Thai Tourism To Stay Out Of Afta Until 2015

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ASEAN FREE TRADE

Thai tourism to stay out of Afta until 2015

By SUCHAT SRITAMA

THE NATION

Published on January 15, 2010

Thailand's tourism sector will not join the Asean Free Trade Agreement (Afta) until 2015 due to opposition from operators and shortage of capital.

"Among the 10 Asean countries, only Thailand is not ready to join the AFTA [tourism] scheme as many operators feel the measure would not help their business at this time," said Prakit Chinamorphong, president of the Thai Hotels Association (THA).

Though Thailand's tourism industry is considered more developed than those of other Asean countries, the overall management leaves a lot to be desired. There are also inadequacies in capital and technology compared to some countries.

Starting this year, the AFTA deal will lift international trade barriers and many foreign investors are expected to expand their business into Thailand.

Some sectors like retail, food, property and electric are also joining AFTA.

Prakit said tourism operators would not benefit from joining the pact now unless they were ready to participate in the agreement.

He said operators would need at least five years to prepare for international service standards, capital investment and human skills.

Prakit added that the private sector had hired Dusit Thani College to study the impact of the opening of the tourism sector.

The college will propose to all Asean members to seal the cooperation only after the study is finished.

Chumpol Silapa-archa, Minister of Tourism and Sports, said the tourism industry should recover this year after being hit hard in 2009.

The revival of the global economy and the release of internal political tensions will be key factors in driving tourism back to normal, he said.

To cope with the rebound, the ministry plans to sign memoranda of understanding with many governments to attract tourists into the country.

"The ministry will also work closely with the private sector, as they have gone through a crisis year in 2009. We will go for hard sales in markets such as China, Japan and Korea and do soft sales in other countries," said Chumpol.

The minister added that he would ask the Cabinet to extend some tourism-recovery measures, such as waivers of visa fees, reduction of parking and landing fees for airlines and cutting entrance fees at national parks. Most the measures are scheduled to end by the end of March this year.

-- The Nation 2010-01-15

[newsfooter][/newsfooter]

[Meridian007]

Many words to cover their fear. I'm amazed at how protectionist Thailand is when compared to the rest of ASEAN. I know that they are all insular countries, but if they want the combined power, they are going to have to make some sacrifices and changes.

More and more, ASEAN becomes only a name. If they can't even get the trade aspect right, how will they ever become an "ASEAN community"? It would be laughable if it weren't so sad.

Edited January 15, 2010 by Meridian007

[cloudhopper]

Expect increasing protectionism globally regardless of any trade agreements.

[Davidusaf99]

As a government agreement, why would individual sectors be about to "opt out" of the policy of a nation?

[givenall]

Expect increasing protectionism globally regardless of any trade agreements.

What I have learned in past two years over here is that no matter how good the people are over here, but when it comes to business, their business has no heart and is all about themselves and their selfishness. They do not want to give up anything even if they loss at the end

[animatic]

He said operators would need at least five years to prepare for international service standards, capital investment and human skills.

Scared to death they may have to actually work

and not let the fading natural beauty carry the load.

Since service is barely know here, another reason to be scared.

Mai bpen rai is not a service industry maxim of success.

Edited January 15, 2010 by animatic

[geriatrickid]

In the thread celebrating Finance Minister's award from what can be at best described as a marginal for profit magazine, I was admonished for questioning the Finance Minister's greatness. One of the reasons given by the magazine for the award was Minister Korn's ASEAN market vision and impressive plans.

Well you know what? Once again I am vindicated in no time at all courtesy of the talented cabinet of PM Abhisit. The inability of Thailand to particpate and to follow the great vision of Minister Korn in respect to breaking down protectionist trade barriers speaks volumes to me about how Minister Korn's words will be put into action and the confidence of ministers and various industries in the ministers lofty words.

Usually a finance minister has some control and influence over trade agreements and their implementation. I guess in the case of Minister Korn, his greatest following is with his loyal supporters from Thai Visa who mostly being non Thai born are legally precluded from ever voting in Thailand. Figures.

Don't mind me, I'm just going to gloat and plan my romantic getaway to Singapore and transact with those horrible qualified foreigners that Singapore seems to attract in droves.

[animatic]

We don't all pay your gloating much mind anyway.

