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Thai tourism industry again braces for another tough year ahead


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Posted

YEAR-END SPECIAL
Tourism industry again braces for another tough year ahead

SUCHAT SRITAMA
THE NATION

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BANGKOK: -- The Thai tourism industry is expected to face another tough year, judging from a slow economic recovery in key markets. But stakeholders are optimistic that arrivals will soar from 25 million in 2015 to 29 million in 2016.

The tourism sector accounts for 10 per cent of the economy and the Kingdom has been listed as a top global destination for years. But now the Tourism and Sports Ministry has set 2015 as a year for restructuring and rebranding the country's image in a bid to boost competitiveness.

"The ministry is ready to run a one-year plan to reconstruct the industry and line up fundamentals for long-term growth," Tourism Minister Kobkarn Wattanavrangkul said.

The ambition is to increase the country's ability to deal with challenges, including tough global competition, since many other countries also consider tourism a key economic driver. Negative images and perceptions that Thai tourism is cheap also need to change, along with rebuilding the deteriorating environment and other attractions, the ministry believes.

Challenges ahead include the growing number of Chinese tourists. The ageing society in some key markets could bring an opportunity for medical and health tourism, while the focus will remain on maintaining a repeat-visit ratio of 60-70 per cent and welcoming more free independent travellers. Furthermore, the new landscape of social media and online travel searches will lead to and shift some big changes both in consumer behaviour and operators' methodologies.

At Thai Airways International, Charamporn Jotikasthira will this year lead a major restructuring of the business model to compete with a tough global environment. Plans have been updated as its clear the economies in Japan, Europe and the United States have not recovered yet.

Moreover, effects of disease outbreaks, especially the Ebola epidemic in East Africa, are flowing directly into the travel industry.

Chanin Donavanik, managing director and chief executive officer of Dusit International, said Thai tourism had no problem with products and services. The one major item bothering tourists was the political scene.

"It should be made sure there are no mistakes arising from this political [environment]," he warned.

Another hotel veteran, William Heinecke, chairman and CEO of Minor International, said a political crisis could hit tourism and renew fears among business travellers coming in for meetings, incentives, conventions or exhibitions (MICE). Reminders of martial law were also deterring visitors from key markets like Europe and the United States, he said.

Panga Vathanakul, who runs one of largest hotel outfits in Pattaya - Royal Cliff Hotels Group - said political problems had caused tourists to shift to other destinations. If the government wanted tourists back, there should no internal problems. The improvement of infrastructure, especially transport systems, would also help restore the travel industry.

However, both private and official sectors confidently claim that Thailand remains an attractive destination for tourists from around the world.

This year up to the end of October, Thailand had welcomed 19.7 million visitors, while revenue from inbound travel was Bt905 billion, a drop of 6.5 per cent from the first 10 months in 2013.

In 2015, Thailand is expected to have 25.5 million arrivals, a slight increase from this year's projection and earning total income of Bt1.8 trillion. International tourism is expected to reach 29 million in 2016 and generate overall revenue of Bt2.2 trillion.

Kobkarn, who was chosen as tourism and sports minister by the military government, has been running a national campaign called Discover Thainess. Other plans have already been prepared to revitalise the industry, including rebranding and repositioning attractions at provincial and regional sites, aimed at increasing the number of high-spending tourists.

Bangkok will be rebranded and noted for its river cruises, complemented with existing variety products such as shopping, dining, weekend holidays, history and culture.

Pattaya, which is famed as a nightlife and beach town, will be transformed by world-class sports activities and also as a family destination.

Koh Pha Ngan, now known as home to the world's most popular full-moon party, will be turned into a resort based more on "Thainess".

Phuket is targeted as a venue for premium cruises and a destination for MICE, together with beaches and diving.

Nan province in the North is set to become a site for eco-tourism, biking and tourism for older folk.

The Tourism Association of Thailand also plans to promote "12 Must Not Miss Provinces" throughout the Kingdom. The plans are expected to attract more visitors as well as boost awareness for local people.

The establishment of a centre for information gathering and crisis management are urgently required this year, experts say.

In 2013, the average tourist's length of stay in Thailand was 9.8 days, the highest rate among Asean nations. Spending per head per trip was also at top level in the region with US$1,400 (Bt42,000).

Source: http://www.nationmultimedia.com/business/Tourism-industry-again-braces-for-another-tough-ye-30250502.html

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-- The Nation 2014-12-24

Posted

Negative images and perceptions that Thai tourism is cheap also need to change,

and

Challenges ahead include the growing number of Chinese tourists

[/quote]

So presumably the challenge is how to stop the Chinese tourists coming?

