Hop On! Here’s How the Tuk Tuk Tour Business Helps Thailand’s Economy

These brightly coloured, unmetered, three-wheeled open vehicles called tuk tuks, which are Thailand's version of a motorized rickshaw, are one of the things that come to mind when we think about Thai culture. These are very popular among tourists, who traditionally hire them privately to conveniently explore and meander through the bustling city of Bangkok and other nearby provinces.

Typically, the standard size of a tuk tuk can accommodate to two or three passengers, while the largest tuk tuk track can seat up to six people, offering authentic tours filled with sightseeing and food trips. Prices range from THB50 to THB150 (short ride only). Since tuk tuk drivers do not utilize meters like taxi drivers do, you need to watch out for cons.

On the other hand, locals use tuk tuks for a variety of purposes, including delivery, service transport going to school, or to the market to fetch loads of market goods.

A resemblance of a tuk tuk, commonly referred to as "samlor," can be found in remote areas such as the Pak Kret district. However, the difference is that samlor isn’t powered by an engine, instead drivers use its pedals to stroll along the neighbourhood.

Given that tuk tuk is an iconic symbol of Thailand, let’s find out how the tuk tuk business help the economy in terms of tourism and investment.

Tourism

Due to a series of lockdowns imposed in Thailand, the country's once booming tourism economy has slowed down as locals’ livelihoods, including tuk tuk drivers whoare highly dependent on tourism. In July 2020, the use of electric tuk tuks was implemented as part of the tourism business in the new normal, thanks to the partnership between the Metropolitan Electricity Authority (MEA) and Electric Vehicle Association of Thailand (EVAT), according to a report from The Nation on July 16, 2020.

The "Change Tuk Tuks to New Normal" campaign seeks to reduce the environmental impact of tourism businesses. The MEA provided “150 sets of clear canvasses” to ensure passengers’ health and safety from being infected with COVID-19 while basking in the beauty of Sukhumvit, Na Na, Khlong Toei, and Sanam Luang.

The EVAT, on the other hand, shared new knowledge with tuk tuk drivers regarding the technological shift from motorised engines to sustainable electrical units. As of 2015, there were 9,000 tuk tuks registered in Bangkok alone.

As the COVID-19 restrictions ease off, Thailand’s economy, including the tourism sector, demonstrated its fastest expansion in the second quarter of 2022 with an estimated growth of 3.1% year-on-year. It was able to surpass the median forecast from economists of 2.2%, according to a Reuter’s report on Aug. 12.

Moreover, the Thai government forecast showed that the number of international visitors will reach 10 million, with an estimated 4.2% economic growth in 2023 prompted by the strengthening tourism industry.

Sustainable Investment

When it comes to investing in venture capital firms, Thailand has not been a top choice in recent years, especially when compared to Hong Kong and Singapore. However, in November 2019, the kingdom’s first self-driving tuk tuk was launched by Startup Airovr, investor of Siri Ventures, along with the Thai government. 

The driverless tuk tuk was created to help reduce the number of smoke-belching vehicles that contribute significantly to global warming. The unit will also serve as a trial or test drive to further improve the local auto industry with hopes of employing the technology on larger vehicles like minibuses.

The start-up company makes use of patented technology equipped with sensors using cloud-based software that makes the vehicle set in motion.