Government aims to revive tourism amid declining foreign visitors and revenue
The Thai government has become the first in Southeast Asia to pursue the attraction of Disneyland. With both foreign tourists and tourism revenue declining last year, causing the economic growth engine to cool, there is an assessment that the country has selected the world’s most famous theme park to ensure a surge in demand.
The Bangkok Post reported on the 28th (local time) that Thai Deputy Prime Minister and Transport Minister Phiphat Ratchakitprakarn is reviewing plans to promote a Disneyland project centered on the Eastern Economic Corridor (EEC), a development zone east of Bangkok.
He stated in an interview with a local Thai media outlet the same day, “The Disneyland project is not just a dream but a reality,” adding, “A feasibility study aligned with the public-private partnership (PPP) model is underway.” The same day, the Thai Embassy in the U.S. also introduced the plan to attract a global theme park within the EEC on its official website, describing it as a “core project for tourism and investment attraction.”
The Disney headquarters has not yet officially confirmed its participation. The Thai government is at the stage of publicly disclosing policy ideas to simultaneously address two challenges: slowing tourism and insufficient infrastructure demand. The government plans to use a large-scale theme park like Disneyland as a stepping stone to attract people and capital, accelerating development in the eastern region.
Behind Thailand’s all-in approach to attracting Disneyland lie dire economic indicators. While Thailand remains a global tourism powerhouse, it has recently shown clear signs of slowdown. Last year, the number of foreign tourists visiting Thailand fell to 32.9 million, a 7.23% decrease from the previous year. During the same period, tourism revenue from foreign visitors amounted to 1.53 trillion baht (approximately 70 trillion Korean won), a 4.7% decline year-on-year.
Tourism accounts for approximately 20% of Thailand’s gross domestic product (GDP). Given the economy’s high dependence on tourism, this downward trend is interpreted not as a simple economic fluctuation but as a signal that the growth model itself has hit its limits. It has been proven through figures that the country can no longer attract high-income tourists who are willing to open their wallets with its previous tourism pattern focused on low prices and entertainment.
The EEC, where Thailand aims to attract Disneyland, is a region that the country has been developing with national efforts. It has already invested tens of trillions of won in airports, railways, and ports. The original plan was to grow it into an industrial and logistics hub, but there were clear limitations in attracting people and money. In particular, as air travel demand recovery slowed after the pandemic, private investors in Thailand who had shown enthusiasm for the project halted construction.
Shift, a travel media outlet, evaluated, “The Thai government has abandoned the strategy of laying infrastructure first and waiting for demand, shifting direction toward a project that creates new demand,” adding, “Disneyland is the only card that provides airlines, hotels, and railway operators with a reason to invest in the EEC.”
The Thai government and financial sector have presented an optimistic blueprint for the economic ripple effects of Disneyland. According to an analysis report by Maybank Securities, a Southeast Asian financial institution, if a Disneyland-level theme park is established in the EEC, it is estimated to generate an annual economic effect of approximately 187 billion baht (about 8.6 trillion Korean won). This is a scale that could raise Thailand’s overall GDP by about 1 percentage point.
The government’s estimates are similar. Thai authorities expect that if the project is realized, foreign visitors will increase by 5-10%, leading to additional tourism revenue of 120-220 billion baht (approximately 5.5-9.2 trillion Korean won). They also anticipate the creation of up to 15,000 new jobs. The Nation Thailand, a local English-language media outlet, reported, “The government aims to re-establish Thailand as an ASEAN regional entertainment hub through this project.”
The key lies in competitiveness. Asia already has three Disneylands in operation: Tokyo, Hong Kong, and Shanghai. As a latecomer, Thailand’s advantage is its symbolic status as the first Disneyland in the Association of Southeast Asian Nations (ASEAN). Except for Universal Studios Singapore, the ASEAN region has no large-scale global theme parks. Thailand believes it can attract middle-class families from Singapore, Malaysia, and Indonesia by leveraging its accessibility and low-cost stay options.
Lifestyle Asia, the largest lifestyle magazine in Southeast Asia, evaluated, “The reason Thailand shifted from its initial plan of a casino complex to Disneyland is an attempt to improve its tourism structure by targeting family travelers and high-income groups.” The strategy is to transform from the previous low-margin, high-volume entertainment tourism model to a premium, stay-based tourism model that increases the length of stay and spending per guest within the theme park.
However, there are significant hurdles to overcome. The most practical issue is the climate. Thailand’s hot and humid weather year-round could be fatal to the operation of a theme park that primarily involves outdoor activities. Unlike Tokyo, Japan, or Shanghai, China, massive cooling infrastructure costs may be required to create a comfortable viewing environment. Key challenges include how to address issues such as the proportion of indoor facilities, cooling and shaded pathways, drainage, and flood response.
A bigger risk is “political discontinuity.” In an editorial, the Bangkok Post stated, “The most important thing is the entity and continuity that can complete the project.” In the past, there were discussions about attracting Universal Studios, but they did not lead to concrete investment contracts or official government projects, remaining at the review and outlook level.
Additionally, numerous large-scale projects have been scrapped due to political changes and interests centered around the military. This time, Deputy Prime Minister Phiphat has not mentioned any specific start date or opening schedule beyond the planning stage. For Disney, a global corporation, the key variable in negotiations will be how much it can trust the consistency of Thai government policies.
