The TCT also predicted that Thailand would gain only 33.3 million foreign arrivals this year, which is even fewer visitors than last year, and secure B1.75 trillion revenue, reports the Bangkok Post.
TCT President Chai Arunanondchai said the tourism industry has been facing even greater challenges than last year due to a string of negative factors.
According to the TCT, the tourism confidence index for the second quarter stood at only 70, below a benchmark of 100 recorded prior to the pandemic.
It also plunged from 79 recorded in the corresponding period last year, and 83 recorded in the first quarter.
The council surveyed 740 tourism operators nationwide from May 25 to June 10. The kidnapping of a Chinese actor into a border scam centre in Myanmar and the Mar 28 earthquake hampered foreign tourist arrivals, causing the Chinese-speaking market to drop by over 50%.
World economic growth is expected to grow at the slowest rate in 16 years, mainly attributed to the US’s reciprocal tariff policy, causing tourists to feel insecure about their income, prompting them to opt for trips to closer destinations instead.
The emerging challenges include the ongoing Thailand-Cambodia border spat, which is expected to hamper tourism in the border provinces during this low season, while the high level of household debt among Thais also persists.
The tourism confidence index across all six regions also dipped year-on-year. The Eastern and Western regions still recorded a better index than others at 78 and 73, respectively, as they are able to share tourists travelling there from Bangkok.
In terms of business sectors, the confidence index for entertainment businesses dropped to the lowest level of only 60, down from 73 last year.
In the second quarter, tourism operators reported having only a 45% recovery in terms of revenue compared to the level recorded in 2019.
Hotels also recorded a 48% average occupancy rate, dipping from 55% recorded in the corresponding period last year.
Even though the labour shortage is not a critical issue for the tourism industry at the moment, it would be a problem if more businesses decide to permanently close down, he said.
In the second quarter, 94% of businesses were still operating as usual, down from 97% in the first quarter.
The TCT forecasts that the confidence index will dip further to 65 in the third quarter.
Mr Chai said the council has urged the Tourism Authority of Thailand to launch a subsidy for bus operators to operate trips nationwide.