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AirAsia joins hands with TAT for “Thailand Shopping Paradise”

Posted on June 2nd, 2015

AirAsia has joined hands with the Tourism Authority of Thailand (TAT) to launch a Green Season campaign to stimulate travel to Thailand by offering discounts, premiums and privileges through the “Thailand Shopping Paradise with AirAsia” promotion campaign.

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This campaign is expected to turn the Kingdom into a shopper’s delight with the cooperation of major department stores and partners, including Asiatique, Central, King Power, Siam Paragon, Divana Spa and CIMB.

TAT representative Wiboon Nimitrwanich stated: “The cooperation between TAT and AirAsia as well as leading department stores and other partners will result in a high-value travel and shopping experience for foreign tourists in Thailand with attractive airfares, promotions and privileges”.

Wiboon explained that the Green Season is an opportune time to stage promotional events to draw in foreign travellers that will stimulate the local economy.  To promote this activity, a road show will be held in the high potential markets of China, Myanmar, Singapore and Vietnam.

Phuket expects tourism rebound in last quarter of this year

Posted on June 1st, 2015

THE tourism business in Phuket continues to feel the pain from the global economic slowdown, but is expected to rebound in the final quarter of this year thanks to big cleaning days at beaches and new management tricks.

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Surapong Techaruvichit, president of the Thai Hotels Association, said last week that the average occupancy rate at hotels in Phuket in April was 62 per cent, a 15-per-cent decline from 74 per cent in the same month last year. Three-star hotels experienced the biggest drop at 36 per cent while five-star hotels suffered a 9 per cent decline.

The hotel business in the upper Northeast also slipped by 15 per cent in April while hotels in Pattaya were down by 3.4 per cent. Bangkok was up by 21-28 per cent. Chiang Mai and the western region gained 7 per cent.

“The overall occupancy rate in April was 73 per cent, falling from 76 per cent in same month last year. However, the room rate increased slightly from Bt4,108 to Bt4,203.

“Thai tourism is being affected by the global economic slowdown, especially from the huge dive in arrivals from the Russian and Western markets,” he said.

The association predicts that the hotel business in Phuket and the whole country would revive in the last quarter when the high season arrives.

Krisada Tansakul, president of the association’s southern chapter, said the tourism business in Phuket would return to nearly normal in the coming peak season, running from October till March, as many foreigners should return to the famous island for vacation.

The resort island would be more crowded when Phuket International Airport completes expansion work at the end of next year. Last year, 14 beaches on the island were cleaned up by the military after it took over the country’s administration.

“After the crackdown, local administrators gave only 10 per cent of land at each of the beaches and turned the area into a one-stop service centre providing massage, food and drinks, and water activity information.

“All operators are not allowed to hunt for customers on the beach while tourists are advised to get service from a designated centre. Violators will be caught by police,” he said.

For long-term management without the military, the province has asked Prince of Songkla University to conduct a study on current enforcement and see whether this way will fit with the island. The study is set to be completed next month.

Besides the beach crackdown, taxis and public cars on the island have also been brought into the campaign.

“The association believes 12 million visitors will arrive on the island this year,” he said.

AoT airports make gains

Posted on May 26th, 2015

Airports of Thailand reports its April data showed a 21% increase in passenger movements at six airports under its management.

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AoT reported, Monday, that all of its supervised airports recorded 9,229,347 passengers up 21.27% from 7,610,519 visits during the same month last year.

Overall aircraft movements also increased by 14.87% from 52,155 to 59,909.

During the first four months of the year, Bangkok’s Suvarnabhumi airport welcomed 18.70 million passengers followed by Don Mueang with 9.70 million and Phuket 4.63 million. Chiang Mai Airport  2.81 passengers.

April highlights

Suvarnabhumi Airport registered an increase of 10.75% in international aircraft movements from 18,560 to 20,555, while domestic movements  were down 6.18% from 6,015 to 5,643 movements.

International passenger traffic increased 20.17% from 3,183,622 to 3,825,688, while domestic passengers dropped 1.33% from 745,792 to 735,873, mainly due to a shift in flights to Don Mueang. Overall, there was a 16.09% increase in passengers from 3,929,414 to 4,561,561.

The second aviation gateway, Don Mueang Airport recorded a 38.53% increase in international aircraft movements from 3,883 to 5,379. Domestic movement posted a 30.72% improvement from 10,104 to 13,208.

International passenger traffic increased 57.68% from 480,725 to 758,020, while domestic passengers increased 36.63% from 1,288,660 to 1,758,113.

