Barring setbacks from political violence , tourism sector's momentum seen continuing into next year

Although Europe and the US would continue to face economic difficulties, domestic political unrest right now is clearly at an acceptable level, as shown by the steady rise in visitor arrivals.
Last month, arrivals skyrocketed by 60.57 per cent year-on-year to 2.07 million, according to a release from the Tourism Department at the Tourism Ministry. This high season, especially over the New Year holiday, hotel occupancy in some major provinces nationwide has stayed as high as 95 per cent.
Most high-profile executives are happy with 2012’s results.
“The tourism performance this year is beyond my expectation,” said Sisdivachr Cheewarattana-porn, president of the Association of Thai Travel Agents.
‘‘The year of 2012 is closing beautifully, thanks to there being no flood crisis or political unrest to pose risks,’’ said Piyamarn Techapaibul, president of the Tourism Council of Thailand (TCT).
Projections for 2013’s tourism prospects by tourism organisations point in the same direction. The industry will still move forward with high momentum after losing it several years ago due to the flood crisis and political chaos, they said.
In 2013, arrivals will increase 11 per cent to 24.5 million after expanding 15 per cent to 22 million in 2012, while tourism revenue will grow 19 per cent to Bt1.15 trillion after increasing 24 per cent to Bt965 billion this year, according to the Tourism Authority of Thailand (TAT).
Behind this is the strong Asian economy, which is encouraging people to travel.
In 2013, good news for the industry will also come from rising spending among foreign tourists after four or five years of stagnation due to the political upheaval. Hotels have also raised their room rates by 5-10 per cent to cover higher operating costs, causing travellers to spend more.
Surapol Svetasreni, TAT’s governor, said the Asian region would play a bigger role in driving growth for the country’s tourism at a time of economic decline in Europe and the US. In Asia, major markets for Thai tourism are China, Japan, South Korea, India, Australia and Asean. Tourism will get a bigger boost from Asean following the opening of the Asean Economic Community (AEC) in 2015.
External risks still lie ahead such as fuel cost fluctuations, uncertain foreign exchange rates, natural disasters, higher competition, weak economies in Europe and the US, and unrest in the Middle East.
However, TAT sees opportunities in this uncertainty. In particular, the AEC’s opening will help secure more arrivals to Thailand and the trend will be amplified with the enlargement to Asean+3 (China, Japan and South Korea) and Asean+6 (China, Japan, South Korea, India, Australia and New Zealand).
On the domestic scene, Thais have continued travelling in 2012, thanks to the growing economy and higher purchasing power driven by the government’s economic stimulus policy, especially the first-car purchase scheme, and also the marketing blitzes by low-cost carriers.
In 2012, the TAT projected local tourism to rise 3 per cent to 112.6 million trips, with revenue of Bt507 billion. In 2013, it predicts growth of 3 per cent to 115.6 million trips, with spending of Bt537 billion.

BT2 TRN TARGET
The tourism industry was a rising star in 2012. Apparently, it has been put on the national agenda as one of the industries to drive the economy. The government’s target is Bt2 trillion in tourism income in 2015. The private sector has welcomed the move.
Unfortunately, there isn’t a concrete plan to achieve this ambitious goal.
In 2013, it’s essential for the industry to map out a clear direction. One proposal is to build man-made attractions to become new magnets luring foreign tourists. But such an initiative is still being debated. Some argue that Thailand does not need them.
In fact, the country should sell itself with what it already has, especially its natural, cultural and social heritages. They can be integrated as an outstanding product for national tourism, which foreign rivals cannot replicate, the thinking goes.
The TAT is shaping its tourism policy, focusing on quality rather than quantity. Niche markets from golfing and spa and beauty to medical tourism are getting promoted abroad to increase spending.
Secondary cities across the country will also be in the spotlight following the promotion of ‘‘cluster’’ tourism.
Under the plan, secondary cities located around major centres will be highlighted for travel. This would help ease congestion in the major cities and prompt longer stays.
However, taking a closer look at the tourism scene nowadays, it is still plagued with problems. In major tourist destinations, incidents of unfair service and cheating, illegal taxis and guides and fake jewellery are repeatedly reported. Those scams are not new in the industry. So if the country wants to keep its role as a tourism hub in the region and generate more earnings, a crackdown should be launched immediately with integrated efforts from all parties.
“Barriers remain in 2013. From illegal taxis to jet skis and also room supply, they have to be solved to keep the industry in order. We have to work together,’’ TCT’s Piyamarn said.
One more thing the industry will have to look at is the AEC. This year, the industry started to realise it needs to capture a piece of the cake in this region. High-ranking officials from Laos and Myanmar were invited as guest speakers to describe the business opportunities in their countries with local operators. The AEC market is viewed as lucrative, especially Myanmar after it opens its doors to world investment. Its emergence has led some operators to worry that Thailand may concede its major role to neighbouring nations.
In 2013, operators have to look for networks by working with local partners in countries regionally if they want to keep Thailand as the hub. Clearly, tourism packages will start somewhere in this country and end somewhere regionally. This is a way to sustain the country’s momentum.
Next year will bring opportunities along with barriers. Of course, the market will be more competitive. Operators will have to adjust to cope with the new business environment, especially with foreign investors entering this field.
People in the industry will have to be trained to be more skilful, along with learning new foreign languages. The government too will have to play an active role in supporting the industry, from stamping out illegal practices against tourists to carrying out promotional campaigns.
If not, it’s hard to survive in this industry.