Thailand’s tourism – stormy weather ahead

[webfact]

Thailand’s tourism – stormy weather ahead

By The Thaiger

 

 

Thailands tourism industry finds itself in stormy weather as a falloff in visitors spook trade, even forcing candid admissions from some of Thailand’s tourism chiefs.

 

Thailand has suffered a slump in tourism figures since the beginning of the year as hoteliers and tourism trade leaders have confirmed a huge 20 to 30% drop for June in tourist numbers and trade in Pattaya and Phuket this week in separate media interviews.

 

The slump is a startling and quite sudden drop, just seven months after the end of a record tourist year in 2018 and a good start with Christmas, New Year and January numbers. In December of 2018, the number of Chinese visors arriving in Thailand was over 838,000, a nearly 3% increase year-on-year at the time. A third of tourist arrivals into Thailand in 2018 were mainland Chinese.

 

But a perfect storm has now beset Thai tourism – emerging nearby tourist markets, a high baht, the US-China trade wars and ongoing fallout from the Phuket Boat Tragedy.

 

Locally there are other issues such as over-development of accommodation causing too much new competition, poor infrastructure and systemic tourist turn-offs never being addressed (Phuket taxi prices is one example).

 

All this is now broadly accepted, even officially. Figures for tourist arrivals show a slump following January this year. In April and May 2019 the figures for monthly arrivals dropped to 3,195,006 and 2,726,808. These arrival numbers were a big drop from, say, December last year.

 

The TAT governor, Yuthasak Supasorn, recently spoke to a meeting in Thailand’s north-eastern city of Udon Thani. He outlined plans by tourism chiefs to develop niche markets for Thai tourism for secondary locations in the country targeting affluent tourists seeking lifestyle and wellness experiences, including LGBT travellers. He predicted that tourist revenues for 2020 would reach 3.7 billion baht with a 10% growth. The authority is, officially, still holding out hope that 2019 can rebound.

 

The optimism is based on hopes and prayers rather than any of the ‘problems’ actually being fixed.

 

Meanwhile, hotel owners and managers staring down the low-season in Phuket and Pattaya have been raising the alarm highlighting reported drops of 20-30% compared to last year. Some hotels have admitted occupancy rates as low as 10-20% as the price wars continue to drive down room rates. They admit it’s an unsustainable situation fear that July and August could be as bad as June.

 

Kongsak Phupongsakorn is the head of the Thai Hotels Association for southern Thailand. He gave a  wide-ranging interview this week to Manager Online and frankly addressed the situation.

 

‘There are hopes that Asian and Australian travellers will take up some of the slack in July and August. But that is all they are, hopes. Most people are expecting July to be just as bad as June.”

 

He blamed the problems not only on external factors but also on shortcomings in Thailand. One was the political uncertainty sparked in the run-up to the election in Thailand and the long process afterwards to form a new government.

 

The Phuket hotelier also criticised a lack of clarity in government policy and strategy regarding tourism.

 

Kongsak explained that Phuket has seen what he described as ‘leapfrog’ investment in the tourism industry on the island driven by a massive increase in tourist arrivals in five years from 9 million arrivals to 14 million.

 

“This poses a major problem for operators who find themselves competing for a shrinking market.”

 

He suggested that some rooms in Phuket were on sale at 50% of the low reason rate for June last year as desperate hotel operators try to recoup income on their investments. He also believes that there are now heightened tensions caused by the US-China trade war that is suffocating the tourist trade. This is most notably seen in a dramatic fall-off in Chinese tourists.

 

Kongsak also acknowledged the growing competition from other Asian tourist locations, especially Vietnam and Cambodia. He described a tourist industry in Phuket currently stranded with too many hotel rooms and not enough visitors.

 

A woman from Northern Ireland arrived in Phuket this week to repatriate the remains of her husband who drowned a week before before at the popular west-coast Surin beach. Just days before his drowning local beach users and surfers had highlighted the dangerous rip tides and the lack of lifeguards or warnings at the beach. 

 

Read that story HERE.

 

In another rush of candor, Damrongkiat Phinitkar, the Secretary-General of the Entertainment and Tourist Industry of Pattaya told Sophon TV that the number of tourists and trade for June was between 20-30% down on the same month last year.

 

“Compared to last year, there are between 20-30% fewer tourists this low season.’

 

He blamed the absence of European tourists from the resort city. The tourist boss said that this had now become a long term trend but that in past years, the influx of Chinese tourists and travellers from other Asian countries had filled the gap. He hoped that European and western travellers are still more likely to arrive at high season.

 

Damrongkiat echoed other industry operators and confirmed that the glory days of the huge numbers of young and middle-aged European tourists crowding out the beer bars of Pattaya have come to an end. They have gone elsewhere or else they are put off by the high Thai baht and adverse economic conditions at home.

 

Source: https://thethaiger.com/hot-news/tourism/thailands-tourism-stormy-weather-ahead

 

-- © Copyright The Thaiger 2019-07-15

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[observer90210]

Hand out 40 THB for 1 US $ from tomorrow onwards .....and by the end of the week, guarantee all the taxi cheats will have their cabs full of tourists !....and be more nice and polite with all the decent visitors and do not only bootlick one specific type of tourists....immigration boys also need to chill down, be nicer and stop harassing with their redtape...and then maybe..?

