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Vol. XIV No. 29
Friday July 21 - July 27, 2006

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by Saichon Paewsoongnern

 

TRAVEL & TOURISM
HEADLINES [click on headline to view story]: 

A romantic getaway

Gulf Air holds seminar for Pattaya travel agents

Thailand launches silver long-stay programme

Thailand’s Hotels - mid year Blues?

AoT studies LCC terminal option at Suvarnabhumi

67th Skål World Congress in Pattaya will foster the ideals of Peace through Tourism


A romantic getaway

Spend a relaxing “Honeymoon” break at the Chaophya Hotel in Bangkok

The Chaophya Hotel in Bangkok is currently offering a special “Honeymoon Package” until August 31st for couples longing to spend a dreamily relaxing break in the comfort of an Executive Suite. The 3 days 2 nights package for Bt.11,998 includes 2 hours of Honeymoon Spa at the hotel’s Bali Spa, free unlimited access to the 247yd golf driving range together with snacks and refreshments, a romantic candlelit dinner accompanied with a fine bottle of wine at the Park Café, full use of the fitness and sauna facilities plus 20% off laundry bills and a late check-out till 18:00hrs.
For more information call 0-2290-0125 ext. 7054, 7056 or visit www.chaophyapark.com.


Gulf Air holds seminar for Pattaya travel agents

Travel agents in Pattaya and the east of Thailand gather for a photograph with represenatives of Gulf Air at the end of a most informative seminar.

Vimolrat Singnikorn
Gulf Air’s director of sales for Thailand, Cambodia, Vietnam and Burma, Somporn Kanjana-Utaisiri, presented a seminar for the airline’s agents at the Amari Orchid Resort on July 5 to brief them on the latest services.
Somporn said that amongst recent developments were improvements to First Class services, with bigger seats installed on all Gulf Air aircraft that can be laid back a full 180 degrees. First Class passengers also enjoy enhanced airport lounge amenities including internet rooms and private washroom facilities.
Two free return tickets were offered to attendees who correctly answered a fun quiz during the seminar. The two winners were Chaiwat Patimaarak, general manager of Orchid Travel, and Chakrit Pattanasin, passenger sales executive, Journey and Net Agency Ltd.


Thailand launches silver long-stay programme

Thailand is set to launch a privilege card for tourists aged over 50 in a bid to promote long-stay tourism.
The Thai Longstay Management Corp (TLM), a government joint venture to promote long-stay tourism, said 60,000 foreigners and 40,000 Thais were expected to sign up this year.
TLM was set up in 2002 to promote long-stay tourism and lure business leaders and wealthy travellers to Thailand.
Company membership grants discounts from local hotels, golf courses and entertainment venues. It also fast-tracks immigration checks and provides assistance for foreigners who want to arrange long-term property leases in Thailand. Multiple entry visas will also be offered as part of the cardholder privileges.
One-year card memberships cost US$100 for a silver version, US$500 for gold, US$700 for platinum, US$1,100 for diamond and US$1,800 for blue diamond. (TTG)


Thailand’s Hotels - mid year Blues?

Andrew J Wood
General Manager
Chaophya Park Hotels & Resorts, Thailand,
International Councillor
Skål Thailand

With Thai tourism’s “piece de resistance” of the 2006 Grand Celebration promotion behind them, the royal visitors returned home and the royal barges back in dry dock, hotel executive’s report they are facing a mixed future half way through the year.

