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Northern EYE by Bob Kimmins: Oversupply and missing millions

When Thailand's Tourism and Sports minister laid down his plans for holiday promotions last year, he predicted an influx of 16 million foreign visitors in the northern provinces alone.

Published on January 26, 2008



That's very ambitious, considering that the national target was only 14.8 million.

It was thought at the time that the natural surroundings, Lanna culture and Royal Flora Ratchaphruek would be enough to draw that many people, but after Songkran bombed, some of Chiang Mai's larger hotels failed to fill more than 20 rooms per night - the lowest occupancy ever.

Nevertheless, in heeding over-optimistic forecasts, development in tourism has blindly soldiered on, with seven new luxury hotels planned to join the northern capital's present oversupply of holiday accommodation.

The situation elsewhere in the country brings little joy, as occupancy rates in most areas were lower last year than the previous one. In Bangkok during August, figures were down 8 per cent on the corresponding month of the year before in small hotels and 6 per cent down in large ones. And here again, 10 new four- and five-star hotels are part of the city's future plans.

To make matters worse, more than 40 hotels and resorts were opened or reopened nationwide during 2006, with around 50 new establishments scheduled for 2007.

For anyone doubting where the current trend is leading the Thai hotel industry, take a look at the results from saturation in other attractions in Chiang Mai. The Pavilion shopping mall near the night bazaar stands mostly derelict, and the Chiang Inn and Suriwong Plazas have stood empty for years.

Not to mention the fairly high number of unfinished projects and increasing closures of shops, restaurants and bars, especially in the main tourist areas.

What's gone wrong?

Basically, Thailand has never quite understood why foreigners poured into the country during the 1980s. Primarily, it was curiosity in a totally different culture that contained mystery and more than a glimpse of the past. At that time, there was little in the way of luxury accommodation, shopping facilities and mass transportation. Consequently, Thailand drew the adventurer and backpacker.

Rather than maintain that mystical air of the unknown, and introduce up-market tourism gradually by subtle means, the authorities decided to send their dependable tourists packing by calling them low-class and unwanted. Then plans were put forward to process Thailand into some version of Hong Kong.

It is beyond me why Thailand wants to relinquish its uniqueness and directly compete with established holiday destinations elsewhere.

But this shifting paradigm was merely the start to things going haywire. Tourism Authority of Thailand governor Phornsiri Manoharn was recently reported as saying that Thailand generally has a very positive image in the world.

She may have overlooked that the number of foreigners murdered in Thailand, not just by robbers, but also by police officers and monks, get reported as well. And the world media have brought to the headlines the bombs and killings in the South, the country's unstable politics and massive corruption.

If that's not enough for a negative picture, then throw in the strengthening baht, natural disasters, aeroplane crashes and the price of petrol, which are also affecting domestic tourism.

What of the future?

Cries have gone up from tourist organisations and private-sector representatives for Thailand to move into the five-star holiday bracket. But the country is not five-star. Its cities are crumbling compared to Hong Kong and Singapore, its beaches are filthy compared to the Maldives or the French Riviera.

Nevertheless, Wichit na Ranong, president of the Tourism Council of Thailand, stated that affluent winter-sports enthusiasts will turn to Thailand because snow has been scarce in cold counties. I would like to know how that notion was surveyed.

Trying to go five-star is not the answer to Thailand's tourism woes, and the rotten response to the Thai Privilege Card is confirmation.

After the Amazing and Unseen Thailand campaigns, Phornsiri unveiled the TAT's theme for the fourth quarter of 2007 through 2008 - "Seven Amazing Wonders" of Thailand. Thankfully, there they do not include theme parks or cable cars.

Friendly and hospitable Thai people come top of the list, followed by a land of heritage and history. Fun, sun, surf and serenity are there for beachcombers, and beautiful scenery for nature lovers.

Inexpensive and holistic medical care is covered by health and wellness; nightclubs, shops and boutique hotels are modern trends; and finally festivals, both Thai and foreign.

I go along with most of that, but I would like to add a few of my own wonders, which are probably wishful thinking. What about an unpolluted, quiet, safe and single-priced Thailand?

A revision of alcohol laws so holidaymakers can drink in the afternoon or the night before elections. Legalised gambling that would rake in foreign currency, as Macau's casinos attract 20 million tourists per annum.

Or should we turn the clock back 30 years and call the next campaign Original Thailand?


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