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Business >> Wednesday July 23, 2008
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TOURISM

Short-haul visitors new focus for firms

Asians can help offset low European number

CHADAMAS CHINMANEEVONG

Tourism-related operators must focus on short-haul tourists to offset a falling number of long-haul tourists, who have been hurt by soaring travel costs. Prakit Chinamourphong, president of Thai Hotels Association (THA), said the number of long-haul tourists, particularly from Europe, has declined by 10% since the start of the year as higher oil prices have increased travel costs by over 30% from last year.

The number of chartered flights is decreasing significantly due to rising fuel surcharges. However, the number of short-haul tourists is growing.

''Tourism-related operators should target travelers from Asia such as China, Japan, India and Middle East,'' he suggested.

According to the Tourism Authority of Thailand, occupancy rates averaged 64.2% in the first five months of the year, compared with 61.6% for the first half of 2007.

But Mr Prakit said bookings are now made only three months in advance, compared to 6-8 months in the past, although this excluded popular destinations like Phuket and Samui.

This shows that tourists are slowing down their trips and may reserve their accommodations at the last minute through cheaper internet bookings, he said.

Methee Tanmanatragul, president of the THA's Southern Chapter, said the average occupancy of hotels in the south would stay about 60% this year, down from 70% last year. However, the figure is still uncertain, depending on fuel prices and economic and political circumstances.

Currently, rising fuel prices have pushed up travel costs at least 30% in general, and even 100% for long-haul travelers from some countries in Europe.

''European travelers are turning to mono-destinations and will visit many tourist destinations in the same region. Arrivals will decline but those who arrive will stay between 10-14 days because they will opt to stay in the same region to save air fares,'' Mr Methee said.

He felt the negative impact of fuel prices on the tourism business and the economy would continue until next year.

Operators, especially tour agents and hoteliers, should turn to new groups of travelers such as those from Middle East, China and India, to survive.

In addition to fuel prices, political problems and violence in the far south are major concerns that can compound negative effects on the tourism business, Mr Methee said.

Surapong Techaruvichit, vice-president of THA, said if global fuel prices were stable, tourist arrivals and the hotel businesses would improve gradually. However, he is not quite confident in brighter prospects due to the current fluctuation of global oil prices.

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