Tourists Start Making A Comeback To Thailand

[george]

Tourists start making a comeback to Thailand

Foreign shoppers still down by 10-20%; hotel occupancy climbs back

BANGKOK: -- The Ratchaprasong Square Trade Association has noticed foreign tourists trickling back to the posh shopping district after dropping more than 40 per cent during the airport closures.

"However the number of foreign visitors is still down by 10 to 20 per cent compared to the normal situation," RSTA president Chai Srivikorn said yesterday.

Foreign tourists account for 30-40 per cent of all shoppers in the Ratchaprasong shopping area.

"We have seen an increase in foreign guests at many hotels in the Ratchaprasong area with average occupancy climbing from only 20 per cent during the unrest to nearly 40 per cent today," Chai said.

"The Oriental Hotel Bangkok for example is showing a pick-up in the number of foreign individual tourists of 40-50 per cent so far," he said.

Formed in 2003, RSTA now groups nine members - Amarin Plaza, CentralWorld, Erawan Bangkok, Gaysorn, Grand Hyatt Erawan Bangkok, Holiday Inn Bangkok, Intercontinental Bangkok, Maneeya Centre and President Tower Arcade.

The economic environment next year would still not be good, in terms of a tourism downturn and unemployment, he said.

"I however don't think the tourism industry will get worse as expected by many others," he said.

"There are many foreign travellers who would like to come to Thailand and are not bothered by economic factors. What they are worrying about is political instability and security matters. However, it will take a certain period of time to bring back the confidence of group tours, particularly from Asian countries, which have been down during the political turmoil and the shutdown of airports," he said.

The recession would impact middle-market shoppers, who are the most sensitive to high unemployment and declining purchasing power.

"We still see great purchasing power from high-end shoppers who still have cash in their pockets. However, it depends on their confidence and shopping mood," he said.

RSTA would emphasise comprehensive security control by enhancing its procedures, personnel standards and technology in the shopping district. It is stressing its willingness to coordinate with authorities to ensure the safety of all visitors and tourists during the festive season and beyond, particularly during the New Year Countdown, which expected to attract more than 500,000 revellers to the Ratchaprasong area.

RSTA kicked off the first phase of the security system development project on Rajadamri, Ploenchit and Rama I roads in July 2007 with more than Bt20 million invested in the system, including 64 security cameras covering the skywalk and footpaths throughout the district. A control centre was opened in November 2007.

RSTA has focused on three security elements in the second phase of the security enhancement programme, comprising procedure, people and technology.

"RSTA is the first and only private sector organisation to formally respond to the government's policy of increasing public security and safety in Bangkok. Our continuing efforts are intended to ensure the comfort and safety of all visitors to the district and to position Ratchaprasong as a leading regional shopping destination."

-- The Nation 2008-12-25

Related link:

Hotels in Thailand: http://hotel.thaivisa.com

[mrtoad]

I suppose if you keep saying the same thing over and over again, you may begin to believe it.

[jbowman1993]

As long as Thailand has great food, cheap hotels, cheap booze, cheap "companions" and huge amounts of sunshine there will be tourists to enjoy them... Its the law of supply and demand.

[Kerryd]

This must be a mis-information campaign !

According to many of the anti-PAD posters, Thailand's tourism industry was "irrevocably" and "irreparably" damaged by the PAD shutdown of the airport !

The numbers are still small of course, but no doubt the overall numbers would have been lower this year regardless of the protests, as people every where are finding they have less to spend, or their savings have dried up and they are more concerned if worse news (financially) is just over the horizon.

It remains to be seen if the numbers will climb back to a level that could be commensurate with what could have been, taking the global financial crisis into account. Unfortunately, it's not likely the numbers will climb fast enough and this may well be the lowest "high" season in years. That the numbers are rising is an encouraging sign though.

[bkkjames]

This must be a mis-information campaign !

According to many of the anti-PAD posters, Thailand's tourism industry was "irrevocably" and "irreparably" damaged by the PAD shutdown of the airport !

The numbers are still small of course, but no doubt the overall numbers would have been lower this year regardless of the protests, as people every where are finding they have less to spend, or their savings have dried up and they are more concerned if worse news (financially) is just over the horizon.

