Rescue strategy for exports and tourism

The government is struggling to shore up the country's export and tourism trade, with the new commerce and tourism ministers searching for strategies to cope with the present downtrend.

Last month's exports plummeted for the first time in six years, by 18.6 per cent, while tourists have yet to return after both of Bangkok's airports were shut down by protesters late last month.

Commerce Minister Pornthiva Nakasai said she would unveil her advisory team tomorrow, while Deputy Commerce Minister Alongkorn Pollabutr yesterday said more commercial counsellors would be dispatched by the government to help boost sales of Thai products and services abroad.

Initial marketing efforts will focus on Asean members.

"There is huge concern that exports could drop further severely next year and affect the country's revenue," he said, urging quick action.

Exports generate about 70 per cent of gross domestic product (GDP). Even though this year's export growth is expected to be 18 per cent, the ministry anticipates that figure will flatten to between zero and 5 per cent next year.

Commerce permanent secretary Siripol Yodmuangcharoen warned exports would likely continue to fall throughout the first half of next year, due to the global economic slowdown affecting all industries.

Last month, the value of shipments abroad plunged to US$11.87 billion (Bt410 billion), while that of inbound commerce increased 2 per cent to $13.07 billion, producing a trade deficit of $1.2 billion.

While the closure of Suvarnabhumi Airport slashed monthly air shipments by $1.3 billion, exporters last month also suffered from falling demand in all major markets and falling values of agricultural goods as commodity prices plummeted from peaks reached earlier in the year.

Still, the 11-month export growth rate was 19.7 per cent to $166.23 billion, encouraging officials to expect full-year growth of 18 per cent to $179 billion.

Against a 30.9-per-cent increase in imports in the first 11 months, the trade balance slipped into a deficit of $1.16 billion.

Tourism and Sports Minister Chumpol Silapa-archa said he would take quick steps to help the tourism industry recover in the remaining months of the high season.

The industry, which generates 6-8 per cent of GDP, was left shaken by the shutdown of Bangkok airports in late November, the first month of the peak tourism season, which usually runs until March of the following year.

Chumpol said he would invite former tourism minister Weerasak Kowsurat to advise him in implementing measures to restore confidence in the industry.

For example, the Tourism Authority of Thailand and other agencies should form special sales and marketing teams to focus on specific tourist markets, in order to help promote the return of foreign visitors, he said.

Many tourism and related businesses have already sought tax relief and other assistance from the government, because they were hit hard by the airport suspensions, leaving many hotels nearly empty.

Veteran hotelier Kamala

Sukosol said the prime minister had to convince the international media that Thailand was undergoing national reconciliation and stabilising its political and economic systems.

Without such a message getting across, it will be difficult to lure back foreign travellers, she said.