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Bangkok Shutdown: Bt50 bn loss expected in Q1 revenue from tourism


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BANGKOK SHUTDOWN
Bt50 bn loss expected in Q1 revenue from tourism

Erich Parpart,
Narumol Kasemsuk
The Nation

BANGKOK: -- The tourism industry has lost income so far in the new year because of the political turmoil plaguing Bangkok, experts said.

Small hotels and restaurants near protest sites have started to cut down their part-time workforces in response to lower occupancy rates and the lack of customers.

According to Tourism Council of Thailand president Piyamarn Techapaibul, hotel occupancy in the affected areas of Bangkok has dropped to 50 per cent, while those the in central business district near protest sites have seen their rates dwindle to 40 per cent

The TCT's 2014 revenue target for the tourism industry is Bt1.3 trillion, but Piyamarn said that because of the protests and the government's decision to declare a state of emergency in metro Bangkok, the industry was expected to see around Bt50 billion worth of income evaporate in the current quarter. That loss could swell to Bt80 billion if the situation turns violent or remains unsolved until the next quarter.

"In the past three months we have lost around a million of the 7.5 million tourists who had been planning to come to Thailand but now have decided not to because of the current political situation," she said.

Regarding the trimming of the part-time workforce, Piyamarn said most big hotel chains like the Centara Group could still cope as long as there is no violence, since the number of tourists in other major destinations has not declined.

She said some part-time employees in the big hotel chains in Bangkok had been shifted to other locations in the country, such as Chiang Mai and Phuket, so they are still able to work.

However, smaller hotels in the affected areas of Bangkok don't have the resources to provide alternative employment for their part-timers. Still, for the time being, there is no report of them trimming their full-time staff. She was unable to provide figures on how many part-timers had been laid off.

Piyamarn recommended that hotels in the affected areas use this opportunity to train their workforce in order to improve service quality. She discouraged cutting room rates because that would affect their business and tourists' confidence in the long run.

She also urged the caretaker government to reconsider the period of the state of emergency - originally set at 60 days - because the longer it stands, the more it will affect tourists' confidence and the image of the country. It should be lifted "as soon as they possibly can", she said.

"I want to see smiles brought back to the faces of Thai people. The parties in conflict should avoid violence and all sides should think of the country as a whole - we all have to do our duty. It is time to stop fighting, because we have reached a dead end, and nobody wants to see violence.

"It is time to negotiate and find a way to compromise our differences for the sake of our country."

Thai Hotels Association president Surapong Techaruvichit confirmed that the occupancy rate of hotels in Bangkok, particularly those near the protest sites, had continued dropping. by between 30 per cent to 40 per cent since Bangkok Shutdown on January 13 till now. The demonstrations, which are unlikely to end soon, will affect advance bookings for hotel rooms over the next two months. Some foreign tourists have suspended their plans to come to Thailand on safety concerns.

He added that the hotels would wait until the situation gets better before resuming the launches of aggressive marketing campaigns. Pricing campaigns at this moment are unlikely to be able to draw back tourists.

He confirmed that the hotels did not plan to cut full-time staff as the situation is not yet that serious.

Association of Thai Travel Agents president Sisdivachr Cheewarattanporn said that only about 200,000 Chinese tourists were expected to visit Thailand this weekend, when the Chinese New Year season starts. Tour operators are waiting to see a better situation before resuming their marketing activities.

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-- The Nation 2014-01-31

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So it isn't a loss at all but bizspeak for a shortfall in a projected target revenue - not the same thing.

One thing I do know is that international hospitals are suffering as the number of medical tourists have dipped, with staff overtime virtually gone and some staff being released. This is even in hospitals that are far away from any troublespots, but I guess bad vibes spread. Well done Thailand!

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TAT: Tourism is up 3% in the first quarter.

Predicted to rise 30% in the second due to more people attending the underwater weddings.

For the 3/4 th quarters massive construction on the 3rd BKK airport needed for further Asian travelers.cheesy.gifcheesy.gif

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"She discouraged cutting room rates because that would affect their business and tourists' confidence in the long run."

Thainess and The face!

Not to lose face, save face at all cost even if the country sinks into recession.

Thais are in, not only for a rude awakening, but also for a big slice of humble pie.

When tourists shift to Laos, Burma and Vietnam, Thais might, just might understand that they are not oh, so special!

I have been to most Asian countries and Thailand tops the list of a dysfunctional society. Thais are so used to recklessness, corruption, thoughtlessness and patronage that they cannot see even egregious events taking place in front of their eyes. Much less understand when foreigners react in disgust. Not even in the Philippines one sees motorcycles zipping up and down sidewalks full of pedestrians. To blow a red light in front of a police booth; Thai way. Want to have the work permit processed promptly? A gift basket to the right bureaucrat and the usual brown envelope. That is Thainess and that is OK.

Thais have taken for granted that their good fortune will not change for the worse no matter how much they screw up the country.

Maybe after a few servings of the bitter humble pie, this superstitious, immature and dysfunctional population will grow up and learn to appreciate the foreigners that travel long distances and pay a pretty penny to come to this land where smiles are getting scarce.

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