Thailand Tourism To Drop 34% This High Season

[george]

Inbound tourism to drop

BANGKOK: -- Inbound tourism is expected to decline 34 per cent this high season, due mainly to the economic crisis.

"Another important factor is that our political problems and the ongoing chaos now disturb tourists," Sa-ngium Ekachot, vice president of the Association of Thai Travel Agents, said yesterday.

Many Europeans are reconsidering whether to go overseas for vacation during the peak season from December to February, as they have found that travel abroad, particularly to Asia, costs more this year, he said.

The strengthening of the euro has become the key factor for the slowdown.

However, tourism should recover after New Year's if political issues can be toned down, he added.

Theera Tuglakmunkong, president of the Udon Thani Chamber of Commerce, said tourism in the Upper Northeast was booming thanks to the SEA Games now taking place in Vientiane.

Two provinces across from Laos - Nong Khai and Udon Thani - should gain more than Bt1 billion in revenue during the games.

"Tourism operators in both provinces hope to benefit from some post-games sightseeing trips," he said.

Tourism authorities and travel associations in the region plan to boost tourism by re-launching "Revisit Isaan Year 2010". Many special packages will be introduced next quarter.

Thai AirAsia plans to link Udon Thani with neighbouring countries such as Vietnam, China and Hong Kong. The budget airline on Saturday said it would start operating Udon Thani-Phuket flights on December 21.

Bangonrat Chinaprayoon, director of the Tourism Authority of Thailand's Phuket office, said tourism in the South would rebound in the coming year.

Many operators see a positive outlook for 2010. Airlines and cruise liners already plan to lay on more flights or services to the island until March.

"During this year's high season, hotels in Phuket will enjoy average occupancy nearly 80 per cent, higher than the last peak season," she said.

However, hotel and tour operators are worrying about the never-ending political problems, she added.

-- The Nation 2009-12-15

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[londonthai]

ups, the sh*t hit the fan - 34% is a dramatic fall, especially during the high season, when the high spenders are coming and stay for the extended new years holidays (the poorer tourists are coming durinng the low season).

"The strengthening of the euro has become the key factor for the slowdown" - euro remained stable for the last many years, it's the £ which fall from 74baht do 50 baht (some 30%).

Edited December 14, 2009 by londonthai

[LaoPo]

Many Europeans are reconsidering whether to go overseas for vacation during the peak season from December to February, as they have found that travel abroad, particularly to Asia, costs more this year, he said.

The strengthening of the euro has become the key factor for the slowdown.

...well, well, well.....how about that?

Almost Baht 50 to the Euro and the Euro has become the key factor for the slowdown.....

how about that ?

Well: European tourism is just 25% of total Thai inbound tourism (more than 60% is from Asia).....so where's the decline of 34% coming from ?

LaoPo

[oevna]

I wonder if this means it will be a good time to visit Thailand in January, or if I am about to jump into a pool of hungry piranhas.

[Stricken]

The Thai Government should be really thinking about the reason for this drop, but more and more I see that they are to blame.

[gotlost]

I told you so.

[Thai at Heart]

Many Europeans are reconsidering whether to go overseas for vacation during the peak season from December to February, as they have found that travel abroad, particularly to Asia, costs more this year, he said.

The strengthening of the euro has become the key factor for the slowdown.

...well, well, well.....how about that?

Almost Baht 50 to the Euro and the Euro has become the key factor for the slowdown.....

how about that ?

Well: European tourism is just 25% of total Thai inbound tourism (more than 60% is from Asia).....so where's the decline of 34% coming from ?

LaoPo

Well someone is lying. TAT announces targets being reached, travel agents announce big drop.

This is when you wish Thailand had something approaching a proper media and parliamentary opposition. Watching ministers getting caught in obvious lies ("we will obtain the tourism target for 2009!") and trying to squirm their way out of it is half the fun of a developed democracy.

[rohitsuk]

I wonder if this means it will be a good time to visit Thailand in January, or if I am about to jump into a pool of hungry piranhas.

Well you know the Thai business philosophy - Whoops, a drop of 34% in the number of customers so we will have to charge the remaining 66% an extra 34% to make it up.

Thainomics - if volume falls just increase margin and you will make even more money !

And the national business mottos:

"Snatch defeat from the jaws of victory" and "Wishing will make it so".

<snip>

Its all there in the City of Angles and The Land of Wiles - Well-kaaaarm !

Edited December 15, 2009 by soundman
Removed derogatory comment.

[jontom]

I told you so.

SOMNAMNA! Khun Abhisit and the rest of your youre unelected Government. I thought you were meant to be bright. Anyone could see that this was inevitable what was going on in the country and no I don't believe the tourists will come back anytime soon.

[JR Texas]

I told you so.

I also told you so PLEASE TAKE OFF YOUR FREAKIN' ROSE COLORED GLASSES! (not you gotlost........but the love Thailand nothing ever is bad here or leave it crowd)

[lensta]

"The strengthening of the euro has become the key factor for the slowdown" Ummm, if the Euro was strengthening against the Baht, wouldn't that encourage tourists with Euros to spend to come to Thailand as the exchange rate would be favourable. If the Euro was weakening then I think this would be a key factor in a drop of tourist from European countries. Is this another great piece of reporting from the Notion or did I get out of bed too early causing my brain to malfunction??

