Unrest deals new blow to Thai tourism industry - Focus

[Lite Beer]

Unrest deals new blow to Thai tourism industry - Focus

by Cat Barton

BANGKOK, December 15, 2013 (AFP) - From backpacker districts to high-end hotels, more than a month of opposition protests in the Thai capital are taking their toll on the kingdom's tourism sector, with hundreds of thousands of travellers staying away.

Dozens of countries have issued travel warnings related to the mass street demonstrations against Prime Minister Yingluck Shinawatra, mostly advising people to exercise caution near the main rally sites.

The political situation reduced the influx of inbound tourists in the month to mid-December by an estimated 300,000 people -- eight percent -- compared with the number expected, Yutthachai Soonthronrattanavate, president of the Association of Domestic Travel, told AFP.

"Entrepreneurs are concerned that the protests might not end before January or February," he said.

The protests -- aimed at toppling Yingluck and curbing the influence of her older brother, ousted premier Thaksin Shinawatra -- have left five dead and more than 200 wounded in street violence, although tensions have abated in recent days.

The political conflict broadly pits a Bangkok-based middle class and a royalist elite backed by the military against rural and working-class voters loyal to Thaksin, who was ousted in a military coup in 2006 and lives in self-exile.

Risk-averse Asian holidaymakers are among those choosing to stay away due to the unrest.

The local business association for the Khao San Road backpacker district said in early December that more than 50 percent of bookings for November and December had been cancelled as low-end

tourists abandoned their Thailand trip or went elsewhere in the country.

High-end hotel chains, including the Mandarin Oriental and the Accor group, said they had experienced cancellations.

Yet many travellers, particularly those from Europe and North America, are unfazed by -- or unaware of -- the crisis.

"I didn't know about it. Friends at home saw the news and warned me.

When I arrived there were riots going on. I was quite naive," said Alex Young, 23, as she ordered a cocktail at a bar on Khao San Road, while protesters gathered at the nearby Democracy Monument.

Her travelling companion, Hannah Steenson, 24, hails from Northern Ireland and was unruffled.
"We're used to bomb scares there," she said, but added that Khao San Road was quieter than when she visited last year.

Local businesses said they had noticed the impact of the protests -- with many expressing frustration at the effects of the protracted political crisis.

"Last year, every weekend was party day. Now even Friday and Saturday are quiet. Every business is the same -- no customers," Noom Manachai, manager of the Hippie De Bar restaurant on Khao San Road, told AFP.

Many of the key rally sites are just minutes from major tourist attractions in the city's historic district.
Outside parliament on Tuesday, a confused Polish tourist told AFP he was "surprised but not afraid" to find himself in the middle of a protest.

"Asia is very safe if you compare with places like South America, or even Poland... I was not aware at all that this was going on, but it doesn't bother me," he said, declining to give his name.

Tourism likely to bounce back

Asia-wide, tourist industry recoveries from high-profile shocks -- such as SARS outbreaks, the Japanese tsunami and the Philippine typhoon -- are speeding up, experts say.

"While events can quickly displace business, the bounce back time is shortening," said Bill Barnett, managing director of tourism consultancy firm C9 Hotelworks.

"What's hard for Thailand at present is the shroud of uncertainty that hangs over Brand Bangkok."

Not only are Asian travellers less "risk resistant" than, for example, North Americans, hotels are struggling as lucrative corporate business is extremely sensitive to negative events, he said.

"Once the travel warnings roll out these are the first in line to cancel," said Barnett.

It is the latest in a series of setbacks to the kingdom's tourist-friendly image as the "Land of Smiles" in recent years, which have also included devastating floods, deadly bus and boat accidents, and growing concerns about crimes against foreigners.

But Thailand is "incredibly resilient" and likely to recover, said Amanda Hyndman, general manager of the Mandarin Oriental hotel in Bangkok.

The kingdom attracted a record 22 million tourists last year.

Its popularity has endured several episodes of civil strife, including in late 2008 when hordes of frustrated travellers were stranded after protesters staged a nine-day blockade of Bangkok's two airports.

Three years ago, mass opposition protests that turned deadly -- with dozens killed in a military crackdown -- also dealt a major setback to Thailand's tourism industry, but it quickly recovered.

"Thailand is fundamentally a very strong tourist destination," said Patrick Basset, senior vice president of Accor in Southeast Asia.

"Unfortunately, the main drawback so far these past few years has been the political instability."

