Strong baht worries MICE planners

BANGKOK, 28 March 2013: A strong Thai baht is making event organisers think twice about hosting events in Thailand, but Thailand Convention and Exhibition Bureau says MICE related business remains robust.

TCEB senior manager and meetings industry department acting director, Vichaya Soonthornsaratoon, said foreign event planners are concern about the strong baht, which makes price quotes for hotels, venues and other event-related purchases in Thailand more expensive.

It will also impact on domestic airfares but international fares, by far the biggest cost item for visiting delegates, remain unchanged.

“It impacts on venue, hotel, transportation and related matters however we think it will not be long term and these kind of currency fluctuations happen worldwide.”

She stressed: “Despite a strong Thai baht, the country is still  a good value destination.”

Strengthening of the currency has no impact on local suppliers if they quoted in baht, but if they quoted for services in other currencies they will earn more on the quoted rates when they exchange to baht.

Event planners who asked for quotes in baht will be paying more in their own currency to settle bills. In most instances the value the baht has increased 3 to 8% against major currencies.

While Ms Vichaya was confident the country is still good value, based on low quotes that were put in place a couple of years ago to improve business during a political crisis, it will start to have an impact on quotes for events in 2014 and 2015 if the baht remains strong.

In contrast, the strong baht is a  godsend for  Thais MICE operators who can sell more incentives and off-shore meetings to Thai corporations, according to TCEB domestic MICE director, Chiruit Isarangkun Na Ayuthaya.

Thai companies cut back outbound incentives after 2008 due to unfavourable conditions in the country, but that is changing and destinations such as China, Japan, Malaysia, Hong Kong and Singapore are benefiting.

TCEB needs to increase its promotions to encourage the domestic meetings market to counter this trends.

“We will collaborate with local airlines such as Nok Air, Thai Smile, Thai AirAsia, Orient Thai and Bangkok Airways to launch promotions that support routes to the royal projects trail programme.”

Project details are still vague, but in essence TCEB wants to encourage incentives that study the achievements of royal projects mainly in North Thailand that will offer both an educational value and reward features.

Sourced: ttrweekly