Tour operators should focus on rising Asia: Seminar

WEDNESDAY, SEPTEMBER 21, 2011
Tour operators should focus on rising Asia: Seminar

Operators involved in the hospitality sector should shift their focus to Asian markets to ensure long-term growth amid the launch of the Asean Economic Community (AEC) in 2015, key tourism bodies said at a tourism seminar yesterday.

Some operators have already lowered their presence in traditional European markets and shifted to countries in Asia as they saw high potential over the next three to five years, Kongkrit Hiranyakit, president for policy and planning of the Tourism Council of Thailand (TCT), said yesterday.

"The main reason that has compelled operators to look at Asia is the economic downturn in all countries in Europe. This situation is expected to continue for about three to five years from now," said Kongkrit.

The implementation of the AEC in 2015 is another key reason for the change.

Bangkok-based tour operator Destination Asia Co is the latest to move its focus from American and Europe markets to China. The company recently established a new office in Shanghai to serve market demand.

Centara Hotels and Resorts and Dusit International are undertaking expansion in China, India and Southeast Asia.

Kongkrit said tourism growth from Europe has been slowed for a few years due to the economic problems in the euro zone.

From January to August this year, tourist arrivals to Thailand recorded more than 12 million, a 27-per-cent growth. However, arrivals from Europe are expected to drop by 10-15 per cent for the entire year. The Europe market used to account for 30 per cent of total arrivals to Thailand.

TCT, however, predicted that Thailand would achieve its target for the year of 19 million international tourists.

Kamolwan Wipulakorn, president of The Erawan Group said more than 400 million international tourists visited Asia last year, growing by 10 per cent from 2009. Tourist numbers to Southeast Asia grew even higher, at 12 per cent, and Thai tourism was in a very positive situation since last year. "China and India will definitely be key sources for tourists to Thailand in the future" she said.

The Erawan Group planned to open three hotels worth Bt1.1 billion next year, offering 400 rooms. It will open two Ibis Hotels in Bangkok and in Hua Hin and one Mercure in Bangkok.

The group is also undertaking a five-year plan to open more three- to four-star hotels with an investment of Bt7 billion to Bt10 billion. This long-term plan is to cope with the growth of tourism in the region.

Deputy Prime Minister Kittiratt Na-Ranong yesterday urged three key organisations - the Tourism and Sports Ministry, the Tourism Authority of Thailand (TAT) and the Tourism Council of Thailand (TCT) - to integrate their strategies with one plan and heading in one direction.

"There is no other country that can say that it has all good products like Thailand, but we need integrated efforts by all parties," he said.

"Thailand has world-class tourism products like medical, world-class hotels, transportation system and jewellery. We should synergise all these to boost the tourism industry," he added.

The government aims to boost arrivals from a projected 19 million this year to 30 million within four years and increase tourism income from Bt700 billion to Bt2 trillion.

Even without any incentives from the government, TCT believes the tourism sector would grow by seven per cent per year during 2011-2015. The country should welcome 27 million tourists and gain income of Bt1.1 trillion in 2015.