Asian Tourists Turn Away From Thailand Amid Political Uncertainty

[george]

Asian tourists turn away from Thailand amid political uncertainty

BANGKOK: -- Asian tourists have begun turning away from Thailand, official statistics show, prompting concern that holidaymakers might be avoiding the kingdom because of its continuing political woes.

The number of tourists arriving from East Asia dropped by 7.3 percent in the first two months of the year, compared to the same period in 2006, the Tourism Authority of Thailand (TAT) said.

"Sensitive Asian tourists, from Japan for example, have been scared away from Bangkok due to security concerns," said Pornthip Samerton, managing director of travel agent Destination Asia.

The TAT numbers showed a general drop-off in February among tourists from around the world, as overall arrivals fell six percent from January. Arrivals were still slightly up from the year before.

Pornthip said that many tourists may have reconsidered their travel plans following the deadly New Year's Eve bomb blasts in Bangkok that killed three and injured dozens.

Since then, several foreign embassies have upgraded their travel warnings for Bangkok, citing the threat of more blasts.

Meanwhile, a separatist insurgency in southern Thailand has sharply escalated, and the junta that took power in a coup last September has threatened to invoke a state of emergency in Bangkok over political protests.

"After the bombs, the political situation and the insurgency in the south have added to tourists' concerns. Meanwhile, changing regulations regarding foreign investments have had an impact on business arrivals," said TAT spokesman Chattan Kunjara na Ayudhya.

Foreign investment has dropped off since the Bangkok of Thailand imposed tough currency controls in December, and the government in January proposed tightening foreign business rules.

"Those factors led to a decline of arrivals, and those from Asia fell short of our targets," he told AFP.

Tourism is a key money spinner for Thailand, generating about six percent of gross domestic product.

Las Vegas-based tourism consultant Globalyis said that Thailand could still expect to see an 8.0 percent increase in overall arrivals this year to 14.9 million -- assuming there is no more political turmoil.

"Any further incident in the country's capital or another popular tourist destination could trigger panic and drive away many tourists who may be concerned for their safety," the consultancy said in a recent paper.

"Traditionally in the region, tourism revenues are directly correlated with political stability," Globalyis warned.

"Reduced foreign investment could see Thailand lose out on tourism development in the coming years in favor of its competitive neighbours in the region," it added.

Southeast Asia has seen increasing competition for tourist dollars, especially among Malaysia, Vietnam, Singapore and Hong Kong.

Tourism groups have also warned that Thailand could see its annual expected tourism earnings of 800 billion baht (22.85 billion dollars) slashed by 10 percent because of a proposal to tighten rules on alcohol sales.

The new bill, which is awaiting approval from the military-installed parliament, bans alcohol sales within 500 metres of schools, temples and government offices.

That would prevent many bars and restaurants from selling alcohol, which means tourists might spend less money or just pack up for a neighbouring country, the Federation of Thai Tourism Associations said.

-- AFP 2007-04-08

[zthyadat]

Hmm... three hours or so have passed, on a sunday no less, and nobody has responded to this yet. I suppose it has reached the point with these forums now that it is almost pointless to comment since there is little new to add. You'd think that at least some bitter expat would have come on by now to say "som nam naa" at the very least. Has everyone thrown up their hands and given up trying to sort out Thailand's problems on this forum?

Oh well, I'd like to say one thing though before some other cliche monger gets it in first:

"My condolences to the families and friends of those affected by the new alcohol laws and the downturn in tourism."

an tourists, from Japan for example, have been scared away from Bangkok due to security concerns," said Pornthip Samerton, managing director of travel agent Destination Asia.

The TAT numbers showed a general drop-off in February among tourists from around the world, as overall arrivals fell six percent from January. Arrivals were still slightly up from the year before.

Pornthip said that many tourists may have reconsidered their travel plans following the deadly New Year's Eve bomb blasts in Bangkok that killed three and injured dozens.

Since then, several foreign embassies have upgraded their travel warnings for Bangkok, citing the threat of more blasts.

Meanwhile, a separatist insurgency in southern Thailand has sharply escalated, and the junta that took power in a coup last September has threatened to invoke a state of emergency in Bangkok over political protests.

"After the bombs, the political situation and the insurgency in the south have added to tourists' concerns. Meanwhile, changing regulations regarding foreign investments have had an impact on business arrivals," said TAT spokesman Chattan Kunjara na Ayudhya.

Foreign investment has dropped off since the Bangkok of Thailand imposed tough currency controls in December, and the government in January proposed tightening foreign business rules.

"Those factors led to a decline of arrivals, and those from Asia fell short of our targets," he told AFP.

Tourism is a key money spinner for Thailand, generating about six percent of gross domestic product.

Las Vegas-based tourism consultant Globalyis said that Thailand could still expect to see an 8.0 percent increase in overall arrivals this year to 14.9 million -- assuming there is no more political turmoil.

"Any further incident in the country's capital or another popular tourist destination could trigger panic and drive away many tourists who may be concerned for their safety," the consultancy said in a recent paper.

"Traditionally in the region, tourism revenues are directly correlated with political stability," Globalyis warned.

"Reduced foreign investment could see Thailand lose out on tourism development in the coming years in favor of its competitive neighbours in the region," it added.

Southeast Asia has seen increasing competition for tourist dollars, especially among Malaysia, Vietnam, Singapore and Hong Kong.

Tourism groups have also warned that Thailand could see its annual expected tourism earnings of 800 billion baht (22.85 billion dollars) slashed by 10 percent because of a proposal to tighten rules on alcohol sales.

