Chủ Nhật, 26 tháng 1, 2014

Thai Tourism Hurt as Protests Dent Lunar New Year Trips: Economy

Thai anti-government protests that

have shut down parts of Bangkok may cost the nation’s tourism

industry as Chinese visitors cancel trips during the lunar new

year holiday that starts this week.


Arrivals will fall by half to 1 million this month,

Minister of Tourism and Sports Somsak Phurisisak said Jan. 23,

with some hotels in the capital and nearby Pattaya and Hua Hin

30 percent full. The revenue loss could amount to 22.5 billion

baht ($685 million), the Tourism Council of Thailand said, with
China last week warning its citizens to avoid protest sites and

reconsider non-essential travel to the country.


“I first planned for a week-long trip to Bangkok to visit

my friend there for Christmas, but I had to postpone because of

the unrest,” said Jia Yanfen, 38, a Beijing-based Chinese

language teacher who has never been to Thailand. “I waited and

waited, hoping to go for Chinese New Year,” Jia said. “I had

to cancel the trip now. Of course I was a bit disappointed, but

safety comes first.”


Prime Minister Yingluck Shinawatra imposed a state of

emergency in Bangkok Jan. 22 as attacks on protesters escalated

and demonstrators blockaded Bangkok’s busiest intersections.

Concerns about a slump in tourism, which contributes about 10

percent to gross domestic product, sent the Stock Exchange of
Thailand’s Tourism and Leisure Index down 3 percent last week,

the worst performer among the bourse’s 27 industry groups,

according to data compiled by Bloomberg.






Photographer: Brent Lewin/Bloomberg


Tourists walk past beach chairs on Patong beach in Phuket, Thailand.



Tourists walk past beach chairs on Patong beach in Phuket, Thailand. Close


Open


Photographer: Brent Lewin/Bloomberg


Tourists walk past beach chairs on Patong beach in Phuket, Thailand.


“The biggest concern now is the prolonged protest begins

to significantly affect the tourism industry, which was the only

bright spot for the economy in 2013,” said Porranee Thongyen,

head of research at Asia Plus Securities Pcl. “With sluggish

consumption and investments, a slump in tourism revenue would

further worsen the overall economy.”


Flights Canceled


Thailand’s benchmark SET Index slid 1.4 percent as of 10:13

a.m. local time, headed for its biggest drop since Jan. 15. The

baht has slipped almost 6 percent in the past three months, the

worst performer after the Indonesian rupiah among 11 most-traded

Asian currencies tracked by Bloomberg.


Bangkok attracted almost 4.2 million visitors from China,

Hong Kong and Taiwan in 2013, a 46 percent jump from the year

before, according to government data, and Somsak said about

300,000 Chinese tourists traditionally visit the country during

the lunar new year holiday, which begins Jan. 31. “We expect to

see more flight reductions by airlines, especially from China,”

he told reporters in Bangkok.


Singapore Airlines Ltd. will cancel 43 flights between

Singapore and Bangkok between Jan. 14 and Feb. 27, and Thai

Airways International Pcl (THAI)
plans to scrap 25 flights between Hong

Kong and the capital, the carriers said last week.


Advance Bookings


Tourist arrivals will decline by 7.3 percent to 6.5 million

in the first quarter compared with a year earlier, the Tourism

Council said in a statement Jan. 23. Bangkok arrivals have

fallen 5 percent in January from a year earlier, it said. Since

the protests began in October, more than 550 people have been

wounded and 10 killed.


Advance bookings have been crimped by travel warnings from

countries such as China, Malaysia, Hong Kong, Australia, the
Philippines and the U.S., whose authorities have warned citizens

to avoid Bangkok’s protests hotspots. The Philippines said Jan.

23 its citizens in the capital should prepare to be evacuated if

violence intensifies.


Tour guides from China are in close contact with

counterparts in Thailand, Ying Chang Tian, a spokesman for

Shanghai-based travel agency Ctrip.com International Ltd., said

by phone. “Our local agency in Bangkok will report to our

company if the situation affects our schedule.”


