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Is Thailand Stagnating to Death as a Tourist Destination?


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Interesting article as Macau is now the #1 gambling destination in the world and Singapore is #2 (with Las Vegas being #3). Seeing the huge cash people are willing to spend now the amusement parks are lining up to build family oriented theme parks.

Will Thailand wake up and get in on the tourism shift or will it be too busy deciding which color of shirt to wear and running "Amazing Thailand" commercials in India to take notice?

Theme park designers follow casino companies to Asia

Steven Stradbrooke

July 28, 2011

In his conference call with investors on Tuesday, Las Vegas Sands’ CEO Sheldon Adelson took the rather unnecessary step of stressing the importance of Asia to his company’s bottom line. He also mentioned the need for casino companies to offer their Asian customers more amenities than mere gambling. “I’ve been saying that ever since we opened the Sands in 2004, that anybody that opens any property should be required to have a matrix of both gaming and non-gaming activities.”

Some of the same people brought in to help diversify the resort casino offerings are also making their mark away from the casino floor. Kelvin Chan, a business writer with the AP, recently shone a spotlight on how western amusement park designers are shifting their focus from the slumping USA to ascendant Asia. PricewaterhouseCoopers estimates that spending by Asian theme park visitors will rise to $8.4b by 2012, driven by the rapidly expanding ranks of the region’s middle class.

Shanghai will see a Hello Kitty theme park designed by a Pasadena-based company open in 2014, while a $3.7b Disney-branded park is set to open in Shanghai two years later. A Burbank company is designing a park near Beijing based on the traditional Chinese tale Monkey Kingdom. Universal Studios, which already operates at the Resorts World Sentosa integrated resort in Singapore, will open a theme park in Seoul, South Korea in 2014, while Legoland is set to make its Asian debut in Malaysia in 2013.

But just as western online gambling companies looking to open Asian-facing operations need to understand the market they’re serving, the same is true for theme park designers. KB Creative Advisors’ Kevin Barbee, who’s working on several Universal Studios attractions, points out that Asia’s multi-generational families don’t necessarily go to theme parks looking for the exact same experience as an American family. “If you have a roller coaster, the youngest is probably too short to go on and oldest ones don’t want to be spun and twisted.” In other words, know your marketplace, or it’s you who’ll get taken for a ride.

http://calvinayre.com/2011/07/28/business/theme-park-designers-follow-casino-companies-to-asia/?utm_source=rss&utm_medium=rss&utm_campaign=rss

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I don't think that legalising gambling would be the answer for Thailand as tourist destination. Thailand does not need to compete with Macau or Singapore in the gambling market.

I already posted a reply to a thread earlier here that I see a huge market opening up for Thailand as soon as the billion factory workers in China increase their living standard and can afford to travel (may take 10-20 years) Thailand with its close proximity to China, climate and existing holiday infrastructure will be their number one holiday destination.

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Will Thailand wake up and get in on the tourism shift or will it be too busy deciding which color of shirt to wear and running "Amazing Thailand" commercials in India to take notice?

No, and they dont busy deciding of any color, its old fashioned and outdated.

I heard people in power talked yesterday that they will be more concern about how much money a tourist pay than how many of the tourist arrivals as they realized cheap tourist are destructive and ruin the places.

Is this bad news for many of us here ?

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Best situation is many big fish (1 big fish = lots profit) and many small fish (many small fish = collective big profit).

Anyhow, Thailand is still my favourite tourist spot of all. India comes second, only because it is too far away from my hometown and of course, I can't usually feed wild catfish (do they even have them there at all?) in India without attracting stares.

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No, and they dont busy deciding of any color, its old fashioned and outdated.

I heard people in power talked yesterday that they will be more concern about how much money a tourist pay than how many of the tourist arrivals as they realized cheap tourist are destructive and ruin the places.

Is this bad news for many of us here ?

That's all talk. TAT has been advertising like crazy in India and China. Having been on a few "tourist" trips before I left I noticed the huge increase in Indian and Chinese Cheap Charlies that would make an English teacher in Pattaya look like a millionaire. They bring their own food so they can skip paying the overpriced tourist restaurant prices, haggle about every last baht, etc.

This is the result of the last 5+ years of Thailand trying to diversify their tourist base away from farang, Japan, and Australia. It's been a horrible failure.

