ITB opens 7 March against the backdrop of a Eurozone crisis, rising fuel prices and looming war threats in the Middle East.

A severe cold snap if it continues could also disrupt travel across the continent and make it more difficult for visitors attending Europe’s top travel trade show.

Juthaporn Rerngronasa

ITB Berlin 2012 runs 7 to 11 March at Messe Berlin, in the German capital.

This year TAT will lead 112 tourism businesses from Thailand to join the mega trade event.

“We have fewer tourism businesses joining us when compared with last year,” said Ms Juthaporn. “But it doesn’t mean that there are fewer players from Thailand at the event. It is more likely they have spun off to their own booths rather than joining the official TAT pavilion,” she added.

This year, TAT will promote four niche lifestyle markets namely ecotourism, medical & wellness, weddings & honeymoons and golf tourism aiming at the first-visit market.

When asked why the focus on first-time travellers, Ms Juthaporn said: “Even though we gained 20% last year when we look closely at the arrivals, 60% are repeat tourists.”

She said marketing research suggests the TAT needs to attract new visitors to the country and the main pipelines are social marketing media such as facebook or twitter as well as through third person experience using bloggers.

She blamed the low growth rate in the first-visit segment on political turmoil, closure of the airports in 2008, violent demonstrations in the heart of the city until mid- 2010 and more recently floods in the central plains.

New tourists found it difficult to get their head around so many negatives, while repeat visitors were savvy and had a better understanding of the situation in Thailand than what was presented in media reports, she explained.

TAT will also host a Thailand Minimart during the ITB.

“We will introduce this new session for tourism players, 9 and 10 March, with appointments and sales presentations,” said Ms Juthaporn.

The two sessions will attract 55 tourism businesses: 20 companies on 9 March and 35 on 10 March. All the places for this event were booked last month.

Ms Juthaporn said: “ITB is not a pre-appointment show so we wanted to help Thai tourism players to arrange firm appointments and have a more structured presentation than in the past.”

“We have sponsored buyers to fly to the event from Russia, Austria, Turkey, Finland and Poland, but they must attend the Thailand Minimart function in ITB Berlin.”

TAT will charge an extra of Bt5,000 to participate in the Thailand Minimart session. For the ITB Berlin booth, TAT charges Bt80,000 per half table and Bt160,000 for the entire table.

“TAT covers the space fees and booth constructions in the pavilion and space rental for business session for Thai tourism players,” said Ms Juthaporn.

On four niche markets

“We are trying to tap lifestyle markets to gain higher spending,” said Ms Juthaporn.

There are obvious threats such as the European zone crisis but TAT believes up-scale travellers are more robust. They are able to pursue hobbies and sports regardless of economic factors.

The TAT director identified golf, weddings and honeymoons, medical & wellness travel for East Asia, America and Middle East markets.

“We also have a wedding and honeymoon market in Europe, but it’s more likely to be a ceremony on the beach,” she said. “Also, Thailand has recently been voted the third best destination for honeymoons from the Bridal Guide magazine, based in the United States.”

Challenges

When asked about what are the challenges for Thai tourism, Ms Juthaporn answered: “The uncertain economy in Europe.”

“There are still strong market where the economy is stable. Switzerland and Scandinavia still have strong economies,” she added.

This year, TAT will also hold a post ITB field trip to Poland and Czech Republic with around 40 tourism businesses joining the trip.

On a marketing strategy, she concluded TAT will strengthen the Thailand brand through the campaign “ Amazing Thailand,” while expanding into quality markets (four niche markets) to strengthen yield.

However, despite warnings triggered off by the US, 13 January, the country’s travel agency association reported trips by American citizens grew by more than 26% in January.

Ministry of Foreign Affairs permanent secretary, Sihasak Phuangketkeow, said the ministry met with ambassadors of more than 40 countries, 3 February to brief them on security in the country.

The US issued the initial warning prompting 19 nations to follow with cautions on travelling to Bangkok.

None of the warnings were identified as red alerts that recommend travellers to postpone travel, but they did point to potential threats in Bangkok and the need to be watchful or stay away from crowded places.

Mr Sihasak added: “More stringent security measures have been implemented to restore confidence in the country at all levels. Visitor safety is being taken seriously.”

The nine countries still recommending caution when visiting Bangkok are: the United Kingdom; Australia; Austria; Taiwan, South Korea; Italy; Japan; Romania and Canada.

Ten countries that revoked the alert earlier than the US included China, Israel, Greece, Germany, France, Norway, Brazil, Netherlands and Denmark.

