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Weathering the storm

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Despite a rough year, Thailand looks<br>ahead with a new tourism strategy

Thailand's tourism body highlights the country's many strengths

THE last 12 months have not been good for Thailand.  First there was the airport closure due to political demonstrations in November 2008, followed by the enforced cancellation of the Asean meetings in Pattaya in April when political demonstrators invaded the venue where ministers were gathered.
Throw into this combustible mix the worldwide recession, reduction in people travelling, the H1N1 swine flu pandemic, further political rallies, and the question left to ask is – can things get much worse for Thailand? 
Over the summer, Bangkok, and the Eastern Seaboard destinations have been practically deserted.  Shops, markets, bars and restaurants were empty. Boats lined the shore of Pattaya where once they would have been out exploring islands loaded with tourists. 
Hotel occupancies are down; seats are available on airlines, with advance reservations no longer required.
However, the north has fared a little better. Marc Dumur, general manager of boutique hotel The Legend Chiang Rai said, “Occupancy is down slightly, but we have the support of operators offering around Thailand tours, and as such have not witnessed too much of a downturn.”
Duncan Webb, vice president sales and marketing, Amari Hotels & Resorts, said, “Overall business is down on all fronts. Most affected is Bangkok – with a major drop-in corporate and MICE business. The latter is definitely a key issue for many hotels, although resorts are fairing slightly better.”
He said that business these days was very last minute and primarily based on special promotions.  “The Indian market is buoyant whereas most other markets are sluggish. Key is to be proactive in offering appropriate rates and being aggressive in order to close a sale. All of this is taking place against a background of extreme competition, with many more new hotels set to open across the country,” said Webb.
Amari is planning an international public relations campaign, which will include the Middle East, to further boost its image overseas and encourage visitors from previously untapped areas.
Meanwhile, the Tourism Authority of Thailand (TAT) in June unveiled a new strategy to combat the downturn, focusing on the country’s strengths – its geographical location, value for money and varied products. Also, a new direct service between Kuwait and Bangkok on THAI has led to an increase in tourist arrivals. The Middle East is seen as a major potential source of business by the private sector, and consequently TAT has been actively promoting Thailand in the region. And to further encourage travellers, visa fees have been suspended until March 2010.
Private operators are cautiously optimistic. Chris Bailey, senior vice president sales and marketing of Centara Hotels & Resorts feel that there was huge potential to grow its business in the region.  The group has been active within the Middle East for several years and opened its eighth international sales office in Dubai earlier this year.
TAT figures also show that January to April 2009 saw 4.7 million visitor arrivals to Thailand, down 14.7 per cent compared to the same period last year. While most markets showed varying rates of decline, arrivals from the Middle East grew by almost 11.5 per cent and arrivals from South Asia were up 3.6 per cent.
Thailand has weathered storms before and is expected to do so again.

By Caroline Tapken

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