-- (c) Copyright AFP 2013-12-15

[tomross46]

The whole problem is the the people rebelling against a corrupt government? It was nothing to do with the additional corruption in the tourist industry? A large portion in the tourist industry is untouchable, it is controlled by the influential people and the police. Every entertainment facility must pay the police for protection. This type of operation also goes on all over the world. If you own a restaurant in Chicago or New Jersey, and you do not pay your monthly contribution, your place will have a fire. Clean up everything.

[NeverSure]

The whole problem is the the people rebelling against a corrupt government? It was nothing to do with the additional corruption in the tourist industry? A large portion in the tourist industry is untouchable, it is controlled by the influential people and the police. Every entertainment facility must pay the police for protection. This type of operation also goes on all over the world. If you own a restaurant in Chicago or New Jersey, and you do not pay your monthly contribution, your place will have a fire. Clean up everything.

Sorry, I don't believe that. I do believe that there are corrupt police in some of the worst inner cities and that might include the S. Side of Chicago or parts of New Jersey, but to need to pay protection I think you'd have to be running an illegal racket like a back room gambling den.

I don't believe that if you opened a normal restaurant you'd have any problems unless you were in such a really bad druggie neighborhood that your customers beat and robbed you. But then that's a tiny percentage of the land in the US, and easily avoided.

Every country has certain districts that any wise person would avoid.

[noitom]

They are in denial. Thailand is a high risk area. In the south of Thailand, they are virtually in an unresolved state of terror for 12 years. Hotel managers making statements like this are merely protecting their jobs, denying the reality, and falsely luring travelers to book anyway. Very manipulative.

[comeondoit]

everybody is overestimating the impact of tourism look at the GDP figures and you will see that industry is the biggest and farming is still much bigger than tourism, so what a few percent in tourism is nothing against the loss of trust of the money people fleeing the BHT, right now the BHT is cheeper than ever and for me living here i am profiting

[atsiii]

"Its popularity has endured several episodes of civil strife, including in late 2008 when hordes of frustrated travellers were stranded after protesters staged a nine-day blockade of Bangkok's two airports."

But in truth--contrary to what TAT says--every year since 2008, tourism has been down in most areas a bit when compared to the prior year. If one reads real blogs and comments by business owners and workers in Pattaya, Phuket, Koh Samui, Koh Chang and other places, the trend is evident. There is not just one reason. The political instability certainly does not help, but the trash on beaches & roads, the scams, the road kill, the train derailments, the violent crime in tourist areas, etc., all play a part; and all are well written up on the Internet. Thailand needs to realize that the Internet is a two-sided sword: it can be used to post all the pretty photos; but unhappy tourists also use it to vent their complaints to the world.

IMO: The end of these protests will not mean the end of the decline in tourism. Thailand must go to the sources and solve the real problems. The real issue is that in order to solve a problem: it must first be acknowledged. So long as the country is unwilling to acknowledge its real problems, the overall decline in tourism will continue.

[bigbamboo]

If only the government had been honest and not tried to do the bidding of one man none of this mess would have happened.

Very sad.

Edited December 15, 2013 by metisdead
Large font reset to normal.

[kurtgruen]

Hmmm...even though, I have no doubt, that the protests are affecting tourism in a negative way, there are also other things that need go be considered....

Thailand has had very unfriendly policies, towards backpackers, especially during the past 5 or 10 years. Long-term visas, are difficult to obtain, unless you are married to a Thai person or are over 50 years old to get a retirement visa (or have a work/business permit, but a lot of travelers, don't come here to work.

The biggest kick in the rear, for backpackers, was when the Government changed the visa rules again, a few years ago and you could only stay in the Country, for two weeks, if you came by land, across the border.

Meanwhile, Cambodia, Laos, Vietnam and even Burma, opened their arms and borders, to foreigners.

You can go to Cambodia, with a 6 month business visa, on arrival, weather or not you start a business. If you do start a business, you can own it in your own name.

Beer is dirt cheap in Cambodia and they don't have draconian drug laws, against Marijuana use.

So why would backpackers want to come back to Thailand, when they feel unwelcome here? SomeThai people call them "Farang Khii Nok" (Farang who smell like bird shit), behind their back.

Asian People are always adressed as Khon (People) Khon Thai, Khon Yheepon, Khon Gaulee, etc. but white Foreigners, are just FARANG. Makes a white traveller or resident feel, like he rates somewhere between the family buffalo and family dog. We are definitely not people, in Thai People''s eyes.

We can't own land in our own name, highrises can only be 49% foreign owned, etc. etc. (I actually find the land ownership rule a good thing, because it protects Thai interests)

Then, when some mass demonstrations happen, they point the finger at it, for "all" the lost tourism dollars.

If it wasn't for disasters (Tsunami) and airport takeovers, most people would not even know where Thailand is. Even in Canada, when I mentioned Thailand, most people thought it was part, or one and the same as Taiwan.