Posted

No rebranding of northern destinations, I wonder why? thumbsup.gif

" Nan province in the North is set to become a site for eco-tourism, biking and tourism for older folk. "

Last time I looked at the map Nan was in the North, but I guess some people are not "really happy" before Chiang Mai is the Capital of Thailand.

Posted

No rebranding of northern destinations, I wonder why? thumbsup.gif

" Nan province in the North is set to become a site for eco-tourism, biking and tourism for older folk. "

Last time I looked at the map Nan was in the North, but I guess some people are not "really happy" before Chiang Mai is the Capital of Thailand.

. My mistake on Nan, as far as CM being the Capital, no leave it the way it is.
Posted

The tough times will continue while the news is bad concerning the (unsolved?) murders, untold amounts of 'suicides', Jet ski rip offs, the strong Baht, and the upping of prices because of lower tourist numbers.

The list is a lot longer than that.

Thainess? That is dangerous ground, especially where it usually means us being ripped off while they smile at us.

  • Like 2
Posted

Do they ever consult with the "man on the street" when making these decisions/announcements? For example, actually talking directly with hotel operators (and I don't mean the ones they have a direct interest in), the "ordinary" people and see what challenges and problems they face and what "they" think should be done????

Your post is rhetorical, right?

Posted (edited)

I think the re-branding is a wonderful plan.

The greed genie is out of the bottle and has been so for some time leading to a modern "Thainess".

The urgent need to refocus on agriculture needs the influx of unemployed bar staff as Pattaya is remodelled and world class sports venues are erected in the next few months. For sure there will be no jet ski scams in Nan, the older tourists are too canny to fall for them. Plus the focus on safety security and sanitation, a marketers dream.

2015 will be a big year for Thai tourism and I am watching with interest to see all of the measures realising rewards.

Edited by alant
  • Like 1
Posted

Chanin Donavanik, managing director and chief executive officer of Dusit International, said Thai tourism had no problem with products and services. The one major item bothering tourists was the political scene.

The other major items bothering tourists not mentioned:

- Violent crime

- Scams and intimidation

- Uncertainty

- Increasing perception as an unfriendly tourist destination

The poor performance of arrivals after a number of years is simply becoming a norm. Get used to it.

Add to the list traditional Euro/American tourists not wanting to spend an arm and a leg to fly half way around the World to have their holidays ruined by increasing numbers of peasants from Serbia/Ukraine and mainland China. Good old short term gain 'Thai 'thinking'.

Posted

Do they ever consult with the "man on the street" when making these decisions/announcements? For example, actually talking directly with hotel operators (and I don't mean the ones they have a direct interest in), the "ordinary" people and see what challenges and problems they face and what "they" think should be done????

Your post is rhetorical, right?

Not entirely, on the off-chance that a member of TAT is actually reading this forum (which might be a very good idea for them if they thought about things for more than 2 seconds), I'd love to know the answer straight from the horse's mouth.

  • Like 1
Posted

Do they mainly at TAT really think westerners don't read the newspapers or hear from their friends who have visited Thailand?

do they ever learn or want to learn from westerners living here?

For the same reason local builders (farmers?) Refuse to listen or accept better ways from well experienced western builders. Plenty of those around.

  • Like 2
Posted
So, in one year (I think), someone is going to close down the economic mainstay of Pattaya, sex tourism

Hopefully ... coffee1.gif

Posted

Reading the article reminds me of Oliver Twist ? jam yesterday ,jam tomorrow ,but no jam today. I fear as well that Wheras when i first came here Thailand was a happy place full of Smiling people who really meant the smile ,it is now just a shadow of those days ,i still love it here but the smile i am afraid is now false and the attitude is "me first"

  • Like 2
Posted

No rebranding of northern destinations, I wonder why? thumbsup.gif

You forgot Nan, where they are going to put the 20 something "eco" people along with the "old folks" using canes and walkers. I wonder if she has ever been to Nan?

Posted

i was out in a local fleshspot last night and it was like a morgue, no customers, and before you stupid holier than thou keyboard warriors reply, this is how the girls earn their money, OK. over the years i have made many friends , and they have never known it like this. still we will soon get a press release to say tourism is up, i know one lady who does a market all day and does bar at night,to feed her kids, because as usual the guy done a runner, and she has no money for support, i rang her to say stay at home , as there was no customers in this big bar,

  • Like 1

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