Thailand Tourism Industry To Recover In 6 Months

[Otis]

Tourism recovery in 6 months: Bandid

By Watcharapong Thongrung

The Nation

The central bank believes the tourism industry will recover in six months, based on past experience, and expects the economy to show improvement during the rest of the year, with five major indicators considered.

BANGKOK: -- Bank of Thailand (BOT) Deputy Governor Bandid Nijathaworn yesterday listed the five factors as the global economic momentum, tourism recovery, drought conditions, trends in the policy interest rate and access to funding by small and mediumsized enterprises (SMEs).

He said businesses, especially SMEs, must monitor these indicators closely, so they can adjust quickly to any situation.

Bandid made his remarks at a seminar entitled "Thai SMEs in the Era of a Free Asian Economy", hosted by Bangkok Bank.

He said the first factor was whether the global economy would enjoy a healthy recovery. The US economy has yet to pick up fully, while some European countries are experiencing publicdebt problems.

However, many Asian countries are seeing strong economic growth, so if the US and European economies do not pick up more in the second half, Thai exports will have to focus more on Asian markets.

The second factor is the tourism industry. It recovered in six months after the 2003 Sars epidemic, five months after the 2004 tsunami and seven months after the 200809 political turmoil. It is expected to take six months to recover from the latest round of political turmoil, but that will also depend on the global economy and government measures to entice tourists back to Thailand.

The third factor is the draught, and it remains to be seen how that will play out.

The fourth one is the policy interest rate, which has been kept at a low 1.25 per cent in a bid to boost economic recovery. Many times, the BOT has indicated that if the domestic economy recovers and the global economic crisis abates, it may consider increasing the rate at an appropriate time.

The fifth factor that could affect secondhalf economic growth is SMEs' loan accessibility. SMEs have yet to enjoy full access to loans, which means they still suffer a high cost burden. Bandid said many commercial banks had stepped in to help SMEs gain easier access to loans.

He believes the country's economy will grow 45 per cent this year.

Bandid said while Thailand's economy showed positive growth in the first quarter, the economy was affected in the second quarter by the political turmoil.

Tourism suffered severely from the chaos, but other key sectors were also hurt, such as agriculture, exports and real estate.

-- The Nation 2010-06-19

"He believes the country's economy will grow 45%." Is there no editor at The Nation. Surely, this is a typographical error. oc

[warfie]

maybe it was meant to be "4 to 5%" but got misunderstood somewhere along the way ('four to five' sounds a little like 'forty five')

Just guessing...

Still optimistic...

[kuifje]

News regarding of tourist coming back to Thailand, posted in another forum, but should also be mentioned here.

Central bank sees signs of tourism rebound

By THE NATION

The Bank of Thailand is encouraged by the better-than-expected tourist arrivals in June, but concerned how long the momentum will continue.

BANGKOK: -- Deputy governor Bandid Nijathaworn referred to the Association of Thai Travel Agents' figures that during June 11-20, foreign arrivals reached 2,500 daily, compared to 1,500 during May 21-31.

"The figures are in line with bookings. Though the figures are preliminary, it reflects the better-than-expected recovery. But we need to see how long the recovery pace will continue," he said.

He noted that the number of tourists from Europe had dropped due to the European debt crisis, but Asian tourists made up for the decrease. At present, of total arrivals, Asians account for 47 per cent while Europeans for 34 per cent.

Expressing confidence in the recovery, Surreal Holidays, an independently owned and operated company headquartered in the UK, has launched its office in Bangkok to provide additional services and to give confidence to their British clientele arriving in Thailand.

"We are pleased to open our latest representative office in Bangkok. Surreal Holidays is an independently Thai-owned and operated company headquartered in the United Kingdom specialising in all inclusive luxury guided tours to Thailand. Our unique and friendly operations offer something special to niche markets. We are confident our eight classic guided luxury tours and our tailor-made dream holidays will create a real impact on tours from the UK to Thailand," said Runci Weeden, managing director.

To show their confidence in Thailand's tourism recovery, the company has arranged a private familiarisation trip for five British agents and journalists and plans more such trips to woo back British tourists.

While visiting with Tourism Authority of Thailand officials yesterday, questions focused on the political situation, the emergency decree and safety measures for tourists.

Weeden noted that few tourists learn about the government's insurance measures for foreigners. But as the protest ended, some British tourists have resumed their booking.

She said she was confident that British tourists, drawn by Surreal Tourists, should come to Thailand and spend around 2 million pounds here.

"I have visited 38 countries around the world over 30 years and I am passionate about travelling. When I travel, I use all my senses to enhance my experiences, which often become "surreal" experiences; hence the naming of our company reflects this feeling.

