Post by Admin on Oct 1, 2013 8:21:14 GMT 7
TOURISM
Nearly half of travel firms expect lower sales this year
Bamrung Amnatcharoenrit
The Nation October 1, 2013 1:00 am
Faltering economy, weakening in consumer spending power expected to hit operators' profit margins: TAT poll
Tourism operators do not see their industry emerging as a "hero" to save the economy this quarter, blaming falling consumer purchasing power and the rising cost of living for undermining their business.
In a poll released yesterday by the Tourism Authority of Thailand, they said the trend was clear: the economy would falter, consumers would tighten their belts and the operators' profit margins would take a drubbing.
The survey was carried out from September 10-17 on 2,100 respondents - 700 businesses and 1,400 people - in seven provinces: Bangkok, Kanchanaburi, Chon Buri, Nakhon Ratchasima, Chiang Mai, Phuket and Surat Thani.
About 48 per cent of the businesses believe the economy would stage a decline in the rest of the year and their sales would slip 22.9 per cent, while 22.9 per cent said their business would still grow and their revenue would increase 19.4 per cent.
People plan to cut their tourism budgets by 21.1 per cent due to the increase in living expenses and public utility bills while their income stays almost the same.
About 65.8 per cent of the people polled said political conflict was the major risk for economic prospects, followed by inflation in products and services (61.6 per cent) and protests (55.6 per cent).
Pongsathorn Kessasamli, deputy governor for policy and planning, was not worried, saying the country's tourism outlook was bright, as foreign visitors would continue to come.
Even if, in the worst-case scenario, the foreign tourists stay here for the same amount of time as in the past and spend the same amount, there would still be more of them arriving.
This year, the agency projects foreign tourist arrivals leaping 17.5 per cent to 26.26 million from 22.35 million last year.
The flooding, which has spread to wider areas across the nation, would not dampen the tourism outlook, due to the low season. Instead, it would wash out other industries, especially agriculture.
About 85.2 per cent of people showed an interest in domestic travel over the next three months, and 85.7 per cent intend to travel once, with Chiang Mai as the top destination, followed by Chon Buri and Rayong. They plan to stay two nights.
Only 0.6 per cent of them said they wanted to travel abroad during the period.
Japan was the favourite destination, followed by Singapore and China.
To boost tourism, 71.3 per cent of the people said the government should offer tax breaks by allowing them to deduct tourism bills.
For operators, 20.7 per cent want the government to play a more prominent role in promoting tourism sites as well as accommodations across the nation to attract more tourists, followed by controlling product prices to contain their operating costs (14.7 per cent) and constantly launching tourism campaigns via media channels (11 per cent).
Nearly half of travel firms expect lower sales this year
Bamrung Amnatcharoenrit
The Nation October 1, 2013 1:00 am
Faltering economy, weakening in consumer spending power expected to hit operators' profit margins: TAT poll
Tourism operators do not see their industry emerging as a "hero" to save the economy this quarter, blaming falling consumer purchasing power and the rising cost of living for undermining their business.
In a poll released yesterday by the Tourism Authority of Thailand, they said the trend was clear: the economy would falter, consumers would tighten their belts and the operators' profit margins would take a drubbing.
The survey was carried out from September 10-17 on 2,100 respondents - 700 businesses and 1,400 people - in seven provinces: Bangkok, Kanchanaburi, Chon Buri, Nakhon Ratchasima, Chiang Mai, Phuket and Surat Thani.
About 48 per cent of the businesses believe the economy would stage a decline in the rest of the year and their sales would slip 22.9 per cent, while 22.9 per cent said their business would still grow and their revenue would increase 19.4 per cent.
People plan to cut their tourism budgets by 21.1 per cent due to the increase in living expenses and public utility bills while their income stays almost the same.
About 65.8 per cent of the people polled said political conflict was the major risk for economic prospects, followed by inflation in products and services (61.6 per cent) and protests (55.6 per cent).
Pongsathorn Kessasamli, deputy governor for policy and planning, was not worried, saying the country's tourism outlook was bright, as foreign visitors would continue to come.
Even if, in the worst-case scenario, the foreign tourists stay here for the same amount of time as in the past and spend the same amount, there would still be more of them arriving.
This year, the agency projects foreign tourist arrivals leaping 17.5 per cent to 26.26 million from 22.35 million last year.
The flooding, which has spread to wider areas across the nation, would not dampen the tourism outlook, due to the low season. Instead, it would wash out other industries, especially agriculture.
About 85.2 per cent of people showed an interest in domestic travel over the next three months, and 85.7 per cent intend to travel once, with Chiang Mai as the top destination, followed by Chon Buri and Rayong. They plan to stay two nights.
Only 0.6 per cent of them said they wanted to travel abroad during the period.
Japan was the favourite destination, followed by Singapore and China.
To boost tourism, 71.3 per cent of the people said the government should offer tax breaks by allowing them to deduct tourism bills.
For operators, 20.7 per cent want the government to play a more prominent role in promoting tourism sites as well as accommodations across the nation to attract more tourists, followed by controlling product prices to contain their operating costs (14.7 per cent) and constantly launching tourism campaigns via media channels (11 per cent).