[ukrules]

There were staff layoffs in some of the major hotels in Hua Hin during last years low season.

 

I know Thai people who work in the hotels, will be interesting what happens in those same places this year.

 

There should be a boost in European tourist arrivals starting this week through until the end of August due to the summer holiday period, if it doesn't happen then they're going to feel the pain again!

 

[LongTang]

The storm is already here and the boat is SINKING !

 

 

[TooBigToFit]

Thailand isn't stormy enough! As the world heats up, why go to a hot country! Plus the Thai seas are starting to look green. The rivers and lakes already do. Clean up the environment to start. Everyday I read of dolphins, whales and other sea life washing ashore.

[Lingba]

Thailand is long past immediate repairation...it will take at least 2 generations and a lot of re education to get back to being attractive

[LongTang]

36 minutes ago, webfact said:

Damrongkiat echoed other industry operators and confirmed that the glory days of the huge numbers of young and middle-aged European tourists crowding out the beer bars of Pattaya have come to an end. They have gone elsewhere or else they are put off by the high Thai baht and adverse economic conditions at home.

 

Rubbish !!! 

 

The MAIN reason they are no longer coming is that they are NO LONGER FEEL WELCOMED !

 

The high Thai bath is definitely not helpful, but its not the main reason.

From 2006 till now it was about 30 to 35 Bath for a $, So no drastic changes there !

 

[dirtybirty]

Stop treating tourist like poo and ripping them off at every chance might help. Esp in this age if social media

Sent from my SM-A510F using Thailand Forum - Thaivisa mobile app

[Chazar]

1 hour ago, webfact said:

including LGBT travellers

 <deleted> really  does  this  have to  be  dragged  into  everything  these  days,  yeah  im  sure  theres  millions of  these people queueing  up  to  come  here

[PingRoundTheWorld]

Good. About time they got realistic and admitted there are problems. Now stop <deleted> and go fix them...

 

Hopefully the boys at immigration will wake up and smell the coffee too - it's time to start making tourists and expats feel welcome again!

[LomSak27]

18 minutes ago, LongTang said:

1 hour ago, webfact said:

Damrongkiat echoed other industry operators and confirmed that the glory days of the huge numbers of young and middle-aged European tourists crowding out the beer bars of Pattaya have come to an end. They have gone elsewhere or else they are put off by the high Thai baht and adverse economic conditions at home.

 

Rubbish !!! 

 

The MAIN reason they are no longer coming is that they are NO LONGER FEEL WELCOMED !

 

Yes, in all the articles, they seem to avoid that unfortunate fact. That is also what is gong to be the biggest hurdle. How do you undo -  decades - of thai media scapegoating of westerners?! The whole idea was they were going to replace them with Chinese, (or Russians) etc. Well you have effectivley P'd them off and they are not coming like they did, but the saviors, the chinese seem if anything a more unrealiable base for thai tourism than the Euros were.

I saw some video doc from three years or more back, German backpackers in SEA, one made the comment about thailand, "they don't like us anymore" as in not worth going. So even the packing hispters got the drift and that years back.

 

I wonder if they can really change anything in a substantive way? 

[Puchaiyank]

European tourists crowding out the beer bars of Pattaya have come to an end. 

 

Try handing the Chinese a bogus beer tab and see what happens!

[nickstav]

1 hour ago, ukrules said:

There were staff layoffs in some of the major hotels in Hua Hin during last years low season.

 

I know Thai people who work in the hotels, will be interesting what happens in those same places this year.

 

There should be a boost in European tourist arrivals starting this week through until the end of August due to the summer holiday period, if it doesn't happen then they're going to feel the pain again!

 

Have you noticed how many restaurants have either closed or are for sale here in Hua Hin. Seems like a lot more than usual. And those that are operating are mostly empty. 

[madmen]

32 minutes ago, PingRoundTheWorld said:

Hopefully the boys at immigration will wake up and smell the coffee too - it's time to start making tourists and expats feel welcome again!

Tourists stay for a few days up to 2 weeks on visa exempt and then leave and have nothing to do with immigration ..Who cares about desperado ex pats that can't meet the bare minimums? Nobody wants them ! sorry but that's life

[lamyai3]

4 minutes ago, madmen said:

Who cares about desperado ex pats that can't meet the bare minimums? Nobody wants them ! sorry but that's life

Perhaps their wives and kids who depend on them do? The income requirement for a UK expat is now 7-8 times the minimum wage here. Fall below this, and you're a desparado? I'll never understand the apologists...

[lamyai3]

1 hour ago, webfact said:

Thailands tourism industry finds itself in stormy weather

Great photo - certainly portends the way things appear to be heading. 

[garyk]

You ain't seen nothing yet TOT. China is ready to do a slow and steady turn into a ression. 

19 minutes ago, lamyai3 said:

31 minutes ago, madmen said:

.Who cares about desperado ex pats that can't meet the bare minimums? Nobody wants them ! sorry but that's life

 

How ignorant can you get. 

