Tourism lacks leaders

Key organisations in travel are led by acting CEOs, during what is turning out to be tourism’s gravest crisis.

Thailand’s key tourism organisations are operating without permanent CEOs, or presidents.

Thai Airways International, Tourism Authority of Thailand and Thailand Exhibition and Convention Bureau are all supervised by acting CEOs.

Observers say it could take months for the TAT board to make a decision on a replacement for the former governor, Phornsiri Manoharn, who retired at the end of March.

THAI has been without a CEO for more than six months, a state of affairs that has been blamed mainly on infighting between the Ministry of Finance and Transport Ministry.

TCEB, too, lost its CEO recently and again it could take six months to hire a replacement. Although, details are sketchy it is understood the former TCEB president was unhappy with board interference that hindered the decision making process.

Observers believe tourism will need a fast-track solution, but the lack of leadership could dull efforts, or even prevent the industry from taking the initiative to organise a united campaign. 

The industry faces an unparalleled crisis of confidence following civil demonstrations that brought Bangkok to a standstill twice, in less than five months.

Last year,  yellow-shirt protestors closed Bangkok’s airports for 10 days (late November, early December) causing an estimated US$5.5 billion in damage.

Last week, red-shirt protestors forced the cancellation of the Asean leaders’ summit in Pattaya after they breeched security at the Royal Cliff Beach Resort.

The subsequent riots in Bangkok, that left 123 injured and two dead, were finally quelled by the Army.  Estimates put the damage to the economy in the region of US$6 billion. That’s US$11.5 billion in cumulative damage.

Thailand now faces the daunting task of convincing at least 19 nations, including Asean neighbours Singapore and Malaysia, to lift travel advisories. Is the government up the task and will its assurances on security be credible?

There are reports of airlines reviewing their operations through Thailand as the off-season approaches. It is possible plans to resume frequencies, cut back during the December protests, could be shelved or delayed until October.

Two major protests at a time when Thailand is fighting recession and a decline in exports have left the travel industry in disarray.

Observers claim job losses could exceed over 100,000 in tourism-related industries alone. Thailand’s prospects in tourism and its aspirations to become the premier aviation hub of Southeast Asia are now in jeopardy.

There will be a loss of confidence that will hurt investment in hotels and infrastructure. It will drive tourists, particularly related to high-end meetings and conventions, to other destinations. It is too early to estimate the impact on tourism arrivals, but industry leaders recognise it could result in a 30% loss this year, taking annual tourist arrivals back five years.

Last week’s upheaval in Pattaya and Bangkok pulled the rug from under companies that were already struggling to recoup losses incurred during December’s airport closure. Mostly SMEs, they now face a graver fight for survival as the low season approaches.  Their ranks include travel agencies, hotel booking systems, tourist attractions, dive shops, boutique hotels, shops and restaurants in key tourist resorts.