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

Thailand’s Tourism – waning confidence needs steady nerves

Dusit Thani Pattaya promotes environment protection at the Thailand Tourism Festival 2008

New hotel group announces Thai plans

THAI adjusts fuel surcharge

Anantara Golden Triangle named in top 10 ‘World’s Most Responsible Hotels’

New budget terminal for Manila airport

Bokor Mountain to have Palmer-designed golf course


Thailand’s Tourism – waning confidence needs steady nerves

by Andrew J Wood
Thailand’s Tourism industry faces a testing time. With Thai economic fundamentals taking a beating and a potentially weaker baht, what’s in store for the Thai Tourism sector?

This photo shows a colourful bass relief at the Grand Palace in Bangkok. The Thai tourism sector is coming under increasing pressure from both economic and political uncertainties. (Photo A.J Wood)

Negative news abounds with daily predictions on the price of oil; increasing food prices; natural disasters and political nervousness. Will this impact Thailand’s long haul traffic and domestic travel, also negatively?
I believe we are at an important junction. How the government handles the increasing dissatisfaction of higher prices and the public’s lack of confidence will be tested by how quickly they can demonstrate that people’s daily lives are set to improve.
It’s a difficult task and will need great leadership with a focus on the country before self. However many political observers believe that this is not possible with the current administration.
The most immediate effect of rising oil prices is that fewer people are travelling. A recent industry report suggested that global air traffic was down and fewer trips are being made compared to a similar period last year. The need to travel is being closely scrutinised. Add to that the economic woes of airlines facing as much as 50% of their costs just to pay for fuel and a shrinking customer base. THAI International (TG) recently cancelled their direct flights to New York and reduced their LA-BKK schedule from daily to just five times per week. There will be much more of the same and even closures.
A respected industry source has indicated that airlines have huge outstanding airport, fuel and landing fee charges at Thailand’s Suvarnabhumi airport. Airlines are struggling with cash flow. More airlines will face a cash critical situation within weeks. National papers have already been reporting the potential closure of Nok Air, due to massive losses. The low budget airline is a sibling of THAI.
The weak will fall by the way side, but the strong will trim back. Fewer routes, fewer choices and most likely higher prices. Not a healthy situation for an industry that relies so heavily on aircraft to transport tourists, with 80% arriving by air.
Rising oil prices not only means rising costs but rising inflation. Vietnam and India have Asia’s highest inflation rate. Vietnam tops the list at 25%. Further pressure to float the dong could lead to a devaluation that will have an impact on Thailand and SE Asia.
The baht is loosing its shine, a weak dollar has created a strong looking baht but look carefully at the Baht/Euro rate and the baht has weakened 8% in 3 months. Difficulty in obtaining quotes on forward baht buying has left a few to speculate that a significant correction is possible. Good news for Thai tourism and exports, but it puts even greater inflationary pressure on the government as the price of imported goods rises.
Pay, energy and the cost of raw materials, across the board are rising. The ingredients in the economic cooking pot are looking set to boil over. How the government cools things down is going to be important in the short term.
And what of the government? This writer has never been more worried that the country is facing a deadlock of bi-polarised interest that will challenge the most skilled politicians. The People’s Alliance for Democracy (PAD) and the democratic opposite party have little in common with the ruling coalition lead by People Power Party leader and PM Mr. Samak Sundaravej. Thankfully much of the posturing is done without the knowledge of visiting tourists, however the country is facing an uneasy time and very few initiatives to solve current economic woes are forthcoming from a government who are so focused on re-writing the constitution, to allow former friends and politicians back into power.
But what are the bright spots? The Tourism Authority (TAT) are still upbeat that they can reach their target this year of 15.7 million visitors with China, India and medical tourism helping to boost numbers. And maybe we will, but as former Minister of Tourism, Dr Suvit Yodmani so rightly identified, quality not quantity maybe a more productive goal for our national tourism authority.
With an expected 20,000 new hotel rooms coming on line in Thailand by 2011, the pressure for more visitors to fill these new rooms will be high from hotel owners. The good news for agents and tourists… it should keep hotel prices competitive for years to come.
Andrew J Wood is the General Manager of the Chaophya Park Hotel & Resort, Bangkok and President of Skal Int’l Bangkok, Skal Int’l Councillor-Thailand and Skal Asian Area-Director of Development.


