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Tue, April 11, 2006 : Last updated 19:34 pm (Thai local time)



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Home > Business > Confabs may still suffer from politics





Confabs may still suffer from politics

Although political turmoil has cooled significantly since early last week, travel service provider Diethelm Travel Asia Ltd still worries that the country's uncertain political future might continue to affect its business.

Most people think that the lengthy political demonstrations run by the People's Alliance for Democracy around Bangkok will end when former prime minister Thaksin Shinawatra actually steps down, said David Barrett, the company's executive manager. Diethelm - for one - eagerly informed its prospective customers in Singapore that peace was expected to return. However, the next day, protest leaders said demonstrations would continue until Thaksin resigned.

Barrett said the plan to continue the rallies had raised many questions regarding the stability of Thai politics because the country has been known as peaceful socially, economically, and politically. These are the three main criteria considered by international corporate customers when choosing a country for incentive programmes and corporate meetings.

In the present situation, the company found it difficult to promise improved conditions to prospective international customers inquiring about Thailand.

The political uncertainty has affected the business of hotels and Diethelm's sales have fallen 30 per cent because many prospective customers have cancelled plans to arrange incentive programmes and corporate meetings in Thailand. Most of them are from Singapore, Hong Kong, and China.

There have not been many cancellations by European corporate customers.

An Australian company, Hagemeyer, which is involved in the electrical, industrial and safety businesses, is one company that did not cancel its plans. It went ahead with a four-day incentive program at the Sheraton Grande Laguna Phuket hotel for 850 people, an even that ends today. Also, Diethelm is working on several similar programmes with corporate customers. Despite the political uncertainty, Barret said Diethelm's Thai business would grow 200 per cent this year.

Nitida Asawanipont

The Nation

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