Protests cost Thai tourism 'over 25 billion baht'

[webfact]

Protests Cost Thai Tourism 'Over 25 Billion Baht'
By Khaosod Online



BANGKOK: -- Thailand′s tourism industry is expected to lose over 25 billion baht in revenues due to the prolonged protests against Prime Minister Yingluck Shinawatra, which turned violent in recent days.

Ms. Piyaman Techapaiboon, President of the Tourism Council of Thailand (ICT), said on Monday in the meeting with 6 other financial organisations that number of tourists is expected to fall 8-10% in December.

The falling number, which resulted in 500,000 tourists approximately, was revealed after 68 countries issued warnings to their citizens about the current political clashes in Thailand. However, in November 2013 alone, the country welcomed 11% more tourists than it had last year.

Prior to the political crisis, Thailand was originally projected to welcome 21.6 million tourists to bring in 1.18 trillion baht in 2013.

During the same meeting, a statement demanding every party to solve the current political crisis in a peaceful and democratic way was also announced by the attending 7 organisations.

The 7 organisations were the Thai Chamber of Commerce (TCC), The Federation of Thai Industries (FTI), The Thai Bankers Association (TBA), Tourism Council of Thailand (TCT) , Federation of Thai Capital Market Organisations (FETCO), The Stock Exchange of Thailand (SET) and Thai Listed Company Association (ThaiLCA).

“The current political situation had harmed our economy and social structure. It had also harmed investors’ confidence in trade, industry, consumption, tourism and investment," the statement reads.

"We, representing the public sector, demand every party to stop the conflict and to stop any movement that may lead to further destruction. The current situation had resulted on the loss of lives, properties and national economy. It may as well continue to escalate without an end” said Mr. Isara Vongkusolkit, representative from the TCC.

Mr. Phayungsak Chatsuthiphon, Chaiman of the Federation of Thai Industries (FTI), commented that the political turmoil had worsened the economy more that the floods in 2011, as it laid bare the problems in Thai politics and social structure.

Many investors expressed their uncertainty to invest in a country where rule of law is ineffective, and tend to hold their investment in Thailand or move to other countries, said Mr. Phayingsak, who additionally warned that Thailand’s competitiveness could fall behind its ASEAN counterparts, namely, Indonesia, Vietnam and even Myanmar.

Bangkok has also seen a decrease of foreign tourists arriving at Suvarnabhumi Airport in November and early Devember, said Mr. Somsak Pureesrisak, Minister of Tourism and Sport.

Currently, the nation’s main airport is receiving 49,000 tourists a day, 1,000 less than its usual time. Moreover, many tourists arriving at the airport also tend to board another plane to other tourists destination, for instance, Chiang Mai and Phuket, to avoid the chaos in Bangkok.

However, the Tourism and Sport Minister said they need to monitor the situation a little longer before they can conclude how the situation would end. He added that he feared Thailand may experience falling popularity among foreigners if the political crisis is not solved in timely manner.

“We have instructed the Ministry’s permanent secretary to appoint every organisation, particularly the Tourism Authority of Thailand (TAT) to support tourists facing any domestic problems, including the political turmoil," said Mr. Somsak, "TAT also has, on its website, an explanation and information regarding the protests"

The TAT is providing 24 hour a day services for coordination among different agencies and information for visitors, Mr. Somsak added.

Source: http://www.khaosod.co.th/en/view_newsonline.php?newsid=TVRNNE5qQTNOakE1TVE9PQ==

-- KHAOSOD English 2013-12-04

[Chang_paarp]

About the only people who will find this a surprise will be TAT who will tell us that all is serene and nothing to worry about.

[JoeThePoster]

Protests cost Thai tourism 'over 25 billion baht'

Peanuts compared to what one tourist is expected to spend when he finally comes back to Thailand.

[Mackie]

It's regrettable loss of revenue. However, it's peanuts comparing with the amount of money Thailand lost in 2010 due to red mob terrorist actions in Bangkok. Thailand lost billions of US dollars, not Thai baht. And the very same people who were responsible for it were rewarded with jobs in public offices. To make matter worse, a Thai taxpayer is paying their fat wages as MP's and professional politicians. As long as you have proven terrorists like Jatuporn and Natawut or whatever occupying public functions instead of being locked up for good Thailand has no chance of progress. Same applies to the other side of the coin.

[Tatsujin]

Protests Cost Thai Tourism 'Over 25 Billion Baht'

And that dear friends is ALL they really care about if you hadn't worked it out by now.

[PaullyW]

Once again, this deep, deep and constant concern about tourism must amount to more than 6% of Thailand's GDP. If this were happening in a Western country, even one with big tourism, like, say, France or Spain, there's no way we would see these frequent complaints and worries from top-level officials and business people RE lost revenue.