We own a restaurant/bar and have changed our focus towards Thai customers, a few years ago, seeing the writing on the wall.

I am quite happy living here and respect is returned, when given, I have found. We have made some good Thai friends and I have adjusted to the Thai way of life.

I don't really want to see any more tourists or expats come to Thailand, but that is selfish of me, I know. If they do come, I prefer the budget travelers and backpackers, because they spend money in the average noodle stand and thai restaurant on the street and in the markets, which helps the poor, get ahead a little.

Thaskin's Government, has made it more and more difficult for backpackers, to travel and feel welcome in Thailand. They have been busy, trying to attract travelers with lots of money and medical tourism, which mostly benefits rich hotel owners and Private hospitals. (Granted, it does create some jobs, but Thai people never have trouble finding jobs, that pay little money, anyways)

I am not naive, I don't think, that corruption in this Country, will be instantly eradicated, if Suthep has his way, but I see one good thing happening... The focus is on corruption and it is being brought to light and it is being addressed as something that is wrong, which is the first step to slowing down corruption.

[khunPer]

everybody is overestimating the impact of tourism look at the GDP figures and you will see that industry is the biggest and farming is still much bigger than tourism, so what a few percent in tourism is nothing against the loss of trust of the money people fleeing the BHT, right now the BHT is cheeper than ever and for me living here i am profiting

Right about industry and farming, tourism is somewhere around 10%, about same as for example hard discs and computer accessories contribute with.

[ginjag]

The whole problem is the the people rebelling against a corrupt government? It was nothing to do with the additional corruption in the tourist industry? A large portion in the tourist industry is untouchable, it is controlled by the influential people and the police. Every entertainment facility must pay the police for protection. This type of operation also goes on all over the world. If you own a restaurant in Chicago or New Jersey, and you do not pay your monthly contribution, your place will have a fire. Clean up everything.

Speaking as a Britain In my lifetime it has never been known for police to enter any business and demand money.

All control is the VAT, NI contributions ,Tax etc. If this happens on this scale in the US I can't imagine it. The biggest problem being in Thailand is the said government, it should have the police answer to them not police take control over local business, it is NOT their business, it is NOT their money STOP IT HAPPENING. It is really easy, any policeman wanting money of any kind other than his monthly salary -should be reported and be out of work with that record against him. Local government officials the same.

If the government does not act then it be deemed to be in their personal interest not to. It is led by a PM who will not allow it, sadly they say they are trying. VERY TRYING.

[GAZZPA]

everybody is overestimating the impact of tourism look at the GDP figures and you will see that industry is the biggest and farming is still much bigger than tourism, so what a few percent in tourism is nothing against the loss of trust of the money people fleeing the BHT, right now the BHT is cheeper than ever and for me living here i am profiting

Yet another person who understand nothing about economics... The tourism industry is a very big industry for Thailand, somewhere between 6% and 10% depending on what numbers you chose to believe,, this is huge.

Also, all economies, including Thailand rise and fall based upon confidence and sentiment.. As soon as all the people who rely on tourists for a living start to moan about the lack of money coming in they stop spending and start being cautious. this has a knock on effect, people then talk, it hits the press more, markets move etc, etc,,

I remember very well that the .com bubble burst and this 1 industry in the UK caused a recession,, then there was the building trade and lately of course the biggest and worst the banking sectors.

You may be enjoying the weak baht at the moment but this is a very bad thing for Thailand and it's people. they have political instability, a rice farming industry on the brink of collapse as soon as the pledging scheme comes home to roost, issues with the rubbers farmers, bad publicity over scams and now the tourist industry.

I believe that people chose Thailand because it is relatively cheap, also it attracts a lot of people because of it's sex trade, cheap booze etc. but nothing will save it if people believe there is a risk of violence in the streets.. Take this seriously and don't do the Thai thing and sweep it under the carpet...

[marcusd]

everybody is overestimating the impact of tourism look at the GDP figures and you will see that industry is the biggest and farming is still much bigger than tourism, so what a few percent in tourism is nothing against the loss of trust of the money people fleeing the BHT, right now the BHT is cheeper than ever and for me living here i am profiting

With respect, THINK HARD about this. To Capitalised GDP you may be correct lame but to the ordinary person and the way they live say a good 20 million or so of them, the bars, clubs tuk tuks taxis shops, malls, hotel waiters restaurans etc etc - the DAILY HUM of Thaiand, tourists are the KEY income. That is what they are concerned with. NO TOURISTS mean peasant revolt as no income and they like every other country blame the incumbent government for the woes.

