ASEAN and
THE Mekong REGION

 

SURGE IN ARRIVALS FROM VIETNAM
A bilateral visa-waiver agreement between Vietnam and Thailand is one of the primary reasons for making Vietnam one of Thailand’s fastest growing sources of visitor arrivals.

Visitors have almost doubled in two years, from 56,959 in 2000 to 80,071 in 2001 and 97,996 in 2002, making it the fastest growing market amongst ASEAN countries. Bilateral trade and investment is also on the rise.
There are 67 flights between the two countries by THAI, Vietnam Airlines, Air France, Lufthansa and PB Air. Outbound Thais to Vietnam are also rising, from 21,851 in 2000 to 39,092. This adds to the overall profitability of the routes and gives airlines an incentive to boost capacity. Recently, Lufthansa announced that it was re-instating thrice weekly flights from Bangkok to Ho Chi Minh City.

The profile of Vietnamese visitors to Thailand in 2002 showed some interesting trends:
• An average length of stay of 6.02 days and an average daily expenditure of 3,873 baht, even higher than the 3,222 baht average daily expenditure of the Europeans.
• A strong rise of 36.76% in first-time visitors to 54,490.
• In line with that, arrivals as part of a group tour totalled 49,855 or +39.57%.
• Independent visitors rose by 8.55% to 48,141 in the same period.
• Vietnam is a good low-season market. Its peak outbound season falls in the summer months of July-August, when there is a surge in arrivals to Thailand.
• Convention delegates were up by 53.32% to 4,572 in 2002.
TAT surveyed the Vietnamese market in 2002 and found that Vietnamese like to travel to Thailand because of its “many beautiful places, famous landscape, delicious cuisine, and strong images of both the Buddhist religion and Western culture.”
Vietnamese travellers like to shop, visit historical places and experience Thai culture and traditions. Most of the shopping is for clothes, shoes and souvenirs. This is because the diversity of product availability in Thailand is better than in Vietnam, the survey showed.

Among other conclusions of the survey:
• Vietnamese travellers like the nightlife in Thailand.
• Thailand is considered a good family destination due to good sight-seeing opportunities, friendly people, beautiful beaches, “great food and drink”, all of which can help them enjoy their time with friends and family.
• Many Vietnamese visitors are married couples and colleagues travelling together.
• Thailand is considered a good place for Vietnamese businesses to hold their meetings and incentives because it is only a short distance away and much less expensive than Europe or America. They also see Thailand as an appropriate place to set up branch offices for their businesses.
• Word of mouth is a powerful factor in influencing Vietnamese travel decisions.
Because Vietnamese see travel as a ‘luxury’, the market survey suggested that the products they are offered must be unique, convenient and identify with the places they visit.

Creating a visa-free zone for
intra regional travel by citizens of the 10- member Association of Southeast Asian Nations (ASEAN) is a major goal of the first ASEAN Tourism Agreement signed by heads of state at their 8th Summit in Phnom Penh, Cambodia, on 4 November 2002.

The agreement sets 2005 as the date by which to achieve this major goal. The words ‘in principle’ have been inserted into the agreement in order to accommodate those countries that may not be ready for it by that time.
If it does materialise, however, the agreement will go a long way towards promoting greater intra-regional trade, commerce, investment and tourism, the primary goal of the wider ASEAN Free Trade Agreement.

It will also help cement one of the key strategies of the Thai government to position the kingdom as a “Tourism Hub” of both the Greater Mekong Subregion (GMS) and Association of Southeast Asian Nations (ASEAN). Thailand is fortunate to be strategically located right at the heart of both these groupings.

However, due to recent security concerns, visa and border-control policies have come under review in several countries. ASEAN national tourism organisations are keeping a close watch on these changes, which have a critical impact on their marketing campaigns, especially the ongoing ‘Visit ASEAN Campaign.’

While recognising the security concerns, they are still pushing to:
• Expedite the conclusion of bilateral visa exemption arrangements;
• Facilitate visas on arrival for ASEAN nationals;
• Encourage the use of smart cards for ASEAN business and frequent travellers and, where appropriate, for cross- border travel.

The feeling is that the interests of the security and tourism industries must be balanced. Indeed, it is clear that over the last few years, several Mekong countries have liberalised their visa policies, and gained many benefits.
Cambodia’s visa-on-arrival policy has made it the region’s fastest growing tourism destination. Anyone can get a visa at Phnom Penh and Siem Reap airports upon filling out a form, providing a photograph and US$10 fee. In 2002, Cambodia had the highest growth in visitor arrivals of all ASEAN countries, up 30% to 786,524 (by air at Phnom Penh and Siem Reap, its two main international gateways).

Laos, emerging as a major tourism competitor to Cambodia, gives entry visas at 11 international checkpoints, including Pakse, Luang Prabang and Vientiane international airports, six overland checkpoints with Thailand and one each with Vietnam and China.

Of the 735,660 visitors to Laos in 2002, a total of 417,320 came over the Friendship Bridge from Thailand. Arrivals at other checkpoints are also rising, with 45,489 arrivals at the Houixay checkpoint, 75,461 at Savannakhet and 39,720 at Champassak.

Laos is to host its first ASEAN Tourism Forum, the region’s signature travel trade show, in January 2004. So far, it has not indicated any change in visa policy in spite of security-related incidents there.

Myanmar has not relaxed its universal visa-requirement policies. However, it now allows international tourists with visas to enter the country through the five border checkpoints from Yunnan or Thailand and leave by air from Mandalay or Yangon.
It grants visas on arrival only to packaged visitors by cruise-line and charter flights. Individual travellers from countries with no Myanmar diplomatic missions can apply for a visa on arrival through licensed agencies in Myanmar or direct with the Ministry of Hotels and Tourism.

Thailand, too, has had to revise its visa-free and visa-on-arrival policies due to security concerns. Visa-free entry facility is now granted to citizens of 37 countries, allowing them to stay in Thailand up to 30 days, down from 58 countries previously. The 15-day temporary tourist visa (visa on arrival) facility is extended to passport holders of 15 countries, down from 96.
However, the 52 countries on the visa-free or visa-on-arrival list still generate about 80% of total visitor arrivals.

Visitor Arrivals to the GMS Countries IN 1997-2001
Country
1997
1998
1999
2000
2001
Cambodia
218,843
186,333
262,907
351,661
408,377
Laos
463,200
500,200
614,278
737,208
673,823
Myanmar
197,726
198,795
206,243
201,993
Thailand
7,221,345
7,764,930
8,580,332
9,508,623
10,061,950
Vietnam
1,715,637
1,520,128
1,781,760
2,150,100
2,330,050
Yunnan*
1,000,000
1,130,000
Source: Pacific Asia Travel Association (PATA)’s Annual Statistic Report *Estimated figures

 

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Diethelm Travel (Thailand) Limited, 14th Floor, Kian Gwan II, 140/1 Wireless Road, Bangkok 10330
Tel + 66 (0) 2255 9150 Fax +66 (0) 2256 0248

Email: dto@dto.co.th