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Thailand: Operators underwhelmed by cash perk
Tourism operators don’t see cash giveaways as a remedy for the tourism drought, as many high spenders who have missed expensive outbound trips still have strong purchasing power.
A meeting of economic leaders is set to consider a relief package that includes a 1,000-baht giveaway for people with an annual base income not exceeding 100,000 baht and a 1,000-baht credit via a mobile app for local travellers to buy tour packages.
“Instead of giving away cash for tour packages, the government should consider other measures to lure high spenders — some 11 million Thai outbound tourists — who cannot travel abroad because of fear of the coronavirus,” said Taywakone Arbhabhirom, general manager of the Akira hotel group in Satun province.
He said people will spend at least 30,000 baht for each outbound trip. Each year, total expenditure abroad could reach 200-300 billion baht.
Based on the experience of the Taste-Shop-Spend scheme, there are many disadvantaged people who cannot receive these benefits, particularly rural residents who don’t have a mobile phone to receive incentives, Mr Taywakone said.
“We urge the government to use information technology more wisely, such as by showing alternatives for many destinations in Thailand, which are less crowded, to those who still have money,” he said.
Forward bookings for April have plunged by 70% year-on-year for the international market, Mr Taywakone said.
The average occupancy rate has dropped to 70% from 90% in February as the European market, a major source, ended its travel season this month.
This market also remains reluctant to book for the next high season at the end of this year, Mr Taywakone said.
The Chinese market, which usually makes up 25% of total guests, has shrunk to just 1%, with only overseas Chinese residents still travelling.
“Occupancy in the first two months was strong because the reservations were made before the outbreak,” Mr Taywakone said. “As the epidemic spread, European customers did not want to make abrupt cancellations, as they still believed seashore provinces wouldn’t be affected by the virus. As the virus spreads throughout their hometowns, they’ve become worried and will think twice about future excursions.”
After joining the Thai Teaw Thai travel fair this year, Mr Taywakone expects domestic customers to fulfil occupancy during the low season, which starts in April.
He said many hotels and tour companies are offering discount packages for domestic tourists at the fair. The three-day, two-night, full-board package for Satun until October is priced at 5,000-7,000 baht per person, down from 8,000-9,000 baht.
Thaweewat Sopee, chief executive of Krabi Artemise Travel, said money distribution is a solution that fails to address the cause. The money won’t reach tourism operators if people focus their spending on more essential items.
Withaya Khunplome, president of the Chon Buri provincial administrative organisation, said he hopes the tourism situation in the province improves in April.
The province has 54 attractions struggling from sluggish demand, such as Legend Siam, which has temporarily closed.
Pinnat Charoenphol, director of the Tourism Authority of Thailand’s Pattaya office, said Chon Buri last year welcomed 18.58 million tourists, up nearly 2%, and received 275 billion baht, up 3.8% year-on-year.
Source: https://www.bangkokpost.com/business/1872519/operators-underwhelmed-by-cash-perk