Thai Tourism Plans Comeback After Unrest

[webfact]

Thai tourism plans comeback after unrest - Focus

by Patrick Falby

BANGKOK (AFP) -- The Thai capital has been mostly scrubbed clean, but it will be some time before images of two months of deadly anti-government street protests fade from the minds of potential visitors.

Thailand's lucrative tourism industry has been gutted by last week's scenes, televised worldwide, of Bangkok reduced to a battle zone in an army crackdown on a "Red Shirt" encampment in the city's ritzy commercial district.

Thailand's National Economic and Social Development board said Monday the Bangkok violence had turned away millions of potential tourists, cutting revenues by 113 billion baht (3.47 billion dollars).

"There will only be about 13 million tourist arrivals this year, a three million drop from our original target of 16 million," the think-tank said in a statement, noting tourist arrivals from within Asia had particularly declined.

Many fear that Thailand's image as the "Land of Smiles" has been shattered by the violence that left 88 dead and 1,900 injured since April 10 and saw 36 major buildings torched last week.

"There's no question that there has been a serious effect on tourism," said Bill Heinecke, chief executive of the Minor Group, which owns hotels, resorts and fast food franchises, including a Four Seasons hotel in the protest zone.

He said the industry had been badly dented by media coverage of the unrest as well as travel warnings issued by 47 countries during the protests, some of which advised against visits to all of Thailand, not just Bangkok.

"Directly we've seen room cancellations of 100 million baht (3.07 million dollars)," Heinecke added.

It is the latest episode in several years of political turmoil that has divided the kingdom and at times rocked the tourism industry, which accounts for six percent of gross domestic product.

In late 2008 hordes of frustrated travellers were stranded by a nine-day blockade of Bangkok's two airports by pro-establishment "Yellow Shirts" -- rivals to the Reds.

The latest unrest has not been confined to Bangkok: four provincial halls were set ablaze in Thailand's rural and impoverished northeast, where the Red Shirt have their bedrock support, on the day of last week's crackdown.

Violence also broke out in the northern city of Chiang Mai, another base for the anti-government movement, where people tried to burn buildings and throw home-made bombs after the Bangkok protests ended.

Peter Intrayota, vice-president of the Thai Hotels Association's northern branch, told AFP that hotel occupancy in Chiang Mai -- a popular tourist city -- was down to ten percent as many believed "the troubles are not over."

"Our hotels and streets are empty. Tourists are just cancelling their bookings," Intrayota said. "Ninety-five percent of Chiang Mai residents are Red Shirt supporters. The political situation remains unstable."

This week officials from the tourism industry, including hotel associations and airlines, met to devise a marketing plan to help revive the industry, said Prakit Piriyakiet, spokesman for the Tourism Authority of Thailand.

Meanwhile, Prakit said Thailand's annual tourism forum had been postponed from June until September and the government could subsidise advertising in an attempt to win back travellers from Japan and China, which has cancelled charter flights.

"We will focus on the short-haul market -- the quick win market -- Southeast Asian and Asian countries," Prakit said.

Many tourism officials said they thought it would take about six months for the industry to recover as long as there was not more unrest. However the Minor Group's Heinecke said travellers looking for steep discounts would be disappointed.

"For sure there will be deals around but if you think we're going to slash the rates of our hotels, I don't think that's going to occur," he said. "We learned long ago that if you take rates down, they're going to take a long time to go up."

-- ©Copyright AFP 2010-05-26

Published with written approval from AFP.

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[BLUEEYEDTHAI]

Six months, they have thier collective heads up where the suns not shining. More like six years!

[gbswales]

$3.07 million dollars lost in hotel cancellations alone but total lost just $3.47 million - sounds like some very creative accounting and cant possibly take account of the whole infrastructure used by tourists - taxis, coaches, car hire, excursions, restaurants, shopping, entertainment etc etc - + thousands of casual workers will not have work because of this . These figures only relate to easily quantifiable losses - a heck of a lot of travellers to Thailand dont book very much in advance - so, whilst they wont have needed to cancel, they will not be booking in the near future. This is a disaster of unprecedented scale which had worldwide publicity and all the current speculation is that it "ain't over yet"

My partner is Thai and so we have non-tourist reasons to want to holiday there - however although we were in Bangkok during the last coup these events are making us think twice about our planned visit this year especially as it would have been November - I dont hold out much hope for peaceful elections then.