Dusit Thani Pattaya promotes environment protection at the Thailand Tourism Festival 2008

Dusit Thani Pattaya representatives led by Prawes Akanimart (far right) welcome visitors from the Tourism Authority of Thailand led by Deputy Governor for Policy and Planning, Akkapon Prueksawan (third from right) to the hotel booth during the recently concluded Thailand Tourism Festival 2008 at the Impact Muang Thong Thani in Nonthaburi.

The Tourism Authority of Thailand (TAT) recently invited Dusit Thani Pattaya to participate in the exhibition “Thailand Tourism Festival 2008” held from June 5-8 at Challenger 1 of Impact Muang Thong Thani in Nonthaburi.
The TAT sponsored event gave participating hotels and organizations from all over Thailand the opportunity to promote their businesses to both local and foreign visitors. In line with World Environment Day 2008, the theme of the event also focused on the issue of environment conservation under the Green Leaf Foundation, an organization composed of the TAT, Thai Hotels Association, UN Environment Program, Electricity Generating Authority of Thailand, Association for the Development of Environmental Quality and the Metropolitan Waterworks Authority.
The Green Leaf Foundation was established with the main objective of developing environmental quality for the tourism industry. During the four-day show, Dusit Thani Pattaya featured its in-house programs and initiatives towards environmental conservation. Various hotels from all over the country also distributed brochures inviting tourists to see interesting places around Thailand, each offering different regional attractions, culture and traditions. The TAT also hopes that the event will assist in the development of the country’s tourism business as well as boost domestic business thereby generating income for the local people.


New hotel group announces Thai plans

KC Hotels & Resorts International will open three boutique properties on Koh Samui by the end of this year, and plans to open more throughout Thailand within the next two years. Targeted at families and couples, the properties will be designed to be hip and luxurious.
First to open in October are the 88-room KC Hotel Koh Samui and the 16-key KC Over Water Villas Koh Samui. They are located on a hillside north of Chaweng Beach, which is about 15 minutes by car from the airport. Over Water Villas is built over a large swimming pool. KC group general manager and vice-president for hotel development Asia, Azuan Noordin, said it was Thailand’s first resort to follow Bora Bora’s and the Maldives’ over-sea villas concept.
Another property, KC Beach Resort and Pool Villas Koh Samui, is scheduled to open in November. It will have eight villas and 47 rooms and suites. A hotel and serviced residence property is scheduled to open in Bangkok’s Pratunam area next year. It will have 700 rooms and serviced residence units.
The company is backed financially by a group of investors from Israel, Canada and the UK. (TTG)


THAI adjusts fuel surcharge

Thai Airways International PLC has announced it will adjust its fuel surcharges on international and domestic flights, effective as of 25 June 2008 onwards, due to the increase in jet fuel cost in the world market.
Pandit Chanapai, THAI’s Executive Vice President, Commercial Department, said that the company had regrettably been forced, due to economic reasons, to re-calculate the fuel surcharges on all classes of passenger travel on THAI flights and air tickets issued by THAI’s sales and ticketing offices worldwide.
The hikes on international fares will range from USD 60.00 on a return trip from Bangkok to Hanoi to a whopping USD230:00 fuel surcharge on return flights between Bangkok and Los Angeles, London or Paris. Surcharges on flights to Australia will be set at USD185:00 whilst those to Europe will start at USD210:00.
Meanwhile for domestic flights on all sectors, the company will collect a fuel surcharge rate of THB 850 per sector, excluding the route Chiang Mai-Mae Hong Son whereby THB 600 will be the going rate.
The company recently announced it was suspending flights on the return route from Bangkok to New York effective as of 1 July 2008 and that it would also reduce the frequency of its direct Bangkok-Los Angeles flights from one daily flight to five flights per week, using 215-seat Airbus 340-500 aircraft until September.
From October, the airline will operate five Bangkok-Los Angeles flights per week via Osaka, using 292-seat Boeing 777-200ER aircraft.