What's the real percentage of GDP that tourism (READ: Foreigners) contribute to Thailand? 25%?

[bkkfaranguy]

I wonder how this compares to the money lost during the 2008 protest that shut down the airport?

[webfact]

Tourism industry counting cost of political chaos
Nongnapas Maipanich,
Narumol Kasemsuk,
Watchiranont Thongtep

BANGKOK: -- The local travel industry, including airlines, hotels and convention centres, have started to feel some impact from the current political chaos, which could hurt their financial performance in the final quarter of the year.

Thai Airways International said its cabin factor last month was 74 per cent, down from 76 per cent in November last year. The airline expects its cabin factor to be 75 per cent this month, down from 78 per cent in December 2012.

Chokchai Panyayong, THAI's senior executive vice president for commercial, said the largest decline in passengers was from the China market, at 18 per cent. The airline also expects the number of passengers from Australia to be reduced.

The load factor of the European market was 77 per cent last month, below target. Only the Japanese market is still showing good growth, as Japan is now the favourite destination for Thai travellers. THAI has also increased the number of Japan routes and the number of seats to cater to this growth.

"The drop in number of passengers has been caused by many factors, including more competitors, as well as the slow recovery of the world economy, particularly Europe, and the slower economies in Australia and India. The Chinese government is also quite strict in monitoring 'zero dollar' tours. Meanwhile, the political conflict in Thailand is getting more intense," Chokchai said.

He said that normally, the end of the year would be the peak tourism period and the airline expected to see more arrivals to Thailand. However, the political climate would negatively affect the airline's revenues in the current quarter. If the problem is prolonged, the impact will be more serious. "My concern is that individual tourists in the short-haul markets will cancel their trips to Thailand and go somewhere else," he said.

Travel warnings

Thai AirAsia chief executive Tassapol Bijleveld said the political demonstrations had resulted in 34 governments issuing travel warnings, and that had affected the number of passengers using his airline as well. Its cabin factor in November dropped by 5 percentage points to 82 per cent compared with a year earlier. The market with the biggest drop was China.

"Foreign tourists, especially Chinese, are quite concerned about the political demonstrations. If the situation remains intense, the tourism sector should be more sluggish. However, tourists might decide to go directly to local tourism destinations, such as Phuket, Krabi or Chiang Mai [and avoid Bangkok], or change to other countries instead," he said.

Ronnachit Mahattanapreut, senior vice president for finance and administration at Central Plaza Hotel, said the Centara Grand at CentralWorld had started to see an impact from postponements and cancellations of meetings scheduled by state agencies and local and foreign companies for November and December. This had resulted in opportunity losses of about Bt50 million. Meanwhile, the occupancy rate of its hotels in Bangkok was just 70 per cent last month, compared with the 80 per cent it normally sees in November. He expects average occupancy rate this month to be 60-70 per cent.

Catherine McNabb, vice president for sales and marketing at Dusit International, agreed that hotels in Thailand had started to feel the impact. Most of the Dusit customers who had cancelled their bookings were those who had organised the meeting and incentive trips for their employees and clients.

Paul Stevens, operations director of Accor Thailand, said about 24 hotels in Bangkok under the Accor Group still enjoyed average occupancy of 80 per cent as they were located far from the demonstration areas. However, advance bookings have slowed slightly, especially by Hong Kong customers. "We hope that the political problem in Thailand will be settled in a short period of time and the country will be able to progress normally. However, Thailand has strong a foundation as a tourism destination. Despite frequent political difficulties, the number of foreign tourists rebounds very quickly after the situations are settled," he said.

Sakchai Pattarapreechakul, president of NCC Management and Development, the operator of Queen Sirikit National Convention Centre in Bangkok, said his venue expected to see a small impact on conferences and exhibitions for the rest of the year although the anti-government protesters appeared to have wound down their activities earlier than expected.

This year's financial results are already reserved in the company's account. NCC expects to see growth of 12-15 per cent growth in terms of event numbers and a 20-per-cent surge in revenue by end of this fiscal year from the year earlier.

However, Sakchai said he was concerned that if there is further political uncertainty affecting the confidence of international leisure and business tourists this year, particularly after Christmas Day, MICE (meetings, incentives, conventions and exhibitions) business next year might suffer.


-- The Nation 2013-12-04

[wgdanson]

So I guess we won't now be getting that extra holiday on 30th Dec which was supposed to bring in MILLIONS of Baht from tourists.

