The Association of Thai Travel Agents had expressed concerns over the growing number of foreigners illegally working or doing business in the country, while the Thai Hotels Association said the long visa-free period may be partly to blame for the increase in condominium units being illegally rented out to foreign guests, the Bangkok Post reported.
The move to shorten the stay could have a low-single-digit negative impact on overall inbound tourism demand, with data from ForwardKeys suggesting as much as 7% of total bookings to Thailand over January-February were for stays of 22 nights or more, according to Bloomberg Intelligence analysts Eric Zhu and George Ferguson.
“The potential policy move adds to a growing list of factors weighing on the sector into 2Q, along with Chinese tourists’ security concerns and tighter travel budgets among North American and European travellerss,” the analysts said in a report Tuesday.
Tourism remains a key driver of Thailand’s economy, which is the second-largest in the region. The government is targeting foreign tourist arrivals to top 40 million this year, which would break a record set in 2019.
See also: Bangkok Airways seeks 30 new jets as White Lotus boosts tourism
Between January and March 16, Thailand has welcomed 8.3 million foreign tourists, up 3.9% on the year.