Chiang Mai International Airport continued to show growth in April. Both international and domestic aircraft movements registered double-digit increases of 39.60% (990 to 1,382) and 23.66% (3,136 to 3,878).

International passenger traffic grew 48.41% from 106,540 to 158,120, while domestic traffic gained 20.33% from 406,732 to 489,403.

Phuket International Airport registered a decrease of 3.45% in international aircraft movements from 3,541 to 3,419, while domestic aircraft movements improved 11.40% from 2,922 to 3,255.

International passenger traffic declined 0.92% from 552,989 to 547,906, while domestic improved 11.84% from 441,977 to 494,297. Travel traditionally tapers off after the mid-Songkhran holiday.

Chiang Rai International Airport reported an increase in aircraft movements of 9.27% from 982 to 1,073, while passenger traffic grew 13.47% from 123,682 to 140,339.

Hat Yai International Airport reported overall aircraft movements increased 4.70% from 2,022 to 2,117 in April. Meanwhile, overall passenger traffic registered a 14.93% growing from 279,800 to 321,588 passengers. inside-no-1.1

 

 

Grand Sale will break record

Posted on May 22nd, 2015

Buoyed by increased spending from Chinese visitors and strong domestic travel the up coming Amazing Thailand Grand Sale should yield better than expected results this year, according to the latest Visa Card assessment.

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Significant growths were witnessed in both international tourist spend volume and domestic spend through Visa cards at 15% and 22% respectively.

These positive developments continue to fuel this year’s campaign, which will run from 15 June to 30 September . This year’s campaign also marks the 17th anniversary of partnership between Visa and Tourism Authority of Thailand.

Despite the varying global recovery rates across key economic markets, the decline of the Russian Rouble and other political trends that have affected Thailand tourist arrivals, Thai tourism has shown great resilience, evident in the fast recovery in the last quarter of 2014 and a strong performance in the first quarter of 2015.

According to Tourism Authority of Thailand Intelligence Centre, the number of inbound tourists has increased during Songkhran holiday period in April, as measured by the rises in international arrivals at Suvarnabhumi and Dong Mueang airports at 25.3% and 66.8% respectively.

“The travel and tourism industry is one of the main drivers of Thailand’s economy and one of the main revenue generators for Visa. It is therefore encouraging to see that Thailand remains an attractive tourist destination in spite of the global challenges, with visitor arrivals looking strong so far this year,” said Somboon Krobteeranon, Visa Country Manager, Thailand.

According to Visa, the highest contributors of inbound tourist spend in 2014 were Chinese and German travellers, up 14% and 13%. Domestic spend was up by 22% from the previous year.

Visa’s research shows travellers from different parts of the world have pronounced preferences for how they spend their budget.

Japanese travellers spend the most on restaurants, with this category taking up 16% of their total spend, while American, Australian and Emirati travellers spend more on medical tourism, taking up 11%, 17% and 18% of their spend. Russian and Chinese travellers spend the most on luxury items, at 10% of total spend.

Besides distinct spend categories, travellers also favoured specific cities in Thailand – the majority of Japanese tourists visited Bangkok and Pattaya, whereas American and Chinese travellers were more likely to visit Chiang Mai as their preferred destination.

Visa’s look at the tourism trends in Thailand is based on data for credit card holders who prefer to use their card rather than pay in cash.

HK Express takes flight in Phuket market

Posted on May 19th, 2015

Hong Kong’s low-fare airline has seen significant first-quarter growth as it continues its campaign to woo both the Thai and expat markets in Phuket.
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HK Express has carried close to 500,000 passengers in the first quarter of this year, which represents a 102 percent growth compared with the same period in 2014. The airline reports total passengers for March of 168,336, an increase of 96 percent over the same month last year.

“North Asia continued to be a key driver of growth for HK Express,” Andrew Cowen, HK Express CEO says. “The dramatic leap in passenger numbers attests to the success of our strategy to offer consistently affordable fares that make air travel accessible to everyone.

“However, the company has recognized Phuket as one of the top tourist destinations in Asia, and I am hoping to have both locals and visitors to Phuket make the short leap to or from Hong Kong on one of the airlines’ Airbus A320s.”

“Phuket is one of Asia’s top tourist destinations where millions of international visitors visit or stay each year,” says Atthawut Kumpitak, HK Express sales and marketing manager. “Moreover, apart from Bangkok, Phuket has a large potential number of outbound Thai tourists, for whom Hong Kong is a dream destination.”

The company has daily flights between Phuket and Hong Kong, and no plans to decrease frequency in the near future.

