The conversation invariably revolves around numbers and increasing them. I have previously highlighted in this column how the government often talks about focusing on quality over quantity, yet consistently prioritises the latter. This is indeed the case, but the crux of the situation runs much deeper. Is tourism truly the basket in which Thailand should be placing all its eggs?
Bangkok, Phuket, Pattaya, Chiang Mai, Chiang Rai, Koh Samui and Hua Hin are the top destinations for international tourists visiting the country. They spend generously in hotels, restaurants, shops and tourist attractions in these locations. On the surface, it all sounds promising: money flowing into the economy, jobs created and livelihoods supported. The government is keen to promote new areas with ‘international’ airports in Krabi, Songkhla, Trang etc., to create new hubs and distribute the wealth. But is this sustainable? Is this truly beneficial for Thailand in the long term?
While these tourist hotspots thrive, a closer look reveals a troubling reality. The wealth generated rarely permeates beyond these limited geographical areas and often ends up concentrated in the hands of the already wealthy and international corporations. The ‘trickle-down effect’, where tourism employees earn more and send their savings back to their families, is largely a myth. Wages in the hospitality industry are kept criminally low, while the cost of living, particularly rent, in these tourist hubs is exorbitant. This leaves little disposable income for employees to save or send home, further exacerbating economic disparities between regions.
Moreover, the skills developed within the tourism sector rarely venture beyond these hubs. We are surrounded by underdeveloped areas where young people are forced to migrate to tourist centres in search of income, perpetuating an endless cycle of economic disparity. The skills acquired in the tourism industry, while valuable, often have limited applicability in other sectors, hindering the development of a diverse and resilient economy.
The over-reliance on tourism also leaves Thailand vulnerable to external shocks. The recent pandemic starkly demonstrated this fragility, as the sudden halt in international travel crippled the economy. Furthermore, an excessive focus on tourism can lead to the neglect of other crucial sectors, such as education and technology.
Thailand recently ranked a dismal seventh in the ASEAN region for literacy, a shameful statistic for a nation of our size and economic standing. Our education system, with its emphasis on rote learning and memorisation, is archaic and ill-equipped to prepare our youth for the challenges of the 21st century. Instead of fostering critical thinking, problem-solving and creativity, our schools churn out graduates who excel at parroting information but lack the skills needed to innovate and drive progress.
To secure a prosperous future, Thailand must invest in its human capital. We need to overhaul our education system, shifting the focus from passive absorption to active learning, from memorisation to innovation. This requires a multi-pronged approach. Firstly, we need to move away from the traditional lecture-based format and embrace more interactive and engaging teaching methodologies. Project-based learning, where students actively apply their knowledge to solve real-world problems, should be encouraged. Secondly, the curriculum needs to be revised to emphasise critical thinking, problem-solving, and digital literacy. Subjects like coding, data analysis, and design thinking should be integrated into the curriculum from an early age. Thirdly, we need to invest in teacher training and development to equip educators with the skills and knowledge to implement these changes effectively.
Furthermore, the government must actively promote the development of new industries, particularly in technology and innovation. This will not only create high-skilled jobs and stimulate economic growth but also reduce our dependence on tourism. By diversifying our economy, we can create a more resilient and sustainable future for Thailand. This requires creating an enabling environment for businesses to thrive. Tax incentives, grants and subsidies can be provided to encourage investment in research and development. Incubators and accelerators can be established to support startups and entrepreneurs. Collaboration between universities and industry should be fostered to facilitate the transfer of knowledge and technology.
Looking at successful examples can provide valuable insights. Estonia, for instance, has transformed itself into a digital powerhouse by investing heavily in digital infrastructure and education. Israel, despite its limited resources, has become a global leader in innovation through a strong focus on research and development and an investment culture that encourages risk-taking. By learning from these success stories, Thailand can chart its own path towards a knowledge-based economy.
It’s also crucial to address the issue of ‘zero-baht tourism’, particularly prevalent among Chinese tour groups. These tours often operate within a closed ecosystem, with Chinese tourists staying in Chinese-owned hotels, dining in Chinese restaurants and using Chinese tour guides, often operating illegally. This practice siphons off potential revenue from the Thai economy and undermines local businesses.
The government needs to implement stricter regulations to curb this practice and ensure that tourism benefits Thailand as a whole, not just a select few. This includes cracking down on illegal tour operators and guides, promoting local businesses and encouraging tourists to explore beyond the confines of pre-packaged tours.
In conclusion, while tourism undoubtedly plays a vital role in the Thai economy, it is not a panacea for our problems. Over-reliance on this single sector has created regional disparities, perpetuated low wages and hindered the development of a skilled workforce. To truly unlock Thailand’s potential, we must invest in education, diversify our economy and promote sustainable tourism practices.
Simon Causton is a long-time Phuket resident, founder of Citadel Phuket and author of ‘The Phuket Periodical’ newsletter. X (Twitter): @SimonCauston