TTR Weekly

Scan workshop tours Asia

2012-02-24T08:47:52Z

BANGKOK, 24 February 2012: Scandinavian Tourist Board presented 10 tourism products at a sales workshop earlier this week attended by 100 Thai travel agencies.

The workshop from STB is held annually to boost travel in Spring and Summer.

However, for the first time STB only represented two countries, Denmark and Norway, leaving Sweden out of the sales loop.

“Denmark and Norway are still working together in the Asian region,” said STB chief marketing officer Asia/ Pacific, Kjell Ellefsen noting Sweden pulled out of the workshop as the theme — nature and culture — conflicted with Sweden’s marketing theme.

However, it is more likely that Sweden’s tourism budget could not be stretched to cover a roaming workshop in six Asian cities, after serious budget cuts last year.

“Travel from Thailand is relatively small,” he explained, “but what makes it interesting is the high spend. Thai travellers tend to purchase lots of luxury goods and services so it has a high value for our tourism industry.”

Currently, major suppliers from Asia are Japan followed by China and South Korea.

Realtime Travel Solution general manager, Sahanop Detya, told TTR Weekly there were fewer incentive groups to Scandinavia, but the small group market was still growing by around 10% to 15%.

The average cost of a Scandinavian tour is Bt90,000 lasting around seven days. Scandinavian tours are generally 10% to 15% more expensive than tours to central and western Europe.

The peak season for Scandinavian trips is June to August to experience the midnight sun.

Only Thai Airways International and Scandinavian Airlines offer convenient services to the Denmark and Norway.

STB Asia is based in Japan. It holds workshop in Asia to update products annually. This year, the first stop was in Bangkok followed by Taipei, Hong Kong, Guangzhou, Shanghai and Beijing.

Phuket rip-offs in the spotlight

2012-02-24T08:44:26Z

BANGKOK, 24 February 2012: Foreign diplomats are scheduled to meet the Minister of Tourism and Sports, Chumpol Silpa-archa, 2 March, to discuss ways to crack down on tourist swindles, mainly in Phuket.

Ministry spokesperson, Watchara Kannikar, said the Head of the Delegation of the European Commission to Thailand and the ambassadors of six other countries, including Poland, Austria, Switzerland, Finland, Norway and the Netherlands, are scheduled to meet with Minister Chumpol to brainstorm solutions.

The main concern is the mafia-style scams and swindles that are marring Phuket’s image as a tourist destination.

The minister admitted that swindles in Phuket were an international issue which called for immediate action.

“The most common rip-off involves overpricing or low-quality products, low-standard services, and exaggerated damage claims on broken items,” Mr Chumpol said.

Illegal tour guides particularly from Russia and South Korea, unlawful taxi drivers and pollution from oversupply jet skis are on the complaints list.

The Ministry of Tourism and Sports says it will blacklist jewelry shops that sell low-quality items at inflated prices.

The names of shops that are guilty of scamming tourists will be posted on the website of the Ministry of Tourism and Sports as well as that of the Department of Tourism.

“The Tourism Authority of Thailand has also been told to inform its overseas offices regarding this issue,” the minister said.

TTAA show displays hot season bargains

2012-02-24T08:42:05Z

BANGKOK, 24 February 2012: The 10th Thai International Travel Fair opened yesterday attracting thousands of consumers who snatched up first-day discounts of 30% mainly off domestic packages for the up-coming hot season.

Organisers, the Thai Travel Agents Association, reported more than 1,000 booths were open on the first day at the Queen Sirikit National Convention Centre. Office workers and housewives packed the venue eager to secure travel bargains covering the up-coming school holidays late March to mid- May.

TTAA said the seller breakdown was: Hotels and resorts (191); travel agents (175); airlines (27); national tourism organisations (17); Tourism Authority of Thailand and tourism associations in Thailand (five) and others.

During the opening ceremony, TAT governor, Suraphon Svetasreni, said it was important for Thai people to travel to other countries to ensure a balanced two-way tourism that would benefit airlines and travel operators.

“We should have a balance between travelling in our own country and exploring other parts of the world as part of a learning process,” he said.

TAT has 20 booths at the show all promoting domestic destinations or niche markets.

During the show’s opening ceremony, TTAA, announced award winners based on the booth decoration and show content:

• First World Tour (travel agent company category);

• Bangkok Airways (Airline category);

• Japan National Tourism Organisation (NTO category);

• Hong Kong Disneyland (attraction category);

• Four Seasons Place Hotel Pattaya (hotel and resort category)

Japan and India led the way as the two signature destinations. India is promoting its Follow the Trail of Buddha campaign at its booth, while Japan decorated 40 booths to give the area a Japanese ambiance. Japanese companies can be found in Hall A and India’s zone is in the ballroom next to the Hall A.

