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
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