It's funny too because TAT keeps talking about arrival numbers and if you looked just at that statistic Thailand seems to have recovered quite nicely from [iNSERT SOME ANY/ALL OF THE PROBLEMS THAILAND HAS FACED IN THE LAST FEW YEARS] but ask the business people and they say it's never been worse. On Monday TAT announces record arrivals at BKK and on Tuesday the hotel association publishes numbers showing the lowest occupancy rates in the last 3 years.

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I don't think that legalising gambling would be the answer for Thailand as tourist destination. Thailand does not need to compete with Macau or Singapore in the gambling market.

I already posted a reply to a thread earlier here that I see a huge market opening up for Thailand as soon as the billion factory workers in China increase their living standard and can afford to travel (may take 10-20 years) Thailand with its close proximity to China, climate and existing holiday infrastructure will be their number one holiday destination.

It's not necessarily about attracting gambling. The story is about how big theme parks are now following the tourists. Singapore already has Universal Studios. Hong Kong (just across the bay from Macau) has Disney World. Now other theme parks are taking notice and looking to open properties in Asia.

But nobody is eyeing Thailand. First off is the unstable political environment (more fallout from the red shirt protests and the yellow shirt airport closures - thus my comment about worry about what color shirt to wear) but more importantly is that many Asian countries/cities are more welcoming to both foreign investment as well as foreign culture.

I mean, look at Singapore. When they opened up the Marina Bay resort they have a Disney The Lion King dance production going that is on par with anything you could see in NYC, Las Vegas, or London. It's a world class production with an international lineup.

Sing has a stop on the F1 tour, some of the biggest (international) concert events in Asia, etc.

It's about the attitude towards tourism. What has Thailand built in the last 10 - 20 years that warrants people coming to visit? Shopping centers? The prices are the same or more than back home for most people so no big savings there. Any mega-resorts? Any world-class theme parks? How many world-class events, concerts, etc are they hosting?

To get the big tourist dollars you have to have the kinds of things people with fat wallets want to pay money to see. I have a friend who works for Disney in the theme parks division and you have no idea what the average spend per family is at Disneyland or Disney World. It's stupid crazy. A family of four probably spends more in four days than most tourists who come to Thailand spend in 10 days.

But you have to have something people are willing to pay for. People will spend $20 for a baseball hat at Disney World but wouldn't pay $2 for the same hat being sold by a street vendor on Sukhumvit.

It's above how people perceive value. Thailand simply doesn't have a high value perception. Thailand has always sold itself as the poor man's alternative. If you want great beaches but can't afford Bali, Fiji, The Maldives, etc then you come to Thailand. Why would anyone want to pay Maldives prices for Thailand quality?

The problem is that Thailand wants to price itself at a point where it competes with destinations that are far more geared around international travelers. Places that have spent the last decade or two investing in the infrastructure to attract international tourists and show them a good time.

That's why I used the word "stagnating." It's that there is no change. There are no mega-resorts even being discussed let alone being built. There are no theme parks being discussed let alone being built. How can Thailand expect to attract deep pocketed tourists without the same things that other countries in the region can offer? There's a maximum amount people are willing to pay for elephant rides in the mountains and nice beaches. If you want to charge more than that then you have to offer something more of value.

And Thailand neither has those other things of value nor are they even talking about them. They just want to charge more.

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Actually I shouldn't be saying this. Hopefully I can word it in a way that does not warrant bad karma!

Maybe the record numbers are real. But actually many people from SG, Malaysia and HK, when they come to Thailand, they may spend on hotels. But not shopping, because as Bill has noted, people are reluctant to spend much on things which fall apart relatively quickly, while the branded stuff is more costly yet dated than back home. As a farang Eng teacher in Thailand once told me when we were both students at Wat Pho TTM, her son said that the THB100 slippers cost THB100 cos they only last 100 steps! Most things I bought in Thailand seldom last more than 3 months; even those shoes which when converted into equivalence of S$14 never last as long as a pair bought in SG for the same price. So I seldom shop in Thailand nowadays. So why do people from SG, Malaysia and HK still come so often to Thailand? Do they really don't spend? Actually they do, but not on shopping. People from these countries LOVE to come to make tum boon at the Thai temples for good luck, business etc. And many really give a lot and a lot. So business may go down, but Thai Wats continue to get financial support cos many people from these countries really believe Thai Wats and monks are particularly wish-fulfilling. So it is that the records show people come but don't spend, but actually substantial money goes into the Wats, which are obviously not on the official record of tourist dollars coming in.

