Friday, April 17, 2009

Riots cost [Thailand] tourism industry B100bn [$2.8 billion]

17/04/2009
By CHADAMAS CHINMANEEVONG AND CHATRUDEE THEPARAT
Bangkok Post


Eight tourism groups have forecast that the Songkran political unrest will cost the industry about 100 billion baht in losses, and could cut tourist arrivals by two million this year.

The already weak industry will worsen and layoffs, particularly by hotels, will increase significantly to an estimated 50,000 by the second half of the year, according to Apichart Sankary, president of the Association of Thai Travel Agents.

Foreign tourist arrivals, which were initially forecast at 14 million, the same as last year's total, will shrink to 12 million, industry sources said.

"Foreign tourists from Japan and China are very sensitive to political unrest and they won't come back to Thailand until they are confident, around the middle of next year," said Thai-Chinese Tourism Alliance Association president Sidivachr Cheewarattananaporn.

Some 10,000 Chinese tourists cancelled their trips to Thailand over the Songkran period.

Mr Apichart called on the government to rebuild the country's image by promoting reconciliation between the yellow-, red- and blue-shirted groups. Global tourism roadshows should then be conducted.

"Foreign communities won't trust us if we are unable to solve our internal conflict. We will waste time and money going to international roadshows if we don't solve that first," he added.

The request for an additional 15 billion baht in funds to help hoteliers should be approved quickly and four- and five-star hotels should have access to the government's low-cost loans, just as small hotels do, he said.

Currently, Bangkok hotel occupancy is around 30% and is as low as 5-10% at some properties.

The Federation of Thai Tourism Associations suggested the government issue bonds to raise funds.

Tourism and Sports Minister Chumpol Silpa-archa said the government must come up with measures to stimulate the tourism industry in the short term. They should include greater tax incentives to operators and more financial assistance.

The proposed measures' details would be studied by the Tourism Authority of Thailand as well as representatives from the tourism sector.

Deputy Prime Minister Korbsak Sabhavasu said the government was ready to revise the 16.6-billion-baht in tourism investment projects between 2010 and 2012 in order to allocate more money for the industry.

"The tourism industry can generate income in the short-term, unlike exports and the investment sector," said Mr Korbsak. "Stimulating the tourism industry will be the best way to generate income to shore up the Thai economy in the short term."

According to Mr Chumpol, planned roadshows, which includes the Arabian Travel Mart from May 5-6 in Dubai, would remain unchanged. Prime Minister Abhisit Vejjajiva will join the trip in order to build confidence in the Middle East market.

4 comments:

Anonymous said...

Visit CAMBODIA and meet the nicest people in Southeast Asia. There is nothing in Thailand except the arrogance racist yellow shirt.

Anonymous said...

To all my borther and sister in YALA "Southern" your freedom will prevail, we will continue to fight Thai abusive...

Anonymous said...

Kept up the fight! my dear borther and sister in YALA, we wanted to send message to Thai Gov't very clear, let's people free! and stop abusing my people in SOUTHERN YALA!

Anonymous said...

correction = let's my people go free! and stop abusing my people!