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Thu, June 22, 2006 : Last updated 21:02 pm (Thai local time)



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Home > Business > TAT pushes for quick decision on extra funds





TAT pushes for quick decision on extra funds

The Tourism Authority of Thailand has urged the government to rush consideration of its proposed second-half budget of Bt2.4 billion for fear that the country might lose its key tourism markets in spite of the joyous celebration mood.

Thailand is now in a period of rejoicing for His Majesty the King's 60th anniversary on the throne.

TAT's second-half budget request consists of the previously proposed Bt1.5 billion and a proposed additional Bt900 million.

A Tourism Ministry source said that in fact, the TAT has asked for Bt3.89 billion in total to promote tourism. In the first half, it had already spent Bt2.19 billion or 56.32 per cent of its overall proposed budget, which was a higher percentage than the spending target of 46 per cent set by the ministry.

Only Bt1.7 billion remains for the TAT in the second half, the source said.

The Tourism and Sports Ministry's Permanent Secretary's Office has used up Bt117 million or 32 per cent of its budget of Bt323 million, while the Tourism Development Office has taken Bt266 million or 46.2 per cent of Bt577 million. A budget of Bt375 million for the Tourism Promotion Foundation has not yet been tapped.

"Of these three bodies, only the TAT spent over budget," the source said.

Caretaker Tourism and Sports Minister Pracha Maleenont is trying to push off the TAT budget, while caretaker Deputy Prime Minister Suwat Liptapanlop wants to scrutinise how the extra Bt900 million would be used and for which projects. As a result, TAT's second-half budget request failed reach the Cabinet meeting on Tuesday.

According to the source, out of the Bt1.5-billion existing proposed budget, about Bt850 million was intended for marketing activities and Bt650 million to pay back international tour agencies.

The extra Bt900 million would be spent on comprehensive marketing for the tourism industry in the rest of the year.

To offset the trade deficit, which has pushed the current account into the red, the government has ordered the TAT to increase international arrivals by 30 per cent over the original target for this year of 13 million. But the bid to attract 14.5 million foreign tourists into dropping money in the economy requires more funding.

With the budget request stuck in limbo, the country will miss the arrivals target, a TAT source said.

TAT governor Juthamas Siriwan warned that the country stood to lose Bt50 billion in revenue as a result.

"The Kingdom should take more advantage of the recent celebrations of His Majesty's 60 years on the throne by working on more promotions in order to attract more visitors to the country," she said.

TAT's deputy governor for overseas markets, Pornsiri Manoharn, said the additional budget would be destined for seven major markets in Asia, Australia and the Middle East.

International tourists are coming back, which is a positive sign for tourism recovery, she said.

Bangkok International Airport during the first quarter saw international passenger traffic jump by 30 per cent. Japan, China, South Korea and the United Kingdom were the major sources.

"If we don't keep our tourists, then they will shift to other destinations such as Vietnam, Singapore and Hong Kong," Pornsiri said.

Each of the TAT's overseas offices now has Bt20 millionj-Bt30 million left for marketing activities, but they need more funds after adding more work.

Wichit Na Ranong, president of the Tourism Council of Thailand, has called on the government to approve the extra budget for tourism activities in preparation for the coming high season.

"After the biggest celebration, the county now has a great opportunity for tourism, but no budget," he said.

Taksin Pilawas, president of the Thai Travel Association, said the TAT had better inject money only in high potential markets such as Japan and China instead of casting all over for travellers.








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