Edited by Hazel
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Bills on a roly poly today.

As Admin of Thailandfriends.com you sure do paint a pretty picture ;)

Listen, I'm just being a realist. If you want smoke blown up your ass just go by what TAT tells you. :-)

And to be honest, if the Thai economy takes a good whacking, it would actually be a good thing for TF. The strong baht, the US/European prices, etc are some of the factors hurting the tourism industry and thus sites like TF. I'm not rooting for that to happen but given the two scenarios:

1) Thailand comes to the realization that it can't keep packaging the same thing and charging more for it and goes on a all-out effort to build Thailand's tourist areas into a world-class experiences geared towards deep pocketed tourists.

2) Thailand fails to act and tourism slowly erodes to the point that it drags on the baht and the overall economy until both collapse and prices fall far enough to attract swarms of budget travelers from across the globe.

I'm guessing #2 is the more likely outcome. I would prefer #1 but given the history of how Thai governments tend to react to problems I'm not optimistic. The last time I even heard of anybody talking about anything on this level was when Samak was PM. He had this grand vision for 5 or 6 "entertainment" complexes all over Thailand which included casinos, theme parks, and shopping centers. Everybody freaked out about the casino part and then Samak got booted out of the government and the idea disappeared.

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It's not necessarily about attracting gambling. The story is about how big theme parks are now following the tourists. Singapore already has Universal Studios. Hong Kong (just across the bay from Macau) has Disney World. Now other theme parks are taking notice and looking to open properties in Asia.

But nobody is eyeing Thailand. First off is the unstable political environment (more fallout from the red shirt protests and the yellow shirt airport closures - thus my comment about worry about what color shirt to wear) but more importantly is that many Asian countries/cities are more welcoming to both foreign investment as well as foreign culture.

I mean, look at Singapore. When they opened up the Marina Bay resort they have a Disney The Lion King dance production going that is on par with anything you could see in NYC, Las Vegas, or London. It's a world class production with an international lineup.

Sing has a stop on the F1 tour, some of the biggest (international) concert events in Asia, etc.

It's about the attitude towards tourism. What has Thailand built in the last 10 - 20 years that warrants people coming to visit? Shopping centers? The prices are the same or more than back home for most people so no big savings there. Any mega-resorts? Any world-class theme parks? How many world-class events, concerts, etc are they hosting?

To get the big tourist dollars you have to have the kinds of things people with fat wallets want to pay money to see. I have a friend who works for Disney in the theme parks division and you have no idea what the average spend per family is at Disneyland or Disney World. It's stupid crazy. A family of four probably spends more in four days than most tourists who come to Thailand spend in 10 days.

But you have to have something people are willing to pay for. People will spend $20 for a baseball hat at Disney World but wouldn't pay $2 for the same hat being sold by a street vendor on Sukhumvit.

It's above how people perceive value. Thailand simply doesn't have a high value perception. Thailand has always sold itself as the poor man's alternative. If you want great beaches but can't afford Bali, Fiji, The Maldives, etc then you come to Thailand. Why would anyone want to pay Maldives prices for Thailand quality?

The problem is that Thailand wants to price itself at a point where it competes with destinations that are far more geared around international travelers. Places that have spent the last decade or two investing in the infrastructure to attract international tourists and show them a good time.

That's why I used the word "stagnating." It's that there is no change. There are no mega-resorts even being discussed let alone being built. There are no theme parks being discussed let alone being built. How can Thailand expect to attract deep pocketed tourists without the same things that other countries in the region can offer? There's a maximum amount people are willing to pay for elephant rides in the mountains and nice beaches. If you want to charge more than that then you have to offer something more of value.

And Thailand neither has those other things of value nor are they even talking about them. They just want to charge more.

Its normal that other destinations want to have a piece of the cake that fed Thailand pretty well over the past decades. For decades Thailand was pretty much the only commercial holiday destination in South East Asia. I don't see specific tourist attractions like F1, gambling, Disney World as the answer. Just like people go to Colorado for skiing, Thailand must maintain its status as the number 1 destination for beach relaxation in South East Asia for families and singles. The only problem I see is the water quality, at the moment I wouldn't want to step into the gulf of Thailand.

