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Tourists flee chaos, cancel bookings


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The Nation

3-09-2008

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Tourists flee chaos, cancel bookings

 

By Suchat Sritama

The Nation

Published on September 3, 2008

 

 

Bt700bn income target now at risk

 

 

Tourists are checking out of their hotels or cancelling bookings, while meetings and exhibitions are being postponed, leading operators to

 

believe Thailand will miss this year's tourismrevenue target of Bt700 billion.

 

 

Tourism Council of Thailand (TCT) chairman Kongkrit Hiranyakit said the worsening political unrest was prompting tourists and businessmen to cancel their trips to the Kingdom.

 

 

"Initially, we expected this would cause damage of between Bt50 billion and Bt60 billion, or 8 to 10 per cent of targeted revenue," he said, adding that the state of emergency was declared at a bad time, with September being the usual booking period for the high season.

 

 

Kongkrit said 40 per cent of the industry's revenue was usually generated in October and November.

 

 

The TCT plans to ask the Tourism and Sports Ministry to launch emergency measures to restore travellers' confidence. Tourists are excluded from this internal conflict, he said. In addition, the Tourist Fund's Bt400 million can be used to assist stranded tourists trying to get home or who need emergency accommodation.

 

 

In the worstcase scenario, the number of meeting and incentive events could drop by 60 per cent, said Malinee Kitaphanich, director of meetings and incentives at the Thailand Convention and Exhibition Bureau. Many planned events could be rescheduled or cancelled, particularly those in areas where airports have been taken over by antigovernment protesters.

 

 

"Somewhere between five and 10 events in Phuket have been cancelled. We're finalising the figures for the Bangkok area in the next few days," said Malinee, adding that even if the political situation were resolved today, the number would drop 20 per cent anyway.

 

 

The focus is now on the Incentive Travel and Conventions, Meetings Asia conference, which annually attracts 10,000 visitors, and next month's Bangkok Gems and Jewellery Fair.

 

 

Following the declaration of the state of emergency, Association of Thai Travel Agents president Apichart Sankary said many tourists would head to other destinations. Individual Japanese tourists and South Korean honeymooners are already cancelling their plans, and the Chinese are expected to follow suit.

 

 

Thai Hotels Association president Prakit Chinamourpong said tourists were checking out from Phuket hotels out of fear the airport would be seized again, like last Friday.

 

 

Andrew Wood, general manager of the Chaophya Park Hotel and Resort in Bangkok, said his hotel's occupancy rate could drop even further if the situation worsened, to 40 per cent. The rate now stands at 55 per cent, but usual September occupancy is 75 per cent. The hotel could lose Bt4 million for the entire month from loss of room charges, conferences and banquets.

 

 

Tourism Authority of Thailand governor Phornsiri Manoharn said her agency's international offices would inform tourists about the situation and report their reactions to head office.

 

 

She said the Foreign Ministry would be the main body issuing official statements to the world.

 

 

Tourism and Sports Minister Weerasak Kowsurat said it should not be his responsibility to tell the international community the status of the political chaos in Thailand. He also passed the issue to the Foreign Ministry.

 

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Thai business logic follows...the bht will drop say 50 or 60 to 1 USD, then drinks will go to 200bht+ Bar fines will be 1000+, then the bht will strengthen, to say 30 to 1 usd, and drinks will stay at 200+bht, and bar fines will be 1000+ then tourism will drop off, and drinks will go to 300bht and bar fines to 1500+ to cover the loses...

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Tourism and Sports Minister Weerasak Kowsurat said it should not be his responsibility to tell the international community the status of the political chaos in Thailand. He also passed the issue to the Foreign Ministry.

 

The buck passing game is on ...

 

My office has had eight cancellations for Thailand holidays in general ...most start a few days in Bangkok and go either Phuket or Chaing Mai .... seven to ten days .

 

I tried moving some to Koh Samui without success..of our over 230 franchise stores in our network cacellations are increasing ...slowly i must admit at this stage ...nothing like the Bali mess..

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