It remains to be seen if the numbers will climb back to a level that could be commensurate with what could have been, taking the global financial crisis into account. Unfortunately, it's not likely the numbers will climb fast enough and this may well be the lowest "high" season in years. That the numbers are rising is an encouraging sign though.

hey Kerry, chew on these stats awhile...

Thai airports: Not a pretty picture

24 December 2008 14:10 Age: 22 hrs

Category: News

Airport closure dragged high season figures into red zone.

As expected November passenger traffic through six airports managed by Airports of Thailand showed declines exceeding 27%, down by more than 1.4 million passengers.

The official air traffic report, released by Airports of Thailand for November, revealed the extent of damage caused by the closure of the two Bangkok airports over the last five days of the month.

Suvarnabhumi and Don Mueang airports were closed from 25 November until 5 December.

Total aircraft movement at all airports in November sank 24.82% compared with the same month last year –- down 17.62% for international and 33.53% for domestic movements.

Overall, passengers fell by 27.27% from 5,069,805 to 3,687,349, compared with November 2007.

Considering the 11-month period, aircraft movements were down only 4.77% from 362,499 to 345,217 —196,864 international and 148,353 domestic. Passenger traffic fell by 1.49% to 50,892,603 compared with 52,664,502 in 2007.

November was not a pretty picture at the country’s main hub, Suvarnabhumi Airport. Closed for five days aircraft movements plunged 18.87% from 21,288 to 17,272 —international, down 18.78% , domestic down 19.29%. Passengers in November shrank 26.05% from 3,526,794 to 2,608,199 — international passengers down 28.81% while domestic fell 12.21%.

However, year-to-date, Suvarnabhumi suffered only a marginal drop in passengers compared with 2007 at 3.17% -- 37,439,936 to 36,251,953. Aircraft movement dropped 4.23% from 238,832 to 228,726.

Don Mueang, saw domestic aircraft movement nosedive 46.54% compared with November 2007 from 4,800 to 2,566, while passengers plunged 46.79% from 516,258 to 274,692. Don Mueang’s traffic declined since July after One-Two-Go was grounded and Nok Air cut flights.

Phuket Airport was the only airport to see a slight improvement. International passengers increased by 0.92% from 208,225 to 210,149, despite a 1.25% decrease of international aircraft movements.

Domestic aircrafts movement dropped 35.82% from 2,189 to 1,405, while passengers sank 24.21% from 300,759 to 227,960, caused by the shutdown of the two Bangkok airports, ending all connecting traffic.

Phuket Airport’s passenger record stands on the positive side with a 2.86% increase over 2007, but aircraft movements were down 5.11%

The northern hub Chiang Mai Airport also faced an alarming drop in the high season. Compared with the same month last year, international aircraft movements were down 34.40% from 439 to 288. The city’s links to regional hubs, other than Bangkok, declined after April as international flights were withdrawn. Meanwhile domestic aircrafts movement dropped 22.35% from 1,964 to 1,525 mainly due to the shutdown of Bangkok airports late November.

International passengers dropped 28.86%, while domestic passengers fell 25.61% from 278,997 to 207,556.

Chiang Rai Airport experienced a sharp 51.23% fall in domestic aircraft movements and 40.99% in passengers. The decline started in July when One-Two-Go suspended flights nation-wide, but the figure did not pick up even after the tourism season kicked in due to political and economic factors.

The same depressing picture emerged at Hat Yai Airport. Domestic aircraft movements down 45.40% from 923 to 504 and passengers down 31.71% from 113,426 to 77,463

[mrtoad]

As long as Thailand has great food, cheap hotels, cheap booze, cheap "companions" and huge amounts of sunshine there will be tourists to enjoy them... Its the law of supply and demand.

The problem is, that Thailand isn't that cheap anymore, and there are other alternatives in Asia. The closure of the Airport will make people think twice about coming here, and probably those that got caught up in all the nonsense will look at other alternatives for their next holiday.

[chuang]

Tourists start making a comeback to Thailand

"

Sure because it's "a lot of fun" with free food and excellent music...

[bhoydy]

My girlfriend, who works for a company in Chiang Mai that take tour bookings from Suvvarnabuhm, had been temporarily unemployed since the closure of the airport. Good to report that she has been guiding new tourists around Chiang Mai again as of this week. This is good for me as well as i will not have to fork out so much cash for an unemployed chick.

