Decoding the Island of Gods ; Bali Clustering -led Tourism Model

Selamat Pagi

Hello good morning!

a Balinese guy gave us a warm greeting while cruising along the monkey street in the Ubud town.

Indulging the Hindus - arts, sculptures and architectures brought us the feeling of retrospection dating back over 1,000 years of the great kingdom’s legend and prosperity.

The renowned island of diverse cultures woos million of tourists all around the world to experience the sacred-touch of great ancient art, belief and unchanged way of local life.

Arriving at the local hotel situated in the middle of nature and near enough to walk to the main tourist attractions for an art museum, show dance, Indonesian-dining and browsing some indigenous art items, we were extremely fascinated with the harmony of art, culture, religion and hospitality business.

This tourism industry has emerged with the clustering- led model. People all around the world value what the Bali’s authenticity has been for century.

This probably will be the study case of tourism development model that bases on cluster strength or core competency!.

Value of Ancient Art and Culture! And of course the ability to preserve it…as well

This cluster has flourished and generate a well being to the local economy- service industry: tourism, spa, and related hospitality business and manufacturing industry: Balinese furniture style, decorative items, fashion and many more.

Our Thai government policy presently aims to push forward various industries with the similar concept- through the cluster collective effort. Cluster can carry and pull together the strength of various & different related industries rather than supporting any individual firm or particular industry.

However the key component of the cluster power is the collaboration from the bottom up: beginning from individual or firm level all the way up to association…crossing among associations…finally end up to clustering level.

Until next time

Thanan Apivantanaporn

Avoiding the Asia Growth Trap : a setback to the sustained recovery in hospitality business

Previous my post may leave some readers in confusing state of understanding.
While the influx of the Asia middle class income (replacing those of westerner clientele) is playing such a vital role in the Asia Pacific economic recovery. So what seems to be the point and what need to do is just straight to please them happy?….the question is how strategically!











Last post warning of the difference of the individual cultures and social etiquette will be a drawback to hospitality business - long run recovery in great deal if proceeding without precaution.





The crucial part is that service business is unique from other manufacturing lead industry in the sense that a wide range of different races: customers who will receive the experience of the service mostly within the common facility, time and workforce altogether.



Basic principle of human behavior, each culture hold his own root and belief ! thus will practice and behave in different ways. In addition if diverse ethnic group come and join into the same time same service function and destination with quite a different background, imagine what’s happening in the airline exclusive lounge , seating in airplane, checking in the front desk hotel and jamming in the line of breakfast buffet in the morning and inside the restrooms etc.


Trust me from my current encounter
“ this is an issues of managing the Customer Expectation!.”

And this is quite a big challenge for all management level to take care of this matter professionally.

Look at this sequence of customer experience








Service Re- Design ! will play a crucial role in handling this drawback.

Hotels and other related hospitality service providers will analyze and understand their customer mix well and insight enough.

Forget that the same old model or an existing service offering will keep all races of clientles happy and satisfied at the same time anymore.

Standard Operation Procedure needs to be reviewed and revised specifically.


Human development-Training will keep your staff posted and aware of what is happening and take an earlier adapted approach to keep track with new demanding customer.


Yield management will be one of the areas where an old style management will be awakened! How they are going to apply the new management tool to maximize profit through segmentation strategy . Of course the bottom line GOP will be sustained!

Management will look into various tools to realize and understand how to manage their own facility by time management, workforce and specific service offering to cater to each market needs while avoiding the unfavorable customer’s experiences.




Until next time
Thanan Apivantanaporn

Asia Viable Solution 1

The Beginning of Asia New Episode

Since the financial meltdown stemming from USA ’s conglomerate financial institutes, the world seemingly caught the world wide epidemic flu. Hence, Asia model growth in the long-old day cultivates as the seller/trader/producer to the rest of the world, especially for the western economy.

With that long growth strategy produce from the middle class income earners to the newly billionaires throughout the region. Now the region is inevitably forced to change under the new episode- surviving strategy. Now Asia’s stimulate strategy is to eye on their own purse.

From the saving chest to a new hi-gear spender – Asia Top Leaders eyes on stimulus package programme to encourage the domestic demand. We all have known and learned about this agenda all along pretty well.

Having attended the ITB Asia (one of a kind of Tourism promoting trade fair in Asia in Singapore lately) the experts through out the tourism industry foresee the recovery sign coming,hence the emerging & growing demand from Asia consumption regionally.

