Why Are You Even Here? The Surprising Attitudes of Some Expats in Thailand

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High baht yet to hit tourism, operators say

Bamrung Amnatcharoenrit

The Nation

BANGKOK: -- The stronger baht has not flustered the tourism scene so far, but operators are monitoring the situation closely so that they can make adjustments to cope with any change in the business environment.

"I don't think that its appreciation right now is a risk for the tourism outlook. I believe tourism operators can survive at the existing rate," Yutthachai Soonthronrattanavate, president of the Association of Domestic Travel, said yesterday. "But if it keeps getting stronger, they will look for ways to sell their services."

He said he personally favoured an exchange rate Bt30.5 to the US dollar.

More Thais are expected to go overseas, but there should not be any problem because many of them will choose Asian destinations, especially for shopping, and will not have to rely on the US dollar. They will use this opportunity to get new experiences, he said.

The currency issue has not reached critical proportions because it has only been a short-term phenomenon. But if the situation lasts longer than four months, operators across the country will feel the pinch. Especially if it drops below Bt29.50, they will suffer a sales loss of 10 per cent, leading to a tourism-revenue loss of more than Bt10 billion for the country, Yutthachai said.

In the old days when the baht was whipped around by economic crises, operators charged their customers in US dollars as a way to maintain their business. This is a good example of what they can do. But the biggest concern is the export sector, which will get hurt with sales contracting, he said.

Piyaman Techapaibul, president of the Tourism Council of Thailand (TCT), said tourism continued to hum. Even with the stronger baht, the country still offers "value for money" to foreign travellers compared with other Asian countries.

For example, accommodation costs here are lower than elsewhere in the region. In 2011, the average hotel room rate in Thailand was US$97 (Bt2,900), while Malaysia was at $117, Singapore at $232, Hong Kong at $242, South Korea at $147 and Japan at $164.

"Even though the baht is on the way up, it has been only a 3-per-cent rise. So the Kingdom is considered a major destination regionally," Piyaman said.

However, a worse case would be if the exchange rate moves on a similar path as the British pound, falling from Bt70 to about Bt49.5.

The increase in the baht's value has not completely hurt the tourism industry. In fact, it helps improve the industry's confidence indirectly, as it shows that it is in demand thanks to the inflow of investment, reflecting a growing economy and a fertile ground for investment. This picture disappeared from the tourism scene four years ago, she said.

Pornthip Hirunkate, TCT's vice president for marketing and also managing director of Destination Asia Co, an inbound tour company, said the government should take a closer look at the situation and the exchange rate should be set at Bt30. So far, the industry is still business as usual. However, foreign tourists staying here will start feeling the difference.

In general, package tours for foreign tourists are sold six months in advance.

-- The Nation 2013-01-18

[chooka]

Nothing will effect tourism, the baht could go through the roof. You may only get 25 satan for your dollar but T.A.T will still release figures showing record numbers of tourists flocking to the LOS for the scams sorry beaches and hospitality.

[fezman]

I like how they don't mention cheaper hotels in Laos,Cambodia ,Vietnam and Burma and massive increase in tourism into the later.

[Stjohnm]

"The currency issue has not reached critical proportions because it has only been a short-term phenomenon. But if the situation lasts longer than four months, operators across the country will feel the pinch. Especially if it drops below Bt29.50, they will suffer a sales loss of 10 per cent, leading to a tourism-revenue loss of more than Bt10 billion for the country, Yutthachai said."

At the time of writing the mid-market rate is 29.79, start pinching

[mancub]

Any loss of revenue from tourism (10 billion baht ?) will not result from a stronger baht , it will only come from a drop in tourist numbers or a reduction in the prices they pay , ie ,expenditure per capita..

Last week TAT were calling for hotel price increases on a par with Singapore etc etc to help boost revenue. Now they are emphasizing the exceptional value of Thailand in comparison .

One week they are confident of an annual 10% increase in Tourist arrivals and the associated revenue increase , now they are concerned about a possible loss ??

Maybe a sign that they are not as confident in their figures /predictions that they would like us to believe .

[waza]

Its looks like the perfect financial storm is brewing for Thailand, Not only will the high baht will decrease tourism which will cause an increase in the scams on tourist to compensate. It will increase the cost of the stored rice as the quality decreases, increase the minimum wages internationally leading to increase unemployment while decreasing tax revenue and increase the cost of exports while decreasing the cost of imports causing a shift in the balance of payments. Lets not forget that the government is increasing public debt by 2 trillion baht while their revenue is decreasing causing a blackhole in their budget. Way to go PTP

[55Jay]

Only been about a week (?) since it started dropping and the very last, short sentence is spot on.

[SantiSuk]

Are tourists really paying on average 2,900 baht a night for accomodation? The falang must be paying an absolute fortune as we all know, based on the very authoritative advice of TV members, that Chinese, Russians and Arabs pay bu$$er all for anything .

Why do all TAT stats never pass the common sense test?

[paulswebb]

Well personally if stopping in Pattaya, hotel costs 800 baht per night, Bangkok 550 baht, anywhere else in Thailand 400-500 baht per night. Obviously one can pay more depending on the so called class of the establishment, so I suppose I am economy class.