[itsrebel]

"Yet many travellers, particularly those from Europe and North America, are unfazed by -- or unaware of -- the crisis.

"I didn't know about it. Friends at home saw the news and warned me.

When I arrived there were riots going on. I was quite naive," said Alex Young, 23, as she ordered a cocktail at a bar on Khao San Road, while protesters gathered at the nearby Democracy Monument."

This is so typical, I once ran into a Canadian while waiting in the VOA queue at the airport. When I told her that she probably didn't need a visa, she was like "How is that possible?" As it turned out, she didn't need one.

"Not only are Asian travellers less "risk resistant" than, for example, North Americans,..."

Right! I met few people on my last visit to the US (earlier this year) who said that they have not travelled anywhere since 9/11 as they are too afraid to get on a plane.

[FangFerang]

Of course tourism is suffering. You have two sides that will not negotiagte with each other, and an x-pat community that adopts the same stupid stance.

Our way or the highway? No.

People choose a different highway, after all, the world is very large....

[simon43]

Every entertainment facility must pay the police for protection

Yawn.. another myth. I used to run two tourist bars on Sukhumvit Road in BKK, Never paid 1 baht to any police or mafia and never had any problems whatsoever....

Simon

[DrTuner]

I find it strange that the neighboring countries are not milking this situation to the full. Like huge banners on the web "Come to Laos, the place without Thainess" or some such. Is their tourism sector that underdeveloped ?

[Ulic]

A lot of contra indicating information. The tourism ministry and the airport authority reports arrivals down only

slightly or a slight increase but lower than the forecast numbers. Far from the hotel association estimated

numbers of being down hundreds of thousands of tourists. As for anecdotal stories from Phuket of occupancy

rates dropping over the years, that has to be balanced against the thousands of rooms that have been built

over this period and added to the rental pool. Of course certain hotels in the areas of protests will have been greatly

affected. Other hotels will benefit from this. People who have booked and planned the vacation a long time ago are

unlikely to change there plans. Maybe Chinese, Malaysian, Korean, tourists are more protest averse. Also local

tourists who do not book long in advance, and can more easily delay travel. Always a big political spin as well, with

one side blaming the other but still wanting to look good. All I know is the night market were I most often go for meals

is twice as busy as 2 months ago and it is harder to find parking for my scooter when I head into Pattaya from

Jomtien. Again just anecdotal evidence. The most reliable/accurate numbers should come from the Airport and

Tourist Authority, but can they be believed? Who knows?

[hotrod4098]

The whole problem is the the people rebelling against a corrupt government? It was nothing to do with the additional corruption in the tourist industry? A large portion in the tourist industry is untouchable, it is controlled by the influential people and the police. Every entertainment facility must pay the police for protection. This type of operation also goes on all over the world. If you own a restaurant in Chicago or New Jersey, and you do not pay your monthly contribution, your place will have a fire. Clean up everything

friend of mine has a resturant in pattaya..he pays 3000thb..just to sit in it ..no tea money can not use his own resturant..and its in his wifes name.thats corrupt

[EricBerg]

I find it strange that the neighboring countries are not milking this situation to the full. Like huge banners on the web "Come to Laos, the place without Thainess" or some such. Is their tourism sector that underdeveloped ?

Lao tourism is developing very fast. To a large extent done by Thai entrepeneurs.

[bushwacker]

Tricked me again. I read the article to find out the "New Blow" ... there is not one. Same old ... Same old!

[GAZZPA]

A lot of contra indicating information. The tourism ministry and the airport authority reports arrivals down only

slightly or a slight increase but lower than the forecast numbers. Far from the hotel association estimated

numbers of being down hundreds of thousands of tourists. As for anecdotal stories from Phuket of occupancy

rates dropping over the years, that has to be balanced against the thousands of rooms that have been built

over this period and added to the rental pool. Of course certain hotels in the areas of protests will have been greatly

affected. Other hotels will benefit from this. People who have booked and planned the vacation a long time ago are

unlikely to change there plans. Maybe Chinese, Malaysian, Korean, tourists are more protest averse. Also local

tourists who do not book long in advance, and can more easily delay travel. Always a big political spin as well, with

one side blaming the other but still wanting to look good. All I know is the night market were I most often go for meals

is twice as busy as 2 months ago and it is harder to find parking for my scooter when I head into Pattaya from

Jomtien. Again just anecdotal evidence. The most reliable/accurate numbers should come from the Airport and

Tourist Authority, but can they be believed? Who knows?

I think Thailand need to take this very seriously as per my previous posts. Also, my observation is that Pattaya does not seem to be much busier and when i go to find somewhere to eat half the restaurants look empty to me and i have no problem finding somewhere..

