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Baht vexes tourism groups

BANGKOK: A strong baht presents the most pressing challenge for tourism this high season after the currency reached its highest level in six years, say tourism business leaders.

tourismeconomicsChinese
By Bangkok Post

Thursday 31 October 2019, 09:02AM


Tourists enjoyed taking their shoots at Wat Arun. Photo: Bangkok Post

Tourists enjoyed taking their shoots at Wat Arun. Photo: Bangkok Post

The currency surged to B30.22 per US dollar on Friday, with some analysts expecting the baht to rise past 30 per dollar next year.

Vichit Prakobgosol, president of the Association of Thai Travel Agents (Atta), said the tourism sector could lose a crucial opportunity to attract tourists to Thailand during the peak season from November to December, falling short of the government’s target for this year.

“We have no control over external factors like the US-China trade spat, but the government and the Bank of Thailand can help solve the problem by lowering the interest rate to help operators in both the tourism and export sectors,” Mr Vichit said.

He said the extension of B2,000 visa-on-arrival fee waivers is helping to maintain the number of Chinese tourists at a healthy level this year, even as the yuan weakens.

The baht rose from B33.13 per dollar on Oct 29, 2018 to B30.22 per dollar a year later, according to the central bank.

“If the baht breaks 30 to the dollar, the tourism sector will be affected, with lower inbound tourists and more Thais travelling abroad,” Mr Vichit said.

The currency issue led the Tourism Council of Thailand to downgrade its prediction for foreign tourist arrivals this year to 39.7 million from 40.1mn, cutting the tourism revenue projection to B1.95 trillion baht from B2.13trn.

The strong baht is projected to cut individual tourism spending to B4,000 a day from B6,000-7,000 a day.

Chamnan Srisawat, chief executive of Srisawat Travel & Tour in Krabi, said that in terms of arrivals, most tourists from Europe who travel in groups have already booked their trips in advance, even though the advance booking time has shortened from six months to just two months.

For the short-haul market, Mr Chamnan said tourists are tending towards nearby countries like Vietnam, which has new man-made attractions and cheaper prices.

ZENITHY POOL VILLAS

“Chartered flights from five cities in China to Krabi also decreased by 30%, but we are hopeful they will rebound in December,” he said.

With travel expenses for tourists rising 20% because of the strong baht, Koh Samui lost about 110,000 tourists during the first nine months of 2019, said Vorasit Pongkumpunt, president of the Tourism Association of Koh Samui.

The hotel occupancy rate in Koh Samui for November (still considered rainy season) dropped to 30% from 50% of 27,000 available rooms, based on advance bookings.

On the other hand, Mr Vorasit expects post-Christmas occupancy to stay healthy at 70%.

The Tourism and Sports Ministry reported that international arrivals in the first nine months stood at 29.5mn, a 3.5% year-on-year increase, generating B1.42trn in tourism income, up 3.5%.

During the same period, Thailand welcomed 8.51mn Chinese tourists, up 1.7% year-on-year. Those arrivals generated B426.8bn, up 4.1%.

The number of travellers from Europe fell by 1.8% year-on-year to 4.69mn in the period, leading to tourism income of B324.75bn, down 2%.

 

Read original story here.

 

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CaptainJack69 | 01 November 2019 - 20:29:16

Wow, for people to actual admit that their occupancy rates are 30% how low are they really? Bearing in mind that we're normally told that these places run at 60-70% even in "rainy season".

Please explain how Thai interest rates have anything to do with the tourist economy. Is slipping into ever increasing debt considered a solution?

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