Thailand Needs to Soak Its Own Rich, Not Just Wealthy Tourists

While the government focuses on burnishing its appeal to well-heeled tourists, massive holdings of Thai elite wealth remain effectively untaxed.

Thailand’s government has decided, like Japan and others, that the quality of the tourists it attracts is far more appealing than the quantity. After receiving just 33 million foreign arrivals to the Kingdom this year, far below the record 40 million it recorded in 2019, Thailand is betting that a smaller number of more wealthy tourists can generate the same amount of revenue. It is seeking to attract them in part by providing “meaningful experiences” for the rich in the form of golf resorts, wellness retreats, fine dining, and luxury packages. Thailand is suffering not only from a decline in tourism volume, as a strong baht, a rising Vietnam, and an ugly transnational crime problem have hampered interest, but also from the fact that its solution to the problem is a loser, as there are other wealthy people to “soak” right at home.

Part of the issue is that Thailand’s current tourism infrastructure is built for high volume, not for an exclusive few. Twenty percent of the Thai economy depends on tourism – a large part of which is those who cater to it, including tuk-tuk drivers, tour operators, small hotels, and locally-owned restaurants. Combined, they represent the beating heart of ubiquitous destinations like Chiang Mai, Phuket, and Pattaya.

Consequently, making a sharp pivot toward people who would never frequent or purchase services from these local operators would worsen the economy and drive upward an already staggering rate of income inequality. This inevitably means that the small business owner and the thousands of people who operate in the informal sector of the Thai economy would be at risk. Thus, pursuing the same strategy as Singapore and Japan – two very different economies – seems foolish, particularly as other countries in Southeast Asia are now following the same strategy, making it an extremely competitive market.

Instead, Thailand should focus on the wealth it already has, which is enough to counter the loss of tourism volume. There’s an extraordinary amount of data on the subject, which appears to be ignored by the would-be affected political elite. The 2026 World Inequality Report found that inequality in Thailand has soared over the past decade, with the top 10 percent of earners capturing 52 percent of total income, while the bottom 50 percent received only 11 percent. Furthermore, 65 percent of all wealth is concentrated in the hands of the top 10 percent, while the top 1 percent hold 32 percent. An earlier 2023 World Bank report showed similar numbers, ranking Thailand among the most........

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