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Slump in foreign visitors 15% fall in those booking via agents

The Association of Thai Travel Agents (ATTA) has warned of a sharp drop in the number of foreign tourist arrivals at Bangkok's Suvarnabhumi Airport.

Published on September 12, 2007



It says the number of foreign tourists who arrived at Suvarnabhumi between January and August, after booking their travel through travel agencies, totalled 1.57 million, down by a whopping 15.3 per cent from the corresponding period last year.

The association's figures show that the arrivals were down by 350,000 from 1.92 million in the first eight months of 2006.

The figures do not, however, include the large number of tourists who travel without using agencies, and who book directly with airlines. And although Suvarnabhumi is the main tourist gateway to Thailand, the figures do not include arrivals directly to other international airports like Phuket, Koh Samui, Chiang Mai and Krabi.

The ATTA says the global economic slowdown, Thailand's political turmoil, rumours that Bangkok was targeted for more bombings and the sharp fluctuations in major currencies had been the main negative factors affecting the tourist industry.

Asian tourists, making up the largest group of the Kingdom's inbound visitors, are halting their trips to Thailand to save their money for next year's Beijing Olympic Games.

Among Thailand's main markets for inbound tourists, 244,187 tourists came from China in the first eight months, down by 24.24 per cent; 202,692 arrived from South Korea, down by 15.3 per cent; and 170,289 Japanese tourists arrived, down by 24.4 per cent.

Although there were more visitors from European countries, their numbers have not been enough to offset the overall decline

France has been the fastest-growing market, showing an increase of 31.14 per cent over last year, followed by Russia with a growth rate of 29.29 per cent and the United Kingdom with 26.81 per cent.

The biggest fall has been in visitors from Vietnam, with a decline of 66.45 per cent, from 52,822 last year to just 17,724.

Arrivals from most other Asian countries also showed a decline, including Singapore (down by 46.56 per cent), Malaysia (down by 45.21 per cent), Hong Kong (down by 37.54 per cent) and Taiwan (down by 31.20 per cent).

ATTA president Apichart Sankary said the country was facing a tough time attracting more tourists because of a combination of negative factors. It remains far behind its target of 14.8 million tourist arrivals this year, although the Tourism Authority of Thailand (TAT) insists that it will be able to achieve the goal.

In order to attract new tourists, Apichart called on related agencies, including the Tourism and Sports Ministry and the TAT, to approach new markets such as the Middle East, Eastern Europe and India, to make up for the sluggishness in Asia. In addition, airline operators are urged to increase the frequency of flights during the high season that has just begun.

The other growth engine in the economy, exports, is also slowing down. Exports grew by only 5.9 per cent in July, the lowest rate in 29 months, and came in 6 per cent higher in August.

The Thai Hotels Association (THA) reported last week that average occupancy rates for small hotels in Bangkok last month was 70 per cent, down from 78 per cent in August last year. For big hotels, last month's rate was 71 per cent, down from last August's 77 per cent.

The occupancy rate for hotels in Hua Hin and Cha-am fell from 50 per cent in August 2006 to 45 per cent last month. In the Northeast, the figure dropped 20 per cent from 50- to 60-per-cent occupancy in August 2006. At Pattaya's hotels, the average occupancy rate last month was 56 per cent, down from 68 per cent in August 2006.

However, hotels in Phuket and Khao Lak showed an increase of 10 to 20 per cent to reach an occupancy rate of 40 per cent last month, due mainly to the recovery of tourism along the Andaman Coast.

TAT's deputy governor for international marketing, Juthaporn Rerngronasa, said total tourist arrivals in the six months from January through June had reached 5.9 million, an increase of 3.3 per cent.

"Tourists from Australia, Eastern Europe, Scandinavian countries, India and the Middle East are increasing, while those from many Asian nations are decreasing. However, the TAT hopes the situation will get better in the fourth quarter," Juthaporn said.

The agency has fixed its marketing plans for 2008, to run under a renewed Amazing Thailand campaign.

Juthaporn said the authorities would emphasise the development of customer relations marketing, involving loyalty campaigns to drive up the number of inbound repeat visitors. TAT's overseas offices will focus more on their own databases, which will be used to develop online tools such as newsletters and e-mailings. Some of the offices, such as that in South Korea, have set up online groups such as the Thailand Fan Club.

The TAT expects 15.7 million international arrivals next year, a 6-per-cent increase over this year's target. The foreign revenue target has been increased by 10 per cent to Bt600 billion.

Meanwhile, the agency is targeting a 1.23-per-cent rise in the number of domestic tourists, spending Bt385 billion, a 1.91-per-cent increase over this year's target expenditure.

About 20 airlines plan to add more than 100 flights per week into Thailand during the high season, to serve tourist demand, particularly from Eastern Europe, Scandinavia, South Africa and the Middle East.

 Suchat Sritama

 The Nation


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