Tour operators expect another tough year: inbound business could suffer due to the lack of new destinations compared to emerging neighbouring countries, while hitting outbound business is the fact that most Thais are expected to travel in-country in line with the sufficiency-economy philosophy.

Though Thailand features various tourist attractions and a good image in terms of safety and cheap destinations, repeat visitors are apparently becoming bored and exploring other choices in neighbouring countries.

According to the Association of Thai Travel Agents (ATTA), Thailand's new tourism competitors are China, Vietnam, Laos, Cambodia and India.

These countries are putting more strategies in force to earn more income by developing new destinations.

India introduced the Incredible India Campaign, while Laos launched its own Visit Year.

Vietnam is attracting tourists with world heritage sites and China is further opening up for tourism.

Meanwhile, traditional rivals - Singapore, Hong Kong, Malaysia, South Korea and New Zealand - have been developing more destination highlights.

Singapore, Hong Kong and Malaysia are used to competing with Thailand through shopping and entertainment but now they are focusing on the MICE (Meeting, Incentive, Convention, Exhibition) market. Hong Kong opened its Disneyland in 2004 and Singapore will soon launch two casino complexes.

Korea offers half-price for a skiing vacation compared to European countries while New Zealand uses similar attractions but focuses on the Free Individual Traveller or FIT.

ATTA president Apichart Sankary raised Thailand's future tourism strategies with the government to help operators compete with neighbouring states.

"Thailand has been used sun, sea, sand, temples and canals as magnets for decades. So we need to build more tourist attractions as is happening in other countries," said Apichart.

He added the country would be in for a tough year in terms of new attractions. However, tourists from many emerging countries are waiting to visit Thailand, particularly the former Soviet states, the Middle East and China.

Both the private sector's and government's policy is to focus on more quality visitors. Tourism and Sports Minister Suvit Yodmanee said recently that TAT plans to draw more high-end tourists rather than focusing on pure numbers as part of its 2007 strategy.

Moreover, he will pay more attention to environmental protection.

The country lost a huge amount of tourist income in 2003 due to the Sars outbreak, followed by the tsunami in late 2004, the return of bird flu and continued political unrest in the South.

The September 19 coup hurt tourism. It remains to be seen whether the Bangkok bombings on New Year's Eve will deter visitors.

In the absence of a strong negative factor, the private sector expects the total number of tourists could reach 14.8 million, a target set by the Tourism Authority of Thailand (TAT).

The emergence of low-cost airlines is also bringing in more budget travellers.

The country expects to receive revenues of Bt547 billion in 2007 - a 13.8-per-cent increase from 2006.

Charoen Wangananont, president of Association of Domestic Travel, said that 2007 should be good for domestic tourism.

Despite a stronger baht, which gives more value for travelling aboard, and an expected economic rebound, he said that most Thais would travel within the Kingdom rather than overseas.

One reason is to follow the sufficiency economy. Meanwhile, the higher cost of living is forcing Thais to reconsider spending time overseas.

Charoen said government bodies, especially TAT, and private operators will hold many activities, including the Royal Flora Expo in Chiang Mai, the World University League and the 80th birthday of His Majesty the King.

TAT estimated 82 million domestic trips will generate revenue of Bt377 billion in 2007.

According to the Pacific Asia Travel Association's projection from now to 2008, Phuket and Hat Yai will be slow in recovery but other regions such as Kanchanaburi will show significant growth.

Koh Samui's growth will depend on the expansion of hotel capacity while Bangkok will enjoy small growth by reason of a much larger base. 

The association believes tourist arrivals would grow through the next few years. But one major risk is an extension of the violence in the South.

Suchat Sritama

The Nation