Thailand Becoming Too Expensive For Tourists?

[keestha]

An acquaintance who has a tour agency has seen his bookings (mainly from Sweden) for the upcoming high season going down. He thinks that besides the obvious reasons (financial crisis, political unstability in Thailand, tension with Cambodia), this is also because Thailand is pricing itself out of the market as a holiday destination. He claims that now places like Bali, Vietnam, the Phillepines and Malaysia are becoming more and more attractive as alternatives.

For those of you working in the travel industry, what are your thoughts about this?

[Gumballl]

I'm not in the travel business, however I do travel (to Thailand). With the depreciated US dollar and high inflation in Thailand, prices are indeed high. Even in the rural countryside, where I spend all of my time at home, it is easy to plow through 1000 baht a day, with some days costing more (when utility bills come). If I were to be on holiday in Bangkok (or one of the islands), I can see this figure approaching 6000 baht a day if not more (for hotel, food, drink).

Whereas 6000 baht per day may not seem like much to Western levels, it nevertheless is a lot when you consider it is possible to go elsewhere for less, or even just stay home (in farang-land).

[Tod]

An acquaintance who has a tour agency has seen his bookings (mainly from Sweden) for the upcoming high season going down. He thinks that besides the obvious reasons (financial crisis, political unstability in Thailand, tension with Cambodia), this is also because Thailand is pricing itself out of the market as a holiday destination. He claims that now places like Bali, Vietnam, the Phillepines and Malaysia are becoming more and more attractive as alternatives.

For those of you working in the travel industry, what are your thoughts about this?

It's true that I hear more and more peoples coming back from Vietnam and Cambodia and complaining about the prices in Thailand. Backpackers still use Thailand as a platform to move around south east Asia, but they tend to spend less time in Thailand than before. A lot of budget hotels starts to disappear to build big and more expensive resorts.

It seem's that Thailand don't want to be a heaven for small budget travellers anymore and tend to be a more upper class holiday destination. Which in my opinion is an error because there is already a lot of destinations for rich tourists such as Mauricius, Maldives, Seychelles who are actually a lot more beautiful than Thailand.

Hopefully Thailand will stay for at least a few more years a #1 for sex tourists

[barrella]

My future wifes businesses have many connections in the travel industry in Bangkok.

Now her business if the truth be known is going up but this has nothing to do with the known lowering of tourists this season.

All hotels from what we understand are down.

The bar industry is looking dead and there are more and more places for sale and lower and lower prices to buy them.

Is this the end of the travel industry in Thailand? no

Is this a bad blip? yes

How long will it last? "I think I need to get the tea leaves out"

If you are involved with the travel industry in Thailand then tighten your belt and ride out the bad times.

Edited October 17, 2008 by barrella

[jumnien]

Being known as the "cheapest place on Earth" has done Thailand an enormous disservice over the years by encouraging exactly the wrong people to visit. Indeed, this is good news for those of us that love to live here. White trash, it's cheaper elsewhere!

[patklang]

Sunrise,

YOU are white trash compared to many people/includinh thais if you think that having less is white trash.

me,maybe i am black trash,who knows.

[fred2007]

Please guys no racist slurrs here on TV black or white we all the same but come to the point of lower tourists it is not the price at all ( how do I know?) I run a couple of home stays I deal with people coming from all over the world I have never had some one complaining about the prices of accommodation or anything else for that matter I guess it is the travell agents who are complaining not making as much profit as they use to do and why not many tourists coming here anymore as the revellent countries who put travel bans on Thailand for no reason whats so ever.

[Tod]

Being known as the "cheapest place on Earth" has done Thailand an enormous disservice over the years by encouraging exactly the wrong people to visit. Indeed, this is good news for those of us that love to live here. White trash, it's cheaper elsewhere!

Okay so according to what you say, who would be the "right" peoples to come visit Thailand? People who stay in all inclusive hotels, eat in expensive restaurants, book all there tours and tickets from their home country or hotels?

I'm not sure what you mean by "white trash" but people who come here because everything is cheap are the people who make all these small restaurants, noodle stalls, family owned bungalows live.

