18 months of onerous and expensive entrance restrictions.

At a tourism-related event at Bangkok’s main international airport, Deputy Prime Minister Anutin Charnvirakul remarked, “We cannot allow people come to Thailand and say because it’s inexpensive.”

He echoed the country’s tourism minister when he added, “Instead they should say ‘since it works, it’s reasonable,’ that’s where we can create value.

Anutin compared the strategy to that of high-end clothing company Louis Vuitton.

“Defend your position. Offer premium. More consumers will purchase it when prices rise, “added he. “Louis Vuitton wouldn’t have any sales otherwise.”

In pre-pandemic 2019, Thailand, one of Asia’s most popular vacation destinations, received a record-breaking close to 40 million visitors who spent 1.91 trillion baht ($53.53 billion), or 11% of the country’s GDP.

Despite calculated steps to abolish quarantine restrictions, arrivals fell to 6.7 million the next year and to 428,000 in 2021. In 2022, 10 million international arrivals are anticipated.

Thailand started a long-term visa program earlier this year for affluent foreigners and highly qualified professionals, adhering to its strategy to entice high-spending tourists despite significant employment and revenue losses in the tourism industry due to the epidemic.

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