Interesting story over at Hozpitality talking about the fact that while Thailand's number of visitors is increasing the yield per tourist is going down. Specifically, Abhisit said:
To me that means we need to attract higher yield, higher disposable income, higher spending leisure and business visitors.
The article goes on to make some points that I'm sure aren't going to shock many expats or tourists but seem to be the first time that people are openly discussing these issues.
However, macro statistics like this are increasingly misleading. Look closer and you'll discover that long-haul, long stay, higher spending visitors are being replaced by shorter stay mid-market visitors who spend less per capita per visit.
A new and unsustainable trend has emerged. The country has to run faster to stay still. Because more tourists stay shorter and spend less, Thailand needs to maintain double digit growth in arrivals just to match the preceding year's tourism earnings.
More hotel beds and airplane seats creates over capacity. Empty hotel rooms and low load factors are causing price dumping and desperate short-term marketing pitches to mass market suppliers.
The author notes:
Political instability, long queues at Suvarnabhumi airport, over-crowding and environmental degradation are also damaging the brand. Such all-too-visible problems are 'amazing' in the eyes of tourists who are used to high quality travel experiences in Europe, Japan, Australia and the United States. Thailand's brand is becoming more 'amazing' for all the wrong reasons.
Because of a toxic tom yam mix of political, capacity and branding issues, Thailand is witnessing the flight of quality to alternative destinations such as Malaysia, Vietnam, Sri Lanka and the Maldives.
he also goes on to say:
If you're going to build, stop building so many hotels and start building iconic mega projects.
Singapore bravely built the Marina Bay Sands, Universal Studios and added F1 night races. Hong Kong opened Disneyland and Ngong Ping 360. Malaysia has announced Legoland. Thailand has very little 'new' to offer except more amazing sales and discount prices. It's not a sustainable proposition.
Bangkok has added a skytrain, an underground train network and a new airport, all in the last 11 years. The country can deliver on ambitious goals when it acts as one.
Thailand really does seem to be caught between a rock and a hard place on this one. As the author points out, Thailand has to keep running faster and faster just to stay still. With almost zero investment in super-projects like theme parks and such that will pull in tourists with money to spend Thailand becomes less and less attractive as a tourist destination.
I think this "flight of quality" as the author terms it is made even worse because there's long been an attitude by people who service the tourist crowd that the tourists will just keep coming. There is absolutely no such thing as "the customer is always right," here. Who cares if you get pissed off? Another tourist will be coming tomorrow.
That might sound like I'm talking about the scams and ripoffs but I'm really talking about the desire for repeat business. I've stayed at hotels all over the world and for the most part the smaller they are the more they try to stay in contact. I still get emails from a bed and breakfast I stayed at on an island in Mexico nearly a decade ago telling me about what's going on on the island and inviting me to come back. I've probably stayed in two dozen different hotels in Thailand and have yet to get a single follow up email. Once I'm gone they don't care if I ever come back.
This is for farang and Thai owned businesses. It's just a mentality people develop. They start to believe that the tourists will keep coming no matter what kind of experience they have.
I think that until that mentality changes that will be the biggest hurdle for Thailand in regards to tourism.
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Interesting story over at Hozpitality talking about the fact that while Thailand's number of visitors is increasing the yield per tourist is going down. Specifically, Abhisit said:
The article goes on to make some points that I'm sure aren't going to shock many expats or tourists but seem to be the first time that people are openly discussing these issues.
The author notes:
he also goes on to say:
Thailand really does seem to be caught between a rock and a hard place on this one. As the author points out, Thailand has to keep running faster and faster just to stay still. With almost zero investment in super-projects like theme parks and such that will pull in tourists with money to spend Thailand becomes less and less attractive as a tourist destination.
I think this "flight of quality" as the author terms it is made even worse because there's long been an attitude by people who service the tourist crowd that the tourists will just keep coming. There is absolutely no such thing as "the customer is always right," here. Who cares if you get pissed off? Another tourist will be coming tomorrow.
That might sound like I'm talking about the scams and ripoffs but I'm really talking about the desire for repeat business. I've stayed at hotels all over the world and for the most part the smaller they are the more they try to stay in contact. I still get emails from a bed and breakfast I stayed at on an island in Mexico nearly a decade ago telling me about what's going on on the island and inviting me to come back. I've probably stayed in two dozen different hotels in Thailand and have yet to get a single follow up email. Once I'm gone they don't care if I ever come back.
This is for farang and Thai owned businesses. It's just a mentality people develop. They start to believe that the tourists will keep coming no matter what kind of experience they have.
I think that until that mentality changes that will be the biggest hurdle for Thailand in regards to tourism.
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