If it was me back at home thinking about booking a holiday to Thailand, the stupid airport protest wouldn't put me off booking a holiday here now that it is all over. Unfortunately not everyone thinks like me.

I was wondering if the hotel prices would go up or down with this season's lack of tourists. I remember an increase in a lot of hotels down south after the tsunami, due to lost business. Also songthaew prices in Krabi were a lot higher.

[Scott]

Tourism is always an area that is subject to change and can be quite unpredictable. Thailand will most likely continue to be a favored tourist destination, the question is how many can afford to come here. Political instability and the airport closure will have a 'long' term effect, but with tourists, 'long' term can be pretty short. Economics....now that's a different story.

[angiud]

This must be a mis-information campaign !

According to many of the anti-PAD posters, Thailand's tourism industry was "irrevocably" and "irreparably" damaged by the PAD shutdown of the airport !

The numbers are still small of course, but no doubt the overall numbers would have been lower this year regardless of the protests, as people every where are finding they have less to spend, or their savings have dried up and they are more concerned if worse news (financially) is just over the horizon.

It remains to be seen if the numbers will climb back to a level that could be commensurate with what could have been, taking the global financial crisis into account. Unfortunately, it's not likely the numbers will climb fast enough and this may well be the lowest "high" season in years. That the numbers are rising is an encouraging sign though.

I cannot say for the rest of Thailand, but Koh Phangan is nearly full for the Christmas/New Year period.

So we start the high season again!

No PROPAGANDA

[Journalist]

There were some great bargains to be had at the travel show at Queen Sirikit exhibition centre on sunday -which was packed with people, and I am going for 4 nights to the Zign Resort in Pattaya next week at a two thirds discount.

Got friends flying in tomorrow to stay at the Oriental in bangkok.

I realise that one swallow does not a summer make, but its not entirely zombie-fied out there!

[Kerryd]

hey Kerry, chew on these stats awhile...

Yum yum ! Got the munchies !

As expected November passenger traffic through six airports managed by Airports of Thailand showed declines exceeding 27%, down by more than 1.4 million passengers.

Total aircraft movement at all airports in November sank 24.82% compared with the same month last year –- down 17.62% for international and 33.53% for domestic movements.

Overall, passengers fell by 27.27% from 5,069,805 to 3,687,349, compared with November 2007. (-1,382,456)

Considering the 11-month period, aircraft movements were down only 4.77% from 362,499 to 345,217 —196,864 international and 148,353 domestic. Passenger traffic fell by 1.49% to 50,892,603 compared with 52,664,502 in 2007. (-1,771,899)

Take November out totally, and there was still a decrease of 389,443 over the rest of the year, spread amongst all 6 airports, for an average of 1,281 fewer passengers per day on average.

Take out the total decrease in passengers from Swampy, and that still leaves 463,861 fewer passengers for the month of November spread across the other 5 airports, which is higher than the previous 10 months put together for all 6 airports.

November was not a pretty picture at the country's main hub, Suvarnabhumi Airport. Closed for five days aircraft movements plunged 18.87% from 21,288 to 17,272 —international, down 18.78% , domestic down 19.29%. Passengers in November shrank 26.05% from 3,526,794 to 2,608,199 (-918,595 - total for the whole month)— international passengers down 28.81% while domestic fell 12.21%.

However, year-to-date, Suvarnabhumi suffered only a marginal drop in passengers compared with 2007 at 3.17% -- 37,439,936 to 36,251,953. Aircraft movement dropped 4.23% from 238,832 to 228,726.

According to those numbers, Swampy was averaging between 111,761-117,560 passengers per day. 6 days (25-30 Nov) times 117,560 = 705,360.

That would mean they would have experienced 213,235 fewer passengers in the 24 days prior to the shutdown.

Add the total drop shared by the other 5 airports, and that would mean Thailand lost about 677,000 passengers in November alone, not including the period when the airports were shut. This includes Domestic and International passengers of course.

By the percentages above, International passengers account for 58% of the total drop (532,785 international, 385,810 domestic) for the month.

If those percentages are applied to the estimated number of total passengers "lost" during the shutdown (705,360), that would mean, during those 6 days, approx 410,000 tourists would have been effected (205,000 arrivals, 205,000 departures, perhaps, at Swampy).

