TOURISM INDUSTRY TO FOCUS ON NEW MARKETS, NEW DESTINATIONS

The Tourism Authority of Thailand has concluded a week-long marketing and development meeting designed to further strengthen the country’s position as a world-class tourist destination.

The tourism industry has proved itself an important factor in helping boost the country’s economic status and now needs to start reshaping itself and restructuring in the wake of intense global competition for market share.

TAT projects that visitor arrivals to Thailand will total about 9.70 million in 2001, up about 6.35% and bring about 318,160 million baht revenue to the country’s economy. Meanwhile, 56.70 million tourists are projected to travel domestically in 2001, a slight increase of 3%, contributing 268,800 million baht to the country.

Subject to Parliamentary approval, TAT has requested a budget of 2,925 million baht for the fiscal year 2000- 2001, a small increase over the 2,920 million baht allocated in 1999-2000. However, the marketing budget is to be boosted from 1,906 million baht to 1,963 million baht, or 67% of the total.

The goals of the industry remain the same: To increase the tourism revenue by attracting more visitors to Thailand, persuading them to spend more and stay longer.

Newly-appointed Minister to Prime Minister's Office and TAT Chairman Adisai Bodharamik said, “we will need to be very creative in our future plans. We will need to give visitors more reasons to come to Thailand, more interesting tourism activities and new tour packages to attract both first-time and repeat visit visitors," added Mr Adisai.

In 2001, the TAT will change both the target markets and product mix. Proactive marketing campaigns are to be focused on both principal and supplementary markets in 2001 as follows:

1. Principal markets (high-spending and strong growing markets): East Asia--Japan, China, Singapore, Korea and Taiwan; Europe--UK, Germany and Scandinavia; the US and Australia.

2. Supplementary markets (medium growing markets): France, Switzerland, the
Netherlands, Italy, Israel, Eastern Europe, Indonesia and India.

However, TAT will maintain its marketing campaigns in certain other priority markets including Malaysia and Hong Kong.

In terms of niche-markets, the TAT is focusing on MICE, families, golfers, honeymooners, special interest visitors on eco-tourism, agro-tourism and diving.

Within Thailand, TAT has undertaken a major inventory of the tourism assets and divided them into the three segments as follows:

Seven supplementary areas, of which the first three are ready to
be sold and promoted in 2001 --

1. Petchaburi and Prachuab Kirikhan
2. Krabi, Trang, Satun and Pattalung
3. Nakhonratchasima, Burirum, Srisaket, Surin and Ubon Ratchathani
4. Chiang Rai, Phayao, Phrae and Nan
5. Rayong, Chanthaburi and Trad
6. Khon Kaen, Udonthani, Kalasin and Nong Khai
7. Chumporn and Ranong

The first three supplementary areas will be promoted in the form of regional clusters. For example, Petchaburi and Prachuab Kirikhan provinces will be grouped and jointly promoted as one ‘cluster.’ The two provinces offer a wide range of tourism products and activities.

By promoting them as one, TAT plans to decongest popular destinations and also help further spread distribution of tourism income. Joint advertising campaigns between TAT and both public and private agencies will be launched. These include trade shows, familiarisation trips, joint promotions and consumer brochures.

Eight major tourist cities including Bangkok, Phuket, Samui, Pattaya, Chiang Mai, Hat Yai, Nakhon Ratchasima and Kanchanaburi, will be re-positioned and combined with other famous tourist destinations within the ASEAN and Greater Mekong regions.

Nine potential cities and border cities will also be included in the clusters:

1.Thailand-Malaysia (Songkhla, Narathiwat, Satun and Yala)
2.Thailand-Laos (Ubon Ratchathani and Nong Khai)
3.Thailand-Cambodia (Sa Kaeo and Trat)
4.Thailand-Myanmar-Laos (Chiang Rai)

TAT will further strengthen bilateral and international relations with neighbouring countries. To promote the region a single destination, more joint activities especially overland caravans and Mekong cruises will be initiated and implemented.

TAT plans to pay much more attention to developing sustainable tourism and addressing various problems with related rural agencies. TAT will encourage rural people to participate in tourism activities and help solve problems at the local level.

To develop the country's tourism and address some of the problems that have emerged as a result of continuing growth in domestic and international tourism, TAT will also attempt to further strengthen partnership with hospitality and tourism related agencies.

Mr. Adisai said sustainable development is TAT’s priority but tourism-related problems need to be addressed by both public and private organisations.

Said TAT Governor Pradech Phayakvichien, "One of our major policies is build stronger awareness of the importance of tourism among government agencies on whom we depend for infrastructure and partnership support especially at the grassroots level."

In terms of marketing strategies and campaigns, TAT will maintain the Amazing Thailand slogan.

To maintain its long-haul markets from Europe and the US, TAT will continue to seek more marketing alliances and undertake hard-sell campaigns in potential markets. Usage of Information technology especially the Internet will also be stepped up to boost awareness and sales.

Governor Pradech said TAT would continue to work with related public and private agencies as well as local communities to help them maximise tourism earnings.

In 1999, international tourist arrivals totalled about 8.58 million, up
10.50% over 1998, generating about 253 billion baht (or about US$7
billion) in foreign exchange in 1999. Meanwhile, Thais made about 53.65
million domestic trips, creating about 203 billion baht worth of domestic consumption.