In a strategic move to stimulate tourism, the Thai government’s recent decision to extend nightlife hours has proven to be a game-changer, injecting life into the local economy during the New Year’s celebrations. The ripple effect of this policy is expected to resonate even louder as the long-awaited Chinese New Year holidays approach.
Commencing on December 15, the Cabinet’s approval allowed bars, nightclubs, and other entertainment venues in Bangkok, Phuket, Koh Samui, Pattaya, and Chiang Mai to extend their operational hours until 4 a.m, a substantial leap from the previous 2 a.m. closing time. The primary goal was to attract more nighttime tourist spending.
Government spokesman Chai Watcharong clarified that this extension was selectively permitted in renowned nightlife hubs, resulting in a surge of tourists staying out longer and significantly increasing their expenditures.
According to the Ministry of Tourism and Sports, Thailand recorded a staggering 44% increase in tourism revenue, amounting to 54.4 billion baht ($1.6 billion) in December alone. The extended nightlife hours, coupled with captivating countdown celebrations across the kingdom, played a pivotal role in this surge.
“The extension of nightlife opening hours played a key role in supporting tourism during the year-end period,” affirmed Sanga Ruangwattanakul, president of the business association of Khaosan, a famed nightlife venue in Bangkok.
Provincial Gov. Sophon Suwannarat shared the positive impact on Phuket, noting a newfound vibrancy and increased nightlife activity that attracted around 50,000 tourists, predominantly domestic, with over 300 flights per day during year-end celebrations. He anticipates that Phuket could potentially earn around 300 billion baht this year, closely approaching pre-pandemic levels.
In Pattaya, a popular beach town, hotels experienced around 90% occupancy as more than 320,000 tourists flocked to countdown venues, contributing approximately 2.6 billion baht to the local economy during the year-end celebrations alone.
Mayor Poramet Ngampichet highlighted that the extended opening hours significantly boosted revenues at pubs and entertainment venues, witnessing a remarkable 50% increase during the year-end period.
With the Chinese Lunar New Year on the horizon, industry experts foresee the prolonged nightlife hours sustaining the tourism industry’s momentum. Thailand aims to attract more Chinese tourists from Hong Kong, Taiwan, Singapore, and Malaysia during this festive season, providing a timely boost as mainland China grapples with an economic slowdown.
Despite the challenges posed by the COVID-19 pandemic, Thailand, heavily reliant on its tourism industry constituting 18% of its GDP, has taken various measures to rejuvenate tourism-related businesses. These efforts bore fruit in 2023, as the country welcomed 28 million foreign tourists, achieving the earlier set target of 25 million to 28 million for the year. Noteworthy sources of visitors included Malaysia, China, South Korea, India, and Russia. However, the figure still falls short of the 39 million foreign tourists welcomed in 2019, underscoring the industry’s journey toward full recovery.