To support sales and bookings, Thai Amadeus has set up its Real Time System, which allows consumers to book air tickets, make reservations with confirmation and payment details sent to the customer’s mobile within seconds of a booking being filed.

The 10th TITF will continue until this Sunday. TTAA expects to attract 800,000 consumers and sellers estimate revenue of Bt1.3 billion. The second show of the year, the 11th TITF, will be held 16 to 19 August at the same venue.

Swiss switch to Asia drive

2012-02-24T08:55:30Z

BANGKOK, 24 February 2012: Switzerland Tourism hosted a road show in Thailand signaling its intention to focus on Asian markets as travel declines within the Eurozone.

Traditionally Switzerland depends on North America and European neighbours to supply the bulk of its tourists, but as Europeans tighten their belts, travel has plummeted from key source markets.

Switzerland Tourism executive vice president markets and MICE, Urs Eberhard, told TTR Weekly Switzerland needs to source new markets and Southeast Asia was now a key focus.

Urs Eberhard

The country’s national tourist office opened an office in Singapore, last week, to lead the new marketing initiatives.

“Of the five highest growth markets, Southeast Asia is in fourth place with a 13% increase last year against 2010,” he said. “Over the last six years we saw an accumulative growth rate of 72% from this market.”

Within the region, Thailand is the second biggest supplier of tourists to Switzerland after Singapore. Last year, Thailand supplied 93,402 tourist arrivals, up 9% from 85,851 in 2010.

Singapore supplied 109,974, up just 5% from 104,563 arrivals in 2010, while Indonesia supplied 55,797 tourists, up 46% from 38,327. Malaysia, in fourth place, supplied 50,573 arrivals, up 13% from 44,590.

The regional tourism office is located in the Swiss embassy in Singapore until a suitable office has been rented and fitted out.

Swiss Tourism claims it can increase tourism from the region by 12%.

“We are looking for new markets due to the Eurozone crisis. Our top supply markets are in Europe so we need to diversify.”

The country’s international tourism relies on Germany, United Kingdom, United States and France. Currently, Southeast Asia ranks14th, but there is a target to raise it to 11th place by 2015.

The Switzerland road show visited Bangkok on Tuesday and it will continue to Jakarta and Kuala Lumpur Friday and concludes in Singapore.

NZ airline cuts payroll

2012-02-24T08:55:22Z

WELLINGTON, 24 February 2012: Air New Zealand said it would slash more than 400 jobs Friday after posting a 61.2% slump in half-year net profit on the back of high fuel costs and a struggling global economy.

The airline said net profit for the six months to December was NZ$38 million (US$32 million), down from NZ$98 million in the same period a year ago, falling short of analyst expectations.

“Acknowledging this disappointing result we have already commenced a series of initiatives to improve the airline’s profitability,” chief executive Rob Fyfe said.

Fyfe said 441 jobs would go by the end of the financial year in June, 175 of them through redundancies and the rest by not renewing contracts. He said 193 of the jobs had already been cut.

He said the job losses were part of a wider programme to cut costs by NZ$195 million a year by 2015.

The national carrier, which is 76 % state owned, said its domestic network had produced a “solid result” but the international long-haul market remained challenging, particularly Europe and Japan.

Fyfe said the price of jet fuel had doubled in the past three years but the weak global economy meant the airline could not pass on the cost to passengers.

He said a previously announced review of Air New Zealand’s international operations was continuing and an announcement was expected in coming weeks as the carrier focuses on strengthening its Pacific rim network.

AirAsia drops bag fees

2012-02-23T08:35:46Z

BANGKOK, 23 February 2012 – AirAsia has revised its check-in baggage fees as well as its pre-booked meal prices effective 22 February.

AirAsia reduced the fee on 15kg and 20kg baggage tiers from RM25 to RM20 for domestic routes and from RM35 to RM30, on all international routes for those pre-booking their luggage allowance on the website.

The over-counter check-in charges for 15 kg are also discounted for domestic travel from RM45 to RM40, domestic, but the fee increases for international travel from RM50 to RM60.

Meanwhile, AirAsia and AirAsia X also introduce new options of 35kg and 40kg baggage tiers based on passenger feedback. The 35 kg fees are RM70 for domestic, RM80 international and the 40-kg fees are RM90 and BM100 respectively.