“Japan,  a top  market, is waiting official confirmation from Thailand on the security status before it will revoke its warning,” Mr Sihasak explained.

He urged the remaining countries to review their alerts based on the current situation in Thailand and the Thai government’s handling of the matter.

“We know Australia is preparing to revoke the alert, while the UK has made it clear that it will not change the warning as it is informing citizens of potential threats.”

However,  there are signs that tourism is making a fast recovery, while travel executives said the more damaging factor was last year’s floods in terms of revenue lost to the industry.

Association of Thai Travel Agents, which collects data from its members who handle international tourists at Suvarnabhumi Airport, reported there were declines in clients requiring meet-and-greet services at the airport  after 13 January.

ATTA identifies decline in business from 10 countries in January

In contrast, the United States warning alert had no impact on ATTA member business. Travel agents serviced 2,599 trips from the US in first month of the year up 26.47% from 2,055 trips in the same month last year.

China remained strong improving of 69.18% to 66,927 trips compared to 39,560 trips in 2010.

Association of Thai Travel Agents president, Sisdivachr Cheewarattanaporn, told TTR Weekly that the categories and breakdown for tourist arrivals needed to be improved.

“I don’t want to comment on collection itself because the tourism ministry has a duty to build the country’s image and that is a factor when collecting data,” he said.

Sisdivachr Cheewarattanaporn

“Whatever we recommend the result as we know will be the same.”

But he touched on the controversy saying the ministry should be mindful that it has a responsibility to support the industry and to achieve that classification and data interpretation should be clear to strengthen travel agency marketing plans and strategy.

“The private needs the department to divide tourist arrivals into categories to gain a real tourism business figure rather than just counting all the people who pass through the border checkpoints as is the case now.”

There is has been consistent criticism of the ministry’s ability to deliver credible and accurate tourism data and so far ministry officials have declined to comment.

Some of the categories that travel agencies would like to see in the data fields includes FIT, group tours, VFRs, business, investment, meeting and incentive as well as niche market travellers such as weddings where one of the partners is Thai.

Maiyarat Pheerayakoses

Association of Domestic Travel president, Maiyarat Pheerayakoses, said the tourism department’s data is limited in scope and needs to be upgraded.

“The tourism department collects tourist data according to theory, while we need detailed information that can be used to supplement the data supplied by Thai Hotel Association and Association of Thai Travel Agents that run their own accurate research.”

Association leaders admit there is a gap between the tourism department’s figures and the reality in the business market.

“Although tour operators need to use the tourism department’s data to make marketing plans, we still need in-depth data that gives us background on the real tourists not every person who crosses borders,” Ms Maiyarat said.

Tourism Council of Thailand president Piyaman Tejapaibul admitted there is a lot of controversy over tourism data, but the TCT still “respects the tourism department criteria” based on United Nation World Tourism Organisation guidelines.

Piyaman Tejapaibul

“I think tourist arrivals data collected can be trusted because the ministry is using the same company, Excellent Business Management Company Limited, that worked for the Tourism Authority of Thailand before the transfer of responsibilities in 2008.”

TCT president added: “If there are adjustments in the tourism collecting data method it has to comply with Ministry of Interior law.”

The council says it has set up a committee to work with the tourism department to check the accuracy of data as well finds way to build creditability with the private sector.

KRC research said key factors leading to recovery included the cancellation of a Chinese travel advisory as well as efforts to improve security for Chinese visitors.

Visits should increase 10% during the first quarter to reach 530,000 visitors (+11%) and generate Bt16 billion in revenue (+20%).

The bank also recommended that tour operators spend more time monitoring Chinese tourist preferences to improve future marketing and product plans.

Younger Chinese travellers are also visiting Thailand a relatively new trend that should continue.

Other suggestions for tour operators were:

• Create products specifically for Chinese tourists rather than adapting those from other markets;

• Partner with tourism operators in China to exchange information and business plans;

• Study technology and the rules that apply in China as there are government controls on access to social media such as Google, Facebook, Twitter, YouTube, Foursquare and Yahoo which could impact on promotions that use these tools.

Identified as MICE 101 it will help prepare students for the upcoming ASEAN Economic Community 2015.

TCEB president, Akapol Sorasuchart, said MICE 101 will introduce students to corporate meetings, incentive activities, international conventions and international exhibitions and trade show management.

Akapol Sorasuchart

“Education is a critical to meet the competitive challenges of a liberalised market in 2015,” he said at the launch of the project earlier this week.

