Staporn Sirisinha, the senior executive vice president for the leisure marketing department of Krungthai Card, issuer of KTC credit cards, yesterday said that the overall economic trend this year would be slow compared to last year.

He said that average customer spending on KTC cards had decreased by 10 per cent in January this year. Monthly spending per head fell from an average of Bt4,500-Bt4,700 to Bt4,100-Bt4,200.

"This is a sign showing the negative effect of the Bangkok bombings on consumer confidence, as well as the economic slowdown," said Satporn.

He added that the company would inject more funds for marketing activities and promotions in order to encourage spending.

KTC plans to join the International Travel Fair 2007 from tomorrow to Sunday at the Queen Sirikit National Convention Centre. The event is hosted by the Thai Travel Agents Association and the Domestic Travel Association.

The company will offer a special promotion at the fair. Tourists purchasing more than Bt5,000 worth of tourism products and services will have a chance to win a Toyota Yaris at an auction, with bidding starting at Bt99.

Domestic Travel Association president Chareon Wangananont said the show was expected to generate revenue of Bt300 million.

He said that this year, the low season would come earlier than in 2006, because of many threatening factors, including the economic downturn, political unrest and negative news, such as the killing of two Russian tourists in Pattaya last Saturday.

"Chiang Mai is already in its low season, which is earlier than normal," said Charoen.

However, he said the number of international arrivals would increase by 10 per cent this year, as projected.

Thai Travel Agents Association president Anake Srishevachart said this year's travel show would hopefully persuade people to book holidays in Thailand and overseas.

Andrew J Wood, general manager of Chaophya Park Hotel and Resorts, said it had been a difficult few months, with most hotels in Bangkok reporting downturns in business and some with a 14-per-cent drop in revenues from the previous year.

There are many factors at play, but price does not appear to be a major one, he said.

At the top of the list are security concerns, particularly in the capital.

The New Year's Eve bombings, the continued unrest in the South, the recent grenade attack close to the Rama Gardens Hotel and a spate of travel advisories from foreign governments are all hurting tourism.

The forecast for March in the capital is more of the same, with hotel occupancy rates at little more than 70 per cent when normally they would hover above 80 per cent.

Big losers are the corporate and MICE (meetings, incentives, conferences and exhibitions) sectors.

Some companies have issued bans on all but essential travel to Thailand because of uncertainty resulting from security problems.

Suchat Sritama

The Nation