The airline said new check-in baggage fees will enable passengers to save up to 48% when bookings are done online as compared to purchasing it at the airport counters.

On top of that, sports enthusiasts can also get lower rates on sports luggage. The new sports equipment fees are now the same price as the check-in baggage tiers available online, with only an additional RM20 as handling fees for AirAsia flights (AK, FD, QZ) and AirAsia X (D7) flights, instead of a flat rate of RM70.

No bailout for Kingfisher

2012-02-23T08:20:25Z

NEW DELHI, 23 February 2012: India’s civil aviation minister on Wednesday ruled out a government bailout of Kingfisher Airlines as the cash-strapped carrier submitted a new flight schedule after days of cancellations.

Kingfisher has scrapped scores of flights over the last four days, leaving passengers stranded at airports and the airline’s owner, brewing magnate Vijay Mallya, battling to save the debt-laden company.

The airline halted all flights to Bangkok 20 February and it is unlikely they will resume this month, based on communications with local travel agencies.

Among at least 20 flights cancelled on Wednesday were 14 from the financial hub Mumbai.

“We are not going to bail out Kingfisher but we hope it can mobilise resources,” Civil Aviation Minister Ajit Singh told reporters in New Delhi.

The airline submitted a fresh flight schedule to the Directorate General of Civil Aviation after the regulator on Tuesday ordered it to come up with a “realistic” timetable for passengers.

Just 28 of Kingfisher’s fleet of 64 registered aircraft are in operation, according the DGCA.

“Kingfisher has submitted an updated schedule of flights. We are still reading and analysing it,” DGCA director general Bharat Bhushan told AFP.

The airline declined to comment on its submission, which came as a consortium of more than a dozen lenders, led by State Bank of India (SBI), was reported to be considering providing funds to the airline.

“The banks will decide (about pumping in more money),” Singh said, adding the government would not interfere.

The banks “have to decide on the basis of the business plan of the company. If they are satisfied with the business plan, they can lend money,” he said.

The airline, India’s second-largest private carrier until earlier this year when its cash crunch woes deepened, has blamed its latest problems on officials freezing its bank accounts for not paying tax arrears.

TAT surveys Khon Kaen routes

2012-02-23T08:17:50Z

BANGKOK, 23 February 2012: Tourism Authority of Thailand Khon Kaen office is focusing on the Khon Kaen Games to launch seven new travel programmes to boost visits during the 11-day sport event.

TAT Khon Kaen office released seven suggested itineraries for tourists travelling to the province for the 3 to 13 March games.

TAT has an on-going policy to research and design tour itineraries that break new ground to assist Thailand’s travel companies to broaden their tour product range for international visitors.

The seven routes are a mix of half-day and full-day programmes.

Five routes focus on family travellers offering mainly sightseeing in museums and insights into Buddhism reflected in the provinces famous temples.

Options:

Half-day programmes:

• Visit Buddha relics and the King Cobra Village;

• Visit a giant Buddha image at Phra Buddha Bat Phu Phan Kham, stop at a viewpoint at Ubol Rattana Dam and view wildlife at Khao Suan Kwang Zoo;

• Buddha relics, visit Turtle Village and shopping for silk clothes;

• Sightseeing, wall paintings at Chai Sri Temple and the Dinosaur Museum at Phu Vieng;

• Sightseeing with a focus on Khmer civilisation in Khon Kaen;

Full-day programmes:

• Khon Kaen – Mahasarakham route;

• Khon Kaen – Kalasin – Roi Et

Khon Kaen is the second largest province in the Northeast of Thailand. The province is around 400 km from Bangkok.Thai Airways International offers three flights daily from Suvarnabhumi Airport to Khon Kaen Airport. There is also daily train services.

For details of suggested routes, contact 6643 244 498-9.

Elephants draw tourists to Laos

2012-02-23T08:15:37Z

SAYABOULY, 23 February 2012: Sayabouly, a province in northwest Laos is counting on its annual elephant festivals to build awareness, while there are plans to upgrade highways and add more international border checkpoints with neighbouring Thailand.

Foreign aid is pouring in from the Asian Development Bank (ADB) and German development cooperation through the Deutsche Gesellschaft fur Internationale (GIZ) and other tourism-related NGOs to build infrastructure, mainly roads and community-based tourism projects.

At the local community level the emphasis is on elephant trekking, herbal spa centres, cotton production, cave exploration and homestay.