As a percentage of overall tourist passengers for year-to-date (58% of 50,892,603 total passengers = 29,517,710 tourist passengers to 30 Nov). A loss of 205,000 arrivals would equal about 0.69% of the total for the year.

Interesting to note for all those who seem to think that Thailand revolves around Suvarnabhumi.

Total passenger movements to 30 Nov 08 = 50,892,603

Total through Swampy for the same period = 36,251,953

Total movements that did not go through Swampy = 14,640,650 (or 40.69%).

The northern hub Chiang Mai Airport also faced an alarming drop in the high season. Compared with the same month last year, international aircraft movements were down 34.40% from 439 to 288. The city's links to regional hubs, other than Bangkok, declined after April as international flights were withdrawn. Meanwhile domestic aircrafts movement dropped 22.35% from 1,964 to 1,525 mainly due to the shutdown of Bangkok airports late November.

So Chiang Mai experienced a steep drop as well in International flights, despite not being shut down. One would have thought that they may have experienced a rise in movements due to Bangkok being shut down, as flights could have been diverted to CM instead. It would seem that, even if this had of been the case, they would have still shown a marked decline in overall movements for the year to date.

Chiang Rai Airport experienced a sharp 51.23% fall in domestic aircraft movements and 40.99% in passengers. The decline started in July when One-Two-Go suspended flights nation-wide, but the figure did not pick up even after the tourism season kicked in due to political and economic factors.

The same depressing picture emerged at Hat Yai Airport. Domestic aircraft movements down 45.40% from 923 to 504 and passengers down 31.71% from 113,426 to 77,463

It is rather obvious to me that these stats show Thailand would have experienced a significant drop in tourist numbers even without the shutdown. From the article above, it looks like the decline started last spring and has been continuing.

Yes, the PAD shutdown of the airports had a significant impact on the numbers, but the downward trend was in existence long before they shut down the airports.

//edit - had to note difference between "passenger movements" and "arrivals"

Edited December 25, 2008 by Kerryd

[Ricardo]

Just to point out that, comparing November 2008 with November 2007, the domestic flights/passengers would have been down anyway, since 1-2-Go was not flying this year (restarted in early-December I think?) and Nokair was reported to be operating 3-4 aircraft instead of 9 last year.

[Gary A]

Tourists have a short memory and the doom and gloom crowd are going to see that tourists are going to be back sooner than you think.

[tb86]

I suppose if you keep saying the same thing over and over again, you may begin to believe it.

HMM, did you even bother to read the article? Khun Chai is saying that there will be a economic downturn in thailand, especially for the middle class, but that tourism will not continue to drop off. We have seen a sharp recovery from almost a 58% drop in biz in the rsta district, the oriental at one point in time was at a 1% occ, oriental dhara devi was at 24%, the intercon at 20% ect ect occupancy has increased fairly rapidly over the last few weeks, granted its not where it should be but weekly growth has improved, so no the world isnt gonna come to a end because the airports were closed for a few days

Edited December 25, 2008 by tb86

[Ulysses G.]

Tourists have a short memory and the doom and gloom crowd are going to see that tourists are going to be back sooner than you think.

I agree, however, most of the tourists that are avoiding Thailand right now are staying away as a direct result of the PAD antics over the last few months and the airport highjacking,

There are going to be a lot of people in the future who won't be able to afford to travel due to the messed up economy and we do not know how long things will stay this way. The doom and gloom crowd might be more right than we wish this

time!

[basjke]

Most if not all of the current arrivals were booked before the airport closures and maybe even before the economic crisis started.

Now lets wait and see how the Thai political problems evaluate,which for sure don't look good,and how the economic downturn goes on,which isn't finished long time yet.

And then in the middle of next year take a look at the tourist arrival figures again.I can tell you now already that it will be a fraction of the current numbers.

[Old Man River]

Tourists have a short memory and the doom and gloom crowd are going to see that tourists are going to be back sooner than you think.

That is my view as well.

I was in Phuket recently and thought I would have virtually the whole hotel to myself. While at first that was almost the case (occupancy was at 10%), one week later it was visibly apparent that the hotel was filling up (I was told that occupancy was at 50% with new bookings before new year bringing it up to around 80%). Of course this is only one hotel's experience (i.e. not a representative sample), but it is a large hotel and there was no question that it already was beginning to see people come back.

