Display mode (Doesn't show in master page preview)

21 Apr 2006

Tourism

H1/2006: Thai Travelers Making Foreign Trips, Outflow of THB55 Billion

คะแนนเฉลี่ย

Thailand's outbound tourism in 2005 is expected to experience growth converse to the effect of the tsunamis here. That growth can be attributed to scores of favorable factors, including campaigns for budget tour programs launched by other countries that were spared from the natural disaster, thus taking the opportunity to draw tourists that were avoiding trips here. This not only bit into Thailand's foreign tourist visitor market, but also boosted outbound travel, regarded as a key market by most countries.

Data from the Tourism Authority of Thailand (TAT) shows that, during the first nine months of 2005, Thais making overseas trips totaled 2.24 million people, up 13 percent, over-year. Meanwhile, Thailand's outbound tours gained greater popularity during the final quarter of 2005, in particular, to short-haul destinations within the Asian region. KASIKORN RESEARCH CENTER (KResearch) thus forecast that the number of Thais making overseas trips for the whole year of 2005 may have reached some 3.05 million persons (excluding Thai laborers working abroad), rising 13 percent over the year earlier, resulting in a fund outflow of some THB99 billion, a year-on-year increase of 18 percent.

Thailand's outbound travel was on the rise during the first quarter of 2006, thanks to numerous supportive factors, i.e. ?
  1. The prices of domestic tour packages over some routes had increased to a point where they were almost on a par with, or even higher than, those of some outbound tours to other countries, despite travel campaigns launched to revive tourism battered by the Tsunami crisis.
  2. Various tourism-related strategies were employed by many countries, including Hong Kong, Japan, South Korea and other European countries, i.e., Austria, United Kingdom and Switzerland to woo tourists to their lands, such as arranging road-show campaigns to Thailand.
  3. The popularity of South Korea's TV series here that has caused a rapid surge in demand for tour packages to South Korea, especially during the period from the International New Year holidays to the Chinese New Year.
  4. The strengthening Baht has proved to be a boon to outbound tours.

However, political turmoil and prolonged anti-government protests in March were among the negative factors that undermined Thailand's outbound tourism. This was particularly true due to rising travel-related expenses, buoyed by surges in oil prices and unfavorable economic conditions that resulted in cautious spending by the general public. A great number of Thais put off their overseas trip plans pending a clearer political situation after the general elections held on April 2, 2006.

KResearch forecasts that, in the first quarter of 2006, 750,000 Thais will have taken overseas trips, increasing 8 percent over the growth of 13 percent in the same period of 2005.

The number of Thais traveling abroad in the second quarter of 2006 will likely tend to be higher than in the first quarter, due partly to declining political tensions, somewhat, which has resulted in Thai people gradually resuming overseas trips in the second quarter, coupled with the following supportive factors:
  • The remarkably stronger Baht in April has been favorable to overseas travel.
  • April and May are the high season for Thai tourism, and more Thai tourists travel overseas at this time, particularly families.
  • Outbound tour companies have organized sales promotions to create income during the Songkran festival to compensate for the revenue they lost due to political turmoil.
  • Cooperation between Thai hotels and domestic tour companies along the border has resulted in offering organized group tours to Laos, which also attracts Thais increasingly, particularly during important festivals such as Songkran when a large number of Thais cross the border to visit the Laotian capital; Vientiane. Some go even farther, traveling to Nam Ngum Dam.
  • The market for short language courses taught by native speakers in their homelands abroad has grown rapidly for both the English and Chinese languages that are becoming more popular with students and businessmen who are interested in learning these tongues for business, trade and investment in China.
  • Cooperation between business allies has stimulated and accelerated the growth of outbound tours, particularly in accepting payments for outbound package tours in installments through credit cards, which has helped to increase the purchasing power of tourists amid an unfavorable economy.

The above factors have substantially increased the number of Thais making overseas trips during long holidays like the Songkran festival, leading to our forecast that, for April, at least 400,000 Thais will have made overseas trips, increasing 10 percent over the same period of 2005.

Therefore KResearch forecasts that in the second quarter of 2006, 950,000 Thais will have made overseas trips, increasing 12 percent over 2005. Overall, in the first half of 2006, 1.7 million Thai people will take overseas trips, increasing 10 percent over 2005, causing a fund out flow from Thailand of around THB55,000 million.

Popular tourism destinations overseas for Thai tourists in the first half of 2006 will mostly be short haul destinations in Asia including China, Singapore, Hong Kong, Laos, Japan, Taiwan and South Korea. Thais traveling to these countries represent a high proportion of more than 50 percent of the total number of Thais taking overseas trips in the first half of the year.

Tourism

Trip