Bangkok--11 Apr--Aziam Burson-Marsteller
A majority (85%) of tourists to Thailand arrived with a budget — however — a third (36%) claimed they would likely exceed their holiday budget in Thailand, more so than in other destinations they had travelled to, according to a survey on Thailand tourists’ spending and money management habits commissioned by The Western Union Company (NYSE: WU), a leader in global payment services.
Although food, drink and accommodation accounted for approximately two thirds (62%) of tourists’ budgets in Thailand — it was the great shopping temptations that Thailand offers that usually tipped them over budget, according to the survey conducted by BMRS Asia.
Those going over budget were largely tourists from North Asia, as well as from the UK and France; but Australians, Americans and Singaporeans were largely disciplined and did not succumb as much to shopping delights over their budgets.
KEY HIGHLIGHTS
- Visitors from North Asia — China (38% of visitors), Korea (45%), Taiwan (50%) and Japan (50%); UK (48%) and France (53%) are more likely to spend more than their budget in Thailand; while tourists from Singapore, Philippines, Australia and the USA are more likely to keep within their budgets;
- The top three items on which tourists spend their money during holidays made up 80% of their total spend — “Food & Drink” (37%), “Accommodation” (25%) and “Shopping for Oneself” (18%)
- Asian tourists, females and those over 34 years ranked “Shopping for Oneself” as the Number 1 item they spent money on;
- Younger travelers — under 34 years — ranked “Food & Drink” higher on their list of holiday expenses;
- Cash is still king for most tourists when it comes to holiday spending in Thailand;
- More than half of tourists (54%) indicated that they would use Thai Baht (in cash) to settle their bills, but 3 out of 4 tourists also carrying at least one major credit card;
- In addition to carrying Thai Baht in cash, many also said they were carrying US dollars and/or their home currency to exchange for Baht if the need arose;
- Very few travelers (less than 3%) indicated that they would rely on Travelers Cheques or pre-loaded Debit Cards for their holiday expenses.
“For many years Thailand has been a haven for tourists due to its wide range of attractions. The country offers something for everyone, regardless of area of interest or budget — from young backpackers out to see the world to seasoned travelers who are looking for the highest levels of comfort and service,” said Vipawan Yongvikul, Thailand country director for Western Union.
“Realizing that foreign tourists are important for Thailand, as well as an important customer segment to Western Union in Thailand, we commissioned this study to help better understand their vacation budgeting and spending habits while traveling here.
“Tourism has always been, and will continue to be, an important contributor to the Thai economy in the years to come. On the one hand, this survey helps us to tailor Western Union? services to travelers’ needs, and on the other, it also reveals the need to keep tourists informed and up-to-date on pricing information for a range of tourist-oriented goods and services, so that they can better plan financially for their holidays in Thailand.
“Western Union is an avenue that tourists fall back on to have money remitted to them from family and friends back home, or to top-up their funds in emergencies” Vipawan said.
The Immigration Bureau Police Department reported that in 2012 there were 22.3 million arrivals in Thailand, which is an increase of almost 16% from 2011.1
According to the World Travel & Tourism Council, tourism’s contribution to Thailand’s GDP was 1,561.9 billion Baht (US$52.1 billion) in 2010 and is estimated to reach 1,772.6 billion Baht (US$59.1 billion) in 2012. Further the organization forecasts that tourism will generate 3,286.6 billion Baht in 2020 (US$110 billion).2
BMRS Asia conducted a face-to-face quantitative survey among 300 tourists (from 17 different countries) who were visiting Bangkok and Pattaya, and asked about their spending and money management behavior whilst in Thailand. All of the tourists surveyed had been in Thailand for at least three days and were ‘independent’ travelers, ie not part of an organized tour group.
About Western Union
The Western Union Company (NYSE: WU) is a leader in global payment services. Together with its Vigo, Orlandi Valuta, Pago Facil and Western Union Business Solutions branded payment services, Western Union provides consumers and businesses with fast, reliable and convenient ways to send and receive money around the world, to send payments and to purchase money orders. As of December 31 2012, the Western Union, Vigo and Orlandi Valuta branded services were offered through a combined network of approximately 510,000 agent locations in 200 countries and territories. In 2012, The Western Union Company completed 231 million consumer-to-consumer transactions worldwide, moving $79 billion of principal between consumers, and 432 million business payments. For more information, visit www.westernunion.com.