[sokal]

I told you so.

less 34% is about average across all industries across the world. Japans exports where down 34% too so in the end, this number is a wash.

[davejonesbkk]

So seeing as there aren't going to be as many tourists this year can anyone recommend any good deals for me? I am thinking of getting out of Bkk 23-27th, possibly Hua Hin

[webfact]

Kind reminder - this topic is called "Thailand Tourism To Drop 34% This High Season"

[animatic]

General economic malaise and general strengthening of the baht

vs. most travel related currencies is to blame,

coupled with the political worries of a red riot happening monthly.

PAD set the stage for street disruptions with the airport take over,

but simultaneously,

PPP also utterly ignored the economic winds in a BIG way for months prior,

thus leaving the country way behind the curve in controlling the world economic crash.

Then the Reds took the street issue to new lows over Songkran,

and Thaksin continues to cynically leverage these poor people,

in a visible way to international viewers, for his own ends.

No wonder this perfect storm has brewed a foul cup of acidic java.

All ministers spout BS periodically regardless of who the PM or ruling coalition is.

I can't any more fault a coalition PM making do with compromise candidates in

his cabinet spouting face saving blather, than I could a control freak PM who

only accepted WEAK cabinet members so he could maintain control of them...

Both recipes for idiotic statements from short term political department heads.

The best and brightest rarely are put in the chair best suited for them or the countries needs.

Add kow tow face saving to the mix and why would ANY OF US

imagine truth is the priority in government ministers pronouncements?

as

[doomster]

So let me get this right: because the so called Europeans are getting a very good excahnge rate - upto 50 baht then this stops them coming to Thaland. Where as if they were to get say 40 then they would flock here as ...........well

Thai logic (madness) at its best

[Beardog]

Being American I can not attest to any other countries from personal experience- but if you you hung onto stocks you lost 50-60% if your losing your house do to foreclosure or the bank is yanking your truck or car on a repo. It is hard to think about coming to Thailand to have a fun vacation as your losing the farm. While I live here & wasn't involved in the crash- My friends family & buddies in England Germany Australia as well as home most are forgoing vacations abroad across the line. Even my surf rat buddies in Hawaii that go to Indo to surf & BKK & Pattaya to play are taking a pass. That & the psycho wack antics of politics scare off most people. Who the hel_l wants to go to a country that can't control the airports. Even if the Govn here bucked up it doesn't change the monetary woes & unless you are really rich & the millions In Dollars or Euros you lost doesn't bother you , most people tend to be a little more frugal when the money is tight to hemorrhaging. The Govn. could try to stem their petty ways & promote tourism here ...It would help some- but the making up for the loss by tagging the tourists or the locals here does not help the plight at all.

Pattaya's business's are closing at a much more accelerated rate than 2006. I guess history is not Thailand's Long Suit. Obviously they don't believe the rest of the world is on line & reads the reports. And even though true The U.S. does not travel to Asia as much as other countries, because of the economy trips to Europe are out. Hopefully people will get to see their families during the holidays. Thailand needs to come a little harder to draw the remaining players in & make this a more attractive place to come to. Not trying to rant on I dislike Thailand because even with the faults I like it here & is my choice to be here...... but seriously when you look at what Indonesia- Vietnam & other Asian countries have to offer, Thailand is shooting themselves in the foot in tourism.

[Ricardo]

Well someone is lying. TAT announces targets being reached, travel agents announce big drop.

This is when you wish Thailand had something approaching a proper media and parliamentary opposition. Watching ministers getting caught in obvious lies ("we will obtain the tourism target for 2009!") and trying to squirm their way out of it is half the fun of a developed democracy.

Yes, the earlier brave-statements were clearly based upon optimism or ignorance, there is a global turndown in travel/tourism which has been underway for a couple of years now, and on-going bad-publicity doesn't help persuade the remaining tourists to stay loyal to Thailand for their holidays. The previous governments took their eye off-the-ball, the current one has limited room for manouver and no real Opposition to help keep them more honest, but the hard truth will out eventually as now seems to be happening.

But a strong Euro should make Thailand cheaper, not be a reason for a downturn, how stupid do politicians & government-spokesmen think people are ? Of course a weaker Baht would help maintain the share of the shrinking tourist-cake, and exporters of agricultural-products or manufactured-goods would benefit too, but little action is taken to achieve this.

Standby for the usual Thai business-reaction, to a collapsing market, increases in hotel room-rates and placing the blame on foreigners, for not coming to LOS ?

[ScubaBuddha]

Fact: 82% of statistics are made up on the spot.

[richieudon]

I wonder if this means it will be a good time to visit Thailand in January, or if I am about to jump into a pool of hungry piranhas.

The latter for sure! When customers drop, the price goes up!

Something I can never get my head around....

[livinthailandos]

I saw many different postings on here and I had to input a few areas on this and some areas make sense and some don't make sense

A. political problems and the ongoing chaos ( Doesn't thailand always have political problems. ) Chaos depends especially in thailand and at what level of chaos are we talking about. Wait and see what the court does with thaksin's frozen assets then we will really see what happens then.