Lately an optimistic sign of revised GDP number among Asia countries is visible, thus the expert believe Asia will be one of the world economic driving engine and sustain the global demand.

I won’t totally object the idea or see thing differently from the other views.

Especially they are now moving and speeding the degree of trade collaboration issues toward Asia Single Market (Free Trade Area), the demand is tremendous and huge.

Besides, the volume of trade among the Asean community has been increasing, if taking into account the AFTA + 6 (China, India, Japan, South Korea, Australia and New Zealand) into this framework, Asean Community will be a new potential economic community, replacing North America and Europe Community’s slow pace toward the economic recovery.

BUT!

Macro point of view is fantastic and looks brilliant.

Let me remind that to cultivate this trade, meaning we are changing our customer mix base .And if enterprises do not realize the implication well enough, they may end up in disaster.

Why such a pessimistic outlook!

Think about the micro level- customer mix change while service and product offering the same value proposition to the new market.

No one single strategy fits for all circumstances.

Mind the crash of different cultural behaviors between new emerging market and existing market, focusing on hospitality industry alone!

That is the big big story to worth exploring in the next coming analysis.

Until next time

Thanan apivantanaporn

Re-Boot Economic Engine; Future of Thai Tourism

Re-Boot Economic Engine; Future of Thai Tourism

“ Our 7,000 room reservation has been cancelled for the whole year 2009” I sat in front of one of the hotel owner who looked desperately and cried out over the aftermath of the military crackdown on the street demonstration on April 12-14.

Thailand Revenue (foreign tourist) seems dim and expects to drop the number of tourists by 20-30 %. The prior target number of tourist was 14.7 ml, now the revised figure should end up around 11 ml. Hence,the significant decrease in total tourism income would signal a profound impact on the whole supply chain of tourism industry. The impact may leave over 200,000 staffs out of jobs in year 2009.

Impact Indicator

· With the severe impacted world economy, the new era of tourist round the world’s traveling pattern will be changed and more reasonable.
· The long Haul market like Europe, USA will be substantially discouraged
· Spending per head (purchasing power) will be lowering, thus negative effect toward the related tourism business.
· The massive layoffs and shut down and finally lead to non performing loan- bad news to banking system

A new look into Blue Ocean territory

Asian (oriental magic) as a long renowned tourist destination will be no longer just relying on the existing tourist market, like Europe & American tourist. They need to look into the emerging market like the middle income tourist, especially from China and India.

Both countries, the emerging middle income earner will be able to sustain the tourism downturn industry for this tough period of time. The affordable travelers from China & India will roughly account for 100 million tourists (India- 30 ml, China 70-100 ml). Moreover the Middle East tourists will be another major tourists;income generator.

Thai tourists definitely will be a major push for rebooting the economy back on track. With an estimated 80 tourist/time/year (generating revenue by 350,000 ml bath) , this number need to be looked into with serious thought. If the appropriated measures by government are taken well- to promote more local tourists throughout the year ( extend more long & often weekend holidays & encourage government staff training and seminars at the various tourist destinations all over the country during this bad times etc) This act will slowly start the economic engine and finally little by little local trustworthy will gain the momentum back then.



Strategy for New Business Landscape

Value for money will be a top consideration for any kind of cash out of pocket. Tourists will be much cost conscious and selective. This does not mean that tourists will always look into only the lowest hotel prices. But only the promising experience that exceed their expenditure will play the key part.
The transform of business landscape within the tourism business will be a must surviving-strategy.
There will be two side of the coin to be prioritised,
1.Service Re-engineering
Present & smart travelers will try to curve down their expenditure or traveling budget. The business will need to re design their service value both physically and emotionally, thus wooing these cautious tourists. Understanding the new spending’s tourist pattern will help a great deal in service re engineering. Healthcare-tourism, Eco- tourism,Agro-tourism,Edu-tourism,Halal service for muslim tourists and many more will be another story – telling to be told and woo the new market to Asean destinations.
2.Operation Re- process
The present economic downturn of course ! will lead to the financial liquidity problem. What the typical measures to be taken is to cut cost across the board. Most of the time the measures impact to the customer satisfaction in certain degree, hence making unhappy guests. Now Thai Government is pushing forward for operation improvement programme in service business. We are now undergoing some 100 hotels to enhance their operation process for more efficiency with less effect to customer satisfaction. The crucial part is how we can exclude variable or fixed cost from the operation waste. Not all the expenditure will be cost reduction target.

