LGBTQ-friendly Thailand chases $4.7tn rainbow economy

BANGKOK -- Chen Xi Shuan and his partner flew all the way from Taiwan to join a Pride parade in Bangkok on June 1, where thousands of LGBTQ people cheered and danced, celebrating Thailand's recognition of same-sex marriages a few months earlier.

"I think Thailand is a very good place for LGBT people," said Chen, 35, who has often visited the Southeast Asian country with his partner.

"Thai people have [an] open mind and they always welcome you, no matter [if] you are gay or straight," he told Nikkei Asia during the festivities, as he eagerly waved a rainbow flag along with the exuberant crowd.

Held on Rama I Road, a famous shopping avenue in Bangkok, the Pride parade last month drew LGBTQ people from across the country and abroad.

In stark contrast to most of Southeast Asia, Thailand has positioned itself as an LGBTQ-friendly country for many years. This year, however, marks an important milestone: The kingdom began issuing marriage licenses to LGBTQ couples in January, becoming the first Southeast Asian nation to recognize same-sex unions.

As social and legal hurdles fall, businesses from tour operators and drag shows to boys' love drama producers are looking to capitalize more on the "rainbow economy," with much encouragement from the Thai government. Also called the "pink dollar," the spending power of the estimated 388 million LGBTQ people worldwide is believed to exceed $4.7 trillion annually, according to U.K.-based asset management company LGBT Capital.

Waaddao Chumaporn, co-founder of Bangkok Pride, said last month's parade and related events were estimated to have created up to 4.5 billion baht ($138 million) in revenue, including sponsorships and tourism spending. That is a marked increase from the estimated 3 billion baht economic contribution from similar pride events in Bangkok last year.

Hotels in Bangkok cashed in on the festivity, advertising themselves as LGBTQ-friendly places and offering special promotions for rainbow people -- such as MyStyle Garage Hotel Bangkok's "book one night, get free one night" promo. They, and other venues, are also competing to host same-sex wedding receptions.

Pride parades were also held in other big Thai cities such as Phuket, Chiang Mai and Khon Kae, in a collaboration between the Tourism Authority of Thailand (TAT) and private companies.

Waaddao said the government and the private sector would continue to work together to develop the pink economy. They aim to upgrade Bangkok Pride into a World Pride event by 2030, which could be the first time an Asian country hosts the yearly global gathering of LGBTQ people.

TAT has played a key role in promoting Thailand as an LGBTQ-friendly destination. The tourism authority has held a series of events in recent months to maintain the momentum in drawing more "rainbow" people to the country, which lost its place to Malaysia as the most-visited Southeast Asian nation last year.

Foreign tourist arrivals in Thailand are still below pre-COVID-19 pandemic levels. A sharp decline in the number of tourists from China, its biggest market, and safety concerns after a big earthquake in Myanmar in March toppled a 30-story building in Bangkok are clouding the outlook for further recovery.

On Jan. 23, TAT organized a mass wedding for LGBTQ couples, offering promotions for hotels, restaurants and package tours, hoping to get hundreds of couples to tie the knot in Thailand.

In February, it invited tour agents and other businesses from around the world to the "Amazing Thailand LGBT Trade Meet and Fam Trip," through which it hoped to facilitate business tie-ups to further enhance Thailand's appeal with rainbow tourists. Among participants in the weeklong trip across the country were tour agents specializing in the LGBTQ market from the U.S., Canada and Brazil.

According to TAT research, LGBTQ travelers have specific leisure styles and are willing to pay a premium -- up to 40% more than straight tourists -- because they mostly do not have children and thus have more disposable income.

TAT is preparing several more projects after collecting insights from the LGBTQ community and businesses on promoting pink tourism in places such as Bangkok, Phuket and Ko Samui.

"The LGBT travel market holds tremendous potential, with Thailand consistently ranking among the world's top destinations for this community," TAT Deputy Gov. Siripakorn Cheawsamoot said. "We want to strengthen partnerships [and] share insights to position Thailand as the preferred destination for LGBT travelers."

Tiffany's Show Pattaya, a cabaret theater that features transgender women performers, has gained a huge following, drawing more than 30 million visitors and raking in billions of dollars in revenue since its establishment in 1974.

Tiffany's started small and has since become a highlight of Pattaya, a must-visit in the beach resort famous for its sleepless nightlife and colorful "ladyboy" cabaret performances. Tiffany's runs three rounds of shows comprising 14 episodes each in its 1,000-seat theater. The venue is almost fully booked every day.

This month it is planning a larger show. "We're preparing for a 50th anniversary celebration in July, when we will launch new, fascinating shows with perfect new songs, lights and sound arrangements," the managing director of Tiffany's Show, Alisa Phanthusak, told Nikkei.

The second-generation theater owner did more than inherit the business from her father and his partner; she also took up their fight for the rights of LGBTQ people.

"The most important thing is we do not run this business to gain money only," Alisa said. "But we want to show the ability of our [trans women] performers, who run the shows [and] are not inferior to others."

Seeking broad acceptance for LGBTQ people, Alisa launched the Miss International Queen beauty pageant in Pattaya in 2004, drawing transgender women contestants from dozens of countries.

Today, the pageant is well known in LGBTQ communities in many parts of the world. Five countries -- the U.S., Japan, Vietnam, the Philippines and Brazil - have bought the rights to host the event. Mexico is negotiating for the rights as well. Last year's event in Pattaya drew contestants from 23 nations.

"In terms of business, I think we've made it since my father's generation," Alisa said. "But in my generation, I think we've achieved another success: winning over the bias and discrimination against LGBTQ people."

Another thriving entertainment business is boys' love dramas, where Thailand is now showing "Korean wave"-like soft power, with stories about romance between men that are gaining a global audience through streaming.

An offshoot of Japanese pop culture, Thailand is now the biggest producer and exporter of "Y series" content after just six years. It controls 53% of the market and is followed by Japan, South Korea and Taiwan, according to SCB EIC, a think tank under Thai financial group SCBX.

Thai boys love dramas generated more than 4 billion baht in revenue last year, up from just 851 million baht in 2019. The figure is forecast to reach 4.9 billion baht this year, and there are expectations for more growth down the road.

"The Y series market is expected to grow substantially due to various streaming platforms that allow consumers to access the content," SCB EIC said in a report, which also attributed the genre's popularity to the variety of content available and the government's support for the industry.

Wider acceptance of the LGBTQ community in Thailand has inspired new businesses to cater to the specific needs of the market.

"I think Thailand is opening up more toward LGBT groups. It is not only men who want to wear drag fashion, but women, too. And that's my business opportunity," said Araya Asawakamolrat, a 35-year-old woman who sells drag dresses and accessories to several department stores in Thailand.

Araya, who earned her master's degree in business administration in the U.K., said she expected her business to grow more as the Thai government promotes more pride events.

And there are other untapped opportunities.

Ekkapop Punthurat, a transvestite who works for an international public relations company, cited the need for dresses and women's shoes in larger sizes, as well as makeup that works better on men's skin -- to make it easier for them to dress as women.

"As one of the LGBT consumers, I would like to tell businesses that there are many products that we need, and this is an opportunity for them to capitalize on," Ekkapop said.