The course breaks down into three areas: Overview of Thailand’s MICE industry; event management; and a wrap up of side issues impacting on the industry.”

The curriculum also covers industry ethnics and governance.

The curriculum will be piloted at four universities for the new academic year 2012. They are: Mahidol University International College; Prince of Songkhla University; Ban Somdej Chaopraya Rajabhat University and Siam University.

It will form part of the first and second year foundation course for undergraduates.

Education plays a pivotal role in TCEB projects this year.

They include:

• A MICE Working Committee to build skills in Thailand’s MICE sector;

• Develop a research report on the implications of AEC on the MICE sector;

• Organise workshops in cooperation with event players in Bangkok, Pattaya, Chiang Mai, Phuket, Hat Yai, Khon Kaen, Phitsanulok and Ubon Ratchathani;

• Focus on professional training.

Ho Chi Minh City Department of Culture, Sports and Tourism’s Tourism Promotion Division deputy head, Nguyen Bao Anh, said promotions will focus on South Korea, the United Kingdom, India and Ukraine.

“Tourist arrivals from those four countries remained small, last year, but the growth rate was promising.”

Air links between Ho Chi Minh City and these markets have opened and that has prompted interest in promotions.

“The UK market is expanding since the national airline started a London flight last December,” he said.

Mr Anh added: “A similar route from Ukrainian has now started and services to India will be launched this July, also on Vietnam Airlines in partnership with Jet Airways.”

Trips for journalists and travel agency staff from the four markets will kick off the effort.

In the South Korean market, foreign tour operators will be invited to try river tours from the city and check out investment opportunities particularly joint ventures.

Last year, there were 3.5 million international tourist arrivals increasing 12.9% against 2010.

The city’s revenue from tourism was estimated at VND49 trillion (US$2.33 billion) improving 19.5% year-on-year. Of that revenue, VND29 trillion came from restaurants and hotels, while VND12 trillion derived from travelling services.

The top 10 markets for HCMC were: the United States; Japan; Taiwan; South Korea; Australia; China; Malaysia; Singapore; France and Canada.

In response to constant travel industry criticism that its data lacked credibility, TTR Weekly forwarded questions to a Department of Tourism official who asked not to be identified.

Officially, the department declined to be drawn into a debate on data collection.

The department official confirmed that all of its data is derived from Immigration Bureau statistics collected at over 30 border checkpoints across the country.

The ministry does not collect independent data.

Data collected from the immigration bureau at Suvarnabhumi Airport represents 60% to 70% of all arrivals.

Addressing specific complaints on reliability of data, the official said the process was no different than was employed by all member countriess of the UNWTO.

“We follow the UNWTO procedures and condition based on the criteria that the foreign tourist passing through a border checkpoint is not coming to work in Thailand or is categorised as a resident.”

The source confirmed that the data does not include UN officials, ambassadors, and airline cabin attendants and flight crews.

The Department of Tourism has hired Excellent Business Management Company Limited to process the raw data from the Immigration Bureau. It collates the percentages, market and nationality breakdown.

In an on-going programme, teams hired by the department interview a sampling of 2% of each nationality identified in the tourist arrival data. Interviews are conducted at the Airport of Thailand’s six airports including Suvarnabhumi, Don Mueang, Chiang Mai, Hat Yai, Phuket, and Mae Fah Luang-Chiang Rai. Interviews are done at tourist attractions to collect behaviour, length of stay, and spending per head information.

From these interviews , the department arrives at estimate on revenue for tourism in Thailand.

The interview method is also used to estimate Thai outbound trends at those airports and border check points to collect its tourism movement information.

On the domestic front Thai tourists are interviewed at tourist attractions in 77 provinces based on the criteria that the person interviewed comes from another province.

In an on the record interview, the Department of Tourism director general, Supol Sripan, said Bt30 million will be spent ( overall budget Bt2,624 million) to tighten up and build depth into statistical collection.

“The project focuses on collecting tourist expenditure, number of tourist at accommodation facilities and building data on average room prices,”

Mr Supol added: “This data should benefit tour operators to build a tourism marketing plan or promotions.”

It will take three years to get to that point.

In 2008, the Department of Tourism took over the tourist data from the Tourism Authority of Thailand.

However, criticism of the department’s figures has been constant. On this website, readers have blogged data stories challenging the accuracy of national statistics on tourism. The Ministry of Tourism has so far declined comment.

TAT assumed sole ownership of the debt-ridden operator Thailand Privilege Card company, last year, under a directive from the previous government, but it needs the current government to sign off on the decision to close the company.

