Tourism operators look to better year

"Tourism suffered its most terrible year due to unexpected issues like the airport shutdown in late 2008 and political turmoil in mid-2009," Chanin Donavanik, CEO of Dusit International Group, said recently.

Rosy picture

The tourism industry has undergone turbulence, but hopes are bright for the year ahead.

International arrivals and

revenue

Year/No of foreign tourists

(million)/Spending /Bt bn

2007 /14/500

2008 /14.5/547

2009 (Target)/14/500

2010 (Target)/15.5/530

Domestic movement

Year /No of domestic trips

(million)/Spending (Bt bn)

2007 /82/377

2008 /84/400

2009 (Target)/87/407

2010 (Target)/90/430

Source: Office of Tourism

Development, Tourism

Authority of Thailand.

However, the industry should return to its expansion mode and grow by 15 per cent, if there are no more problems both here and overseas, he said.

Hotel and tour operators are still worried about the political strife, which has caused the industry to sink to its lowest level through the past year, he said.

Some major destination cities including Bangkok would also face a glut in hotel rooms due to over-ambitious development, he said.

Prakit Chinamourphong, president of the Thai Hotels Association (THA), predicted the industry would grow 15-20 per cent in 2010 as the global economy is getting better.

"The only problem we're concerned about is politics so we urge all parties to step down and discuss how to solve this issue," he said.

Government bodies want to help promote tourism abroad, but do not feel comfortable in doing so because of internal conflicts, he said.

"If there's no improvement, the tourism industry will be in trouble. Many operators will cut prices of packages and they will end up disappearing from the market," he said.

Medical tourism would be a key driver for the overall industry, he said. Tourists seeking healthcare services would reach 10 million in five years, as statistics show more than 1.2 million medical tourists already coming each year.

Each service recipient and accompanying members tend to spend at least Bt200,000 a trip.

The Tourism Authority of Thailand's concept of promoting health tourism was on the right track, he said.

The THA and the Association of Thai Travel Agents (ATTA), have jointly drawn up a similar promotion plan.

The cooperation between the private and public sectors would generate massive income for the country, he added.

The TAT is also seeking help from private and public organisations.

Surapol Sawetserani, TAT's deputy governor for public relations, said Thailand has excellent potential and marketing opportunities for the business, as most foreign visitors using wellness services are those with high purchasing power.

The TAT is in the process of gathering information relating to health service providers, accommodation, rehabilitation facilities and tourism programmes for companions, to be displayed on its website.

Roadshows will be scheduled to targeted countries, as part of the marketing strategy.

Surapol Sritrakul, head of the ATTA, said the number of international tourists should rise in 2010, but not by more than two-digit percentage growth from this year.

"Ground tour operators overseas have many options and other destinations to offer their customers, so Thailand should be aware of the tough competition. If things are like 2009, we're certain to miss the target," he said.

Phornsri Manoharn, chairwoman of the Pacific Asia Travel Association (Pata), said tourism in the region would grow by 2-4 per cent in the coming year. The region is expected to welcome 370 million-377 million visitors, thanks to the extension of the waiver on tourist visa fees until March 31.

Thailand should greet 14.1 million-14.3 million tourists, up from 13.6 million this year, she said.

China would become a huge emerging market with opportunities for every country to draw mainland tourists, Pata said.

"For Thailand, I think Malaysia is the strongest competitor for the China market," she said.

Prospects for 2010 look promising but it needs to be stressed there is no quick fix for the travel and tourism industry, Pata said.

All stakeholders must continue to work together to lead the industry out of the crisis.

While urging all bodies to draw inbound tourists, Maiyarat Pheerayakoses, president of the Association of Domestic Travel, said domestic tourism is the last resort for reviving tourism.

Even in the New Year peak season just passed, hotels were running only 65-70 per cent full. The association expects the sluggishness to continue into next quarter.

 "The tourism industry has already suffered from dual tensions - political and economic - so we call on all people to help tourism and stop fighting," she said.

The Tourism Council of Thailand (TCT), in a proposal sent to the government, urged authorities to boost domestic travel by promoting the meeting, incentive, convention and exhibition business.

The TCT is also encouraging airlines, especially Thai Airways International, to operate direct flights to the provinces.