Shifting sands hit ice cream sales
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Shifting sands hit ice cream sales

Change in profile of foreign tourists to blame

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The changing profile of foreign tourists visiting Andaman coast provinces such as Krabi and Phuket is expected to challenge ice cream sales in the area, say local ice cream dealers.

Noppanut Ittitanachot, general manager of Navasorn Distribution Co Ltd, an ice cream dealer in Phuket, said 80% of the company's ice cream sales come from tourists, both Thais and foreigners.

Before the pandemic, the tourist demographic was mainly from Europe and China, with an influx of Russian and Ukrainian tourists during the pandemic, she said.

Ms Noppanut said Europeans are the biggest spenders on ice cream.

She estimated Europeans typically purchase up to three ice cream cones a day, while Chinese tourists purchase 1-2.

However, after the pandemic more tourists are arriving from India and the Middle East, with visitors from Europe shrinking, said Ms Noppanut.

As of April 20, Thailand has welcomed more than 11.2 million foreign visitors, up 0.5% year-on-year, according to the Economics Tourism and Sports Division of the Tourism and Sports Ministry.

The top five source markets were China, Malaysia, Russia, India and South Korea.

Tourists purchase ice creams from a vendor in Krabi.

Tourists purchase ice creams from a vendor in Krabi.

Ms Noppanut said Indian holidaymakers often come in large families and spend less on ice cream, with many sharing their ice cream among family members.

She said while these trends in Phuket might not fully represent the entire southern Thailand market, a similar pattern can be observed in other Andaman destinations such as Krabi and Phangnga where tourists have comparable behaviours while travelling.

Paritta Sibunruang, manager at Naowakit Supply, an ice cream distributor in Krabi, said sales depend mostly on the tourism industry, with around 65% of the company's ice cream sales coming from tourists, while the remainder comes from locals.

Ms Paritta said the majority of tourists visiting Krabi are foreigners, as the area's higher cost of living leads to increased travel expenses.

"Thai tourists often perceive Krabi as a pricier option than other parts of Thailand," she said.

There is a change in the demographic of tourists in Krabi, shifting from predominantly Chinese and European visitors, particularly from Scandinavian countries before the pandemic, to more Indian tourists today, she said.

Ms Paritta said this change could impact ice cream sales, as Indian tourists may not consume as much ice cream as European visitors.

Another trend she observed is that foreign tourists are opting to purchase ice cream from convenience stores where prices are fixed, leading to fewer sales for local vendors whose prices might be slightly higher.

For the second half of this year, Ms Paritta expressed concern about new competitors entering the market and the overall weak spending power of consumers in Krabi.

"Sales rely heavily on tourism. Any measures that can enhance the tourism industry in our area will boost ice cream sales," said Ms Noppanut.

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