Negative Effects of Tourists’ Expenditures in Thailand

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Negative Effects of Tourists’ Expenditure
Tourism expenditure is a very significant factor in the economic growth of every country. In other words, the more the tourists spend the better it is for the economy. Thailand is also known for having a very high demand in tourism, as it is cheap and very convenient to many travelers. However this sometimes causes negligence and over-utilization of tourism resources and this can have a negative impact on Thailand’s economy (Naewmalee, 2005). For example if a tourist travels to Thailand and his/her expenditure is fixed with every following visit then this does not generate the revenue that is expected because their expenditure is not increasing (Naewmalee, 2005). “Recently, the tourists’ daily expenditure in Thailand, which is a direct measurement of revenue per tourist, shows a declining trend due to the falling of relative price” (Pongsirirushakun, 2003).

Table 2 (Naewmalee, 2005) Table 2 (Naewmalee, 2005)
The information on the charts was taken from the Tourism Authority of Thailand (Naewmalee, 2005). Table 2 shows that throughout the years tourism in Thailand is increasing which is a positive thing. However the chart below shows us that even though tourism was increasing, the daily expenditures were decreasing. According to Dr. Apichat, a research specialist and Mr. Kiratipong who is also a researcher in TDRI economics program, the daily expenditure per tourist is low compared to their length of stay. Even though the
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