The new bill, which is awaiting approval from the military-installed parliament, bans alcohol sales within 500 metres of schools, temples and government offices.

That would prevent many bars and restaurants from selling alcohol, which means tourists might spend less money or just pack up for a neighbouring country, the Federation of Thai Tourism Associations said.

-- AFP 2007-04-08

[Khun ?]

nothing more than the long stays that use to cross the border every 30 days.

Everyone will adopt or there may be some cheaper housing available soon.

[jumnien]

Let's hope everyone believes the newspapers so we can continue to enjoy Thailand with less riff-raff about.

[Thaising]

They forgot to add visa rules, which more or less affected longstayer. With those nonsense rules and regulations and unstable southern situation problems, foreign tourists are definitely looking else where to spend their holiday.

[chiang mai]

Methinks 'tis not the political situation that worries folks but more likely the strength of the currency on the exchange markets.

[Dakhar]

The report says "sensitive Asians" are not comming to Thailand. Sensitive, or those that can read?

[El Taco Loco]

Never met an Asian that was not sensitive.

I deal with mostly Koreans in Phuket and they are telling me of zero cancellations to the region.

To reply to one poster why the replies are few and far in between.... I guess a lot of us are just tired of the "oh what is LOS up to now" conversation.

Personally I am sitting on the fence watching and reading the news, daily, and it just is not pretty, positive or of any use. Sorta waiting for a political tsunami to arrive at any time, actually. Ce la vi.

The report says "sensitive Asians" are not comming to Thailand. Sensitive, or those that can read?

[Johpa]

Never met an Asian that was not sensitive.

I deal with mostly Koreans in Phuket and they are telling me of zero cancellations to the region.

I have met plenty of Asians, as well as non-Asians, who are rather insensitive. But the issue is not that of tourist cancellations but of people not making the reservations in the first place. The coup leaders have taken the Thai government down a rather dark path and even folks in East Asia, not a bastion of liberalism, are taking note.

[OlRedEyes]

A bit disconcerting as the argument that Western tourists will go elsewhere was usually countered with the increasing Asian tourism argument.

[cclub75]

A bit disconcerting as the argument that Western tourists will go elsewhere was usually countered with the increasing Asian tourism argument.

Stats on TAT website are, of course, not available, for january and february 2007.

http://www2.tat.or.th/stat/web/static_index.php

Actually, the statement is a little bit misleading. First they say :

"The number of tourists arriving from East Asia dropped by 7.3 percent in the first two months of the year, compared to the same period in 2006, the Tourism Authority of Thailand (TAT) said."

And then :

"The TAT numbers showed a general drop-off in February among tourists from around the world, as overall arrivals fell six percent from January. Arrivals were still slightly up from the year before.

-So people from east asia : -7.3% on january + february 2007 (compare to jan+feb 2006)

-all tourists : -6 % on feb 2007, compare to january 2007, but a little bit more than feb 2006...

TAT likes to mix apple with oranges...

Anyway. We need to wait the update on the excel file on TAT website to see the details. For instance, the number of entries at land border are going to be very interesting. Same for numbers of westerns nationalities. To juge the "visa" effects...

[wintermute]

A bit disconcerting as the argument that Western tourists will go elsewhere was usually countered with the increasing Asian tourism argument.

I'm assuming the biggest loss has been down south in the Hat Yai area where asian tourists have almost completely dried up. There were a couple articles awhile ago reporting that hotel and business owners were complaining to the thai government. Then an article later they were saying that quite a few businesses were closing down because tourism had dropped to around 30% of what was considered normal. I guess we won't know the real story regarding the problems in Thailand until a year from now when economic stats are published. Everything looks pretty grim for the long term.

[OlRedEyes]

A bit disconcerting as the argument that Western tourists will go elsewhere was usually countered with the increasing Asian tourism argument.

I'm assuming the biggest loss has been down south in the Hat Yai area where asian tourists have almost completely dried up. There were a couple articles awhile ago reporting that hotel and business owners were complaining to the thai government. Then an article later they were saying that quite a few businesses were closing down because tourism had dropped to around 30% of what was considered normal. I guess we won't know the real story regarding the problems in Thailand until a year from now when economic stats are published. Everything looks pretty grim for the long term.

The report speaks of a 7-odd% drop from East Asia. AFAIK Hat Yai tourism is mostly from Malaysia?

[NguuMuu]

Foreign investment has dropped off since the Bangkok of Thailand imposed tough currency controls in December, and the government in January proposed tightening foreign business rules.

Off topic, but when is the Bangkok Post going to finally start proof reading their articles (or hire people competent enough to do so)?

[Scott]

The basic problem is that the gov't is making it difficult for nearly everyone. First the political situation isn't conducive to stability and reassuring tourists. But this is a rather minor problem, I think. Mostly it has to do with rather constant negative press overseas--nothing seriously negative, but just not the kind of news that makes you want to book a holiday here.

Secondly, the visa regulations aren't helping. We have people who will be going to work for us in a couple of months. While waiting for their paperwork, a lot of them come here, tour around, then leave and get their non-immigrant B visa. They don't dare do that anymore, because they are scared they might exceed the time they have; especially since we have not been able to assure them of how long the paper work will take.

Third, the southern unrest. Finally, the general tone (especially in the overseas press) about business restrictions, home ownership etc. Both BBC and CNN have aired specials on this issue. BBC had one on the people who have bought expensive homes in Phuket and now might lose them because the land is held by a nominee company. Both have talked about the currency controls. Essentially this is the target group the gov't wants of "quality" tourists.

I guess the county is not only wearing flip-flops, but that seems to be it's policy statement as well!