Thai tourism: Nearly half of travel firms expect lower sales this year

[webfact]

TOURISM
Nearly half of travel firms expect lower sales this year
Bamrung Amnatcharoenrit
The Nation

Faltering economy, weakening in consumer spending power expected to hit operators' profit margins: TAT poll

BANGKOK: -- Tourism operators do not see their industry emerging as a "hero" to save the economy this quarter, blaming falling consumer purchasing power and the rising cost of living for undermining their business.

In a poll released yesterday by the Tourism Authority of Thailand, they said the trend was clear: the economy would falter, consumers would tighten their belts and the operators' profit margins would take a drubbing.

The survey was carried out from September 10-17 on 2,100 respondents - 700 businesses and 1,400 people - in seven provinces: Bangkok, Kanchanaburi, Chon Buri, Nakhon Ratchasima, Chiang Mai, Phuket and Surat Thani.

About 48 per cent of the businesses believe the economy would stage a decline in the rest of the year and their sales would slip 22.9 per cent, while 22.9 per cent said their business would still grow and their revenue would increase 19.4 per cent.

People plan to cut their tourism budgets by 21.1 per cent due to the increase in living expenses and public utility bills while their income stays almost the same.

About 65.8 per cent of the people polled said political conflict was the major risk for economic prospects, followed by inflation in products and services (61.6 per cent) and protests (55.6 per cent).

Pongsathorn Kessasamli, deputy governor for policy and planning, was not worried, saying the country's tourism outlook was bright, as foreign visitors would continue to come.

Even if, in the worst-case scenario, the foreign tourists stay here for the same amount of time as in the past and spend the same amount, there would still be more of them arriving.

This year, the agency projects foreign tourist arrivals leaping 17.5 per cent to 26.26 million from 22.35 million last year.

The flooding, which has spread to wider areas across the nation, would not dampen the tourism outlook, due to the low season. Instead, it would wash out other industries, especially agriculture.

About 85.2 per cent of people showed an interest in domestic travel over the next three months, and 85.7 per cent intend to travel once, with Chiang Mai as the top destination, followed by Chon Buri and Rayong. They plan to stay two nights.

Only 0.6 per cent of them said they wanted to travel abroad during the period.

Japan was the favourite destination, followed by Singapore and China.

To boost tourism, 71.3 per cent of the people said the government should offer tax breaks by allowing them to deduct tourism bills.

For operators, 20.7 per cent want the government to play a more prominent role in promoting tourism sites as well as accommodations across the nation to attract more tourists, followed by controlling product prices to contain their operating costs (14.7 per cent) and constantly launching tourism campaigns via media channels (11 per cent).


-- The Nation 2013-10-01

[angsta]

Can I guess what the other half predict???

[NongKhaiKid]

Now wait for TAT to say tourism isn't affected it's just that travellers have adopted a DIY attitude and are not using travel agents as they can organise things cheaper themselves.

[Thait Spot]

What a surprise.

Paying off loans for cars and houses

Sent from my Nexus 4 using Thaivisa Connect Thailand mobile app

[LuckyLew]

Personally I do not see why people use tour agencies

Less expensive and more fun to do it yourelf

A little research and my friend Mr Google is the best option

Why pay someone to book everything for you

I can point and click just as good as someone else

as or tour groups ... never ... I would not travel in a heard

and be told when to eat .. what to eat ... what to see ... I am not a sheep to be herded around

[laurentbkk]

I am waiting for the TAT exact figures ....

[Tatsujin]

Nearly half of travel firms expect lower sales this year

Hang on, haven't they been shouting out loud how much the tourist figures have increased this year, and how tourism will "save" Thailand??? Were they lying???

[jalansanitwong]

Just wait for the next TAT press release by inner sanctum of influential people

....."record number of tourists expected in 2014, newairport terminal to be built to cater for the 30 million expected by 2015."

Edited October 1, 2013 by jalansanitwong

[DocN]

Personally I do not see why people use tour agencies

Less expensive and more fun to do it yourelf

A little research and my friend Mr Google is the best option

Why pay someone to book everything for you

I can point and click just as good as someone else

as or tour groups ... never ... I would not travel in a heard

and be told when to eat .. what to eat ... what to see ... I am not a sheep to be herded around

...just wait, until you have areal problem...and see if your friends at google help you out!

[noitom]

Just wait for the next TAT press release by inner sanctum of influential people

....."record number of tourists expected in 2014, newairport terminal to be built to cater for the 30 million expected by 2015."

And Thailand outlooks becoming all things to all people, anytime, anywhere, any place. The hub of all things.

[BlackJack]

AOT has the figures for arrivals and I think i would rather believe them than the tour agent next to the tour agent next to the tour agent next to the tour agent in the one Soi.

Probably the tour agents are basing their assumptions on losing market share as there are to many tour agents in the same Soi offering the same tours?

[hanno]

I visited some of the bigger international agencies earlier this year and they were, without an exception, very bullish.

[soi41]

Breaking news from TAT:

The number of travelagents in Thailand is this year 4 times the number of last year, so even with declining sales for an agent or two: The touristnumbers have doubled!

TAT, the agency you can trust!

[Thaddeus]

I am waiting for the TAT exact figures ....

The figures they publish, or the ones that never see the light of day?

