Key Source Markets

After decades of turning to the long-haul markets from the industrialised countries for a substantial chunk of business, the Thai tourism industry is stepping up its efforts to look elsewhere.

The present scenario is that visitors from Europe, the Americas, Japan and Oceania generate about 45% of total arrivals. However, over time, this could well drop to 40%, as the Tourism Authority of Thailand (TAT) and Thai Airways International Public Company Limited (THAI) move ahead with plans to broaden the country’s source-market base.
Many factors are contributing to these changes. Visitors from industrialised countries themselves are becoming more inward-looking and staying closer to home due to uncertainty about safety and security. Travel advisories and insurance issues are affecting marketing plans and airline routes.

At the same time, Thai tourism industry sellers are discovering that it is easier and cheaper to market within the medium-haul region.

Thailand realises that two of the world’s most populous countries (India and China) lie within three hours' flying time. Increasing contacts are also being developed with Africa, the Middle East and Russia.

Kenya Airways has just begun flying to Thailand, the third African airline to link the two regions. Arab Airlines, like Emirates, Gulf Air, Qatar Airways and Kuwait Airways, are seeking to boost the frequency of their flights to the kingdom.
THAI has signed four interline agreements with Russian airlines to develop feeder routes from new source-markets like the Russian Far East. In October, THAI will be boosting its flights to new destinations in India. The many new start-up airlines in Thailand are also looking to expand their route-nets within South and Southeast Asia.

This will also require significant changes in the product orientation of the market itself. The Association of Thai Travel Agents, for example, is now working to upgrade the quality of guides speaking Russian, Vietnamese and Chinese.
Hotels will have to cope with new cultural realities, like the vegetarian requirements of Indians and the religious needs of Islamic visitors.

It’s going to be a whole new ball game.

AUSTRALIA

Visitor Arrivals to Thailand in 1997-2002

Source: Immigration Bureau, Police Department The 12 October bomb blast in Bali led to a sharp drop in Australian outbound generally. Thailand experienced a 2.25% decline in arrivals to 355,529, the first drop in annual arrivals from Australia since 1995. Interestingly, there was still an overall rise of 1.8 % in first-time visitors to 148,784. Otherwise, the market has shown robust growth, up from 192,573 in 1995. It has an average length of stay of 11 days and a relatively good average daily expenditure of US$ 81. Though arrivals for leisure dropped last year by 1%, considerably sharper drops were experienced in arrivals for business (-8.2%) and conventions (-14%).

CANADA

Visitor Arrivals to Thailand in 1997-2002

Source: Immigration Bureau, Police Department Although relatively small, the Canadian market has enjoyed strong growth since 1997 when it touched 57,336 arrivals, rising to 101,369 in 2002. It has seen good growth in visitors aged 55+ (up 15% over 2001), and equally strong increases in both first-time (+10%) and repeat visitors (+8%). The market is characterised by a very high percentage of independent travellers (80% of the total), which grew 12% over 2001. Another characteristic is the high 16-day average length of stay. Average daily spending was down 12% to US$ 76 but still generated US$ 124 million for the Thai economy.

FRANCE

Visitor Arrivals to Thailand in 1997-2002

Sluggish is the best word to describe the French market since 1996, when arrivals totalled 205,466 but rose at nowhere near comparable levels to the British market. In 2002, arrivals totalled only 253,463. However, there was an above-average 9% rise in female visitors. The ratio of first-time:repeat visitors was one of the most evenly balanced at 49:51. Business travellers fell by 9.5% to 18,351. The average length of stay was 12 days. Last year saw an 11% growth in average daily expenditure to US$ 76, yielding a US$ 231 million gain for the Thai economy.

ITALY

Visitor Arrivals to Thailand in 1997-2002

Source: Immigration Bureau, Police Department Airline capacity was the primary reason for a total stagnation in the Italian market, which peaked at 130,140 in 1994 and never recovered to that level. However, it did come close in 2002, registering 126,222. Particularly noticeable last year was an 11% growth in female visitors. Like the French market, the Italian market had a nearly perfect 49:51 balance between first-time:repeat visitors. There was also a 22% rise in group tourists, which contrasted against a -2% fall in independent travellers. The average length of stay was 12 days, and an average daily spending of US$ 79 generated a total income of US$ 122 million for the Thai economy.

GERMANY

Visitor Arrivals to Thailand in 1997-2002

Source: Immigration Bureau, Police Department Once the top performer from Europe, the German market became virtually stagnant. Arrivals rose only marginally from 378, 566 to 403,240 in 2002. However, Germans still had one of the highest average lengths of stay, 15 days, and their low average daily expenditure of US$ 66 generated US$ 402 million for the Thai economy. The market was recording above average increases in women travellers (3%), first-time visitors (+2.7%) and group tourists (+10%). In 2002, there was also a huge 49% increase in convention delegates. Business travellers comprised about 6% of the total, but there was no growth in 2002 overall.

