Arrivals

ARRIVALS FORECASTS
Asia Pacific continues to drive Thailand arrivals

The Tourism Authority of Thailand (TAT) expects 14.8 million visitors in 2007, up from 13.8 million last year. However, the Pacific Asia Travel Association's (PATA) 2007-2009 preliminary forecast shows 14.1 million is more likely, while annual growth should be steady at 7.3% over the next two years.

According to PATA, Asia Pacific countries will continue to provide the bulk of Thailand's visitors, with an average annual growth rate of 7.6% to top 11 million out of the predicted total arrivals for 2009.

OPINION "We have to promote the best of Thailand to compete with the other countries around us who are giving us stronger competition." Tourism Authority of Thailand governor, Phornsiri Manoharn.

The Russian Federation remains the fastest growing regional market, with visitor numbers soaring from 102,783 in 2005 to 174,976 this year, and this is predicted to climb annually by 18% to hit 243,680 in 2009.

PATA predicts Malaysia to maintain its position as Thailand's top contributor in 2007 with 1,402,450 visitors, barely edging out Japan's 1,401,910. However, Malaysia's numbers will move forward 8.1% per year, while Japan's growth will stagnate at 3.8%. It should be remembered that much of Malaysia's arrivals numbers come from cross-border traffic for reasons of work or visiting friends and relatives.

Korea, China and the United Kingdom will stay third through fifth, the only other countries sending 1-million-plus visitors by 2009, while Australia will close in on this mark, with impressive annual growth figures of 16.5% and an estimated 951,640 visitors by 2009.

European numbers are set to climb 6.5% per annum from this year's 3 million to 3.4 million in 2009. However, Germany's growth rate of 2.6% will not keep pace with its neighbours with an expected 506,182 visitors in 2007 and 532,866 in 2009.

Arrivals from Scandinavian countries will continue to grow healthily over the next three years and are predicted to deliver 741,542 visitors by 2009 with Norway and Finland producing growth of 21% and 12.2% respectively according to PATA.

Visitors from the US are expected to total 739,500 this year, with 846,814 arrivals expected by 2009 or a growth rate of 7% over the next two years.

GLOBAL AND REGIONAL COMPETITION
Destination rivalry mounts for Thailand

Thailand is surrounded by competitors looking to grab a piece of the regional and global tourism pie, with Vietnam, Laos and Cambodia all experiencing double-digit growth in arrivals.

"The picture is completely different now than from 15 years ago when Thailand was the place to come," said Pacific Asia Travel Association chief executive officer, Peter de Jong.

"Now people who have been to Asia two or three times are looking for something different. The playing field is crowded and consumers want choice and new experiences." For TAT governor, Phornsiri Manoharn, marketing provides part of the answer.

"We have promoted Thailand in the Middle East for the past 10 years together with hoteliers… but this year there were nine new countries that exhibited at Arabian Travel Mart for the first time. Countries such as China, Taiwan and Macau are all competing with us." Dusit Group chief executive and chairman of the Thai Hotels Association (THA), Chanin Donavanik, added: "The destinations Thailand is in competition with are looking at the issues we face and capitalising on them, and taking advantage of the areas where we know there is an issue but are not doing anything about it." Though Ms Phornsiri tries to remain upbeat, this is often difficult for the private sector, which continues to face obstacles.

Swiss International Air Lines general manager for Thailand, Laos, Myanmar, Cambodia, Vietnam and chairman of the Thailand Board of Airline Representatives Brian Sinclair-Thompson, said: "In other Asian countries such as Singapore and Kuala Lumpur there are incredible incentives to fly into those markets. In Thailand there is nothing like this."

WTTC FORECASRT
Tourism industry to remain pillar of
Thai economy

Thailand's travel and tourism industry will contribute 6.7% (567 billion baht) to the country's gross domestic product (GDP) in 2007 and continue at this rate for the next 10 years to reach 1,256.4 billion baht in nominal terms by 2017, according to the World Travel and Tourism Council's (WTTC) 2007 Tourism Satellite Accounting study.

The study said travel and tourism demand in Thailand will generate 1,706 billion baht in economic activity in 2007, and this amount will more than double to 3,943 billion baht over the next 10 years. This reflects an anticipated growth in economic activity of 5.3% per year through to 2017.