So how can we mind you?

A romantic getaway and at your age too. Shocking!

Edited January 15, 2010 by animatic

[Thai at Heart]

It is always amazing about how Thai business is so willing to pat itself on the back and the people so willing to gloat about their superiority over their neighbours, but when it comes to giving a little to get a lot, they run for the hills.

How can the Thai tourism industry, 15mn visitors and 30 to 40 years of experience be claiming that it needs more time to open itself up to competition from within ASEAN?

[TAWP]

*shakes head in disbelief*

[dom samui]

operators would need at least five years to prepare for international service standards, capital investment and human skills.

At least !!! Human skills for international service standards !!!

So now they know it already?

:D

[Puccini]

From the OP:

Prakit said tourism operators would not benefit from joining the pact now unless they were ready to participate in the agreement.

He said operators would need at least five years to prepare for international service standards, capital investment and human skills.

That was Prakit Chinamorphong, president of the Thai Hotels Association (THA), speaking, proclaiming to the world that the Thai hotel industry is in such a rotten state that it will take over five years for them to catch up to the standard of neighbouring countries. I read his message like this: “Tourists, stay away from Thailand! You can get much more value for your money elsewhere in the region.” How can he get away with this? He is denigrating the members of the association of which he is the president.

[livinthailandos]

international service standards, capital investment and human skills

regardless of Afta any business or person that would come to work here or do business will still find hurtles due to the structure here how so

1. To get a loan to start a business you first going to need to buy property to use a collaterial for the bank incase you default. Keep in mind no foreigner even if thailand becomes in afta will ever allow anybody but thai's to buy and own land period

2. So somehow they get land or property to use its only allow 30 Years Period

3. Only case besides the bank is to bring your own bag of money

4. Suppose you somehow manage to get land legally, your going to have to deal with many officals and inturn your going to have bribe quite a few people at many different times and periods

5. Whatever you pay in taxes you will get nothing back

6. As for international standards / human skills especially tourism I"m quite confused as we already have many major national brands

Marriott, Hyatt, 4 Seasons, Conrad, Hilton, Ritz Carlton, I could see how this might have an issue if its not a major brand. But again every country already has major hotel brands

7. I could see how the labor market might expand due to afta only for asean members but again with an issue with immigration and how thailand is I guarantee your again going to have to bribe because you will face issues

8. Thailand is more afraid if lots of qualified thai's who speak english well, simply are allowed to leave thailand and go work in other asean members. Mind you they can do it now it will be much easier to do it then.

9. Thailand is one highly corrupt country to do business in, here you seriously need to have or make contacts here fast

10. As for this whole issue I don't this country is ever ready for anything seriously

I would ask one thing though for any of you how well has Europe done since it expanded, only thing this will do is allow countries to import more cheap labor. In my business I'm already seeing lower quality workers come through the market and there is already a shortage of workers due to more and more major brands coming in.

[Thai at Heart]

From the OP:

Prakit said tourism operators would not benefit from joining the pact now unless they were ready to participate in the agreement.

He said operators would need at least five years to prepare for international service standards, capital investment and human skills.

That was Prakit Chinamorphong, president of the Thai Hotels Association (THA), speaking, proclaiming to the world that the Thai hotel industry is in such a rotten state that it will take over five years for them to catch up to the standard of neighbouring countries. I read his message like this: “Tourists, stay away from Thailand! You can get much more value for your money elsewhere in the region.” How can he get away with this? He is denigrating the members of the association of which he is the president.

Not only denigrating them, but saying that they aren't as competent as say, Malaysians, Singaporeans, or god forbid, Cambodians................

[MaiChai]

This just sounds like a delaying tactic to stay out and maintain control internally for as long as possible. Basically if Thailand opens up it would not be able to compete with smart/clever/more astute neighbours who would be allowed to come in and operate with less controls. Obviously the the Thais could do the same too, but could they?

[LaoPo]

In the thread celebrating Finance Minister's award from what can be at best described as a marginal for profit magazine, I was admonished for questioning the Finance Minister's greatness. One of the reasons given by the magazine for the award was Minister Korn's ASEAN market vision and impressive plans.

