The Tourism Authority of Thailand is working with the country’s regulators and a cryptocurrency exchange to pave the way for accepting digital currencies for travel, according to Governor Yuthasak Supasorn, which could help Thailand recoup some $80 billion in lost tourism revenue due to Covid-19.
“Many people have become wealthy through owning cryptocurrencies and they may want to use their accumulated assets. It would be convenient for many people if they could use cryptocurrencies without conversion or tax,” Mr. Yuthasak said.
Photo caption: Thailand is one of the first Southeast Asian countries to open up to tourism as the Covid-19 epidemic is gradually brought under control. Photo: Euronews.
However, it may be some time before tourists start using Bitcoin, Ethereum and other cryptocurrencies to travel. Like many other countries, Thailand does not recognize cryptocurrencies as legal tender. But the tourism authority is working to build the foundations for wider acceptance of cryptocurrencies when global travel returns to normal.
The government will set up a new unit next year to issue its own cryptocurrency, set up e-wallets and build a new tourism ecosystem. Tourism regulators have been in talks with the Securities and Exchange Commission, the Bank of Thailand and Bitkub Online, the country’s largest cryptocurrency exchange, on the plan.
By 2023, Thailand could recover about 80% of its pre-pandemic tourism revenue if it receives half the number of international visitors it received in 2019. Thailand, known for its tropical islands, pristine beaches and vibrant nightlife, attracted nearly 40 million foreign visitors in 2019, generating more than $60 billion in revenue. But the pandemic has kept the country’s borders closed for more than a year.
Thailand’s tourism industry is not expected to recover to pre-pandemic levels until 2024, despite allowing quarantine-free entry for visitors from more than 60 countries. Thailand aims to attract around 1 million high-income tourists in the first quarter of 2022.
The government is also betting that 10% of cryptocurrency holders will travel to Thailand. “Cryptocurrencies are the future, so we must make Thailand a crypto-positive society to welcome this group of quality tourists,” Mr. Yuthasak concluded.
