Bangkok Restaurants Face Tough Times Amid Tourism Decline

Bangkok, Thailand – The popular dining destination of Banthat Thong Road is grappling with a significant decline in restaurant revenue, dropping by 40-50% this year. According to the Bantadthong Association, the downturn follows weak domestic spending and a notable decrease in foreign tourists, especially from China.

Sittichan Vuttipornkul, an adviser for the association, explained that rising costs for ingredients and rent, which increase by about 5% annually, have outpaced consumer spending. He highlighted that Chinese tourists, who have historically made up 20-30% of daily visitors, have dwindled this year. Moreover, domestic diners are spending less as well, resulting in some establishments suffering declines of up to 70% compared to the previous year.

The association noted that Banthat Thong’s reputation suffered further due to negative online reviews, with some criticizing the prices and quality of food. Fortunately, rental costs in the area remain lower than those in shopping malls and retail spaces, allowing about 80-90% of operators to lease directly from Chulalongkorn University at an average rate of 350 baht per square meter.

Despite the challenges, Banthat Thong, featuring over 300 restaurants, was recognized as one of the world’s top places for street food by Time Out magazine last year. The association expects the street welcomed between 10,000 and 30,000 visitors daily in 2024. Sittichan noted the area’s blend of established eateries and newer ventures, like Haab, a popular Thai pastry shop.

While the closure rate on Banthat Thong remains low at 2-3%, the association aims to enhance the area as a top tourist spot for dining and culture. They plan more collaborative events with local businesses to attract visitors of all ages, moving beyond the current budget-conscious younger crowd. Sittichan emphasized the need for restaurants to avoid price wars that could further harm the sector.