I do believe that human nature is designated to be an adventure creature. Tourism business will pick up eventually. But the industry need the real transformation to adapt to the new era of smart tourists.

Until next time
Thanan apivantanaporn

courtesy pics by Tourism Authority of Thailand

A loud Outcry of Thailand : Asian Lesson Learn

A Loud Outcry of Thailand : Asian lesson learn

A fall of Thai Nation , after the military operation towards the red shirts on April 12-14 posed one of the severe and profound impacts ever for both Thai economy and social senses. A crash or may say the division among the nation left the deeply-wounded scar in the heart and soul of Thai people.


From our usual round table gathering with a few fellows as we call our group“social observers” one university lecturer-lady remarked the incident “This is the end of the beginning of Episode 1, the fight between the crash of so called – the old capitalism and the new (emerging of Thaksin reign) wave (well- considered as a threat to the commanding military –elite & business tycoon!) is going to be a long journey.”

A typical Asia picture, a long time -tight grip of the ruling elite group in
power appears all over Asia countries, Singapore, Malaysia, China , Myanmar ,Vietnam etc. One may raise his eyebrow Well! Don’t get me wrong with that big nice word -a Democracy ( an election ritual). The same lady continues “ the bottom line is how the democracy truly answered to the quest (disgruntled voice) from nation’s members all around the country, especially the less- fortunate group”

Asia will need to take a closer look to what’s happening in Bangkok! The current Asia Administrations have been warned by the incident-the up rise of the lower group some call them –the grass root of the nation. The Strategy is to get the government policy down to earth, fully serving the need (medicare, education opportunity, equal income distribution) of this people before they will stand up and ask for their own share. Don’t leave room for your political opponents to take advantage over this matter. Hear & Listen the discontented voice and need… period!

Well as an investors, our fellow member from one of foreign commercial bank comments “ the huge investment decision will be required to assess the political risk more seriously, especially be aware on which side you are taking”

The overthrows of the Thaksin administration had a severe impact on his entire empire, not only the legitimate political power. Friend of Thaksin apparently has been clear out from the business mainstream while the Friend of Non- Thaksin enjoy the new era of business and power.

Not only the political risk’s assessment but your business connection’s will play the key role in business decision as well. Like the old word say, it does not matter who you are but it’s whom you’re siding with. It’s a typical Asia Spirit.


“The (recent) Collapse of Capitalism will lead to the social revolutionary Dejavu!” our young and energetic NGO boy raises the issue. We continued the discussion of when the crash of the social and economic dispute arise (from the history record) there will be a big crisis challenge the human race: like war, uprising, coup. Then the nature will call the game and take thing back to their normal by imposing the revolution-action (Tsunami;may say) to restore the equilibrium.


With the successful control over the chaos within the kingdom, Thaksin and his gangs may be wiped out and prosecuted under the Thaksin’s opponents (as claimed) regime now. As long as the real cause (social & economic issue) has not been well taken care, the volcanoes beneath await for the new eruption.
Before that time…our members stared through the tide of the Chaophaya river in Bangkok at 8 pm and they’re all speechless under the cry moment within Thailand kingdom.

Until next time- Thanan Apivantanaporn ธนันธน์ อภิวันทนาพร

picture courtesy by Bangkok Post

new asia perspective

This blog is intended for all walk of life

to contribute and share his or her perspective

regarding to the well fare and being of Asia Region.

I personally engage in public policy especially

in area of business competitiveness, entrepreneurship

development and value chain strategy.

Hopefully that through the economic tough time,

this blog will come out with Asia Model in term of

surviving strategy , (asia) taking on new global platform

and many more after this debut.

World Economy is facing the credit crunch, thus

lacking financial funding to stimulate the economic engine.

On the contrary, Asia instead is rich with cultural and historic resources.

Of course Asia will experience the setback in some certain degree but with a proper strategy will be able to pull Asia in forefront region of Global economic engine.

This blog will try to cover Asia perspective in management

& business tips and investment opportunity. As Asean Free Trade

Area(population over 550 ml) being around the corner,is

the high potential market demand,also together

with AFTA plus sizable markets :China Japan Korea India

Australia and New Zealand.We need to take a closer look!

Next time we will come to share with the term - emerging industry

“ Creative Economy” that Asia is gearing up to push forward the

new economic engine- drive.

until next time

Thanan Apivantanaporn

ธนันธน์ อภิวันทนาพร