The province has a long way to go to even attract a small percentage of the travellers who head for Luang Prabang, but its annual elephant festival is seen as a lynchpin that will create awareness with international travellers.

Sayabouly has hosted an elephant festival for six consecutive years sharing venues in three districts — Sayabouly, Paklai and Hongsa. This year’s event took place, 17 to 19 February, and attracted around 100,000 visitors.

Almost all spectators were domestic tourists, while just a few international tourists, possibly 1,000 and most ly Thais, joined the festival.

TTR Weekly’s Rapeepat Mantanarat, joined the elephant festival as she travelled the route, Nan to Luang Prabang, to assess whether it was practical for international travellers. Full report next week.

In the years leading up to the first elephant festival in 2007, the province’s tourism department reported the annual visitor count was around 40,000 a year, mainly domestic tourists from Vientiane.

But the event has helped the province to lift the annual arrivals by 10,000 a year since (excluding visitors during elephant festival).

Hotels and guesthouses have increased from 20 to almost 100 over the six-year period.

Sayabouly PTD director, Sangviene Sengkhamnaly told TTR Weekly that besides the attractions already developed, Sayabouly still has vast areas that needed to be surveyed by tourism experts to assess where future tourism development could take place.

This year, the office has created an events calendar promoting activities in the province to boost tourism year-round.

Visitors usually stop for just one night on the way to Luang Prabang. Entering Laos from Huay Kone is the shortest route to Luang Prabang a distance of around 200 km from the border. From Vientiane to Luang Prabang the distance is around 430 km.

Currently, there are tours organised from the Thai town of Nan following the road to Muang Nguen, where visitors board a boat at Pak Huay Kan as the road is unpaved and bumpy.

However, roads are being upgraded and should good enough for cars by 2014.

For example, from Muang Nguen to Sayabouly the road will be widened and asphalted. Currently, about 20 km between Muang Nguen and Hongsa is almost complete with some parts widened to four lanes. Also, from Hongsa, a road is under construction to Luang Prabang’s Jomphet district (ferry crosses the river to the historic town).

Additional international checkpoints on Lao-Thai border will also be opened.

“We are working on upgrading local checkpoints to international status. Talks are under way with Thai authorities in Uttradit province and there are discussions to open a checkpoint in Phayao province,” said Mr Sangviene.

Sayabouly shares the border with six Thai provinces — Chiang Rai, Phayao, Nan, Uttradit, Phitsanulok and Loei. Despite several local checkpoints, only two are international — Huay Khone (Nan)-Nam Nguen and Tha Li (Loei)- Nam Hueang.

Korean market expands in 2012

2012-02-23T08:07:16Z

BANGKOK, 23 February 2012: Kasikorn Research Centre estimates South Korean arrivals to Thailand this year could increase 20% to reach 1.22 million trips and generate Bt40 billion in revenue compared to 1.01 million visits and Bt32 billion in 2011.

KRC research said the outlook for South Korean outbound travel remains promising as trends indicate consumers favour destinations in the Asia Pacific.

South Korea travellers made over 1 million trips to Thailand in 2011 and were in fifth place following the top suppliers Malaysia, China, Japan and Russia.

On average, 56% of South Koreans visit Thailand for business or on corporate incentives, while 35% are individual travellers interested in a niche activity such as golf or shopping.

More than half are in the 25 to 44 year category. Around 52% are first-time visitors to Thailand in the individual travel category and 48% in group tours.

The research centre expects, given a positive political environment, the market could earn as much as Bt40 billion up 25% by year end.

It breaks down spending trends as follows: 30% on hotels; 25% on shopping; 18% food and beverage; 12% entertainment and recreation including golf and spa; 9% transport; and 6% for other products and services.

The top recommendation is that travel firms should specialise more on this market particularly at the quality end such as incentives, golf and honeymoons.

Popular tourist destinations are: Phuket; Krabi; Samui; Bangkok; Pattaya; Rayong; and Chiang Mai.

Weddings and honeymoons will expand in the future. Around 250,000 couples from Korea visited Thailand for their honeymoons.

Wedding market recommendations:

• Travel agencies should promote secondary tourist attractions that are close to the main attractions but offer more privacy for couples;

• Improve the image of tourism by adding value with better cultural products in each region;

• Set up cooperation within the industry between hotels, wedding planners and tour operators to offer a one-stop shop option to make it easier for weddings to be arranged off-shore.

Kasikorn Research Centre is a subsidiary company of Kasikorn Bank, which conducts tourism and business research mainly on Thailand’s economy including tourism with reliable recommendations and indicators on business prospects