Friday, September 25, 2009

CLEAR-CUT GOVT MEASURES KEY TO TOURISM RECOVERY

       The government must come up with clear-cut and proactive measures for the tourism industry to cash in on the global economic recovery next year, the University of the Thai Chamber of Commerce said yesterday.
       "The government must urgently stimulate the domestic economy, solve the prolonged political conflict and promote clear measures, including public relations, the creative economy and the Asean Economic Community (AEC), to ensure the Thai tourism industry can grow smoothly," said Thanavath Phonvichai, director of the UTCC Economic and Business Forecasting Centre.
       He said the global economic recovery is a major factor for growth in the Kingdom's tourism industry.
       However, the UTCC survey showed most enterprises in the tourism industry still do not understand how a creative economy and the AEC can help tourism businesses prosper.
       This is crucial for the sustainable growth of the industry, he said.
       Out of the 400 respondents to the centre's survey, 60.5 per cent do not know about the creative economy or how it will promote the growth of the industry. Only 39.5 per cent recognise the policy.
       But only 27 per cent of those who recognised the creative economy policy know how to adapt the policy to develop their business.
       Clear explanations of both the creative economy and the AEC are needed, because they will be major factors promoting growth in the industry, he said.
       Although most respondents - 63 per cent - recognise the AEC, only a few understand how the integration can benefit their growth.
       UTCC lecturer Wachira Khuntaweetep pointed out that about half of the respondents realised the AEC could help promote the industry, because Asean would become a destination for travellers.
       Yajai Chuwicha, head of the university's Chamber Business Poll, said most businesses in the sector had a positive outlook for the fourth quarter and next year.
       "The recovering global economy and diminishing concerns about type-A(H1N1) influenza have increased the confidence of enterprises that the industry will generate better returns in the fourth quarter," he said.
       The poll also showed most enterprises in the industry, including restaurants, hotels and travel agencies, were likely to hire more staff soon once tourism revived.
       UTCC predicts the number of visitors to Thailand will grow 10-15 per cent next year to between 14.5 million and 15 million, thanks to the economic recovery. It also expects the industry to generate higher income, in line with the rising number of tourists. Tourism revenue should increase 10-15 per cent to between Bt500 billion and Bt530 billion.
       The sector is on the path to recovery after a 10-15-per-cent plunge in tourist arrivals this year, the centre said. It estimates visitor numbers will fall to between 12.5 million and 13 million this year, with revenue will drop to between Bt420 billion and Bt450 billion.
       Arrivals are expected to rise 3-7 per cent in the fourth quarter after falling 10-15 per cent this quarter.

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