Edited May 26, 2010 by gbswales

[givenall]

This is a good news if tourism only dropped by 3 million. But I think as usual, the Thai government shows a rosy picture. It is a lot worse than they report. They should put a lot afford to improve the situation and give promotion to bring them back

[ChangMaiSausage]

Interesting that they will not drop hotel prices as an incentive for tourists to travel to Thailand. Thailand has always been exotic place to visit for your average Joe and one of the main attractions was that it was cheap. In todays enviroment Thailand is no longer a value for money place to visit, the Thai people have become greedy and see the avarage tourist as a walking cash machine. Surely they need to come up with some incentives to bring back the tourists, reduced hotel reates being one of them.

[WinnieTheKhwai]

How about a good first step: Cut the #$(*&*($ curfew!!

[LuckyLew]

Go full forward right now into a Visit Thailand campaign is a waste of time and money

After last weeks events were shown live all around the world, this is the worst time

to try and rush a Visit Thailand incentive program, will end up being a wast of tiime

and money.

The first thing Thailand as a hole needs to do is get their house in order. People are

not going to plan holidays to Thailand any time soon after seeing those scenes on TV

last week. Why would anyone come here?

They need to work on the political and the social issues of the Thai people before

they can even start consider welcoming guests to Thai.

The hard core Thai travelers will still come here thru thick and thin as will be back

pack crew and that will just about do it.

Maybe next year

[richieudon]

"For sure there will be deals around but if you think we're going to slash the rates of our hotels, I don't think that's going to occur," he said. "We learned long ago that if you take rates down, they're going to take a long time to go up."

So.. we decided that if numbers were down we'd just put all our prices up.... easy..

[rfukata]

rather than talk about the deficit, decline of tourism (we know this), why don't they begin to implement special promotions, discounts, perks, things that will win the tourist back?

[h90]

Six months, they have thier collective heads up where the suns not shining. More like six years!

Remember the Airport blockade....after a few month it was complete forgotten.

Soon the Bangkok riots are forgotten.....maybe 6 month are a bit short but in 1 year everything is forgotten.

[richieudon]

Go full forward right now into a Visit Thailand campaign is a waste of time and money

After last weeks events were shown live all around the world, this is the worst time

to try and rush a Visit Thailand incentive program, will end up being a wast of tiime

and money.

The first thing Thailand as a hole needs to do is get their house in order. People are

not going to plan holidays to Thailand any time soon after seeing those scenes on TV

last week. Why would anyone come here?

They need to work on the political and the social issues of the Thai people before

they can even start consider welcoming guests to Thai.

The hard core Thai travelers will still come here thru thick and thin as will be back

pack crew and that will just about do it.

Maybe next year

Come on, don't kick a country when it's down.... It's not a hole. It's rather nice..

[jdinasia]

Six months, they have thier collective heads up where the suns not shining. More like six years!

Remember the Airport blockade....after a few month it was complete forgotten.

Soon the Bangkok riots are forgotten.....maybe 6 month are a bit short but in 1 year everything is forgotten.

Even though I would LIKE to think you are correct ..... I don't. The PAD were seen internationally as a group that had some odd ideas etc ... but as basically non-violent. The recent redshirt history (oh what the heck ... ALL the redshirt history!) is bloody and burnings and lootings and armed citizens on the street (and the resulting clampdown -- not crackdown) will be remembered far longer.

These images will probably hit the news all the way until Dec/Jan when they do the "year in review" shows. To Americans the images of the smoke cloud above BKK was reminiscent of watching the smoke/dust cloud after 9/11. (Not comparing the 2 events --- just saying that the images struck a chord with many people!)

I really wish things would get back to normal with the confidence of the travelers ... but I fear this will take a LONG time.

[on-on]

Perhaps another Siam Sunrays campaign will do the trick again.