Thailand Privilege Card was established to manage the Thailand Elite Card, which was supposed to be an exclusive lifetime benefit card, priced at Bt1 million, for multi-millionaires visiting Thailand.

TAT governor, Surapol Svetasreni, confirmed once the Thai government grants approval it will take 90 days to start the closure process.

“TAT will present a plan to the Cabinet this March and start staff  lay-off within 90 days after approval. Only 10 staff are involved in TPC.”

But it might not be that easy. The TAT governor hinted that if cardholders sued the company closure may be delayed to September 2014. If not it will close no later than April 2013.

TAT estimates the closure will cost Bt190 million excluding compensation to cardholders, which could exceed Bt2.5 billion when other business-related damages are accessed.

The estimates will interest lawyers representing any disgruntled card members as it gives a benchmark on what they can expect in an out-of-court settlement.

TPC assets will be sold to pay off debts.

The company has a registered capital of Bt500 million, but has just Bt53 million in cash and monthly expenses averaging Bt7 million, down from Bt10 million in 2008.

Thailand Elite Card project was launched by the former Thaksin Shinawatra government in 2003. It was dismal failures from the word go and the only tangible benefits were a fast-track to a five-year visa and the right to buy land, which was later rescinded.

Discounts at resorts, spa and golf course and other perks have little value as better deals were available in the commercial market.

The government at the time claimed there were 2,566 members, mainly Koreans, Japanese, and Taiwanese who were attracted by the land purchase facility included membership.

Even today the Thailand Elite Card the main  company product has a spacious meet-and-greet service office at Suvarnabhumi Airport in a prime location close to the Tourist Police. Around five staff dressed in traditional Thai costume stay at the office, although there appears to be no apparent reason for their presence.

Thai Travel Agents Association reports the four-day show will have 1,110 registered booths mainly promoting travel deals and holidays to the consumer market.

They represent hotels, tour operators, national tourism office, airlines, car rentals and tourist attractions.

“It will be a good indicator of the Thai economy after last year’s flood crisis,” said TTAA president Charoen Wangananon. “We expect the show will attract around 800,000 visitors  and generate an estimated Bt1.3 billion.”

Japan continues for the second year as the signature destination with 40 booths booked under the Japan National Tourism Organisation.

“But this year we will add a second highlighted destination, India which has 10 booths with a theme of following the trail of the Buddha,” the TTAA president explained.

The proportion of this year show will be 55%  for domestic tourism and 45%  outbound tourism.

When asked what was new at the fair this year, Mr Charoen identified the national tourist office from Uzbekistan and Disneyland Hong Kong which is introducing Toy Story Land to the market.

Sponsors to the show remain the same; Krungthai Card PLC, Association of Domestic Travel, Thai Amadeus and ThaiVivat Insurance PCL.

KTC says card spending during the fair could reach Bt300 million. It is also more optimistic on attendance estimating 1 million visitors.

Last February the show generated revenue of Bt1.2 billion.

Last year, TTAA confirmed it would host TITF twice annually; the first show in the traditional timeslot of February and a new edition in August (dates to be confirmed).

TTAA has over 1,000 members mostly related to Thailand’s outbound travel sector that generates about 5 million overseas trips a year.

The department reported, late last week, its January to December 2011 data that showed 606 films, documentaries, advertising, TV series, and music video were filmed on location in Thailand generating Bt1,226.45 million in revenue. It compares with 578 productions and Bt1,869.15 million in 2010.

In 2011, foreign productions included 155 documentaries, 296 advertising, 86 TV series, 34 music video, and 35 feature films.

European film makers led the field with 119 productions followed by 113 from Japan, 107 from India, 47 from South Korea, 35 from the United States, 33 from China, 24 from Hong Kong, 15 from Australia, and nine from Taiwan.

In December alone, there were 36 productions that generated Bt109.55 million compared to 44 productions that circulated Bt90.38 million.

Off 36 productions, there were eight documentaries, 19 advertising, seven TV series, and one each for music video and film.

European production teams top the list in December with eight productions followed by six each from Japan and India, three from US, and two each from South Korea and China while the raise nine from others.

Last year, Thailand  waived fees for foreign film makers to shoot productions on the government owned properties — the National Parks, Wildlife and Plant Conservation Department, Fine Arts Department, the State Railway of Thailand, the Treasury Department, the Royal Forest Department, the Royal Irrigation Department and Suvarnabhumi Airport– to encourage more film producers in the country.

That benefit has now ended.