“Hong Kong is an exciting destination and one can’t help but fall in love with the city when surveying it from the shores of iconic Victoria Harbour, looking out over the impressive skyline that frames it,” Mr Atthawut said. “The lush mountains surrounding the city offer a contrast in landscape, and to view the city and harbor from these mountainous vantage points makes for some of the most fantastic views of any city in the world.”

HK Express is targeting both Free Independent Travellers (FIT) and Group Travellers in Phuket through regular advertising campaigns.

“We expect to welcome mainly Thai nationals, as well as those long-stay and expat community residents, mainly in Phuket and the surrounding provinces, such as Phang Nga, Krabi and even Songklha and Hat Yai,” Mr Atthawut explained.

This article first appeared in the May 16-22 issue of the hard-copy Phuket Gazette newspaper.

AirAsia to launch Pattaya flights

Posted on May 14th, 2015

AirAsia will launch its first ever flights to the Thai resort town of Pattaya this summer.

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Commencing on 16 July 2015, the new route will operate four times a week between Kuala Lumpur and Pattaya, using a 180-seat Airbus A320 aircraft. AirAsia will become the first airline to offer this routing.

Flights will operate into U-Tapao Airport, the former military airbase that serves Pattaya. At present U-Tapao mainly handles international charter flights from China and Russia.

Pattaya will become the seventh Thai destination that AirAsia serves directly from KL, following Phuket, Bangkok, Chiang Mai, Hat Yai, Krabi and Surat Thani.

Finnair reiterates Asian focus

Posted on May 11th, 2015

Finnair has entered the “next phase” of its 10-year strategy, which is focused on driving more traffic on Asian routes.

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In 2010, the airline outlined its intention to double its Asian traffic by 2020, using its Helsinki base as a hub for passengers connecting between destinations in Europe and Asia. And for the next phase of its plan, running from 2015-17, Finnair said it will focus on “intercontinental growth with [a] Northeast Asia focus”.

“The core of Finnair’s strategy is taking advantage of the growing demand for traffic between Europe and Asia,” the company said in a statement. “The strategy is based on the growing markets in Asia, fast connections between Europe and Northeast Asia, quality service, and cost-efficient, punctual operations.

“Helsinki’s geographical location provides Finnair with a natural competitive advantage, as the fastest routes between many destinations in Europe and megacities in Asia go through Helsinki,” it added.

Finnair will continue to enhance its Asian operations later this year, with the deployment of its brand new Airbus A350 aircraft to several destinations in the region, including Shanghai, Beijing, Bangkok, Singapore and Hong Kong.

Thailand tourism makes gains

Posted on May 7th, 2015

International tourist arrivals to Thailand posted an improvement of 23.54% during January to March this year according to Ministry of Tourism and Sports’ data.

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Released late last week, the ministry data showed  that during the first quarter the country attracted 7,876,726 international visits up from 6,375,880 visits during the same period last year.

Tourism and Sports Minister, Konkarn Wattanavrangkul, said the tourism sector has enjoyed a boost in the first quarter, thanks to a large influx of Chinese tourists.

“Tourism has  bounced back  since the last quarter 2014. Tourists from mainland China have replaced the declining number of Russian visitors who suffered from the current economic crisis in Europe.”

Of the top 10 supply markets, seven were in Asia led by China and Malaysia. There were just three European markets, Russia, Germany and UK in the top 10 list for the first quarter, a clear indicator that Asian markets dominate the supply chain. However, once tourism revenue, rather than arrivals, is adopted as the benchmark, European markets enjoy a stronger presence in the top 10 chart.

High revenue events and business tourism suffered the most during the political crisis 2006 through to 2013, but trends indicate the MICE market is now in recovery.

The lifting of martial law in Thailand, last month, will also benefit the country’s tourism, the minister added.

“It will rebuild tourist confidence especially for the MICE sector., which was badly hit during the political crisis.”

The minister noted plans have been drafted that will help to create a strong base for tourism growth, both the medium to long-term.

The ministry has implemented a number of tourism promotions such as the “Discover Thailand” campaign, while building a stronger tourism foundation. It is tackling tourist safety measures, reducing illegal tourism businesses, promoting second-tier cities as destinations, and promoting local cultures and traditions. More cooperation with neighbouring countries has been endorsed in order to increase intra-regional travel.

March performance by region

In March alone, foreign travellers recorded 2,532,600 visits, an increase of 25.50% when compared to 2,018,008 visits in March 2014. All markets recorded increases except Europe in the third month of the year.