[tartempion]

I flew in on Eithad from Abu Dhabi to Bangkok this Monday morning 24th of May.

for the first time in 20 years it was a first to experience an half empty plane.

Boeing 777/300er, seats 3,3,3 and I had 3 seats for myself.

I will travel to Paris early June and be on my way back again late June, curious to compare load factor one month from now

[Chunky1]

With all the lonely men who can't get girls in developed countries, it seems inevitable that tourism will return stronger than ever. These old dregs will simply be twice as horny!

[YouYouYou]

Yup, this ahem 'protest' will certainly have a far reaching impact upon the tourist trade. It will take a long time for Thailand to repair its image and surely many businesses will fold this year due to low arrival numbers. However, I believe the 'low end tourists' i.e. backpackers, university graduates seeking that experience will still arrive fairly much regardless. The unfortunate 'sex tourist' will probably not be deterred and they will continue in their droves to the 3 P's, maybe a little down on figures if they (TAT) cared to differentiate this group.

But, the 'high end' tourist (the ones that Thailand has been so desperate to increase and attract TAT) will drop dramatically. The figures of '3 million less tourist arrivals this year' is probably an optomistic figure. However, we can only wait until the actual figure is in at the end of the year and duly published by TAT. It's simple reasoning: The high end tourist, and especially those bringing their whole family, have numerous choices of where to go in the world; why would you choose Thailand in your local travel agency given it's unstable warzone like picture within the media globally? Many countries with tropical climates have no problem whatsoever. It's at this point of 'decision making process' of where to go and what can be afforded .... many other places are affordable and safe. Some could argue Thailand is now 'Safe?' but the damage has been done and broadcast worldwide.

Personally, I feel this is still not over and done with and troubles may continue although I really really hope not for the sake of all Thai's. If there is more trouble though ...3 million less tourists will be a huge understatement. Furthermore, it has been said that they can offer 'incentives' to attract tourists, but prey ..what incentive can you give a tourist to pretend none of this mob behavoiur happened and that it will not happen again? I think Thailand has to brace itself this year economically for a large downturn, not only in the tourism trade, but in the economy as a whole as I believe Thailand will hit a 'mini-crisis' before year end. Good luck Thailand

[steppenwolf108]

"For sure there will be deals around but if you think we're going to slash the rates of our hotels, I don't think that's going to occur," he said. "We learned long ago that if you take rates down, they're going to take a long time to go up."

So.. we decided that if numbers were down we'd just put all our prices up.... easy..

The above said by the CEO of Minor Intl, a group of 5 stars and luxury hotels only [Marriott, Four Seasons, Anantara and few others].

Time for tourism executives to keep head down and stop being so snobbish...it's going to be difficult to get back a good volume of tourist and everyone expects better rates [i'd be surprised if not!] and if they will not find it in Thailand, then they will go over to Malaysia or Vietnam or Indonesia, just like it has been going on for the last 2 years...loss for Thailand, gain for the others...

[Tejas]

"For sure there will be deals around but if you think we're going to slash the rates of our hotels, I don't think that's going to occur," he said. "We learned long ago that if you take rates down, they're going to take a long time to go up."

So.. we decided that if numbers were down we'd just put all our prices up.... easy..

The above said by the CEO of Minor Intl, a group of 5 stars and luxury hotels only [Marriott, Four Seasons, Anantara and few others].

Time for tourism executives to keep head down and stop being so snobbish...it's going to be difficult to get back a good volume of tourist and everyone expects better rates [i'd be surprised if not!] and if they will not find it in Thailand, then they will go over to Malaysia or Vietnam or Indonesia, just like it has been going on for the last 2 years...loss for Thailand, gain for the others...

I plan on winning the lottery in the USA (95 million) and buying a private island in Fiji.

[gemini81]

the long term 10 year plan?

There are some other issues Thailand must pass through too before they start convincing tourists. some can't be discussed in public or on here. I can only tell that the country has a long way to go, before it looks inviting again the way it once did.

[Jimi007]

I found this quite amusing, a 1/3 page ad in a paper.

