Dreadful year for Thailand’s tourism

BANGKOK  International tourist arrivals to Thailand posted a decline of 8.61% during January to November, this year, according to Ministry of Tourism and Sports’ data.
Released Wednesday, the ministry data reported 21,938,435 visits to the country during the first 11 months down from 24,004,345 over the same period last year.
The steady decline, since earlier this year, heaps more anguish on the Tourism Authority of Thailand, which has to justify the substantial budget it spends on promotions and campaigns that are failing to reverse the negative trend.
Ministry of Tourism and Sports’ Department of Tourism general director, Anuparp Kasornsuwan, noted that a growth in travel from East Asia market was the only positive marker in what has turned out to be a disappointing year.
“China continues to be a key market supporting the country tourism…the growth of this market reached almost 60% in November mainly due to temporary fee exemption on visas.”
inside no 4“The Ukraine crisis which directly impacts to Russia economy is one of key factors that is driving down European market performance.”
What is not being addressed in the public statements made by the ministry is the sluggish economic outcome for major markets in Europe. Growth in long-haul travel from Europe was marginal in 2014 and likely to stay that way through 2015.
There is strong evidence that Russia’s economy will take a dive in 2015 based on current negative trends. This would impact on ambitious targets outlined by the ministry for nex year.
Only two European markets showed growth in the November figures; France and Italy.
Out of Thailand’s top 10 source markets, January to November, only two countries in Europe figured; the UK and Russia. The rest were from Asia with the exception of Australia.
This year, Thailand will have to settle for 25.5 million visits and an estimated THB1.8 trllion in tourism revenue. (The revenue figures quoted by the ministry and TAT are very rough estimates based on limited and infrequent exit polls.)
The original target of 28 million and THB2 trillion in revenue was dashed by political discord, months of protests and a military coup. Martial law remains in place, an indicator that authorities are still not confident that the political environment has regained stability.
Attracting 28 million visits in 2015 will remain a challenge and as long as the ministry and TAT promotes without addressing the challenges of sustainability and carrying capacity, they will be open to criticism. Destinations are overwhelmed and this is seen in poor quality service and a growth in crime and scams against tourists.
In November alone, foreign travellers recorded 2,438,301 visits increasing 2.53% from 2,378,112 visits during the same month last year.
Considering markets by regions, all markets recorded declines except East Asia and South Asia during November.
East Asia (ASEAN included) reported an increase of 10.80% from 1,328,923 to 1,472,427 visits.
Improvements were recorded: China (+58.85%); Myanmar (+38.47%); Cambodia (+33.07%); Laos (+19.74%); the Philippines (+12.24%); and Hong Kong (+5.48%).
There were declines: Brunei (-20.98%); South Korea (-20.57%); Japan (-12.27%); Vietnam (-10.63%); Malaysia (-10.35%); Taiwan (-7.40%); Indonesia (-6.82%); and Singapore (-3.79%).
South Asia grew 3.28% from 108,678 to 112,246 visits. India led the field with 85,352 visits, but it was a very slight growth of 0.42% from 84,999.
Sri Lanka (7,733; +22.69%), Bangladesh (6,947; +19.32%), Pakistan (6,310; -3.88%), and Nepal (2,300; +22.15%).
The Middle East decreased 3.18% from 46,704 to 45,217. Israel arrivals led with 10,098 visits declining 16.14% from 12,042. Other main markets were: the United Arab Emirates (8,409; +19.65%); Kuwait (4,026; +2.0%); Egypt (2,214; -21.99%); and Saudi Arabia (714; -36.81%).
Africa recorded a decline of 4.21% from 13,435 to 12,870 visits. The main market South Africa decreased 6.13% from 4,943 to 4,640 visits.
The Americas dropped 8.51% from 115,709 to 105,862 visits. Brazil posted a 40.77% increase from 3,559 to 5,010.
The United States recorded 73,588 visits down 10.26% from 81,997 followed by Canada (20,300; -13.38%) and Argentina (1,657; -3.04%).
Europe posted a decline of 9.49% from 681,186 to 616,529. Markets in decline were: Russia (-21.22%); Denmark (-16.39%); Norway (-7.77%); the Netherlands (-7.38%); Sweden (-6.78%); Germany (-5.31%); Ireland (-5.02%); United Kingdom (-4.84%); Spain (-4.41%); Finland (-4.34%); East Europe (-4.09%); Switzerland (-3.55%); Austria (-3.02%); and Belgium (-2.40%).
France and Italy were the only two markets that showed increases of 6.21% (61,714) and 5.16% (20,868) respectively.
Oceania represented a slowdown of 12.37% from 83,477 to 73,150. The main market Australia declined 12.67% (64,275) and New Zealand down 12.03% (8,343).
The ministry reported that international tourists arriving at Bangkok’s gateways Suvarnabhumi and Don Mueang airports during November improved 2.49% from 1,543,877 to 1,582,269 visits.

sourced:ttrweekly.com