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Thu, February 16, 2006 : Last updated 17:27 pm (Thai local time)



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Home > Business > New curbs on alcohol may dry up visitor flow





TOURISM
New curbs on alcohol may dry up visitor flow

Plan to further tighten controls has hoteliers, travel agents up in arms

Teetotallers, prohibitionists and corrupt police may be pleased with the government’s attempts at controlling alcohol consumption – both those in place and about to be implemented – but they should also realise the ramifications the restrictions will have on the many people who depend on their income from the tourism and entertainment industries.

In the past few years the government has been actively curbing the sale of alcohol, starting from the reduction of service times at night entertainment venues from 2am to 1am. Retail outlets were then instructed to sell alcohol only during specified periods, not all day and all night. Then came the ban on television and print advertising for alcohol products. Now there is a plan to ban hotel pubs and restaurants from selling alcohol at certain times of the day.

“To encourage tourism you need good night-life activities. These days, after midnight, the lights are out. People are not coming here to pay Bt16,000 a night just to sleep,” said Kurt Wachtveitl, general manager of The Oriental Bangkok Hotel.

The Association of Thai Travel Agents (ATTA), which focuses on inbound tourists, has called on the Public Health Ministry to shelve its new draft law, which would further limit the sale of alcohol at hotel restaurants and pubs, places tourists love to visit before retiring to their rooms.

ATTA president Apichart Sankary said private operators of hotels, pubs and restaurants would not be happy with the idea.

“We agree with rules that aim to protect people’s health, but we oppose restrictions on liquor trading hours because they harm the industry and cause confusion and inconvenience to tourists who come here to enjoy themselves,” said Apichart.

The ministry has proposed a draft law that would impose specific drinking hours for restaurants in hotels as well as air-conditioned pub and bars. The draft act forbids the sale of alcohol to anyone aged under 21 and limits sales in hotels to two periods – 11am to 2pm and 5pm to 10pm on Sundays to Thursdays.

The only concession to late night drinkers is an extra hour on Fridays and Saturdays, when hotel pubs and entertainment spots would be allowed to sell alcohol from 11am to 2pm and 5pm to midnight.

Apichart is in favour of that concession. He said the government should take heed of comments from the private sector so as to give a better impression to tourists.

The Thai Hotels Association has also opposed the plan, saying that half of hotel revenue usually comes from the sale of food and beverages. “We strongly disagree with the measure,” said vice president Prakit Shinamourpong.

People in the travel industry are pressuring the government to seek more public opinion before enacting any measures that could hurt the tourism industry. Like many countries, Thailand relies largely on tourism revenue. According to the World Travel Tourism Council, the Kingdom’s travel and tourism activity in 2004 generated 12.2 per cent of gross domestic product and 8.9 per cent of total employment.

According to the Tourism Authority of Thailand, in 2004, foreign tourists contributed Bt384.4 billion in revenue on top of Bt317 billion by domestic travellers. The authority also expects the foreign contribution to outpace domestic revenue in 2005 and 2006.

Chutinant Bhirom Bhakdi, executive vice president and director of Boonrawd Brewery Co Ltd – manufacturer of Singha Beer – said that Thailand tried to promote tourism and attract visitors from all over the world, but restrictions on beer and other alcoholic beverages ran counter to that objective.

“It’s quite funny. What they want to do is the opposite of Singapore, which has relaxed and allowed all night entertainment venues such as pubs and bars to open throughout the night,” said Chutinant. He added that groups of Thai people were now having parties in Singapore to avoid the tough controls they face in Thailand.

“I’m not sure if this solves social problems at the right point,” said Chutinant, adding that any limits the government imposes would only change the way people drink.

“When authorities prohibit people from enjoying themselves in pubs and bars, it just forces them to go somewhere else to drink. Soon, apartment buildings will be full of noisy parties,” said Chutinant, adding that the authorities should put a priority on the practical aspects and study the effectiveness of existing restrictions before launching tougher ones.

On the commercial ban, Public Health Minister Pinij Charusombat said last week that he would seek discussions with private operators before enacting the law. This is bringing hope to operators in other sectors, particularly tourism, that more measures might not be imposed at all.

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