Edited May 26, 2010 by Jimi007

[thailandbluegrass]

With all the lonely men who can't get girls in developed countries, it seems inevitable that tourism will return stronger than ever. These old dregs will simply be twice as horny!

HAHAHAHAHAHAHAHAHAH We don't consider fat old men sitting on soi Bukhao drinking Chang Draft "TOURISM".

These Hotel owners are typical present tense Thai way of thinking. "No people are comming to my Hotel so I better raise the cost to make up for it".

This country is becomming a joke for the world to play with and Abhisit is the Clown.

[Jimi007]

With all the lonely men who can't get girls in developed countries, it seems inevitable that tourism will return stronger than ever. These old dregs will simply be twice as horny!

HAHAHAHAHAHAHAHAHAH We don't consider fat old men sitting on soi Bukhao drinking Chang Draft "TOURISM".

These Hotel owners are typical present tense Thai way of thinking. "No people are comming to my Hotel so I better raise the cost to make up for it".

This country is becomming a joke for the world to play with and Abhisit is the Clown.

While I agree with the first part of you post, I think you should have left out the last line.

[truthfulfox]

With all the lonely men who can't get girls in developed countries, it seems inevitable that tourism will return stronger than ever. These old dregs will simply be twice as horny!

[madmitch]

$3.07 million dollars lost in hotel cancellations alone but total lost just $3.47 million - sounds like some very creative accounting and cant possibly take account of the whole infrastructure used by tourists - taxis, coaches, car hire, excursions, restaurants, shopping, entertainment etc etc - + thousands of casual workers will not have work because of this . These figures only relate to easily quantifiable losses - a heck of a lot of travellers to Thailand dont book very much in advance - so, whilst they wont have needed to cancel, they will not be booking in the near future. This is a disaster of unprecedented scale which had worldwide publicity and all the current speculation is that it "ain't over yet"

It's $3.47 billion

You You You, don't know how to quote two items in one reply but I would like to say that you have just about summed up my own personal thoughts.

Many of the 'regulars' will also be coming here. They have had plenty of reason to be put off before and this won't stop them.

[Ulysses G.]

Go full forward right now into a Visit Thailand campaign is a waste of time and money

After last weeks events were shown live all around the world, this is the worst time

to try and rush a Visit Thailand incentive program, will end up being a wast of tiime

and money.

Very true and with the International media predicting widespread terrorism every chance they get most possible tourists will be scared off for quite a while.

[SoiGirlHunter]

I think the tourism can recover but the underground reds will never let it happen.

The police already found 4 vehicles loaded with explosives. All it would take is 1 event.

Myself i am avoiding tourist packed areas

[Chunky1]

I found this quite amusing, a 1/3 page ad in a paper.

How big of a price increase should we expect to make up for all the tourists who canceled?

[bkksteviejai]

The strength of the baht (how does that work eh?) is a real kick in the goolies. People just aint got the spare cash now for exotic holidays, cheap cheap rates should be the name of the game now surely.......just get them through the door, then you can hit them with all the little add on's. Special deals for families time limited over big school holiday seasons...too good to pass up etc etc. I'm sure it can pick up, if they hit the right markets at the right times....with the good deals?.

[MAJIC]

"For sure there will be deals around but if you think we're going to slash the rates of our hotels, I don't think that's going to occur," he said. "We learned long ago that if you take rates down, they're going to take a long time to go up."

So.. we decided that if numbers were down we'd just put all our prices up.... easy..

Typical Thai thought process sales are down so sell at a higher rate,they just dont get it,sales can only go

down even further,not sell less for the same return as pre Demonstration

Simple Maths in any language.

Dont suppose the Reds will lose any Hammock sleep for this huge loss to the Thai GDP.

[dumball]

During all of the Thai unrest , Cambodian tourism has risen 10% whilst trade with Vietnam has tripled that with Thailand , once tourists divert to other entry points , tourism will rise even further and Vietnam intends to boost its trading level also .

Thailand has shot itself in both feet it seems and it looks like their losses have only just begun , especialy with the riel being good value for the $us at this time also .