Parties in conflict must not hold country hostage

Barring political turmoil, Thailand's tourist industry is likely to grow 8 to 10 per cent this year. Some 15 million foreign tourists are expected to visit Thailand in 2010. The beneficiary of a recovery in tourism is the hotel sector, particularly two-star and three-star hotels. But tourists are most concerned about their safety. This is the result of a survey by Siam Commercial Bank's Economic Intelligence Centre.

This finding is important because it shows that we all need to make sure that Thailand can overcome the current climate of fear and the lack of safety. All parties in the conflict must know that they can't hold the whole country hostage. The average person and business needs to earn a living. Already many countries have issued a travel warning for Thailand.

If the violence spins out of control, it will hurt confidence among tourists and business operators. It takes time for the tourism industry to recover from violent events. For instance, the spread of Sars in the past led to a drop in tourist arrivals, and the industry took three to four months before it staged a recovery. In the aftermath of the tsunami, the industry went through a shock. It took almost 10 months before it started to recover.

Overall, the tourist sector is quite competitive compared to those in neighbouring countries. Tourists are willing to pay twice the amount of money that they otherwise would pay if they were to visit neighbouring countries. With the same quality of hotel rooms and services, the Thai tourist sector is unbeatable.

There are more than 100 tourist sites in Thailand quoted on popular websites and in top magazines. Thailand's beaches are still the best in the region. Altogether, the major tourist sites of China, South Korea and Japan reach a combined 200 sites. This reflects the high popularity of Thailand as a prime destination for tourists.

The major challenge facing the Thai tourist industry is how to spread out the number of tourists through the year. At present, the high season still dominates in income. In the fourth quarter of 2009, during the high season, the number of foreign tourists reached 4.2 million. This number is projected to reach 7.8 million by the year 2020, according to SCB's study.

However, many tourists stay in budget hotels, rated two or three stars. For instance, it has been found that about 20 per cent of Japanese tourists prefer to stay in two-star hotels, while about 40 per cent of Malaysian and Indian tourists prefer three-star hotels. There is simply less competition in the lower-rated hotels. This concentration of tourist arrivals during the high season will create an overcrowded situation, while the remaining months of the year are not good for business at all.

The challenge for the tourist industry - if it wants to grow by 5 per cent a year - is to create new products or concepts to attract foreign arrivals. Many provinces can add new features, such as health tourism or golf training. A tourist package that concentrates on care for the environment will attract interest from foreign tourists who are increasingly becoming concerned about global warming. In addition, the government must make sure that it builds adequate infrastructure to support the industry.