"Living in the UK for many years I realise that British people love to visit Thailand. Approximately 1,000,000 British visitors visit Thailand each year, and there is more room for development of this market. Thailand is the most popular tourist destination in the region in terms of tourist arrivals, at least 20 per cent ahead of its nearest competitor, and tourists stay longer. Thailand still projects a positive and exotic image that is pleasing to British travellers despite the recent political unrest in the country," Weeden said.

According to David Kevan, business development director of Surreal Holidays, the company has worked closely with TAT's United Kingdom office for various campaigns to promote Thailand. Surreal is promoting the luxury travel market, including Krabi, Samui, Chiang Mai and Samet Island.

-- The Nation 2010-06-26

[BgTx]

Some bits of this article ( http://www.idrc.ca/uploads/user-S/11738541401Anan_FReport.pdf ) for those who want more info. on how large the tourism sector is (that 6% figure is misleading because it does not include all of the sectors and employment related to or dependent in some way on tourism ):

Thai economic conditionsconsiderably depend on the performance of tourism

sectors. More than half of theThai industries are directly and indirectly interdependent

with tourism sectors. Given theselarge economic dependences upon tourism, any internal

or external changes that affectThai tourism could have substantial economy-wide

impacts on resource allocation,sectoral outputs, income distribution, macroeconomic

variables and the environment.

The importance of tourism to theThai economy can be seen from national

accounts data and Thailand’sTourism Satellite Accounts (TSA). On average during

1998-2005, Thai tourism directlyand indirectly accounted for 13% of GDP (655 billion

baht), 10% of employment (3million jobs), 13% of exports (417 billion baht), 12% of

investment (117 billion baht) and3% of government budget (13 billion baht).

The importance of tourism to theThai economy from the point of view of the

Thai government can be seen inbudget allocations and the corresponding predictions of

tourism receipts. By spending2,500 million baht to stimulate tourism industries in 2005,

the Thai government expects togain 13.38 million inbound tourists and 450,000 million

baht tourism receipts.4

Indeed, tourism has been heavilypromoted not only by the Thai government but

also by the governments of manycountries in Southeast Asia as a key component of

development strategies forseveral decades.5Thisis because it is believed that tourism

promotion will serve as asubstantial source of employment, foreign exchange earnings

and export receipts, therebycontribute to economic growth and improved income

distribution.

By nature, however, tourismdirectly and indirectly interacts with numerous

sectors and institutions.According to social accounting matrix in 2001 (TDRI, 2004),

more than half of the sectors areinterdependent with tourism. Given these intersectoral

links, any internal or externalchanges that affect Thai tourism could have considerable

economy-wide impacts on resourceallocation, industry outputs, income distribution, key

macroeconomic variables and the environment.

[kuifje]

Extra article to support this forum :

Lets see how the recovery will be after this timeframe of 6 months.

Please read the article and note that about half of the revenue will be from the local market (90 million trips by Thai people themselves).

TAT expects 2011 tourism income to top Bt1 trillion

By SUCHAT SRITAMA THE NATION, Pattaya

BANGKOK: -- The Tourism Authority of Thailand has projected that revenue from the international and domestic markets will reach Bt1 trillion in 2011, up from the Bt943 billion forecast for this year.

TAT governor Suraphon Svatasreni yesterday expressed hope that international visitors would total 15 million in 2011, up from the 14.4 million targeted for this year.

Revenue from overseas markets is expected to be Bt573 billion, against this year's projection of Bt540 billion.

The agency meanwhile forecasts domestic travel will see 91 million trips and generate Bt432 billion in 2011. This year, the local market is projected at 90 million trips and revenue of more than Bt500 billion

TAT officials from the overseas and domestic markets are meeting in Pattaya this week to discuss next year's business and marketing plans.

Suraphon said the government had already granted more than Bt5 billion for the agency to conduct marketing events and activities. The TAT will, however, ask for an additional budget to help operators who were hit by the Bangkok rioting in April and May.

"For the tourism sector, political instability is the only threat factor that is still troubling the industry. If the problem can be resolved, we should reach next year's targets," he said.

He added that the TAT would focus more on niche target groups, such as female travellers, as well as wellness and spa and leisure travellers.

To achieve the targets, the TAT will also seek to increase the level of the country's tourism competitiveness, which is another matter being discussed in Pattaya.

Chumpol Silapa-archa, the minister of tourism and sports, asked TAT officials from overseas to engage in hard sales campaigns and create new marketing strategies to lure tourists back to Thailand.

"We need to make this year's low season shorter by filling up with more tourists during the period,"he said.

Chumpol said he hoped to see the sector's full recovery within the third quarter of the year, and added that the number of tourists from key Asian markets like Japan, China and South Korea was expected to exceed 1 million this year.

Srisuda Wanapinyosak, director of the TAT's New York office, said it had recently conducted a confidence-rebuilding campaign called the "Mini Road Show" in New York, Boston and Washington DC with a view to luring back American visitors.

It also plans to hold two more familiarisation trips to Thailand |soon.

