With fears of a second wave of the pandemic in Thailand yet to dissipate, event organisers and government agencies are rushing to ensure New Year celebrations and consumer sentiment will not be spoiled by the invisible enemy of the state.
A 40-metre-tall Christmas tree lights up CentralWorld mall in Bangkok's Ratchaprasong area ahead of the Christmas and New Year period. New Year countdown events are proceeding despite negative factors, though organisers are required to follow safety standards. (Photo by Wichan Charoenkiatpakul)
This year's New Year countdown celebrations may have to be divided up into a number of small zones with a limited number of participants in attendance. A traditional gathering with a large crowd at a single site could quickly become a super-spreader event with the presence of just one infected person, according to the Centre for Covid-19 Situation Administration (CCSA).
Concerns have intensified following the announcement over the weekend of 576 new coronavirus infections, the majority of which originate in the province of Samut Sakhon, located some 48 kilometres southwest of Bangkok. Event organisers may face even more of a dilemma in terms of their plans for celebrations and events to mark the New Year as members of the public, already concerned following the lockdown experience during the second quarter, will likely skip formal countdown celebrations for fear of triggering a fully-fledged second wave.
MANAGEMENT RETHINK
Sermkhun Kunawong, chief executive of CMO Plc, a creative event management company, said the poor economy and the recent Big Mountain Music Festival fiasco have led the event organisation and management business to have a complete rethink when it comes to managing events.
"In the wake of Big Mountain Music Festival and the recent new cases of infection in Chiang Rai, many companies have already cancelled their events, while others have shelved them for the time being. We have to be more careful about arranging events of the same scale as Big Mountain. If participants at such an event do not comply with the safety measures, the performances on the stage must come to an immediate stop," Mr Sermkhun said.
Provincial workers in Samut Sakhon prepare to spray disinfectant at 'Talad kung' (the shrimp market). (Photo by Samut Sakhon Provincial Public Relations Office)
Even without the pandemic restrictions, companies should always have contingency plans prepared for various scenarios, he said.
"The new cases of Covid-19 infection in Chiang Rai led the event business to stumble slightly, but things have begun to gradually improve. We believe people's concerns about the possible spread of Covid-19 will remain until the first half of next year," said Mr Sermkhun.
He said the event marketing business in Thailand is expected to lose 5.6 billion baht in revenue in 2020 due to the pandemic.
"The event marketing industry has felt the impact of the pandemic since late last year, when the Covid-19 outbreak was first reported in China. The situation reached a nadir in the second quarter. This could possibly lead to the industry contracting by 40% by year-end," said Mr Sermkhun.
Event marketing services in Thailand generate about 14 billion baht per year.
He said spending on marketing events in the fourth quarter of 2020, which is normally the peak season for the event marketing business, failed to meet expectations.
Many companies including Megabangna mall have cancelled their year-end activities. Companies that are organising activities have cut their spending budget by 30-40% year-on-year, said Mr Sermkhun.
Overall spending on the event business for New Year's Eve is expected to fall 50% from the usual level of 300 million baht, he said.
However, Mr Sermkhun is upbeat about next year's prospects, predicting event marketing will recover to 80% of 2019 levels, driven by automotive and communication businesses, which are expected to become more active in launching their new products.
"Feedback from the recent Motor Expo has been very positive and we are confident automotive companies will resume holding their own marketing events to boost their sales next year," he said.
The finance sector including both banks and non-banks is likely to be active in event marketing next year, helped by flourishing online business.
Mr Sermkhun expects the event business to be back to normal in 2022, but the market's landscape will have completely changed with the market opting to hire more freelancers instead of full-time staff.
A Thai Beverage source, who requested anonymity, said the country's largest beverage producer plans to arrange 17 Chang Chill Park beer gardens across the country this year, similar to the number operating last year. Some would be the company's own beer gardens, while others would be sponsored, the source said. Of the total, about 12 would be in Bangkok, with the remainder in the provinces of Nakhon Ratchasima, Ayutthaya, Nakhon Pathom, Khon Kaen and Ubon Ratchathani, said the source. One upcountry event in Chiang Rai was cancelled after new infections were reported.
"To comply with social distancing measures, we have extended the space available at our own beer gardens. With more space, drinkers will have more room in which to dance and enjoy themselves. People are still in the mood for celebrating -- this aspect remains unchanged," the source said.
Wallapa Traisorat, chief executive of SET-listed Asset World Corp Plc (AWC), operator of Asiatique The Riverfront retail project, said following a good response from customers at its Loy Krathong event, the company remains confident consumer sentiment overall remains positive.
Asiatique plans to go ahead with its countdown event on Dec 31, but the company decided to cancel the concert activities. It is also reconsidering its beer park events. Since the beer parks are located in the provinces of Ayutthaya and Nakhon Pathom, the company is ready to comply with the government's policy on safety measures, according to the firm's latest statement.
Festive decorations at CentralWorld, one of the most popular locations for marking the passing of one year to the next. (Photo by Pongpet Mekloy)
COUNTDOWN OR LOCKDOWN
While major concerts planned for the winter have gradually disappeared from the calendar, as private organisers fret about the possibility of contagion among concert-goers, some government-sponsored events are proceeding as planned to maintain positive sentiment.
