War to dampen Thai tourism - Business Travel

Business Asia, March, 2003

Fears of a war in Iraq have taken a heavy toll on Thailand's tourism industry, which has seen a plunge in group tour bookings this year, a top industry executive says.

Apichart Sangkha-aree, vice-president of the Association of Thai Travel Agencies (ATTA), said that Thai tour operators had received significantly fewer advance bookings from American, European and Middle Eastern groups for the next summer season.

"The hardest hit are high-end Thai hotels, some of which have found room bookings disappearing. In a normal year, most summer group tours would have confirmed their bookings by now. For this year, we have got only 20 to 30 per cent of them," Apichart said.

Some 10.9 million foreign tourists visited Thailand in 2002, up 7.3 per cent from 2001. Of those visitors, 22.8 per cent came from Europe, 4.8 per cent from the United States, and 2.5 per cent from Middle East countries.

Last minute

Apichart said a possible US-led attack on Iraq had persuaded tourists to put off hotel bookings until the last minute while they wait for the Iraqi disarmament issue to unfold.

"ATTA members now mostly get tour group booking confirmations only a few weeks in advance, compared with three to five months in previous years," said Apichart, also owner of Thailand's AED Travel Agency.

He said cheaper Thai hotels catering to foreign budget travellers were less affected by the Iraq issue because their clients were made up of younger people less worried about security and international conflicts.

Thai Tourism and Sports Minister Sontaya Kunplome was more bullish about the Thai industry's outlook this year, saying any drop in European and American arrivals would be offset by more intra-Asia travel.

The Minister said tourist arrivals should grow at least six per cent in 2003 to about 11.3 million.

"We should at least feel the impact, but its extent will be determined by the duration of the war. I think we would hardly feel it if fighting ends quickly. Thailand will adjust by focusing more on Asian tourists," Sontaya said.

The Minister said he expected the number of Chinese tourists to increase by between 20 and 30 per cent this year after it rose 9.8 per cent to 763,708 in 2002.

He said South Korean tourist arrivals should also rise sharply in 2003, after a steep 29.6 per cent jump in 2002.

Reuters

RELATED ARTICLE: Pan Pac's new package aiming for leisure travellers.

Pan Pacific Hotels and Resorts, owners of the Pan Pacific Kuala Lumpur International Airport Hotel, has released a new package that is intended to specifically fulfil the wishes of leisure travellers.

Launched late last year, the Pan Pacific Leisure Package has been designed to provide competitive rates along with value-added benefits. Guests will enjoy such benefits as full American/buffet breakfast for up to two adults, food and beverage credits, retail offers and extended check-out until 3pm, as well as complimentary amenities which include local newspaper, local phone calls, children's policy for room and meals, access to fitness club facilities and mileage rewards. As an added convenience, most Pan Pacific properties are offering families the option to book an adjoining or connecting second room, which is available at a nominal surcharge. Pan Pacific Kuala Lumpur International Airport is a five-star deluxe property located adjacent to Kuala Lumpur International Airport in Sepang. Guests of the hotel will enjoy accommodation that features the latest technology, elegant ambience, exceptional service and warm Malaysian hospitality. The hotel is within easy access of the airport.

Located on 2.25 hectares of land, the hotel's U-shaped building showcases the latest in airport technology. Boosted by its location within Cyberjaya, Malaysia's very own Silicon Valley, the hotel's strategic position also promises its guests easy access to the country's Multimedia Super Corridor.