Once again it would appear that the four star market is fairing better at filling rooms in the nations capital than the top end five star products, but they are experiencing lower food and beverage revenues than last year. The five star hotel’s lower occupancies are however balanced by higher yields; known in the industry as RevPar (revenues per available room). This might suggest price resistance in the luxury end, or over supply?
Industry observers had long predicted that 2006 would be a better vintage than 2005, but few realized the extent of the quadruple combination of the World Cup; rising oil prices; a strong baht and the continuing political stalemate. Most believe that the southern unrest is not considered an international problem, receiving only a cursory glance by tourism influencers. The far south has received little in the way of long haul international tourists historically and is therefore seen to have minimum affect on tourist arrivals.
The five star market is describing July as “sluggish”, with occupancies under-performing in comparison to last year by 15-20%, although many of the 5-star hotels have increased rates over last year.
Observers also commented that top hotels, like the Peninsula and The Oriental, are once again offering summer packages so bargains are to be found if you know where to look. Peninsula have also offered special incentives such as 3 for 2 offers quietly in the market place, whilst a room in the Oriental can be had for just over $239 excluding tax and service but including breakfast, during this year’s “green” (low) season.
Hotels in the Sukhumvit corridor and CBD (central business district) have been aggressively pricing their wholesale rates for next season, with 30-40% increases and removing inclusive breakfast. The Grand Hyatt and the Sheraton Grande were identified as early initiators of this new pricing structure, with many others on the central Sukhumvit Skytrain route and side streets, following suit. The results so far have been that buyers have accepted these rate increases for next season; the real test will be to see if they use them.
Couple this with restricting access to local (cheaper) rates, being offered by Bangkok based agents, to the international market via the internet. These are often marked up in price and offered to third parties. Many hotels have in the past tried to police this practice with restrictive contracts, but most have been ignored and thus proven to be unworkable. The result is that the more confident hotels (usually preferred, first choice, branded hotels) have stopped working with local agent’s altogether, or offered only regular corporate rates, a practice normally aimed at small to medium volume producers.
The dilemma faced by the industry, is that whilst these centrally located hotels continue to push up the yield, the divide between 4 and 5 star hotels is widening. Good news for buyers if they are prepared to locate 10 minutes further away from the CBD, and by dropping one star only in quality, they can usually secure a nightly rate three to four times lower than the CBD hotel’s.
Results for the first quarter suggests that the supply is still surplus to demand, particular in Thailand’s north and central regions. The Thai Hotel Association (THA), in its recent report also said occupancies in Chiang Mai were down by 50% during the Songkran holidays and from 76% last year to 68% this year in the central region. Strong recovery in the south however has seen occupancies double from the 25% lows of last year.
But is all well for the future in an industry well used to the ups and downs of demand? Commenting Mr. Ross Cunningham, Director of Sales and Marketing of the Conrad Hotel said, “As long as there is no future civil unrest, we should have a good second half in 2006”.
Many agree that 2006 is Thailand’s “Grand” Year and we should achieve our target of 14.4 million foreign tourist arrivals. But there are others that believe it will be difficult. THA President Chanin Donavanik is less optimistic about the industry this year, he said, “Thailand’s tourism industry might be losing international tourists to other destinations. When compared to other countries in the region, we lack new tourism magnets.”
Hong Kong’s impressive Disney World and Singapore’s launch into Resort Casinos are cited as Thailand’s missed opportunity by industry commentators.
So is Thailand’s hotel industry set for a major correction between the four and five star hotels on rates? I still believe not. Location is the key, along with competition in the immediate vicinity and within the competitor set. The River hotels and five star hotels, with their control of the luxury leisure, corporate and MICE market will do what they do and the four star properties will be mainly driven by what their neighbors are doing.


AoT studies LCC terminal option at Suvarnabhumi

Airports of Thailand (AoT) has commissioned a study to look into the possibility of building a terminal for budget airlines at Bangkok’s new international airport, the Suvarnabhumi Airport.
“Yes, we are looking at the LCC (low-cost carrier) terminal possibility,” the Bangkok Post newspaper quoted AoT president, Mr Chotisak Asapaviriya, as saying.
Mr Chotisak said the study would take two or three months to complete, with the final decision on whether to proceed with the project resting with the AoT board. AoT estimates the facility would cost between 500 million baht and 600 million baht (US$13.2 million and US$15.9 million) and could be opened for service in 2008. Two possible sites near Suvarnabhumi Airport’s main terminal have been identified.
“The structure will be very simple and easy to build,” Mr Chotisak said, adding its concept would be similar to Malaysia and Singapore’s LCC terminals. (TTG)