[nickstav]

21 minutes ago, lamyai3 said:

Perhaps their wives and kids who depend on them do? The income requirement for a UK expat is now 7-8 times the minimum wage here. Fall below this, and you're a desparado? I'll never understand the apologists...

How many Thais, even middle class Thais, make 65k a month? I consider myself lucky, as I have far more than that in retirement income and live well here (even with a Baht-sucking girlfriend). But I could live decently on half that if I had to/wanted to (without the Baht-sucking girlfriend).

[ratcatcher]

2 hours ago, webfact said:

The optimism is based on hopes and prayers rather than any of the ‘problems’ actually being fixed.

A sound business philosophy.

[ChipButty]

I went to get some breakfast the other morning and bumped into a poo ying I know from somewhere I couldn't remember which bar anyway she knew me, she ordered her food which came to 90 Baht she didnt even have enough money to pay so I gave her 100 Baht so even the bar girls are falling on hard times

[nickstav]

3 minutes ago, ChipButty said:

I went to get some breakfast the other morning and bumped into a poo ying I know from somewhere I couldn't remember which bar anyway she knew me, she ordered her food which came to 90 Baht she didnt even have enough money to pay so I gave her 100 Baht so even the bar girls are falling on hard times

Would she have ordered the 90 Baht breakfast, knowing she didn't have 90 Baht to pay for it, if she hadn't seen you there and assume you would rescue her?

[marcusarelus]

7 minutes ago, nickstav said:

How many Thais, even middle class Thais, make 65k a month? I consider myself lucky, as I have far more than that in retirement income and live well here (even with a Baht-sucking girlfriend). But I could live decently on half that if I had to/wanted to (without the Baht-sucking girlfriend).

Average with a degree is 84,000  https://www.averagesalarysurvey.com/thailand

[ChipButty]

Just now, vinniekintana said:

I hope the 'storm' turns into a hurricane.

Might knock some sense to all concerned.

You already know thats not going to happen, just blame the farang

[ChipButty]

1 minute ago, nickstav said:

Would she have ordered the 90 Baht breakfast, knowing she didn't have 90 Baht to pay for it, if she hadn't seen you there and assume you would rescue her?

She was looking through and didnt have enough but I know what you mean

[Cadbury]

2 hours ago, webfact said:

Thailand’s tourism – stormy weather ahead

Government greed is playing it's part in the demise of Thailand's travel industry. That being the 11% on entertainment venues. 

https://forum.thaivisa.com/topic/1111421-phuket-entertainment-venue-operations-call-for-delay-in-excise-tax-enforcement

 

The industry is beset with greed and now the cash cow is running dry and tourism as a whole is in panic mode.

1. Danger on the roads and in/on the sea.

2. Scamming and cheating taxis (and just about everybody else).

3. Double pricing for foreigners/tourists.

4. Airport immigration queues and delays.

5. Stupid laws e.g. E cigarettes.

6. Excessive government taxes.

7......100. Fill in the blanks

 

Thailand only has itself to blame.

 

 

 

 

[LongTang]

15 minutes ago, lamyai3 said:

Perhaps their wives and kids who depend on them do? The income requirement for a UK expat is now 7-8 times the minimum wage here. Fall below this, and you're a desparado? I'll never understand the apologists...

 

I'm afraid we have much more then Apologists on this forum now..

It seems that an army of payed bots have started scribbling their propaganda here.

 

There is absolutely no way that so many foreigners will want to shoot themselves in the foot(or head) over these matters, and a Thai English literate will never waste his time over this without being payed.

 

[LomSak27]

Just now, nickstav said:

I consider myself lucky, as I have far more than that in retirement income and live well here (even with a Baht-sucking girlfriend).

 

We salute you, because we know, "some heroes don't wear capes" BTW, I'm going for a NEW nickname for my GF . "The Baht Hoover"

[marcusarelus]

1 minute ago, LongTang said:

 

I'm afraid we have much more then Apologists on this forum now..

It seems that an army of payed bots have started scribbling their propaganda here.

 

There is absolutely no way that so many foreigners will want to shoot themselves in the foot(or head) over these matters, and a Thai English literate will never waste his time over this without being payed.

 

Where are these payed bots and why am I missing out.  Can you give me a link?

[nickstav]

5 minutes ago, marcusarelus said:

Average with a degree is 84,000  https://www.averagesalarysurvey.com/thailand

I looked at the list. Those are targeted positions and mostly managerial positions. I don't think they represent the average Thai, even those with degrees. Look on the list at what a teacher makes. How many Thais with an undergrad degree are working as salesgirls in department stores? I've met quite a few.

[marcusarelus]

Just now, nickstav said:

I looked at the list. Those are targeted positions and mostly managerial positions. I don't think they represent the average Thai, even those with degrees. Look on the list at what a teacher makes. How many Thais with an undergrad degree are working as salesgirls in department stores? I've met quite a few.

Anecdotal evidence although personally satisfying is hardly meaningful.  Ask a government teacher why they are a government teacher and why they take the test.  It'll give you a better idea.  400 million middle class Chinese.  I really don't think Thailand has a worry in the world.