[Chaimai]

It is rather obvious to me that these stats show Thailand would have experienced a significant drop in tourist numbers even without the shutdown. From the article above, it looks like the decline started last spring and has been continuing.

Yes, the PAD shutdown of the airports had a significant impact on the numbers, but the downward trend was in existence long before they shut down the airports.

//edit - had to note difference between "passenger movements" and "arrivals"

A very valid point that those operating in the tourist sector need to appreciate.

The political factor was either already impacting on customer's choice of destination - with the PAD demonstrations just exacerbating the situation - or the reduced numbers were reflecting the start of the economic downturn.

I still believe that the airport closure will be quickly forgotten and tourist numbers will start to pick up - I hope so, for all those trying to make a living from the sector. I fear they will not return to former levels - economics, not politics being the majot factor.

[mrtoad]

I suppose if you keep saying the same thing over and over again, you may begin to believe it.

HMM, did you even bother to read the article? Khun Chai is saying that there will be a economic downturn in thailand, especially for the middle class, but that tourism will not continue to drop off. We have seen a sharp recovery from almost a 58% drop in biz in the rsta district, the oriental at one point in time was at a 1% occ, oriental dhara devi was at 24%, the intercon at 20% ect ect occupancy has increased fairly rapidly over the last few weeks, granted its not where it should be but weekly growth has improved, so no the world isnt gonna come to a end because the airports were closed for a few days

I read it very clear, and considering I actually live and work here, with one sector of my biz involved in tourism I am all to aware of it. Take the saffron tinted glasses off, wake up, and smell the coffee.

[mommysboy]

As long as Thailand has great food, cheap hotels, cheap booze, cheap "companions" and huge amounts of sunshine there will be tourists to enjoy them... Its the law of supply and demand.

It's got sunshine for sure, and the foods nice providing you are prepared to run the increased risk of food poisoning, but the other charms are being eroded. people don't have the same amount of spending money. Thailand may have more competition too.

In denial?

[mommysboy]

I suppose if you keep saying the same thing over and over again, you may begin to believe it.

HMM, did you even bother to read the article? Khun Chai is saying that there will be a economic downturn in thailand, especially for the middle class, but that tourism will not continue to drop off. We have seen a sharp recovery from almost a 58% drop in biz in the rsta district, the oriental at one point in time was at a 1% occ, oriental dhara devi was at 24%, the intercon at 20% ect ect occupancy has increased fairly rapidly over the last few weeks, granted its not where it should be but weekly growth has improved, so no the world isnt gonna come to a end because the airports were closed for a few days

Dead Cat Bounce ? What are the figures like after Xmas? These reports fly in the face of on the ground evidence. What luck? another opportunity to utter those immortal words: wake up smell the coffee!!!

[hardy1943]

I suppose if you keep saying the same thing over and over again, you may begin to believe it.

HMM, did you even bother to read the article? Khun Chai is saying that there will be a economic downturn in thailand, especially for the middle class, but that tourism will not continue to drop off. We have seen a sharp recovery from almost a 58% drop in biz in the rsta district, the oriental at one point in time was at a 1% occ, oriental dhara devi was at 24%, the intercon at 20% ect ect occupancy has increased fairly rapidly over the last few weeks, granted its not where it should be but weekly growth has improved, so no the world isnt gonna come to a end because the airports were closed for a few days

Dead Cat Bounce ? What are the figures like after Xmas? These reports fly in the face of on the ground evidence. What luck? another opportunity to utter those immortal words: wake up smell the coffee!!!

Up here in Chiang Rai they are lucky if occupancy is 50% this week, they used to be fully booked and used to increase the room rates by 50% during the holidays

[henryalleman]

As long as Thailand has great food, cheap hotels, cheap booze, cheap "companions" and huge amounts of sunshine there will be tourists to enjoy them... Its the law of supply and demand.

You seems to forget that all of this is also available in an only 1 to 2 hour flights inside Europe, and even cheaper.

[sriracha john]

Immigration Bureau ready for New Year tourist influx

The Tourism Authority of Thailand (TAT) reports that the Immigration Bureau is taking special care to prepare for the New Year's influx of foreign tourists.