‘Exceptionally’ Strong


The tourism industry rebounded from protests that shut the

main airport for almost two weeks in 2008 and turned inner

Bangkok into a war zone in 2010, as well as from disasters such

as the Indian Ocean tsunami that devastated beach resorts in

2004, and floods in 2011.


“Politics aside, Thailand’s fundamentals are exceptionally

strong,” Elena Okorochenko, managing director for Asia-Pacific

sovereign ratings at Standard Poor’s in Singapore, said at a

conference. “Its external debt position is still very sound,

its monetary policy is extremely credible.”


The central bank unexpectedly held its key interest rate

last week, even as it cut its economic growth forecasts for 2013

and 2014. The nation’s economic fundamentals are strong enough

to weather “short-term risks,” Governor Prasarn Trairatvorakul

said.


People are still visiting other parts of Thailand,

according to Philip McNicholas, a Hong Kong-based economist at

BNP Paribas SA. “Reading into just the impact for Bangkok and

extrapolating that across the country is probably taking it a

little bit too simply,” McNicholas said in a Bloomberg

Television interview last week.


More Resilient


“In 2010, 70 percent of tourists went in through Bangkok,

now it’s down to 60 percent,” he said. “It may prove somewhat

more resilient than people expect.”


Thailand’s government imposed the state of emergency in

Bangkok after bombings and shootings in the capital left one

person dead and 70 injured. The Constitutional Court Jan. 24

ruled that a delay in the Feb. 2 election was possible.


Suthep Thaugsuban, an opposition politician leading the

protests, has vowed to continue the blockades that began Jan. 13

until Yingluck resigns. Suthep wants the government replaced

with an unelected council that would change laws to prevent

parties linked to former premier Thaksin Shinawatra, Yingluck’s

brother, returning to power.


The violence has been mostly limited to well-defined

protest zones, and the city’s temples, markets, malls and

nightspots remain open. The elevated rail system, known as the

Sky Train, as well as the subway and river taxis have increased

capacity to cope with demand from commuters and tourists.


Hotel Bookings


Bookings to Thai destinations including Chiang Mai in the

north, and beach resorts including Koh Samui and Phuket have

helped offset a decline in demand in Bangkok, said Bill Heinecke, whose Minor International Pcl (MINT) has 18 hotels in the

country, including Bangkok’s St Regis and Four Seasons and the

Anantara group of resorts.


“Of course our hotels have been affected, but Thailand as

a whole still continues to welcome visitors from across the

globe,” Heinecke said Jan. 23 by e-mail. “Today’s traveler is

very resilient as economic challenges, political difficulties

and natural disasters happen all over the world.”


Still, with tourists from China, Taiwan and Hong Kong

making up almost a quarter of all arrivals at Bangkok’s two

international airports, salvaging the city’s traditional tourist

high season will be a challenge, according to a group that

represents the nation’s travel agents.


“The second quarter and the third quarter are the low

season, so the next chance for Thailand to boost tourists is the

fourth quarter,” said Sisdivachr Cheewarattanaporn, president

of the Association of Thai Travel Agents.


Ryan Ruan, a 28-year-old bank employee in the central

Chinese city of Wuhan, canceled his late-January trip to Phuket

and Bangkok. “After all I’m bringing my fiancee with me — the

instability in Thailand makes me worried,” Ruan said. Instead,

they are going to Hong Kong.


To contact the reporters on this story:

Anuchit Nguyen in Bangkok at

anguyen@bloomberg.net;

Suttinee Yuvejwattana in Bangkok at

suttinee1@bloomberg.net


To contact the editors responsible for this story:

Rosalind Mathieson at

rmathieson3@bloomberg.net;

Stephanie Phang at

sphang@bloomberg.net



Thai Tourism Hurt as Protests Dent Lunar New Year Trips: Economy

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