Bangkok: The Thai Hotel Association is expressing concerns over the impact of rising oil prices on the tourism industry as crude oil prices have recently surged past US$100 per barrel. The president of the association has highlighted the challenges facing the sector in the third quarter of 2026, despite a notable recovery in Chinese tourist numbers.
According to Thai News Agency, Mr. Thienprasit Chaiyaphatranan, President of the Thai Hotel Association, has raised alarms about the negative implications of increased oil prices, which have been exacerbated by ongoing conflicts in the Middle East. These price hikes have led to increased travel costs, affecting both tourist confidence and the operational capabilities of tour groups and travel companies. Particularly impacted are Thai hotels with a rating below 3 stars, which are now grappling with liquidity issues. The association is calling for government intervention through subsidy packages or working capital to help these small-scale operators upgrade their facilities to meet industry standards.
While there has been a positive uptick in the Chinese tourism market, with an average of 17,000-18,000 Chinese visitors per day, the Indian market has seen a decline over the last two months. This downturn is attributed to uncertainties around the previous visa-free policy. The government's recent announcement of a 30-day visa-free period is expected to help restore confidence, though a full recovery is anticipated to take time.
The association also stresses the urgency of addressing long wait times at immigration checkpoints, where tourists currently endure waits of 2-3 hours. This is seen as a critical factor in improving the overall tourist experience.
Regarding domestic tourism stimulation, the association is critical of the "Thai Travel Plus" program's proposed launch in the fourth quarter of 2026. Given that this period coincides with the high tourist season, the association argues that such initiatives should be reserved for the low season to avoid misleading tourists and creating perceptions of price exploitation by hotels. They recommend reallocating this budget to support domestic tourism during the low season or implementing it in the current quarter for maximum impact.
From January 1st to July 18th, 2026, Thailand welcomed 17.36 million foreign tourists, generating over 830 billion baht. The major contributors to this influx include China with 2.86 million visitors, Malaysia with 2.25 million, India with 1.31 million, Russia with 1.06 million, and South Korea with 631,777 visitors.
The Ministry of Tourism and Sports is proposing a 1.75 billion baht budget for the "Thailand Travel Plus 2026" initiative, which aims to boost economic activity by over 32 billion baht and increase tax revenue by around 1.6 billion baht. The program will offer discounts on accommodations, air tickets, digital coupons, and support for tour packages and spa services, as well as promote OTOP (One Tambon One Product) products.