New Year's countdown events that government agencies helped organise in Bangkok and the provinces are scheduled to take place as planned, unless a revised order is issued by the CCSA to cancel them, said Yuthasak Supasorn, governor of the Tourism Authority of Thailand (TAT).
However, Mr Yuthasak acknowledged that the news of a spike in new cases in the country, representing the biggest jump within the last nine months, had definitely destroyed the mood for celebrating the festive season.
Although organisers are able to proceed with their plans, they must conduct safety measures and apply them stringently, he said.
"We have to prepare ourselves in a standby mode. If the government decided to cancel all celebrations to curb the spread of the virus, we would follow such directions strictly as we did with regard to the Songkran Festival," said Mr Yuthasak.
People will automatically avoid mass gatherings, such as countdown celebrations, in order to avoid being forced into another lockdown, said Mr Yuthasak. While people are not obliged to stay at home and can continue to travel within the country, it would be best to head for less crowded destinations in low risk provinces, he said.
The TAT had earlier arranged countdown events at different locations to help disperse the flow of tourists and avoid a mass gathering in one place. Social distancing will be adopted to limit the number of attendees, he said.
Celebrations in the capital are planned to take place at Iconsiam, CentralWorld, Siam Paragon, The Emporium, The EmQuartier and the Ratchaprasong area.
Countdown festivals are also scheduled to take place in provincial areas, such as Singha Park in Chiang Rai, Koh Phi Phi in Krabi and Patong in Phuket.
Regarding concerns about a second wave and reports of new local cases, he said people should not panic and must follow public health protocols while in public areas.
Mr Yuthasak said another negative factor that may hinder celebration plans is a recurrence of toxic PM2.5 fine dust particles.
The agency plans to monitor the air quality during the end of the year before making any further decisions about the New Year events.
He said the haze usually occurs in the morning and the air quality often improves throughout the day, which might not affect events held in the evening.
At present, none of the organisers want to cancel their countdown events. However, the agency will follow developments closely this week, particularly with regard to the new cases and any subsequent directions provided by CCSA, he said.
Thirayuth Chirathivat, chief executive of Centara Hotels and Resorts, said New Year countdown events can still proceed despite all the negative factors, assuming event organisers observe a high level of safety standards.
As the incubation period for Covid-19 from new local infections has passed and the situation is under control, it should be safe for tourists to continue with their travel plans, he said. Still, relevant government agencies need to be even more careful in carrying out preventive measures, said Mr Thirayuth.
While the unsafe level of PM2.5 dust particles will certainly affect travel sentiment in Bangkok to some degree, everyone wears face masks to prevent the spread of Covid-19, so the haze might not be a huge concern, he said. The haze would not affect hotel businesses because guests can focus on indoor activities instead, said Mr Thirayuth.
Forward bookings for Centara Grand at CentralWorld stand at 60% for Dec 31, but the hotel expects to be fully booked in the last week of the month thanks to its prime location and special offers aimed at attracting guests, he said.
Mr Thirayuth said without international arrivals, the guest profile would be different than usual this year. However, expatriates and local visitors should help fill up the rooms during the New Year celebrations, he said.
A source from retail property developer Central Pattana Plc (CPN) said the company remains committed to holding countdown events in 11 provinces as planned, but may cancel events in some provinces to comply with the government's safety measures. CPN has cancelled a press conference scheduled for tomorrow (Dec 22) regarding its countdown activities, pointing out that the company needs to monitor the situation and await a government announcement regarding directions and safety measures.
UPBEAT SHOPPING
Voralak Tulaphorn, chief marketing officer at The Mall Group, one of the country's leading department store chains, said although shoppers seem to be more careful following new infections in northern provinces, the company would maintain its business strategy for the festive season.
"Spending on shopping in the fourth quarter has fared quite well thanks largely to the government's consumption stimulus measures, but the new infections in Chiang Rai affected the consumer mindset, resulting in a slight hiccup in their spending. Their spending during the festive season may be more cautious than during the same period last year," Ms Voralak said.
With shoppers paying greater attention to the pandemic, the Mall Group beefed up its safety measures at all of its retail complexes, while stores remain decorated to retain a festive atmosphere, she said.
"The mood and tone at The Mall Bang Khae and Nakhon Ratchasima are very good. We've joined hands with Singha Group for the first time this year, to arrange a 'My Space' area for a lifestyle garden, providing various food, drink and music to suit customers. The platform for marketing events needs to be changed in line with the retail situation," Ms Voralak said.
As the conditions to arrange marketing events must comply with the government's safety measures, the Mall Group has shifted towards promotions.
Consumer research found they want to be offered more value as they are cautious about their spending.
Miss Thiranant Kornsritipa, Executive Vice President – Retail Business Development, Frasers Property Commercial (Thailand), said the mood there is positive because both the mall and its tenants arranged events for shoppers during the festive season.
The company is offering a "milk park" for a second year from Dec 24-31. Following the success of last year's event and to cope with social distancing, the mall is increasing the space for the event by 30% from 300 sq m. The event is now being held indoors for more efficient control of shoppers and to comply with safety measures.
"After the lockdown measures, our business is now 80% back to normal conditions. We are confident our milk park will be a safe alternative for shoppers to visit," Ms Thiranant said.