Most of them are students who take a sabbatical year to travel around asia, and don't necessarily have 5000 baht a day to spend.

Call them "white trash" if you want, but if Thailand starts to disregard this category of tourists, a lot of Thai peoples will have to go find a 200B/day job.

[GuestHouse]

My view as someone who takes frequent family holidays in Thailand is not so much that Thailand is becoming expensive, rather the rip-off factor has gone up (sky rocketed in fact).

We (and I) mix and match our accommodation and the restaurants we use according to where we are in Thailand, what it is we want to do/see/experience in a given location or on a given trip.

We might stay in one of Bangkok's top hotels over a few days in the capital and guesthouse in the north its a wide view we get and I think there in lies the mistake Thailand is making.

There are far too many establishments racking up the prices, slapping on the title "Boutique Hotel" or "Resort" when in truth they are nothing of the sort. The truth of this rip off does not go amiss on international tourist. If Thailand attempts to attract the wealthier end of the international travel market then they need to get their act together and provide international service. By that I do not mean charging the room rate in US Dollars.

Playing a part in all this is the pathetic 'Reviews' of the Thai based press - I guarantee that if I pick up the Bangkok Post (or any Thailand based travel periodical/travel review) it will be trotting out the same two dozen resorts, restaurants, shopping centers - It's like let's see what the Amari Group or the Tamarind Village Group have given the press to print this month.

And look at that - Thailand's new found luxuary shopping experience - I recently went into a Bangkok watch shop itching to buy a Swiss watch I've been promising myself - So there I am a tourist prepared to spend some serious money, what do they do? They quote me a price that is 15% above the international list price (and that's taking into account the tax refund).

So its not just that Thailand is becoming expensive, its the fact that even when faced with the prospect of doing some business Thailand is incapable of seeing itself in competition with the rest of the world. And if you are trying to attract the rest of the world you need to understand that you are not the only show in town.

That is not to say there is not some great value and great service, but we have invariably found this in small privately run hotels/restaurants. The rest seem to have just gone corporate and view tourists as cash cows.

Getting serious about the scammers ripping of tourists around Thailand's attractions might help too - The fact that the same jewelry shops are pulling the same scam on tourists year in and year out is an indictment against the whole Thai tourist industry - Slap government promoted double pricing on top and it becomes clear that the attitude of Thailand towards tourists is 'Milk the Suckers'.

Edited October 17, 2008 by GuestHouse

[torrenova]

Years ago Thailand was a "safe" exotic 3rd world country to visit. Now it is competing with lots of other countries, many of which now offer better value in certain areas.

For instance, a few years ago I booked a half day spa package at the Mandara Spa at the Marriott Riverside and it was about Bt6000. Today, the same package is Bt16,000++ so you end up with around Bt18,500 or $550 or so which is way out of line with the actual cost and wages paid. It is taking the piss.

Less expensive are other options all over Thailand but tourists are gouged and this encouraged throughout the land with few exceptions. Add in the FX issues and you have a recipe for disaster.

[whatsoever]

Being known as the "cheapest place on Earth" has done Thailand an enormous disservice over the years by encouraging exactly the wrong people to visit. Indeed, this is good news for those of us that love to live here. White trash, it's cheaper elsewhere!

White trash with an attitude like yours . I assume your either of colour or would prefer to be

[whatsoever]

Please guys no racist slurrs here on TV black or white we all the same but come to the point of lower tourists it is not the price at all ( how do I know?) I run a couple of home stays I deal with people coming from all over the world I have never had some one complaining about the prices of accommodation or anything else for that matter I guess it is the travell agents who are complaining not making as much profit as they use to do and why not many tourists coming here anymore as the revellent countries who put travel bans on Thailand for no reason whats so ever.

Please note that the use of the term whatsoever requires my approval

[GungaDin]

And look at that - Thailand's new found luxury shopping experience - I recently went into a Bangkok watch shop itching to buy a Swiss watch I've been promising myself - So there I am a tourist prepared to spend some serious money, what do they do? They quote me a price that is 15% above the international list price (and that's taking into account the tax refund).