67th Skål World Congress in Pattaya will foster the ideals of Peace through Tourism

Many exciting events are scheduled at the 67th Skål International World Congress that will take place in Pattaya, Thailand on 15-20 October 2006. Skål, founded as an international association in 1934, is the largest organisation of travel and tourism professionals in the world, embracing all sectors of the travel and tourism industry; hoteliers, travel agents, airline executives, those working for the tourism media and training for the many other branches of the industry. In the 89 countries and 480 locations where Skål exists, members are encouraged to network with each other, in line with the recent motto of “Doing Business among Friends”
Skål Congresses are considered as the ideal meeting platform for the members from around the world, not only to have a fun week together but also to enjoy the privileges of being members of this prestigious organisation.
Business to Business Workshop
For the first time this year the Tourism Forum during the 67th Skål World Congress will take the form of a Business-to-Business workshop and will be held on Wednesday 18 October 2006. To facilitate prior appointments for this workshop a list of participants attending the Congress is now available on the Skål International website www.skal.org go to Congress” and then to “Pattaya” A table and four chairs will be available, free of charge, to every country represented by a Skålleague attending the Congress. Additional tables and chairs are available at a cost of €50.00. A number of keynote speakers will also address those attending the workshop on topics of interest to the travel and tourism industry. The Forum is open to all participants to the Congress.
5th Ecotourism Awards Ceremony
One of the important highlights of the Congress will be the Ecotourism Awards Ceremony that will take place during the Opening Ceremony on Monday, October 17th in the presence of all the participants, local dignitaries and representatives of the media.
Skål International, following the United Nations declaration of 2002 as the Year of Ecotourism and the Mountains, launched the Skål International Ecotourism Awards to highlight and recognise global best practices. Skål values sustainable development in tourism as the key to the industry’s future success and considers Ecotourism as one of the main areas of sustainable development.
For this year’s competition 50 entries have been received from 26 Countries in six different categories; accommodation rural & urban, tour operators, General Countryside, Cities-Villages and Educational Programs. The evaluation is done by three independent judges from important Institutions/Organisations dealing with Eco and Sustainable tourism. The names of previous years’ judges as well as winners of earlier years can be found on the Skål website.
Programme Highlights
Both the local authorities and Skål Members in Pattaya and Thailand are working very hard to put together a memorable congress. The programme as well as the information on pre and post congress tours and an online registration form can be found on the following hyperlink http://www.skal.org/congresos/pattaya2006/pattaya06.asp?idioma=I
Wherever Skål Congresses are hosted – the event becomes a major highlight in the city and the members witness a “red carpet” treatment and enjoy remarkable hospitality at exquisite venues giving them the opportunity of exploring in depth the Country where the event is hosted.
The National Carrier THAI Airways is offering 75 % discount in economy and 50 % in Business Class for members and 50 % in both classes for spouses. The Headquarters Hotel, Royal Cliff Beach Resort is a luxurious modern resort with all amenities, right next to the recently built state-of-the-art PEACH Convention Centre. 
In addition the IT&CMA and CTW (Incentive Travel & Convention, Meetings Asia and Corporate Travel World) Exhibition, organised by TTG Asia will be held in Pattaya, Thailand from 10–12 October 2006. IT&CMA, CTW and Skål International have agreed a joint marketing project for both Congresses.
TTG will provide complimentary Trade Visitor badges for all registered 67th SKÅL World Congress participants which will permit entry to the IT&CMA & CTW trade exhibition on 12 October 2006 (Thursday) as well as complimentary accommodation in any hotel in Pattaya for the first 100 outbound tour operators who register for the 67th Skål World Congress for those who arrive on 11-12 October or 12-13 October
More information on Skål International and the Congress can be found at www.skal.org or Please contact Andrew J Wood, Skål International Councillor- Thailand, Email : [email protected], Tel : +66-2 290 0125.


 


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