[englishoak]

Thats ok they will just up the hotel fees and add on a bit more farang "tax" to the usual double pricing

[Thai at Heart]

Huh? Yesterday they were hoping to hit target and last week there was no issue.

[Jasun]

"Currently, the nation’s main airport is receiving 49,000 tourists a day, 1,000 less than its usual time."

That's doesn't sound too bad.

[Bender]

Currently, the nation’s main airport is receiving 49,000 tourists a day, 1,000 less than its usual time.

So if get it right,

this is these 1000 folks, short per day, that are spending the 25 billions baht?

Really wonder what these tourists do buy in Thailand?

[John71]

It's not only Bangkok or Thailand that are effected by the political riots, it also effects tourism in neighbouring Southeast Asian countries.

When will the people of Thailand begin to understands that local politicians are not responsible for the global economy and it's downturn which effects the Thai economy, and no amout of protesting is going to make an improvement, as it only worsens the situation?

[JRSoul]

If Piyaman's worst expectations come true, the country will still make B225 billion from tourism in December.

OTOH B25 billion will supposedly be been lost after an attempt to rid the country of a corrupt government that has lost B600 billion (and still counting) in the rice scam, and proposes to borrow another B2.2 trillion for infrastructure schemes without accountability or cost/benefit data being released. Cheap at twice the price!

[tomyummer]

Who cares about the foreigners anyway. They'll just find a way to make up the lost in other ways. Maybe require pensions for wives of foreign retires too? Duoh!!

[DocN]

There goes my Christmas- bonus!

[JRSoul]

It's not only Bangkok or Thailand that are effected by the political riots, it also effects tourism in neighbouring Southeast Asian countries.

When will the people of Thailand begin to understands that local politicians are not responsible for the global economy and it's downturn which effects the Thai economy, and no amout of protesting is going to make an improvement, as it only worsens the situation?

<deleted>? who said they were? They are certainly accountable for the rice scam and trying to ram legislation through to benefit Thaksin - that was the cause of the protests.

[GeorgeO]

Huh? Yesterday they were hoping to hit target and last week there was no issue.

TAH, I think your confusing TCT with TAT......

[chooka]

Send the Bill to Suthep.

[waza]

Protests Cost Thai Tourism 'Over 25 Billion Baht'

If they keep the protests up for another 20 years they might come near the amount of money Yinglucks government has squandered on the rice scam.

[ginjag]

Send the Bill to Suthep.

Don't worry it's farangs fault, we will have to foot the bill---maybe have to do visa runs EVERY month.

[laurentbkk]

Maybe some cancel because of the over prices hotels during the peak season ... exemple .... this weekend in phuket 4,500 baht the room .... the same for Xmas is 9,175 baht .... I know many people who are fed up with this system of double or triple the prices for peak season ( it seems every countries does it also but ....) I havent spent Xmas or New year in Thailand for the last 20 years ...

[oogster8]

Customer count really bad at the top 4 bkk bars. Looks worse than LOW season numbers.

Edited December 4, 2013 by oogster8

[chooka]

Send the Bill to Suthep.

Don't worry it's farangs fault, we will have to foot the bill---maybe have to do visa runs EVERY month.

Well at least a certain Maejo University lecturer will be happy there aren't so many farangs drinking Thailand's water and eating their rice.

[Friendly Stranger]

Terrible and all as it's ppl's livelihood but is it an accident that this happens during high season and worse, at the beginning...

On another forum I'm on visitors that have just arrived or are booked are frantically asking "is it ok to come". They can pretty much save the title of this thread and recycle it for future use.

How sad..

[Yunla]

I think most tourists will still visit if there is political turmoil, but many will cancel when there is actual shooting in the streets. The sad part is that the tourist money is one of the few inlets of money that goes directly to ground-floor Thai businesses without being syphoned off by oligarchical interests in the state, there being such interests in both the main parties & other modules of state and business too. But a short-stay tourist will buy from small shops, tip heavy, etc. which is money going directly to the common Thai.

And by contrast, the political circus as it stands today, is unlikely to benefit anyone except friends of the latest overlord, so in effect by destabilising the tourist input the politicians are punishing the common man (again.)

[rebelplatoon]

Waiting for next week's report when TAT states that tourism will still be on target in spite of the new 500B -on entry- fee....

Edited December 4, 2013 by rebelplatoon

[puukao]

Tomorrow's Headline:

And the World’s No. 1 Tourist Destination.....Bangkok.

who pays for these studies?

i'm taking my 30 baht elsewhere.

[ginjag]

Tomorrow's Headline:

And the World’s No. 1 Tourist Destination.....Bangkok.

who pays for these studies?

i'm taking my 30 baht elsewhere.

Who pays ???? those who benefit--TAT ???