Getting serious about the scammers ripping of tourists around Thailand's attractions might help too - The fact that the same jewelry shops are pulling the same scam on tourists year in and year out is an indictment against the whole Thai tourist industry - Slap government promoted double pricing on top and it becomes clear that the attitude of Thailand towards tourists is 'Milk the Suckers'.

Guesty,A quality post, as usual.

How did the conversation go at the jeweler's?

I'd like to know.

cheers

gd

[hanno]

I am a hotel manager in Vietnam and frequently go to Thailand for my holidays. Vietnam is certainly NOT cheaper than Vietnam in my opinion. Prices in the big cities have sky-rocketed in the last couple of years and hotel prizes are well above those in Thailand. At the same time, the infrastructure in Vietnam is way behind that of Thailand, and the scam and rip-off level is pretty high here, too.

If we do get a lot more requests this high season from people that had originally planned to go to Thailand then that has less to do with prizes but the continuing political uncertainty and turmoil (and a small border war with Cambodia wouldn't help either).

[JimsKnight]

Well its a little bit more expensive, but you know what?

It's not a ball buster and I can still live like the farang rogue prince a lot better here than the UK.

Food is up a touch, fuel is up a touch (but not much).

Digs is still *about* the same.

Flesh trade? I don't know what the hel_l they are charging these days. Probably up a touch or three.

I think if you aren't locked into the 2 week scam you should be ok. Thailand produces its own food still and that counts for a lot.

See, I don't really have a beef with the poor or rich farang who come here, it's when you get a zillion of them flooding the place. So a cull in numbers isn't that bad. But not so much that it hits the more humble workers relying on it as the breadwinner.

So I lament the bar industries decline as much as the next sugar daddy does.

What I do object to is the crazy hotel building going on left-right and center in some cities. Boy, I think they are in for a shock come high season.

Cause hotels do not maketh the city. And numbers are down.

The repeat tourist is starting to drift a little and these tend to be the more travelling backpacker types

It's not high season yet so its just wait and see. Two months is a long time for stuff to start happening if you know what I'm saying.

[Marvo]

..... Thailand is incapable of seeing itself in competition with the rest of the world.

That's because Thailand and its FBA have Nannied its population, "protecting" them with an all-inclusive list of business activities, effectively telling them all that "Thai nationals are not yet ready to compete with foreigners."

[keestha]

To attract high spending tourists who are ready to shell out a lot of money to be pampered in a "boutique hotel" Thailand is at a disadvantage because of the language factor. The girl working behind the reception will be pretty and very nicely dressed, but her English will be shallow. There will be misunderstandings ordering food, and so on.

[hanno]

but her English will be shallow

Worse than in Vietnam, Cambodia, Laos, Malaysia, Bali?

[GuestHouse]

Worse than in Vietnam, Cambodia, Laos, Malaysia, Bali?

Or the Maldives, India, Indonesia, Cuba, Kenya, South Africa, St Lucia, Mexico..............

[cloudhopper]

but her English will be shallow

Worse than in Vietnam, Cambodia, Laos, Malaysia, Bali?

I haven't been to VN yet, but my experiences in the other places on your list is - definitely.

[hanno]

haven't been to VN yet, but my experiences in the other places on your list is - definitely.

Don't really agree. Cambodia: no English outside Siem Reap and PP, Laos: no English, period, Malaysia: pretty good in the cities, not so hot outside, Bali: admittedly quite good.

[cecco]

haven't been to VN yet, but my experiences in the other places on your list is - definitely.

Don't really agree. Cambodia: no English outside Siem Reap and PP, Laos: no English, period, Malaysia: pretty good in the cities, not so hot outside, Bali: admittedly quite good.

[Old Croc]

The Aussie dollar has dropped from about 32 baht to 23 in the last five minutes or so. This obviously makes my next trip to LOS that much more expensive. In addition, I've noted that many of the hotels I've stayed in previously have raised prices fairly substantially. I will have to stay in a different level of accommodation next trip.

Many Australians have rediscovered other, closer, cheaper, holiday destinations, Bali in particular, and are flocking back there. There will be less of us in Thailand this season.

(Yes, probably a good thing for those itching to jump in! )