Tourism could hit snag without upgrade

Thailand's tourism industry could face significant problems if the country's infrastructure is not upgraded soon, says the InterContinental Hotels Group.

Alan Watts, IHG's vice-president for Southeast Asia, said Thailand remains a strong magnet for both long- and short-haul travellers, but the growing influx of tourists may create capacity problems for the transport network.

He commended Airports of Thailand for investing in capacity upgrades to Suvarnabhumi airport to meet 60 million passengers annually by 2017.

However, improvements to the general transport infrastructure _ road and rail alike _ catering to travellers' needs are necessary to avoid frustration and maintain Thailand's advantage, Mr Watts added.

Suvarnabhumi's annual passenger capacity is 45 million passengers, but in the first six months of fiscal 2012 the number of passengers was 26.4 million, up by 7.5% year-on-year.

The full-year total will be an estimated 52.5 million passengers.

Mr Watts said IHG has seen much improvement in the work flow at Suvarnabhumi recently and is pleased the cabinet is revamping the old Don Mueang airport to alleviate air traffic and improve the arrival experience.

"IHG is confident the government and relevant agencies will continue to to improve the country's travel and tourism infrastructure, ensuring Thailand's place ahead of its competitors," he said.

"Infrastructure improvements along with evolving hotel functions boost high-end tourism and maintain Thailand's dominant position as a tourism leader in the region."

Mr Watts said hoteliers must adapt to specific source markets to encourage tourism such as by offering language-specific online bookings and understanding cultural food and beverage requirements.

Tailoring to guest needs is what drives loyalty and, ultimately, return stays, he said.

Intra-Asean travel, intergenerational travel and medical tourism are other sectors that IHG is eyeing for growth.

The rising Asean middle class is developing a sense of wanderlust, and the company expects continued increases in regional short-haul travel benefiting its mid-scale hotel brands.

IHG also sees increased intergenerational travel, with entire families gathering for weddings, anniversaries and other occasions.

As for medical tourism, 1.4 million foreign patients came to Thailand last year, and IHG wants to tap more of this market.

Mr Watts said the company expects rising demand from long-haul tourists in the upscale and leisure segments, both in Thailand and Asean.

"This is a fantastic opportunity for IHG as it continues to expand its resort portfolio," he said.

Earlier this year, the company, which owns the Holiday Inn and Indigo Resorts brands among others, opened the InterContinental Samui Baan Taling Ngam Resort on Koh Samui and the Danang Sun Peninsula Resort in Vietnam. Also opening its doors was the Crowne Plaza Panwa Beach Resort in Phuket, which is the Crowne Plaza brand's first beach resort in Southeast Asia.

IHG plans nine more hotels for Thailand in the coming years.

The company believes Bangkok has been the perfect test for its new streamlined Holiday Inn Express, as the capital is saturated with high-end hotel rooms.

The Holiday Inn Express opened in Siam Square last month, offering midscale accommodation for vacationers and business people.

Online bookings are rising for all of IHG's hotel brands, accounting for at least half of all bookings.

But Mr Watts said the launch of the new Holiday Inn Express has seen the proportion jump to as high as 65%.

"High-speed connectivity has made online booking much more convenient and accessible, and the company has developed language-specific sites and mobile apps for Priority Club Rewards members. This has created more options and allows people to read more reviews," he said.

Sourced: bangkokpost