exporters beginning to feel the pinch

Thailand's exporters are beginning to see the first signs of tough times ahead.

One of the country's leading trade exhibitions, the Bangkok International Gift Fair and Bangkok International Houseware Fair 2008 (BIG&BIH), kicked off yesterday at Impact Muang Thong Thani but the flow of visitors was sluggish.

Although there are some fine-quality collections of new products of creative design on display, the fair appears to be attracting fewer buyers, particularly from abroad. Some foreign visitors have expressed concern about political tensions in Bangkok and slowing economic growth around the world.

The Department of Export Promotion, which organised the fair, expects about 17,000 visitors before the doors close next Sunday, including 4,000 foreign buyers. So far, only 2,500 foreign visitors have registered to attend.

The Thailand Health and Beauty Show 2008, the final trade fair this year, will be held from November 5-9 at Impact Muang Thong Thani.

The Commerce Ministry has also revised its target for next year's export growth downwards, from 15-per-cent growth worth US$207 billion (Bt7 trillion) to only 10-per-cent growth worth $198 billion, due to concerns about the global economic recession.

Commerce permanent secretary Siripol Yodmuangcharoen said that most foreign buyers had insisted on attending the BIG&BIH fair, although some had asked about safety issues.

"The ministry has explained to foreign buyers that the situation is under control and will not harm trade or business here. The ministry is confident the fair will attract not less than Bt400 million in sales during the six-day showcase," Siripol said.

However, one gift and premium exhibitor said this year's event had faded compared with last year's and that it was due mainly to concerns about the political disorder.

"My company's customers have confirmed they will attend the fair, because they visit every year to update themselves on new products. But I heard some foreign buyers had changed their plans and would attend a similar one in the Philippines instead, despite it being smaller than Thailand's fair," the exhibitor said.

Thai Gifts, Premiums and Decorative Association president Jirabool Vittayasing said this year's fair had attracted thousands of buyers, the same as last year, thanks to some buyers turning to Thailand rather than going to a similar trade fair in China.

"The political uncertainty may slightly affect foreign buyers' confidence. However, most regular foreign visitors have confirmed they will visit this year's fair, because they are concerned about product safety in China," he said.

The market for Thai-lifestyle products, including toys, home-decorative items, housewares, gifts and stationery, is expected to grow 10 per cent to Bt62 billion this year. In the first eight months, exports from the sector grew 11 per cent to Bt41 billion.

Gullayanee Jiamsinkul, managing director of gift and premium producer Liken Europe Union, said a much lower number of visitors was attending this year's fair. Normally, exhibitors are very busy, but so far this year the atmosphere has been different, because of the lack of visitors.

To cope with the subdued atmosphere, Gullayanee said her company was trying to launch new products of innovative design, to capture whatever interest it could.

Bernard Feraille, a product sourcer from the UK, said he had visited many trade fairs in Thailand over the past 20 years and that news of the political disorder had not affected his confidence.

"I feel quite positive about the situation and think that it should not affect Thailand's trade, because Thai products are well known for their good quality and good design," he said.