Tourism picks up during festive season

Three resort destinations in South Thailand report high advance bookings for the New Year holidays after witnessing declines since October.

Trang, Krabi and Pha Ngan Island all reported their occupancy rates were picking up after weeks of business declines in the wake of Bangkok’s floods and adverse weather in southern provinces.

Trang and Krabi are on Thailand’s Andaman Sea coast, south of Phuket, while Pha Ngan island is in the Gulf Thailand close to Samui and Surat Thani province.

Trang Provincial Administration tourism department advisor, Somchai Wongtawatchai, confirmed bookings from travel agencies in Bangkok were coming in a sign that inbound tourism from traditional source markets would pick up for New Year.

“Earlier cancellations were running at around 30% because most tourists who visit beach resorts in the South also visit Bangkok,” said Mr Somchai. “I believe that during the New Year, Trang has good potential to gain lots of businesses,” he added.

Trang Tourism Association president, Prateep Jongthong, was also optimistic claiming the year had delivered more business than in previous years despite flood setbacks.

“We should have a strong New Year. Occupancy is running at 80% and by 31 December, tour packages will give us a full house  and generate revenue of around Bt200 million for the province’s tourism business.”

Krabi tourism operators claim occupancy at resorts is now running at 90% mainly Europeans; particularly Scandinavian tourists.

Krabi Tourism Association president, Ittirit Kinglek, confirmed the resorts relied almost exclusively on European tourists in the cool season months and this could be worrisome  as the Eurozone economic crisis deepens in 2012.

“It will require more road shows in the domestic market and more efforts in alternative international markets to maintain a strong performance next year,”

He estimated the province will earn Bt200 to Bt300 million during the New Year.

On paper, it looks like an impressive haul for the province’s tourism business, but it has to cover a very long and lean low-season May to October.

Southern tourists’ destination, Pha Ngan island that lies near Samui reports a dip in occupancy this year of around 15 points on 2010.

“Resorts will average a 65% to 80% occupancy down from 85% to 90% during the festive season last year,” said Pha Ngan Tourism Promotion Association president Vannee Thaipanich.

Ms Vannee blames the decline on the shortage of flights to Samui Island, which is the main gateway to Pha Ngan Island. From there visitors take a short ferry ride to the smaller island clearly visible from Samui’s popular beaches near the airport.

The supposed shortage of flights is a pet argument aired by resort owners, but the green lobby on the island supports the containment of aviation growth to delay commercialisation and safeguard the island’s already damaged environment.

They claim resort owners have developed new properties without considering the island’s carrying capacity. There are calls for the government to limit the hospitality industry rather than encourage real estate expansion with more airline capacity.

“The major problem for us is we lack flights to Samui. Also another issue is severe weather and floods,” said Ms Vannee commented.

Mainstream hotels are also challenged by the growth of the real estate sector that rents properties to long-stay visitors. Villas are usually rented at monthly rates that are competitive giving the owner a 10% to 12% return on investment. They also offer repeat visitors an option to self-cater. Most of the villas are set back from beaches on steep forested hills.

According to the data provided by the Department of Tourism and Sports under the Ministry of Tourism and Sports Trang welcomed 114,231 tourists during the last quarter of 2010, down 16.47% from 136,753 during the same period in 2009.

Krabi welcomed 338,043 during Q4 2010, down 20.03% from 422,727 during the same quarter in 2009.

Pha Ngan Island reported a slightly increase during Q4 last year of 9.96% up from 44,518 arrivals in 2009 to 48,951 in 2010.

Source - ttrweekly