Anantara Golden Triangle named in top 10 ‘World’s Most Responsible Hotels’

Elephant sanctuary highlighted in conservation efforts

Thailand’s Anantara Golden Triangle Resort & Spa has been selected as one of the most socially responsible hotels in the world by Forbes Traveler. Only 10 hotels were hand-picked for inclusion in the list which honors environmental endeavors and guest experiences that Forbes Traveler describes as “milestones of hotel-sponsored humanitarian aid”.

Guests can take a three-day mahout training course at the Anantara Elephant Camp in northern Thailand. (Photo courtesy Anantara Golden Triangle Resort & Spa)

The resort, one of the most luxurious in Northern Thailand, is renowned for its many efforts to protect the environment and promote environmental conservation.
An undisputed highlight of a guest’s stay and the resort’s conservation efforts would have to be a visit to the elephant camp. Set within a lush bamboo forest, the camp is home to 16 adult and 13 baby elephants – all rescued from a life of begging on the streets. On an on-going basis, John Roberts the Elephant Camp director, works closely with the Thai government’s Elephant Conservation Center in Lampang to develop Anantara’s camp as an elephant sanctuary.
At the beginning of the 20th century, there were an estimated 100,000 elephants in the Kingdom. According to latest estimates, the elephant population in Thailand has dwindled to just over 4,000. Some 2,500 are domesticated elephants, while a mere 1,500 roam freely in the wild.
Alarmingly, overall numbers are further decreasing, making projects like Anantara’s Elephant Camp vital to the success of national conservation efforts. With legislation in place to ban elephants from ‘working’ in cities, there are few alternatives for the continued existence of domesticated elephants.
The common sight of elephants today in many large Thai cities appears to be a novelty at first, but the sad reality is that they are used for begging, are often not well fed and live in unsuitable conditions. And that’s what essentially gave birth to Anantara’s Elephant Camp – the realization that an alternative could be offered to the mahouts (persons who drive an elephant), their families and elephants - a place where the animals are rehabilitated in their native habitat and assured of medical care and sustenance, while the mahout and his family are also well taken care of.
Guests at Anantara Golden Triangle are also offered the rare opportunity to learn to ‘drive’ an elephant by choosing to undertake a unique three-day mahout training course. As well as learning the mahout commands and some log rolling skills, guests can take their pachyderm charge bathing, partake in mahout camp life and gain a greater understanding of their three-ton mount from Roberts.
The funds raised from running the Mahout training courses along with guest donations are valuable in ensuring the continued existence of the Anantara Elephant Camp. (eTN)


New budget terminal for Manila airport

The Manila International Airport Authority (MIAA) is building a budget terminal near the Manila Domestic Airport (MDA), to be ready by March 2009.
Catering to airlines using smaller aircraft for domestic routes, the 200-million-peso (US$4.52 million) terminal will have 10 departure gates, 18 check-in counters, and three arrival baggage belts.
The no-frills terminal is targeting an annual passenger throughput of 2.7 million, accommodating 1,000 departing passengers at a time.
The budget terminal is expected to relieve MDA’s passenger traffic. MIAA is expanding MDA to accommodate 1,200 passengers at a time, from 900 now. (TTG)


Bokor Mountain to have Palmer-designed golf course

Bokor Mountain Golf & Country Club, part of Sokha Hotels’ US$1 billion Bokor Mountain development in south Cambodia, will feature an Arnold Palmer-designed golf course.
The 36-hole course will occupy 45 hectares of land near Bokor National Park. Phase one of the project is starting this month, with an 18-hole golf course scheduled to be ready by December 2010. The remaining 18 holes will be added in phase two.
When completed, the project will include a traditional Khmer-style club house, locker rooms with heated plunge pools, accommodation for stay-over clients who may want to catch the first flight at 06.30 before returning to Phnom Penh, a pro shop, tennis courts, a swimming pool, a members’ lounge, restaurants, bars and Jasmine Spa.
The Bokor Mountain development is expected to be fully completed within the next 15 years. (TTG)