[prvtdetdave]

The whole problem is the the people rebelling against a corrupt government? It was nothing to do with the additional corruption in the tourist industry? A large portion in the tourist industry is untouchable, it is controlled by the influential people and the police. Every entertainment facility must pay the police for protection. This type of operation also goes on all over the world. If you own a restaurant in Chicago or New Jersey, and you do not pay your monthly contribution, your place will have a fire. Clean up everything.

Rubbish!

[IBoldnewguy]

I think many of the political threads I've read (and lately, TV in general) are assumptions rather than fact. We would all like to think we can predict how the current situation will work out; but we can't, and so, we post undocumented remarks (myself included) to mask our uncertainty

"I believe that people chose Thailand because it is relatively cheap, also it attracts a lot of people because of it's sex trade, cheap booze etc." Starbucks is more expensive in Thailand than in the US I don't drink booze so I can't comment there. I learned not to shop in Thailand as I can buy "Made in Thailand" locally for 60 to 80% less than anything I priced in Thailand. If you enjoy pumping away on an object that would rather be texting on their smart phone than pretending to any interest in the work for which they've been paid? Then yes... this is for you! If one adds up all the costs of a trip, plus a risk factor cost, I would not call it cheap. I believe that people chose Thailand because of the illusion that it is relatively cheap, the illusion that one can purchase romantic sex and that one can do whatever one desires in a foreign country without a penalty. Hummmn... I hope I haven't talked myself out of my next trip...

"Every entertainment facility must pay the police for protection. This type of operation also goes on all over the world." As far as payoffs go in the US... we like nothing better than to see the stiff sentences that are leveled when the guilty (especially politicians) are caught... The advent of sound/video technology has helped immensely... you just never know who's listening and watching.

In the US a neighborhood that has a high rate of theft or mob/drug violence ends up having fewer businesses (and stable residents) due to high costs of insurance; so rather than have local competitive prices a resident would have to pay the local inflated price or travel some distance to shop. There has been a lot of community protests over this to no avail as there is no law that can force a business to establish itself (or stay) where it cannot safely and profitably operate. I imagine this would apply to individuals (and countries) as well.

Mob violence and criminality doen't have a brain so it can't figure out that when the fire and smoke clears it may have penalized its self with additional hardships.

Edited December 16, 2013 by IBoldnewguy

[indyuk]

The whole problem is the the people rebelling against a corrupt government? It was nothing to do with the additional corruption in the tourist industry? A large portion in the tourist industry is untouchable, it is controlled by the influential people and the police. Every entertainment facility must pay the police for protection. This type of operation also goes on all over the world. If you own a restaurant in Chicago or New Jersey, and you do not pay your monthly contribution, your place will have a fire. Clean up everything.

You are wrong I think. My take is that the Thai political system is being held for ransom by an individual who can access sufficient money for mobilising protesters, some of which will do anything he wants in return for promised farvour. Neither he nor his hired hands represent what the people need. And that of course is peace, even with the warts of corruption and all..

[siampolee]

indyuk post # 24.

You are wrong I think. My take is that the Thai political system is being held for ransom by an individual who can access sufficient money for mobilising protesters, some of which will do anything he wants in return for promised farvour. Neither he nor his hired hands represent what the people need. And that of course is peace, even with the warts of corruption and all..

This is indeed true, the antics of Thaksin and his puppets over the last few years have done much to tarnish the image and thus the tourist industry in Thailand.

Jet ski scams dropping litter or cigarette scams, police scams, shoplifting in duty free area scams illegal imprisonment on dubious charges etc all those delightful warts of corruption so beloved by Thaksin and those of his ilk.

[tomross46]

The whole problem is the the people rebelling against a corrupt government? It was nothing to do with the additional corruption in the tourist industry? A large portion in the tourist industry is untouchable, it is controlled by the influential people and the police. Every entertainment facility must pay the police for protection. This type of operation also goes on all over the world. If you own a restaurant in Chicago or New Jersey, and you do not pay your monthly contribution, your place will have a fire. Clean up everything.

Sorry, I don't believe that. I do believe that there are corrupt police in some of the worst inner cities and that might include the S. Side of Chicago or parts of New Jersey, but to need to pay protection I think you'd have to be running an illegal racket like a back room gambling den.

I don't believe that if you opened a normal restaurant you'd have any problems unless you were in such a really bad druggie neighborhood that your customers beat and robbed you. But then that's a tiny percentage of the land in the US, and easily avoided.

Every country has certain districts that any wise person would avoid.

It is apparent you never lived in Chicago, Detroit or New Jersey.