Flight Bookings Drop by Up to 60% in Two Days After Earthquake
Damage Estimated at Up to 1.29 Trillion Won
Government Responds with Earthquake-Safe Hotel Certifications and Other Measures
In the aftermath of the strong earthquake in Myanmar, damage such as building collapses has also occurred in Bangkok, Thailand, raising concerns that the Thai tourism industry will suffer significant blows.
A building under construction collapsed in Bangkok, Thailand due to an earthquake in Myanmar. Photo by Yonhap News.
According to the Bangkok Post on the 2nd, since the earthquake on the 28th of last month, foreign tourist bookings for flights and hotels in Thailand have slowed, and inquiries about refunds and cancellations have continued. The Thai Air Transport Association reported that flight bookings decreased by 40-60% during the two days following the earthquake, with bookings for flights from China dropping by 60% in particular.
With the Songkran Festival, Thailand's peak tourism season, approaching, concerns in the tourism industry are growing even more. Songkran, held every April, is Thailand’s traditional New Year holiday and a representative water festival. Last year, over 1.9 million foreign tourists visited Thailand during this period. However, a representative from the Thai Hotel Association predicted that the average hotel room occupancy rate during this year’s Songkran Festival will be maintained at around 60%, lower than last year’s 65%.
The Thai government has taken measures to mitigate the shock caused by the earthquake. The Ministry of Tourism and Sports announced the establishment of a crisis management team and plans to issue certificates to hotels that pass earthquake safety inspections. Additionally, they encouraged tourists to download the Thai Tourism Police app, which will allow tourists to receive direct alerts from the tourism police in case of unprecedented incidents. These measures aim to restore trust that traveling in Thailand is safe.
Tourism in Thailand is a key industry, accounting for about 20% of the gross domestic product (GDP) and jobs both directly and indirectly. In 2019, just before COVID-19, the amount spent by foreign tourists in Thailand accounted for about 11% of the GDP.
The number of foreign tourists visiting Thailand reached 40 million annually in 2019 but plummeted to 430,000 in 2021 after the COVID-19 pandemic. Since then, 35 million tourists visited Thailand last year, recovering to pre-pandemic levels. Accordingly, Siam Commercial Bank (SCB), Thailand’s largest bank, had forecasted 38.2 million foreign tourists visiting Thailand this year but plans to revise this downward.
Major Thai research institutions estimate that the damage caused by this earthquake could reach up to 30 billion baht (approximately 1.29 trillion KRW).
Earlier, on the 28th of last month, a magnitude 7.7 earthquake in Myanmar caused significant chaos in Thailand, including the collapse of a 30-story new building under construction for the Thai Office of the Auditor General in Bangkok. As of the 2nd, a total of 22 people have died across Bangkok due to the earthquake, and 72 people, including construction workers, remain missing.
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