Well you know what? Once again I am vindicated in no time at all courtesy of the talented cabinet of PM Abhisit. The inability of Thailand to particpate and to follow the great vision of Minister Korn in respect to breaking down protectionist trade barriers speaks volumes to me about how Minister Korn's words will be put into action and the confidence of ministers and various industries in the ministers lofty words.

Usually a finance minister has some control and influence over trade agreements and their implementation. I guess in the case of Minister Korn, his greatest following is with his loyal supporters from Thai Visa who mostly being non Thai born are legally precluded from ever voting in Thailand. Figures.

Don't mind me, I'm just going to gloat and plan my romantic getaway to Singapore and transact with those horrible qualified foreigners that Singapore seems to attract in droves.

It's amazing to see Thailand is withdrawing itself from this agreement as the 2nd largest tourism country in ASEAN.

I didn't look upon the numbers for a long time and I was very surprised by the huge number of tourists Malaysia is attracting: 22 million in 2008 which is a 5% PLUS over 2007.*

When I noticed the number of 22 Million I couldn't believe it and my first thoughts were....Oh, of course: Singapore and yes....:

Singapore counts for 11 million tourists

Thailand 1,5 million

Indonesia 2,4 million

Brunei 1 million

Together these countries count for 16 million tourists and it seems they "handle" tourist statistics the same way as Thailand

* http://www.tourism.gov.my/corporate/mediac...subpage=archive

LaoPo

Edited January 15, 2010 by LaoPo

[aras]

the folowing is from wikipedia :

http://en.wikipedia.org/wiki/Tourism_in_Thailand

Compared to last year June, arrivals for June 2009 at Suvarnabhumi airport have been down nearly 23%. The expected number of foreign tourists for 2009 has been reduced from 14.1 million to 11 million. Hotel occupancy rates have dropped dramatically ........ Due to the slowdown, prices for accommodation have dropped around 30% compared to a year ago.

In October 2009, the Association of Thai Travel Agents (ATTA) estimates a decrease of international tourist arrivals to Thailand of 38% for this year for its members.^[15]

This is worriying for thailand, and probably very healthy for the sector to clean up their act a bit

[johng]

This is worriying for thailand, and probably very healthy for the sector to clean up their act a bit

Yes it should be worrying them, but I'm afraid the only thing going up will be the prices.

[RickBradford]

Credit to ATTA for releasing their figures in a timely way, at least.

They post an online spreadsheet showing international arrivals at Suwanaphum each month. Obviously, that's not the whole picture, but may be indicative.

This looks unhealthy:

Annual arrivals at Suwanaphumi

.....................

2006: 2,751,529

2007: 2,495,809

2008: 2,070,666

2009: 1,727,959

i.e a steady decline, down 37% in three years.

Top 4 countries for arrivals this year so far -- Russia, China, Korea, Japan.

I would guess these figures refer mainly to package tourists who make use of ATTA member organisations.

[animatic]

Before free trade agreement

Chop wood carry water

5 years of sloth in between:

AFTA free trade agreement

Chop wood carry water.

Either you are prepared to work in a world environment or you are not.

Looks like Thailand will become more and more isolated as time goes one.

[LaoPo]

Credit to ATTA for releasing their figures in a timely way, at least.

They post an online spreadsheet showing international arrivals at Suwanaphum each month. Obviously, that's not the whole picture, but may be indicative.

This looks unhealthy:

Annual arrivals at Suwanaphumi

.....................

2006: 2,751,529

2007: 2,495,809

2008: 2,070,666

2009: 1,727,959

i.e a steady decline, down 37% in three years.

Top 4 countries for arrivals this year so far -- Russia, China, Korea, Japan.

I would guess these figures refer mainly to package tourists who make use of ATTA member organisations.

I think you're misreading those statistics!

It says:

Tourism Statistics for 20 Major Nationalities that use ATTA Members' Services

and

Tourists, received by ATTA's members at Suvarnabhumi International Airport

When I looked to those statistics it says, for instance, that 129 tourists from Sweden arrived on Suvarnabhumi in the period from 1-10 Janaury....129 ?

It's HIGH SEASON in that period ! And Sweden sent 391.365 tourists to Thailand in 2008 alone.

same period as above:

Holland: 724

Norway: 163

I could go on, but those statistics are from the ATTA organization who publish their own passengers' handling companies they work for/with.

Sorry, but your impression doesn't hold.

LaoPo