B. The strengthening of the euro has become the key factor for the slowdown. ( I find this statement to be totally confusing to me. I could see if you were importing and exporting products where the euro was peg to some other currency. When the euro goes up people actually get more money for the currency. If the euro was declining then this would make travel more expense.

C. particularly to Asia, costs more this year, he said. If key word here smart people understand that there really isn't a real recovery like we are seeing in some minor countries. I can't honestly see raising prices but I can't comment on everyone though. I do know budget carriers are at least faring better than most traditional carriers. Also what part in asia, is particularly expense I did see any countries posted, Would someone care to input some countries with valid points

D. IF you hung onto stocks you lost 50-60% if your losing your house do to foreclosure or the bank is yanking your truck or car on a repo. Good point but there are people who did not have stocks or even bought a house.

E. Tourism to Drop 34% This high season. I'm one of those people who don't go for percentage numbers because they always intend to try to inflate or deflate things with percentages. If you said thailand's tourism will be short 2 million people that sounds better more realistic.

[PhilHarries]

Well someone is lying. TAT announces targets being reached, travel agents announce big drop.

This is when you wish Thailand had something approaching a proper media and parliamentary opposition. Watching ministers getting caught in obvious lies ("we will obtain the tourism target for 2009!") and trying to squirm their way out of it is half the fun of a developed democracy.

They're not lying, all TAT ever do is revise their targets to reflect the latest trend in reality ergo by Dec 31 their forecast is 100% correct.

Rewind and start again Jan 1.

I would say it's got very little to do with the strength or weakness of any currency, very little to do with political turmoil but very much to do with the fact that much of the developed world is stoney broke.

As for politicians telling lies, they've been doing that since they abandoned their original profession, the oldest, and started this new fad in Athens a couple of thousand years ago.

[Guemlum]

quote...."Two provinces across from Laos - Nong Khai and Udon Thani - should gain more than Bt1 billion in revenue during the games".

hmmmm...how? I've been in Nongkhai for the past 2 months and havent noticed any influx of tourists or mass spending since the SEA games have started...guesthouses still have rooms, the friendship bridge doesnt seem to be any more busier than it usually is...in fact if you've watched any of the SEA games on TV, the stadium looks empty most of the time.

The only thing I can agree on is the topic title.

Guemlum

[Humphrey Bear]

Come to sunny Saigon.

The government has just devalued the currency by about 5%. Goods were cheap before that, now even better bargains.

Stable government. In Ho Chi Minh City almost everyone speaks understandable English.

Direct flights from Paris, Frankfurt, Melbourne.

Half a day to get to some of the most beautiful, unspoilt beaches in SE Asia.

Thailand is yesterday - tomorrow is for Vietnam.

[BangkokJazz]

Perhaps its just me, but I fully expect another report in 2 months saying "Drop not as bad as we thought". Seems like they doomsayers are always out, and they are always projecting things to be worse than reality.

[sokal]

I think the Thai tourism industry was doing better then it ever should have anyway. It was red hot there for a while, I do still think that Thailand tourism is in a long term bull market.

[Project504naha]

I wonder if this means it will be a good time to visit Thailand in January, or if I am about to jump into a pool of hungry piranhas.

Any time is a good time to visit Thailand. THe drop means even cheaper prices and better deals.

[geriatrickid]

Perhaps an example highlights the problem: My friend says hey, I need a break, let's get out of here and I said umm ok, where to? Singapore he says. So he loaded up his credit card with some cheap airfares on Air Asia and that's where we'll be for Christmas. I had said, hey, just a sec. let's try Hua Hin or somewhere nice. Ok, go look dumbass he said, just make sure it's not Pattaya. You understand the difference, right and I'm Thai and (insert Thai rambling statement about dirty farangs and insults about Thai women with tatoos blah blah blah, as if his poop don't stink.) Anyway, I snag an awesome deal at the 5 star Pan Pacific for SG$250 a night (taxes included), then I look at nice hotels in Hua Hin. I nearly soiled myself. Comparable rates at the Sofitel, Hilton and Marriot were all significantly higher - between 50 and 100% more. It's also cheaper for us to fly SIN-HKT then it is to do HKT-BKK.

Im looking forward to Singapore. We can pick up some quality clothes that won't disintegrate on the 1st wash, I can drink he tap water, no touts will harass me, the taxis will be honest and best of all if I have a problem a cop will help me, not try and extort money from me. If I need to catch some rays, I have the magnificent hotel pool. The bottom line? I think Thailand has lost both its price advantage and cannot compete on quality of experience in the 4*+ market anymore.

[LomSak27]

Back to the real world

After months of burbling prognostications about how the tourist sector of the economy has been doing so well and hardly affected at all by the world recession and PADS airport shennagins, etc., the Nation thuds back to reality.

Yes it is going to be bad. Doh!

[madjbs]

Thainomics - if volume falls just increase margin and you will make even more money !

What is so amazing about that? You obviously don't know anything about economics do you?

It is a very possible situation depending on the goods or service and location.