Thailand tries to restore faded tourism industry

Thailand’s tourism industry is going to great lengths to drum up business, since political upheaval, the global recession – and now H1N1 flu fears – have all driven down visitor numbers.
The Tourism Authority of Thailand (TAT) has unveiled a multi-pronged strategic marketing campaign for 2009-10 targeting to restore the prestige of tourism in the country since its image as an easygoing tropical getaway was marred by political upheaval.
The troubles started last November when anti-government protesters shut down Bangkok’s two airports for a week, stranding thousands. Then in April, a rival group of demonstrators broke into a summit of Asian leaders in the seaside resort of Pattaya and later clashed with police in the streets of Bangkok, leaving two dead.
All quiet now
The turmoil has gone and most of the country is quiet – apart from flares of violence from the Muslim insurgency in the far south of the Buddhist-dominated country. The recent spate of flu fatalities has added to the gloom.
Business is normally slower from June through October because of the rainy season, but this year has been particularly sluggish. Luxury hotels seem to be hit hardest, with many in Bangkok reporting occupancy of only 40 per cent. Hotel occupancy around the country has dropped from 66 per cent last year to just 44 per cent this season. Foreign visitor arrivals have fallen 16 per cent.
The new tourism marketing strategies which were revealed earlier last week range from stepped-up online marketing efforts to short-stay packages targeted at neighbouring and nearby countries and an intensive pursuit of new markets.
TAT’s deputy director for international marketing, Santichai Euachongprasit, has also invited the private sector to help TAT improve its marketing efforts by submitting ideas and initiatives to capitalise on prevailing opportunities and trends in the wake of one of the most difficult market conditions the country has ever faced.
Specific forecasts are being avoided due to the fluidity of the domestic and international situation, but TAT is projecting a better global and local environment in 2010.
"Three key factors are impacting on visitor arrivals to Thailand. They are the global economic downturn, the country’s political situation, and the H1N1 flu. People have become more cautious about spending on leisure and business travel," said Euachongprasit.
TAT would maintain its "Amazing Thailand, Amazing Value" theme and would combat negative fallout from media coverage of recent political developments by stepping up the number and frequency of promotional trips for both media and travel agents. These would be designed to instill confidence among opinion-shapers and those who influence travel decisions that Thailand remains a safe and secure destination.
A major effort would also be made to boost domestic tourism through increased support for local travel shows and trade events. Thai Airways is reportedly trying to lure passengers from outside Asia with offers of free domestic flights, and hotels on the resort island of Phuket are offering a fourth night free.
The Peninsula Hotel in Bangkok is offering a special package that includes a 3,500-baht ($100) bar and restaurant credit and a free second night at any Peninsula hotel around the world.
Mountain lodges up north are offering free golf and spa services, and hotels nationwide are offering discounts to Thai residents.
The government is extending a holiday next week to get more Thais on the road and has cut airport fees and offered low-interest loans to small businesses catering to tourists. Bangkok’s glitziest shopping malls are also slashing prices on many goods by 20-70 per cent.
For foreign tourists not scared off by news reports about the political situation or the H1N1 flu, now might be the best time to come, with both prices and crowds reduced.
"Most of the protests have taken place around the Government House, which is far away from the most of the tourist areas of Bangkok, so the political unrest is really not anything for most tourists to worry about," said Matthew Watters, a US citizen now living in Ha Noi but who lived in Thailand during 2001-02.
Avoid the south
"Bangkok is a very large city, very spread out, and even most of the people already there probably only watched the protests on televsion. It just isn’t something that’s going to affect most tourists," Watters said.
He said the only part of Thailand he would currently think twice about visiting was the far south of the country, due to the more random terrorist violence there associated with the unrest among the Muslim population.
"I’ve been to Thailand twice, and I would come back again despite any local protests, as I still think it’s one of the best value-for-money tourist destinations in the region, said Michael Libucha an Australian expat living in Ha Noi.
He said budget travellers can still find many cheap hotels, the tourism infrastructure is relatively good and Bangkok is a city that never sleeps - it’s a city that’s a lot more exciting than other capitals in the region."
Meanwhile, many fear that recovery continues to be a long way off for Thailand’s tourism industry, which employs 2.5 million people and is a pillar of the Thai economy. TAT has targeted about 16 million international arrivals this year.