[Alwyn]

I'm amazed! These tour agents shouldn't be sitting in their little one man shops... They are truly blessed with prediction ability

48% of businesses predict their sales will slip by 22.9%

22.9% of businesses predict an increase in their sales by 19.4%

and more to come because these little grubbers know that people plan to cut their tourism budget by 21.1% Not 21% but 21.1% !!!???

How do they do it? The Royal Statistical Society in the UK will no doubt be head-hunting these people....

[Ulic]

All I know is the TAT will hit there number of a 21% rise in tourism as they do every year.

[AleG]

All I know is the TAT will hit there number of a 21% rise in tourism as they do every year.

The funny thing is that in the last several years, tourist have increased by X (I don't remember the correct figures) yet revenue has increased by a quarter or less of X. So either they are catering to the grubbiest, most money pinching tourists on Earth or the number of visitors figure is, shall we say, a little optimistic.

[hanno]

All I know is the TAT will hit there number of a 21% rise in tourism as they do every year.

The funny thing is that in the last several years, tourist have increased by X (I don't remember the correct figures) yet revenue has increased by a quarter or less of X. So either they are catering to the grubbiest, most money pinching tourists on Earth or the number of visitors figure is, shall we say, a little optimistic.

I suspect the former......

I work in a hotel and here in Cambodia all the Khmer travel agents are moaning about how bad business is whilst the foreigners all rejoice;-) I suspect that it is the same in LOS.

[FarangTalk]

All I know is the TAT will hit there number of a 21% rise in tourism as they do every year.

The funny thing is that in the last several years, tourist have increased by X (I don't remember the correct figures) yet revenue has increased by a quarter or less of X. So either they are catering to the grubbiest, most money pinching tourists on Earth or the number of visitors figure is, shall we say, a little optimistic.

A combination of both.

Russian and Chinese are now the biggest visitors, with over a million Cambodian and Laos 'tourists' factored in.

[Sydebolle]

Just wait for the next TAT press release by inner sanctum of influential people

....."record number of tourists expected in 2014, newairport terminal to be built to cater for the 30 million expected by 2015."

Well, the new airport is definitely needed for all those ASEAN workers deluging into Thailand for jobs. Hence they count as "airport customers" since I would assume that the Pilippinas will not cross into Indochina by swimming to Saigon first!

The absolute figures might go up, the average spending per capita must be at a rock-bottom low. In Pattaya the Russians occupy the stair cases of 7/11 (where the sick dogs usually were in residence!) with a beer and a straw. Possibly not the highest quality tourists one can imagine. I also wonder what the birds in those countless togo and other bars are waitiing for; interesting enough the Russians do not resort to extracullicular offerings while the Chinese are not allowed into the dramshops for other reasons. The Malays weekend-roamers of all those "houses of ill repute" in Had Yai hardly count for quality tourists either and the European traveller feels slightly lost there too.

ASEAN refers to 580 million tourist arrivals of which Thailand takes not more than 5% and in monetary terms it might be 2.5% - a far cry from 1987's conceiving of "Amazing Thailand" campaign. Never heard anything better than that!

[Thaddeus]

All I know is the TAT will hit there number of a 21% rise in tourism as they do every year.

The funny thing is that in the last several years, tourist have increased by X (I don't remember the correct figures) yet revenue has increased by a quarter or less of X. So either they are catering to the grubbiest, most money pinching tourists on Earth or the number of visitors figure is, shall we say, a little optimistic.

A combination of both.

Russian and Chinese are now the biggest visitors, with over a million Cambodian and Laos 'tourists' factored in.

Cambodian and Laos tourists, please.

I live very near Cambodia, and there are many Cambodian nationals that cross the border, not as tourists, but cheap labour.

But you can bet your life that TAT count them as tourists.

[ratcatcher]

I visited some of the bigger international agencies earlier this year and they were, without an exception, very bullish.

"..............without an exception, very bullish." As opposed to TAT which is very bullshi* ?.

[anotheruser]

25 provinces flood and out come the naysayers!

[kimamey]

Personally I do not see why people use tour agencies

Less expensive and more fun to do it yourelf

A little research and my friend Mr Google is the best option

Why pay someone to book everything for you

I can point and click just as good as someone else

as or tour groups ... never ... I would not travel in a heard

and be told when to eat .. what to eat ... what to see ... I am not a sheep to be herded around

So you never book an airline flight then as that would mean you travelling in a heard.

[NeverSure]

Personally I do not see why people use tour agencies

Less expensive and more fun to do it yourelf

A little research and my friend Mr Google is the best option

Why pay someone to book everything for you

I can point and click just as good as someone else

as or tour groups ... never ... I would not travel in a heard

and be told when to eat .. what to eat ... what to see ... I am not a sheep to be herded around

I agree with you for the most part. But one of the best trips I've ever had was totally managed by a tour company, right down to the airline tickets. It was a tour of France and Spain and I didn't know those countries beyond Paris and Madrid. Even then, I didn't know them well. Hotels were scheduled - everything.

We spent 3 days touring Paris and I saw things I had seen, but other beautiful and historic things I didn't even know were there.

However, in April I rented a car and toured all over Isaan and wouldn't have wanted a tour. So it varies I guess.

As an aside, I agree that Thailand must count every entry as a new tourist, so keep making those border runs for the team haha.

Edited October 1, 2013 by NeverSure