Wiyada Srirangkul, director of the TAT office in Rome, said she is working with Thai Airways International to offer special round-trip |air fares at US$740 (Bt24,000) between Bangkok and Southern |Europe.

The TAT will also host two more familiarisation trips from Italy and Turkey to Thailand next month, with the aim of reclaiming European tourists back to Thailand.

Wiboon Nimitrwanich, director of the TAT office in Kuala Lumpur, said his office was working with four travel companies, offering Thailand travel packages for three months.

More than 4,000 Malaysians are expected to take advantage of the campaign.

-- The Nation 2010-06-29

[kuifje]

Another relevant article to support this subject :

TAT launching campaigns to raise number of Arabian tourists to Thailand BANGKOK, 29 June 2010 (NNT) – The Tourism Authority of Thailand (TAT), Dubai and Middle East Office predicts the rise by 15% for Arabian tourists to Thailand in 2011, while the TAT marketing plan is to promote new destinations in Thailand in those markets.

Director of the TAT Dubai and Middle East Office, Pramot Sapyen cited that the TAT had planned to stimulate the market in 2011 by arranging a project called “Thailand Summer Special Offer”, participated by five touring companies, with the support of Siam Niramit, a producer of world-class performance of Thailand's arts and cultural heritage. Tourists from Middle East will get free 1,000 tickets to the shows and 4,000 of 20% discount coupons. This project has been launched in Abu Dhabi of UAE as the first place.

Another project is the medical tourism road shows which will be launched in UAE, Qatar, Kuwait, Oman and Bahrain. Several leading hospitals in Thailand will join in the road shows as well including Bumrungrad International Hospital, Bangkok Hospital and Piyavate Hospital. These two projects cost around 15 million THB.

Mr Pramot added that most destinations of Arabian tourists were Bangkok, Pattaya, and Phuket. The TAT aims to promote other places such as Hua Hin, Cha-am and Chiang Mai among them. He said that in 2011 the number of Arabians visiting Thailand would rise by 15%, as Middle East market was likely to recover quicker than others.

[robint]

pigs might fly

free beer tomorrow

[kuifje]

Today, Jul 06/2010 there are again some news article's which indicates a recovery of Thailand Tourism Industry.

Also again the usual reply of ridicule about the number projected.

Let us see what really happens this year and keep this topic alive with ones in while adjustments, real experiences, new's articles, etc.

In my opinion (with rosy glasses), this industry will recover, because basically Thailand has all the ingredients to recover.

Their will be some swifting, maybe less tourist from traditional markets, towards more from within Asian countries and probably more and more from also South America and Africa.

The economic crisis will also play part in this all, but also this economic crisis will rebound.

2 articles today also posted in new forums at Thai Visa

Tourism Council eying to raise target of arrivals after political tension eases

BANGKOK (NNT)-- The Tourism Council of Thailand (TCT) is eyeing to adjust the number of tourists expected to visit Thaiand this year up by 5-10% after the political situation has eased while next year’s target is set at 15.5 million visitors with an estimated revenue of 600 billion THB.

TCT President Kongkrit Hiranyakit said the overall tourism situation this year had recovered promisingly as evident in the number of foreign tourists visiting Thailand in June. He anticipated the number to rise by another 5-10% from a total of 14.1 million visitors last year.

The TCT will hold a meeting on 15 July to confer about the situation and revise the visitors’ figure which was earlier set at 13 million as a result of the prolonged street protest in the capital. However, the domestic situation has now returned to normal and other countries have already lifted travel warnings against Thailand.

Tourism Authority of Thailand Governor Suraphon Svetasreni said the number of foreign tourists is targeted at 15.5 million in 2011, or 9% higher than this year, with an estimated revenue of 600 billion THB. Meanwhile, domestic tourism will also expand by 3% next year with at least 91 million trips to be made by Thai tourists, generating around 432 billion THB to the industry.

The TAT will still emphasize on the campaign “Amazing Thailand Always Amazes You” next year while additional marketing plans will be made on spa and green tourism businesses.

Emergency Decree not affecting tourism growth

BANGKOK (NNT) -- The domestic tourism will not receive negative effects if the government decides to extend the state of emergency in Bangkok and 23 other provinces.

Tourism and Sports Minister Chumpol Silapa-archa stated that the Emergency Decree enforcement was aimed at safeguarding people in the kingdom. Moreover, Thai people had already been used to the special law, he noted.

Mr Chumpol also voiced his confidence that many foreign countries now had better understanding in the current situation of Thailand since they had already cancelled travel warnings against the kingdom.

The minister hence believed that the domestic tourism for 2010 would grow continuously although the cabinet on Tuesday would decide to extend the state of emergency on one-third of the country’s area.

Lately, the Center for the Resolution of Emergency Situation (CRES) has unanimously resolved to maintain the activation of the Emergency Decree due to unstable situation.