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TAT calls attention to flaws in tourism scheme

TAT calls attention to flaws in tourism scheme

BANGKOK: The domestic tourism subsidy needs another major revamp despite generating B3 billion for the local sector, as just 17% of 5.05 million registrants used the benefit over two months, according to the Tourism Authority of Thailand (TAT).

tourismeconomicsCOVID-19
By Bangkok Post

Saturday 12 September 2020, 09:18AM


Airline subsidies are reported to have the lowest redemption rate under We Travel Together.

Airline subsidies are reported to have the lowest redemption rate under We Travel Together.

The B22.4bn stimulus campaign called We Travel Together started on July 18. But as of Sept 5 only 851,321 registrants had booked hotel rooms via this privilege, with total transactions worth B2.5bn, reports the Bangkok Post.

Spending using B600 and B900 e-vouchers attached automatically upon check-in during weekdays and weekends, respectively, helped distribute B388 million to local operators.

The airline subsidies are reported to have the lowest redemption rate, with transactions totalling B23.6mn from 8,703 ticket purchases. Users cannot directly book tickets with discounted prices; they instead receive a 40% subsidy after the trip is completed.

“In its first 50 days, we saw clear signs of limited purchasing power, which prompted us to rethink the new mechanism to induce more registrants to book hotels and air tickets, and boost spending,” said TAT Governor Yuthasak Supasorn.

The scheme saw an average of 17,026 transactions a day. But those booking flocked to 4,014 hotels out of 7,130 in the scheme. The most popular destinations were Chon Buri, Phuket, Prachuap Khiri Khan, Chiang Mai and Bangkok.

The TAT will extend the deadline of the project to December to widen the booking window for local tourists. It plans to adjust redemption procedures to correct pain points, particularly for airline bookings.

At a meeting with airlines in Thailand this week, the TAT was asked to consider a less complicated method for air ticket purchases by providing an instant 40% discount upon booking, the same as for hotel booking.

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Kurt | 14 September 2020 - 09:38:58

If TAT likes to do something good,..How about suggesting to close down all the illegal hotels/guesthouses? Their numbers are enormous. It will contribute to survival of the legal ones. Of course such initiative will 'bleach' the brown envelope business of Officials ( overlooking illegal status) but reality shows that 'legal' has to be rescued/supported till better times are coming.

Galong | 12 September 2020 - 09:46:16

Hotels and airlines might benefit a bit. Domestic travelers will do basically nothing to help tour operators except the cheap charlie mass tourism operators. Quality nature tourism is dead. It's as if the gov doesn't care. They've done nothing for months to help quality tour operators.

 

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