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Its normal that other destinations want to have a piece of the cake that fed Thailand pretty well over the past decades. For decades Thailand was pretty much the only commercial holiday destination in South East Asia. I don't see specific tourist attractions like F1, gambling, Disney World as the answer. Just like people go to Colorado for skiing, Thailand must maintain its status as the number 1 destination for beach relaxation in South East Asia for families and singles. The only problem I see is the water quality, at the moment I wouldn't want to step into the gulf of Thailand.

But the question is, is that enough?

Thailand is a great beach destination when the cost of a holiday is X but when the price goes to Y it may be a horrible value. And, it's not like Thailand has the best beaches in the world or even in Asia. So far the selling point is value for the money. People come to Thailand for a $30 a night hotel room and cheap food. But if the hotel rooms go to $100 or the quality of the beaches declines or the price of the food rises to western levels . . . do you go to Thailand, find another beach destination that's cheaper (think Vietnam), or just pay a little extra and get better beaches, better food, and better accommodations?

The problem is that Thailand wants its cake and to eat it too. For years Thailand has been talking about getting away from those cheap backpackers and other budget travelers and snagging the whales. They're looking at the average cost per night of hotels in Singapore and Hong Kong and licking their lips thinking what a major coup it would be to land tourists like that. Deep pockets, families, ahhh . . . the good life.

But there's a reason people pay top dollar in Hong Kong and Singapore. They have shit Thailand doesn't and won't anytime in the near future.

Likewise on the beaches side, TAT looks at the Maldives, Bali, etc and they get dizzy thinking about landing fat walleted tourists who are spending crazy amounts of money there. Meanwhile they're overdeveloping the coastline, ruining the beaches, and driving up prices while the experience deteriorates.

And that's my overall point. TAT (and Thailand in general) want all of the benefits of higher-end tourism without actually providing any tangible reason for people to pay more.

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??? I thought Bali costs the same as it will at say, for example, Koh Samui? I have never been to Bali to be honest but have always thought it to cost about the same as Thai resorts?

And thx for thinking so well of my hometown, SG. I have heard worse from tourists who say why they should come by to SG when all they want they can find in Malaysia or Thailand, and cheaper too. I am flattered for the first time to hear this :)

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??? I thought Bali costs the same as it will at say, for example, Koh Samui? I have never been to Bali to be honest but have always thought it to cost about the same as Thai resorts?

And thx for thinking so well of my hometown, SG. I have heard worse from tourists who say why they should come by to SG when all they want they can find in Malaysia or Thailand, and cheaper too. I am flattered for the first time to hear this :)

It's an issue of relative value. For instance, when I was living in Gibraltar and the pound was 65:1 or 70:1 to the baht (2006 - 2008) that 4 GBP pint at my local pub was 280 baht. Coming to Thailand and paying 220 baht for a pint of good imported beer or 150 for a Heineken at today's exchange rates means that a beer costs 3.13 GBP - 4.58 GBP. So, I'm really paying European prices for a limited selection. Whereas back when the pound was stronger, say 70:1, a pint of beer in Thailand (even at today's prices - they were cheaper even in baht back then) cost 2.14 GBP - 3.15 GBP. That's a 45% increase in cost. Factor in that most bars have raised their prices 20 or 30 baht over the last 5 years and we're talking close to a 50% increase just for a beer.

Okay, so maybe beer isn't everything (I'm blocking Stevie and Ciaran from reading this thread), it translates into food, housing, etc, etc. In relative terms the price of Thailand has increased for those earning wages in dollars, pounds, and Euros by 45% or more in the last 5 years. And that's when they aren't just taking the complete piss out of you. When I was in Phuket earlier this month the 3-star hotel I was staying at was charging 220 baht for a small bottle of beer at the hotel bar!!! Their room service menu didn't have a single item on it under 450 baht.

Granted, you can always eat from street carts and such for a lot cheaper but the point is that your dollar, euro, pound went a lot farther just a few years ago. Now the prices are comparable to Europe and places like Singapore and Hong Kong that are a lot more tourist friendly in terms of things to do.

