NEW THAI TOURISM: CHALLENGES & OPPORTUNITIES

It is a testament to the strength of Thailand's tourism industry, the huge attraction and strong brand image that the country enjoys, that it has been rebuilt so quickly, with a vibrancy that seemed all but impossible nearly two years ago amid the wreckage of the tsunami.
There is no question that 2005 was a miserable year. Miserable in terms of the human tragedy in the fallout of one of the worst natural disasters there has ever been and miserable for the industry in the setback that followed.

We should always be prepared to face new challenges – some that can be planned for and others that cannot.

One of the latter came on 19 September with the bloodless coup d'etat that saw a transition of power in the Thai government.

The immediate effects were bad for tourism – hotels in particular bore the brunt, with cancellations and shortened stays. The commercial and convention sectors, already facing the toughest conditions of any part of the industry, also took a blow.

Three months on, tourism is, by and large, back on track. Much of this can be attributed to the rapid appointment of a new cabinet that spoke quickly to calm fears and reinforce the positive image of Thailand.

The new Tourism Minister Suvit Yodmani's first statements demonstrated a welcome grasp on his subject. One of his first statements was to declare that he would target the quality of tourists, not their quantity.

Khun Suvit cited a need to protect the natural environment – echoing concerns of many industry leaders Diethelm Travel gathered to discuss Thai tourism for this review.

Khun Suvit said he welcomed suggestions from related government agencies to develop the country's tourism as well as to solve problems and promised that he would not throw out successful schemes introduced by the previous government. He acknowledged that the most urgent task was to appoint a new governor for the Tourism Authority of Thailand.

By late October, a little over a month after the coup, researchers forecast that as many as 3.4 million foreign tourists were likely to visit Thailand during the last quarter of 2006, a 2 percent increase on the same time last year, although slower growth than earlier in the year.

If those projections are accurate, full-year foreign tourist arrivals this year will be 13.4 million, a 17 percent rise on 2005, generating an estimated income of 450 billion baht, up 22.5 percent from last year's 367 billion baht. That is not to say there are no challenges, many of which existed long before the events of 19 September.

A major job for the new government will be to control the continuing violence in the far South, already a negative factor in the public eye overseas.

Widespread flooding that ravaged 46 provinces from late August undoubtedly had an impact on tourist arrivals and travel within the country.

Then there are the external pressures. Although the soaring fuel costs are for now abating, they have inevitably taken their toll on some travel. This again was felt most acutely in the commercial sector.

Bad publicity highlighting regional threats, such as health scares and terrorism, may also deter some visitors, although it must be stressed that Thailand is not alone in facing these difficulties.

On the other hand, Thailand tourism, as it demonstrated so clearly last year, is highly resilient and will enjoy many opportunities if it is prepared to grasp them. With sustained levels of support for the industry from the government, we can do more to service the rapidly growing intra-regional market.

The successful opening of the new Suvarnabhumi Airport is a key factor in this, with its opportunities as a hub now closer than ever to reality.

The coming of age of low-cost airlines in the region will also improve access to lesser-known destinations in Thailand while the possibility of a single-visa system for the region offers new and exciting possibilities.

We in the industry have some hard thinking to do about these issues and how we can best turn them to the advantage of Thailand as a whole.

We need also to ask ourselves about the future, to reassess how we judge the success of our industry.

We agree with the new Tourism Minister that for too long we have measured our achievements in the growing number of arrivals but the industry must now ask whether this is good enough. Indeed, is unbridled growth in numbers the only answer to increasing the value of our bountiful resources?

We must also do some deep soul-searching about the way in which we are protecting the land and think again about the environmental impact of our industry.

In this review, Diethelm Travel (Thailand), on the eve of our 50th year of operation, addresses some of these issues, and throws the forum open for all stakeholders to help work together to solve our problems and grasp our opportunities.