The WTTC report stated that, as an export, Thailand's travel and tourism sector is expected to generate 12.6% of the GDP (765 billion baht) in 2007, and increase to 1,833 billion baht in 2017, but for a slightly smaller portion of the GDP at 11.5%.

In 2007, the travel industry accounted for an estimated 1,946,000 jobs in Thailand representing 5.3% of the country's total employment. According to the WTTC report, this number should reach 2,157,000 by 2017.

Thailand's overall travel and tourism economy employed an estimated 4,110,000 people in 2007 or one in every 8.9 jobs (11.3%), and this is forecast to reach 4,767,000 (11.8%) by 2017.

Thailand's travel and tourism sector should also attract 206 billion baht in capital investment this year for 8.5% of the nation's total, and the WTTC predicts this figure will climb to 511 billion baht (9.3%) by 2017. Government expenditure on the industry is expected to tally 27 billion baht in 2007 for 2.7% of the national budget and increase to 51.2 billion baht (2.8%) in 2017.

TAT MARKETING PLANS
Tourism body has clear marketing vision

In early July this year, the TAT announced the realignment of its marketing strategy to provide a clearer positioning of the country's tourism products.

"We have to promote the best of Thailand to compete with the other countries around us who are giving us stronger competition," said TAT governor, Phornsiri Manoharn.

"The first and most important change that we have made is to reinforce the 'Amazing Thailand' slogan that proved so successful in 1998-99. It underscores the image of Thailand as a peaceful, hospitable country and a yearround tourism destination with high-quality, value-for-money products and services.

This will remain our marketing slogan for the foreseeable future." The TAT governor also revealed that Thailand's tourism products have been reclassified into seven categories under the theme "Seven Amazing Wonders" to market each in a clearly focussed and segmented manner:

• Thainess: Experience The Art of Thai Living – traditional Thai hospitality, lifestyles and cultural tourism products.

• Treasure: Land of Heritage And History – world heritage sites, historical attractions, temples and museums.

• Beaches: Fun, Sun, Surf and Serenity of Thai Beaches – Thailand's ever popular beach resort destinations.

• Nature: Encounter the Sheer Beauty of Thai Nature – national parks and soft adventure/ ecotourism products.

• Health and Wellness: Land of Healthy Smiles – medical tourism and Thailand's worldrenowned spas and health resorts. • Trends: Excite Yourself With a Myriad Thai Trends – boutique hotels, shopping centres, dining and nightlife.

• Festivities: Enchant Yourself With International Festivities In Thailand – the sanuk factor, international events and popular Thai festivals.

For the upcoming year, Ms Phornsiri said:

"The core focus will be on attracting quality tourists with high yield. We will also be spending a lot of time and effort to enhance our e-marketing abilities through the vast online networks, including websites, blogs, discussion forums, travel clubs, and mobile phone messages, especially to reach high-end target groups in places like Japan, Australia and the United States."

BRAND THAILAND
Sophisticated branding would bolster
international image Thailand's tourism industry has matured over the past 10 years, but several setbacks – from Severe Acute Respiratory Syndrome (SARS) and Avian Bird Flu, to the tsunami and political unrest – have taken their toll on the country's reputation.

"The image of the country is suffering from adverse publicity," said media and branding agency Keen Publishing (Thailand) managing director, Mr David Keen. "But all of this could be mitigated with strong, credible print, web and most importantly, publicity branding." Thai tourism has come under fire in the past for its vague positioning and inconsistent message. "Thailand needs to freshen its image.

The country should employ a professional branding agency to revise and define its core DNA and then apply this logic to solid, thorough, design applications," Mr Keen added. He said that designs should "synergise with a well-informed, intelligent web application that allows the user to discover the truth about the country."

Mr Keen said the country's imagery should be clean and imaginative, and "professionally orchestrated TV commercials should take advantage of the wealth of creative talent available in the Kingdom to show off the multidimensional abilities of Thai people."

Though TAT covers the overall marketing direction of Thailand, tour operators play a significant role in publicising and selling the country's tourism products. However, their individual marketing efforts often miss the mark.

"Change the focus of content from Pattaya and Phuket to the wealth of alternative destinations in Thailand such as Chiang Rai, Krabi and the national parks," Mr Keen said. "Content should be intelligent, credible and not full of bland superlatives. The tone of Thailand's messages should evolve to be crisp, intuitive, and enable the reader to get a true understanding of the country's numerous assets."