In preparation to welcome tourists traveling to the Kingdom during the New Year’s period the Suvarnabhumi Airport Immigration Command Center has prepared a full brigade of officers to assist the expectantly large crowd.

In an effort to best ease their travels, the Immigration Bureau has established a Premium Zone to reduce the time needed to check passports for select travelers, while also preparing a full brigade to assist all tourists.

All the preparations are in hopes of making entry into Thailand an impressive affair that will build confidence amongst travelers that Thailand is ready to welcome them with assured transport and tourist destinations.

- ThaiNews / 2008-12-27

[astral]

BANGKOK: -- The Ratchaprasong Square Trade Association has noticed foreign tourists trickling back to the posh shopping district after dropping more than 40 per cent during the airport closures.

"However the number of foreign visitors is still down by 10 to 20 per cent compared to the normal situation," RSTA president Chai Srivikorn said yesterday.

Foreign tourists account for 30-40 per cent of all shoppers in the Ratchaprasong shopping area.

"We have seen an increase in foreign guests at many hotels in the Ratchaprasong area with average occupancy climbing from only 20 per cent during the unrest to nearly 40 per cent today," Chai said.

Let us look at those numbers a minute

A 40% drop, but the tourists only make up 30-40% of the shoppers.

So the real drop is only 12-16%

And now that has halved to 6-8%.

Not really so bad, in my book.

"The Oriental Hotel Bangkok for example is showing a pick-up in the number of foreign individual tourists of 40-50 per cent so far," he said.

I would consider the Oriental rather a specialised hotel,

so any figures are hardly indicative of the whole tourist industry.

[Merangue]

Folks this is the HIGH season. 99% of which was booked months ago by those who happen to be here now.

I know of plenty of people who have decided to go elsewhere next year due to the troubles in the airports.

Since when has a high season been measured over only a 3 week period because that is the length of this years high season.

Expect a serious drop off mid to late January and a decline across the year.

Personally i expect about a 30% drop in tourism mostly from other Asian countries such as China and Japan.

[BigSnake]

With all the problems the Land of Smiles(LOS) has seen as of late it is STILL the best bargain in this South East Asia, no ifs and or buts" about it, just stop for a moment and think of the countries nearby, Viet-nam, Laos, Burma, Cambodia, China, India, yeah right. Who really want to spend a lot of time and money in these places, beside that fifteen day(??) or is it seven now, what ever a visa on arrival is a BIG OLD PLUS for the Land of Smile. Seven or fifteen days is plenty of time for the tourist to add a bit of cash to the Nation bank account.

[Ulysses G.]

Folks this is the HIGH season. 99% of which was booked months ago by those who happen to be here now.

I know of plenty of people who have decided to go elsewhere next year due to the troubles in the airports.

Since when has a high season been measured over only a 3 week period because that is the length of this years high season.

Expect a serious drop off mid to late January and a decline across the year.

The Gospel Truth. Someone who knows of what he speaks!

[dumball]

With all the problems the Land of Smiles(LOS) has seen as of late it is STILL the best bargain in this South East Asia, no ifs and or buts" about it, just stop for a moment and think of the countries nearby, Viet-nam, Laos, Burma, Cambodia, China, India, yeah right. Who really want to spend a lot of time and money in these places, beside that fifteen day(??) or is it seven now, what ever a visa on arrival is a BIG OLD PLUS for the Land of Smile. Seven or fifteen days is plenty of time for the tourist to add a bit of cash to the Nation bank account.

You would be surprised how many ARE spending their hard earned cash in one or other of those countries , no ifs and or buts about it , it is obvious many HAVE given thought to a different destination and are being quite surprised at what they are finding .

Part of the decision could be allied to the end of your assumption , : Plenty of time to add a bit of CASH to the Nation bank account , Thai have become known as money grabbers , the internet makes the world a very small place . Why jump through hoops for a visa to enable one to ' Increase the prosperity ' of the visited country that gives far less than advertised or thought of as the only place to spend a vacation ? When a store/restaraunt gives poor service or trys to fool you with 'Special low prices ' until you realise it is actualy more like double , are you stupid enough to go back for more of the same ? Present company excluded of course .