Now that the gap between a trip to Hong Kong (or SG) and a trip to Thailand has narrowed it shines a spotlight on what the other two have to offer that Thailand doesn't.

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I don't think that legalising gambling would be the answer for Thailand as tourist destination. Thailand does not need to compete with Macau or Singapore in the gambling market.

I already posted a reply to a thread earlier here that I see a huge market opening up for Thailand as soon as the billion factory workers in China increase their living standard and can afford to travel (may take 10-20 years) Thailand with its close proximity to China, climate and existing holiday infrastructure will be their number one holiday destination.

Plus there is a shortage of women in china so I guess there will be many "ladies" having to remember the exchange rate from yuan to baht!!!!!

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Thailand is a bit of an enigma. One of the most wonderful things about the country is the people - friendly, helpful, smiling, attractive and fun-loving.

However, one of the worst things about the country is the people - chaotic, short-sighted and lazy (in terms of wanting to make money quickly with the least effort possible).

When Bill is talking about long-term plans for Thailand's tourism industry, he is failing to address these very Thai characteristics. Thai governments (and its people) are very reactive rather than proactive. Ity seems they are always responding to problems rather than avoiding them by use of foresight and planning.

Another common trait is unoriginality... Thais love to copy. Be it fashions, movies, ideas or trends, everything is grist to the copier. Consequently, when something is seen as successful, it is immediately copied. Usually it is hurried and watered-down or low quality. and while I can understand being inspired by a good idea, I don't believe straight out duplicating works.

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When Bill is talking about long-term plans for Thailand's tourism industry, he is failing to address these very Thai characteristics. Thai governments (and its people) are very reactive rather than proactive. Ity seems they are always responding to problems rather than avoiding them by use of foresight and planning.

Another common trait is unoriginality... Thais love to copy. Be it fashions, movies, ideas or trends, everything is grist to the copier. Consequently, when something is seen as successful, it is immediately copied. Usually it is hurried and watered-down or low quality. and while I can understand being inspired by a good idea, I don't believe straight out duplicating works.

I'm not unintentionally overlooking the reactive factor. It's just that there is no reactive solution. In fact, most of Thailand's problems can't be solved by reaction. Poor education, an unskilled labor force, tourism, etc are all things that you invest in today and see payoffs 5, 10, 20 years down the line.

I really do believe that in 20 years Thailand will be worse off than it is today. I don't want for that to happen but I think it's inevitable if Thailand continues to react rather than get out in front of problems.

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If i didnt have a Thai kid i wouldnt be overly keen on taking her to Thailand for a holiday, the roads are as unsafe as anywhere in the world with drivers who'd sooner run you over then slow down, the inability to make a decent pavement to enable one to get from A to B is quite outstanding and letting motorbike riders use it as an extra lane is banana republic style. Safety in all aspects of the tourist industry does not exist. Thus i wouldnt recommend it to my friends with kids for a family holiday.

Thailands main money earner is its a place for males to go and enjoy the attention of females that being a few week millionaire enables. As much as people like to knock these girls if they were gone so would most of Thailands tourists and expats who buy condos create businesses etc..

As for comment about attracting the lower class of tourists, most the dreadful manual workers (who really shouldnt be allowed a passport to go to such a HighClass country like Thailand) that i meet have saved up a good bit of cash to live like a king for a while if they drop 500gbp a week thats the monthly wage of 3-4 in the tourist areas, and the younger backpackers who are often university kids are a lifetimes worth of business.

One thing Thailand could do is cancel all tax on designer clothes in its shopping malls, and watch the wedged up Orientals flock in, filling up the hotels and restaurants and giving trade to taxi drivers etc...

Legalising drugs and not being a police state would also help!

Edited by StuckinBKK
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What has Thailand built in the last 10 - 20 years that warrants people coming to visit? Shopping centers? The prices are the same or more than back home for most people so no big savings there. Any mega-resorts? Any world-class theme parks? How many world-class events, concerts, etc are they hosting?

I don't think Thailand needs any of those things. In the end it's all a matter of perception. Would a DisneyLand or mega-resort make any difference to how people perceive Thailand?

