Ministry restructuring a tourism priority

When the Bhumjaithai Party assumed government leadership earlier this year, one of its key tourism priorities was to restructure the Tourism and Sports Ministry, creating a dedicated Sports Ministry and merging the Tourism and Culture ministries.

This proposal is not new, raised by previous governments to promote tourism and sports more effectively. There are several approaches to managing and developing the tourism industry that depend on a strategic vision and long-term objectives.

WHAT ARE THE STRUCTURAL ISSUES?

In 2002, the Tourism and Sports Ministry was established under the Reorganisation of Ministries, Sub-Ministries and Departments Act.

The ministry is tasked with promoting and developing tourism and sports, while overseeing state enterprises, the Tourism Authority of Thailand (TAT) and the Sports Authority of Thailand.

The minister is responsible for enforcing key legislation, including the 2001 Tourism Council of Thailand Act, the 1992 Tourism Business and Guide Act, and the 1999 Boxing Act.

Yuthasak Supasorn, former governor of the TAT and current chairman of the Industrial Estate Authority of Thailand, said tourism is closely intertwined with a wide range of sectors, including the economy, culture, infrastructure, the environment, sports and even foreign affairs.

Although Thailand is heavily dependent on tourism, its public administration of the sector is marked by "fragmented governance", with authority spread across more than 20 organisations under the Tourism, Culture, Transport and Interior ministries, he noted.

This fragmented structure has imposed significant hidden economic costs, as the lack of policy cohesion often results in overlapping budget allocations and inconsistent development, particularly when tourism marketing is not aligned with destination development.

The cumbersome administrative framework also slows decision-making, leaving Thailand struggling to keep pace with an increasingly competitive and fast-moving global tourism landscape, said Mr Yuthasak.

WHAT ARE SOME FOREIGN COMPARISONS?

Many countries have government bodies dedicated to the tourism industry, although their structures vary. Some have a standalone ministry or agency, while others combine tourism with sectors such as commerce, culture, infrastructure and sports.

"There is no perfect model for restructuring tourism ministries, as each has its own strengths and reflects the priorities of individual nations," he said.

For instance, standalone tourism ministries in Italy, Mexico and the Philippines provide clear leadership in driving tourism and shaping a country's image, enabling national strategies to be formulated more swiftly.

However, coordination with other ministries can be more challenging, increasing the risk of policy silos or fragmented implementation. This can expose countries that are heavily dependent on tourism to greater structural risks, said Mr Yuthasak.

Countries that merge tourism and culture ministries have been better able to strike a balance between conserving and making use of heritage sites, while also strengthening the promotion of their soft power, he noted.

China, which has been actively promoting domestic and international tourism since the pandemic, uses its Culture and Tourism Ministry to supervise policymaking, research, law enforcement, and coordinate the development of the culture and tourism.

Home to an ancient civilisation and cultural heritage, Egypt merged its tourism and antiquities portfolios into the Ministry of Tourism and Antiquities in 2019, placing museums and archaeological sites under a single authority. The ministry generates revenue through admission fees at attractions, with the proceeds used to fund restoration and facility improvements.

However, the cultural merging model may place excessive emphasis on cultural heritage, resulting in slower progress on broader tourism infrastructure, Mr Yuthasak said.

Meanwhile, Japan integrates tourism with infrastructure through its Ministry of Land, Infrastructure, Transport and Tourism. The ministry oversees the Japan Tourism Agency, which formulates tourism policy and supervises the Japan National Tourism Organization, responsible for promoting inbound tourism.

This structure enables tourism planning to be closely aligned with infrastructure projects, including airports, railways and ports, but tourism marketing may receive less attention as the government's focus tends to be on physical infrastructure rather than visitor experiences.

Similarly, some countries integrate tourism with commerce. In Germany, the German National Tourist Board operates under the Federal Ministry of Economic Affairs and Energy. He said this reflects a view of tourism as an economic driver linked to investment and small and medium-sized enterprise promotion, although cultural and sustainability considerations may receive less emphasis.

Others have established dedicated tourism agencies, such as Azerbaijan's State Tourism Agency. This model offers greater flexibility and project-based management, making it well-suited to developing national tourism destinations, although it can also create overlapping responsibilities and conflicts with key ministries, said Mr Yuthasak.

Thailand combines tourism and sports under one ministry, as do South Korea and Poland. This approach helps promote sports tourism and major events, but may lead to budget competition and a greater focus on event planning at the expense of long-term tourism development, he noted.

WHAT WILL THE NEW STRUCTURE LOOK LIKE?

Tourism and Sports Minister Surasak Phancharoenworakul said the restructuring aims to improve the efficiency of tourism and sports administration by separating the two sectors, while strengthening their contribution to the economy.

He said the Office of the Public Sector Development Commission is expected to submit the restructuring proposal to the cabinet this month, with the legal framework likely to be completed by the end of this year or early next year.

The TAT, the Tourism Department, the Designated Areas for Sustainable Tourism Administration and the Tourist Police are going to be transferred to the Culture and Tourism Ministry.

The culture permanent secretary assumes the role of culture and tourism permanent secretary.

Mr Surasak said the new ministry will continue promoting tourism and culture through the agencies under its supervision.

WHAT ARE THE PROS AND CONS OF THIS MERGER?

Sorathep Rojpotjanaruch, head of the Restaurant Business Club and honorary adviser to the Hostel and Small Accommodation Association Thailand, said the merger would help reduce overlapping budgets between two ministries, particularly for organising events and promoting soft power.

Culture plays a vital role in shaping Thailand's brand and supporting tourism via gastronomy, arts and Thai traditions, he noted.

The Culture Ministry already oversees the conservation and redevelopment of cultural assets, including archaeological sites and temples, which are key tourism attractions.

However, tourism operators are concerned that tourism development could be overshadowed by the ministry's conservation mission, at the expense of economic growth and business support, said Mr Sorathep.

"What if tourism marketing to promote heritage sites was scaled back to prevent overtourism and preserve the sites? We are concerned about the Culture Ministry's conservative mindset," he said.

Another challenge will be integrating workforces and ensuring a smooth transition, as any disruption could create a policy vacuum at a time when Thailand's tourism industry faces mounting challenges, noted Mr Sorathep.

In addition, he said strong collaboration with other ministries is required, as the Interior Ministry regulates hotels and accommodation, while the Natural Resources and Environment Ministry oversees national parks.

Adith Chairattananon, honorary secretary-general of the Association of Thai Travel Agents, said tourism is an established revenue generator in Thailand. The nation should follow the lead of other countries that have invested heavily in tourism supply through dedicated ministry-led development.

Mr Adith also supported the idea of creating a tourism economics office within the new ministry, similar to those in the Agriculture and Cooperatives and Finance ministries, to strengthen policymaking by leveraging data, economic analysis and research.

He said tourism planning must increasingly embrace innovation and artificial intelligence to enhance Thailand's competitiveness.

Mr Yuthasak said governance reform should extend beyond the reorganisation of these two ministries and instead constitute a comprehensive restructuring of Thailand's tourism governance framework.

Citing research by the Organisation for Economic Co-operation and Development, he said countries with highly competitive tourism sectors share five common characteristics: whole-of-government integration, destination management, data-driven governance, public-private partnerships and strong national leadership.

Thailand's tourism sector should be driven by a governance model comprising destination governance, a national tourism authority, and regional destination management organisations, said Mr Yuthasak.

Such a framework would help break down organisational silos, strengthen coordination across agencies, and unlock the full potential of the tourism industry to achieve sustainable growth in an increasingly competitive global economy, he noted.