JAPAN

Visitor Arrivals to Thailand in 1997-2002

Source: Immigration Bureau, Police Department Japanese arrivals doubled from 581,809 in 1993 to 1.22 million in 2002. Recent years saw a strong rise in women travellers; in 2002, female visitors were up 7% against a 3.20% rise in male travellers. Also clearly noticeable, in line with Japanese demographic trends, was a 16% increase in mature-market visitors aged 55+. Problems in the Japanese economy also saw a 7% decline in Japanese business travellers. The Japanese had an average length of stay of just under 7 days. However, their high spending power meant an average daily expenditure of US$ 99, generating US$ 792 million for the Thai economy.

MIDDLE EAST

Visitor Arrivals to Thailand in 1997-2002

Source: Immigration Bureau, Police Department In spite of numerous problems in the Middle East (including Israel and the Arab countries), cumulative arrivals from this region showed steady growth since 1992, with only a small hiccup in 1996. More could be done to promote female visitors from this market, which was dominated 70% by males. It had a good mix of first-time:repeat visitors (46:54) and a very high percentage of independent travellers (72%). Business travellers comprised 9% of the total and rose 17% over 2001. The average daily spending was US$ 87 which, based on an average length of stay of 11 days, generated US$ 271 million for the Thai economy.

SINGAPORE

Visitor Arrivals to Thailand in 1997-2002

Source: Immigration Bureau, Police Department Due to its small population base, the Singaporean market was approaching saturation point. That, plus the economic situation, saw arrivals grow marginally from 655,767 in 2000 to 683,296 in 2002. However, there was still niche-market potential. Though arrivals from Singapore had one of the highest ratio of repeat visitors (77% of the total), first-time visitors still grew by 9.2% to 154,687. The average length of stay was just over four days, while the average daily spending, US$ 94, was down 7% over 2001. Last year also saw a fall in business travellers (-5%) and convention delegates (-3%).

SCANDINAVIA

Visitor Arrivals to Thailand in 1997-2002

Source: Immigration Bureau, Police Department Cumulatively, arrivals from Denmark, Norway, Sweden and Finland were among the healthiest of performers in Europe, led primarily by visitors from Sweden. The market was characterised by a high average length of stay of 12 to 14 days. It was also seeing considerable interest among first-time visitors, with a corresponding increase in the percentage of group tourists. In line with demographic trends, all four markets saw a steady increase in visitor arrivals aged 55+. Average daily expenditure ranged from US$ 67 to US$ 75.

RUSSIA

Visitor Arrivals to Thailand in 1997-2002

Source: Immigration Bureau, Police Department Russian visitor arrivals were enjoying a steady growth, up from 36,524 in 1999 to 68,978 in 2002. It was the only market from which the number of female visitors outnumbered the males by a ratio of 51:49. In 2002, there was a 33% rise in first-time visitors, which was related to a 35% increase in group tourists. Interestingly, there was a good flow of business and convention traffic, which was up by 169%, albeit off a small base. The average length of stay was 11 days. An average daily spend of about US$ 85 generated US$ 65 million for the Thai economy.

SOUTH AFRICA

Visitor Arrivals to Thailand in 1997-2002

Source: Immigration Bureau, Police Department Arrivals from South Africa yo-yoed over the past few years. Arrivals slumped again in 2002, mainly because of economic problems. Interestingly, the main decline was in repeat visitors (-20%), against which a 2.2% increase in first-time visitors stood in marked contrast. Also reporting strong growth was convention visitors, up 73%, albeit on a small base. The market had a high daily expenditure of US$ 97 and a relatively good average length of stay of just under 10 days. Total spending in the Thai economy was a small US$ 34 million in 2002.

U.K.

Visitor Arrivals to Thailand in 1997-2002

Source: Immigration Bureau, Police Department The U.K. market surged in the last few years, almost doubling from 287,664 in 1997 to 569,812 in 2002. It had a good mix of first time:repeat traffic (46:54) and an average length of stay of 13.5 days. With an average daily expenditure of about US$ 84, visitors from the U.K. generated US$ 641 million for the Thai economy. Independent visitors comprised 80% of the travellers, one of the highest percentages of all. One weak link was the very small number of visitors for conventions, which totalled only 1,853 in 2002, a drop of 4.4% over 2001.

SWITZERLAND

Visitor Arrivals to Thailand in 1997-2002

Source: Immigration Bureau, Police Department Relative to its population, size and economy, the Swiss market was a slow but stable performer. It generated growth across all age groups and across all profile segments. Just under 80% of the visitors were independent travellers, and 40% of the total were aged 45+. There was a high percentage of repeat visitors, 68% of the total. The only dark spot in 2002 was a -6% drop in business travellers to 7,545. The good news was that the average daily spending of US$ 78 was up 13% over 2001, generating US$ 127 million for the Thai economy.

U.S.A.

Visitor Arrivals to Thailand in 1997-2002

Source: Immigration Bureau, Police Department The U.S. market remained one of Thailand’s most consistent performers. Visitor arrivals grew in 2002 to 509,841, a marginal rise of 5.06% over 2001. The U.S. had very high rate of independent travellers (78% of the total) as well as a high percentage of repeat visitors (61% of the total). The average length of stay of nearly 13 days was matched by a strong average daily spending of about US$ 96. However, there were clear signs the market was being affected by safety and health concerns; business travellers in 2002 were the only category of visitors to fall, - 5.7% to 56,074.

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