The International Air Transport Association (IATA) has called on Thailand to significantly enhance its aviation sector as it rebounds from the impacts of the COVID-19 pandemic. In a recent statement, Dr. Xie Xingquan, IATA’s regional vice president for North Asia and the Asia-Pacific, emphasized the strategic importance of aviation to Thailand's economy, pointing out that with world-class tourism assets and a growing business sector, the country is poised to rank among the top 15 global aviation markets in the next two decades.
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Thailand's aviation sector, contributing significantly to the economy with 7.4% of GDP pre-COVID, predominantly through tourism, where 84% of visitors arrive by air, is at a critical juncture. The IATA underscores several key areas for improvement:
1. Infrastructure Development: The expansion and modernization of airports like Suvarnabhumi are pivotal. There are ongoing projects to upgrade multiple airports, including Khon Kaen and Hua Hin, with substantial investments aimed at increasing passenger capacity to meet future demand. This includes not just physical expansions but also adopting advanced standards like One ID for digital identity and One Record for cargo processes to streamline operations.
2. Taxation Policy: IATA advises against reintroducing a tourism tax, suggesting instead that lower operational costs for airlines would foster growth in the tourism and MICE (Meetings, Incentives, Conferences, and Exhibitions) sectors. This approach would help maintain Thailand's competitive edge in regional aviation hubs.
3. Sustainability: As the aviation industry globally moves towards decarbonization, Thailand has an opportunity to lead in Sustainable Aviation Fuel (SAF) production. IATA highlights that while policy support for SAF is crucial, its availability in the market is essential for airlines to transition effectively.
4. Digitalization: Enhancing digital processes to improve passenger experience is another priority. This involves not only improving check-in and security processes but also ensuring these initiatives align with global standards to benefit travelers and airlines alike.
The urgency to upgrade comes at a time when Thailand is witnessing a recovery in tourist numbers, yet the infrastructure and regulatory environment need to evolve to support this growth sustainably. The call from IATA isn't just about maintaining current levels of service but about elevating Thailand's aviation sector to match its economic ambitions, leveraging its strategic geographical position, and enhancing connectivity within Asia-Pacific and beyond.