As for the 'Amazing Thailand' campaigns.... when I watch videos on the BBC News website they make me watch adverts beforehand - and they're currently running tourism adverts for Malaysia. Their tag line is 'Malaysia - Simply Asia' and they just show beaches and other things similar to the 'Amazing Thailand' advertisments that I've seen.

I wouldn't worry about the future of tourism in Thailand. I agree with what Andy said earlier:

...I see a huge market opening up for Thailand as soon as the billion factory workers in China increase their living standard and can afford to travel (may take 10-20 years) Thailand with its close proximity to China, climate and existing holiday infrastructure will be their number one holiday destination.
It's an issue of relative value. For instance, when I was living in Gibraltar and the pound was 65:1 or 70:1 to the baht (2006 - 2008) that 4 GBP pint at my local pub was 280 baht. Coming to Thailand and paying 220 baht for a pint of good imported beer or 150 for a Heineken at today's exchange rates means that a beer costs 3.13 GBP - 4.58 GBP. So, I'm really paying European prices for a limited selection. Whereas back when the pound was stronger, say 70:1, a pint of beer in Thailand (even at today's prices - they were cheaper even in baht back then) cost 2.14 GBP - 3.15 GBP. That's a 45% increase in cost. Factor in that most bars have raised their prices 20 or 30 baht over the last 5 years and we're talking close to a 50% increase just for a beer.

European prices for beer? Not quite. Average price for a beer is 100 baht, so that's about 2.20 GBP. I wish it was cheaper because beer is probably my biggest monthly cost but in Malaysia I discovered the going rate is 10 USD for a beer!

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I don't think Thailand needs any of those things. In the end it's all a matter of perception. Would a DisneyLand or mega-resort make any difference to how people perceive Thailand?

As for the 'Amazing Thailand' campaigns.... when I watch videos on the BBC News website they make me watch adverts beforehand - and they're currently running tourism adverts for Malaysia. Their tag line is 'Malaysia - Simply Asia' and they just show beaches and other things similar to the 'Amazing Thailand' advertisments that I've seen.

I wouldn't worry about the future of tourism in Thailand. I agree with what Andy said earlier:

European prices for beer? Not quite. Average price for a beer is 100 baht, so that's about 2.20 GBP. I wish it was cheaper because beer is probably my biggest monthly cost but in Malaysia I discovered the going rate is 10 USD for a beer!

I was actually working on a well laid out response but my browser crashed near the end. I'll just summarize my points rather than trying to rehash everything.

1. TAT always speaks enviously of getting the kind of room rates and spend per arrival that Hong Kong and Singapore get. Yet they haven't done anything that would make *that type* of tourist come and visit and want to spend the same kind of money.

2. Thailand is like old Vegas run by the mafia. Back then the main source of revenue was gambling by punters looking to party it up. Singapore and Hong Kong are like Vegas today. The main source of revenue comes from families who spend enough per head that the lodging and FB&E revenue eclipses the gambling revenue.

3. The fact that Simply Asia and Amazing Thailand commercials look the same should make my case for Thailand not having a monopoly on scenic beaches. Now factor in Incredible India, and whatever the Philippines tourism motto is and it's a pretty crowded market and likely to get more crowded as Cambodia builds out their beach resorts and Vietnam starts to kick up the tourism.

4. You can't compare Malaysia's prices with Europe or the US. Malaysia, for various reasons, is going to have more expensive beer prices. Compare it to Cambodia, Vietnam, etc. And the comparison is to show that it's not massively cheaper. I'm looking at a UK online shopping site right now and a 6 pack of Amstel runs £4.50. At 50 baht to the pound that's about 37 baht per bottle. Considering that a bottle of generic beer in 7-11 runs about 30 baht or so, that's not a huge savings. And in the US a bottle of beer in 7-11 costs about $1. Same bottle costs 30 baht in Thailand. Again, no big bargain.

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European prices for beer? Not quite. Average price for a beer is 100 baht, so that's about 2.20 GBP. I wish it was cheaper because beer is probably my biggest monthly cost but in Malaysia I discovered the going rate is 10 USD for a beer!

bkk may not be at european prices for beer, but it's not far off. however, this is more due to the strength of the thai baht (or weakness) of european currencies rather than any massive increase in prices in thailand !!

but there is no doubt thailand is becomg more and more expensive as a holiday destination and isn't really investing in anything to make it more attractive !!

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