Thailand’s confidence index weak

BANGKOK, 16 August 2012: Tourism Council of Thailand reported, Wednesday, its tourism confidence index for April to June 2012 dropped eight points to 92.

Research was compared to a normal confidence benchmark of 100. The index gained data from 600 tour agencies.

The TCT index showed that 64% of interviewed tour agencies said they were still worried about the country’s economy, while 49% said the rising cost of products had impacted on  travel in the second quarter, which is traditionally the low-season for inbound market.

Moreover, 81% of those interviewed said rising prices and a higher cost of living was having a negative impact on business; 39% of the tour agencies said they had made adjustments.

Of the travel operators who adjusted operations, 49% increased prices by 10% to 30%, while 40% of them laid off staff.

But 47%  of all agents interviewed believed the government’s tourism policy would encourage tourists to travel, while 42% said the government should build a positive image for the country’s tourism industry. Other suggestions: 46% said the private sector should raise awareness; 40% advised local communities to take part in tourism and 37% said they needed tourism operators to be more united.

On what drove travel in the second quarter, 62% of the tour agencies said convenient transport was the most important factor. But 57% credited it to public relations and the diversity of tourist attractions; 43% identified tourist attractions; and 42% thought it was due to travel agency cooperation.

The research also showed tourism operators in East Thailand rated tourism confidence in Q2 at the highest level of 99 followed by agencies in the Northeast (94); the central plain and the West (92 each); the North and the South (91 each); and Bangkok (66).

For the third quarter (July to September), tourism operators gave a confidence index of 92 due to the lack of long holidays during the period and the country’s economic condition.

Outbound tour operators gauged the Q3 confidence index at 74 as they are still worried about the country’s economy, while inbound and domestic operators had more confidence at 81 and 94 respectively.

In addition, hoteliers believed their business was back to normal and believed tourism publicity would help to boost their business in Q3.

Hotels charging more than Bt5,000 per room per night rate cited a tourism confidence index of 107

Sourced: ttrweekly