East Asia (ASEAN included) reported an increase of 55.16% from 1,056,544 to 1,639,363 visits. The markets that showed improvements were: Hong Kong (+151.36%); China (+112.47%); Taiwan (+96.91%); Brunei (+83.68%); Myanmar (+50.52%); Malaysia (+47.56%); Singapore (+30.73%); South Korea (+25.44%); Vietnam (+17.39%); the Philippines (+16.28%); Japan (+16.04%); Laos (+2.64%); and Cambodia (+1.24%).

Indonesia was the only market that declined 16.02% from 46,509 visits to 39,059 visits.

The Middle East gained 29.90% from 44,509 to 57,815 visits. Israel led the field with 14,168 visits increasing 45.85% from 9,714 visits. Other main markets: the United Arab Emirates (11,855; +27.28%); Kuwait (3,619; +24.88%); Egypt (1,690; -8.99%); and Saudi Arabia (1,420; +34.98%).

South Asia represented an 11.04% increase from 95,660 to 106,218 visits. India led the field supplying 78,014 visits growing 6.68% from 73,126 followed by Bangladesh (9,237; +53.13%), Pakistan (7,252; +6.58%), Sri Lanka (6,199; +10.18%) and Nepal (2,268; +41.75%).

The Americas improved 8.95% from 100,548 to 109,551 visits. Argentina posted a 36.67% increase from 3,054 to 4,174.

The United States recorded the highest arrivals at 73,369 up 6.92% from 68,622 followed by Canada (22,498; +11.07%) and Brazil (4,126; +0.66%).

Africa recorded a slight growth of 1.56% from 12,476 to 12,671 visits. The main market South Africa improved just 3.09% from 5,206 to 5,367.

Oceania posted a minimal increase of 1.37% from 67,567 to 68,493 visits. The main market New Zealand improved 5.67% (7,251) and Australia increased 0.70% (60,935).

Declines in Europe

In contrast, Europe continued to decline at 15.95% from 640,704 to 538,489 visits. The markets recording declines were: Russia (-59.78%); Sweden (-9.69%); Finland (-7.74%); Netherlands (-2.41%); France (-1.89); Switzerland (-1.00%); and Denmark (-0.09%).

The markets that showed improvements were: Spain (+30.60%); Italy (+16.66%); Germany (+15.27%); Belgium (+11.95%); Austria (+7.10%); Ireland (+6.65%); Norway (+6.63%); United Kingdom (+6.58%); and East Europe (+1.37%).

Top 10 source markets March 2015 inside-no-2.1

Top 10 source markets January to March 2015 inside-no-2.2

Govt to spend Bt1.37bn on traffic projects in Phuket

Posted on May 5th, 2015

The tourist city of Phuket is going to get two underpasses and two U-turn bridges through the government’s midyear economic-stimulus package.

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“The budget is Bt1.37 billion and it is going to solve Phuket’s traffic problems,Deputy Transport Minister Arkom Termpittayapaisith says.

According to him, the Highways Department has won the budget of Bt600million for constructing an underpass at the Bang Koo Intersection and the budget of Bt570million for constructing the other underpass at Chalong Intersection.

“We should be able to get constructors for the projects before the end of June. Constructions are expected to start late this year,” Arkom continues.
He adds that one U-turn bridge will also be constructed at Ban Tha Rua and the other at Mud Dok Khao Intersection, which is near the Phuket International Airport.

Phuket has attracted millions of tourists each year. Several airlines have operated direct flights between Phuket and Singapore, and European destinations.

With vibrant economies, big shopping malls, and various businesses, Phuket has experienced traffic congestion in recent years.

Arkom reveals that the Harbour Department has lately won the budget of Bt74 million to repair yacht berths at the Ao Chalong Pier too. Before big waves damaged the pier’s yacht facilities in 2012, it could accommodate up to 45 yacht and five super yacht.

“The repair should be completed by September next year,” he said, adding that such facilities can boost Phuket’s tourism even further.

TAT announces results of study Chinese high value tourist market

Posted on April 30th, 2015

The Tourism Authority of Thailand (TAT) has announced the results of a detailed China market research study that will help it better fine tune its marketing and promotional strategies towards a growing generation of high-value visitors.

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The research was conducted in eight of China’s most populous cities; Beijing, Shanghai, Guangzhou, Kunming, Chengdu, Shenzhen, Xi’an and Shenyang, with a sample base of 2,400 respondents. These cities were chosen because they have direct flight connections to Bangkok.

The results were announced at a press conference by TAT Deputy Governor for Policy and Planning, Mr. Santi Chudintra and TAT East Asia Executive Director, Mrs. Srisuda Wanapinyosak.

China has now become the world’s top outbound travel market, with more than 70 million annual travellers and continued growth projection in the years ahead. As a result, it has become a highly competitive market.

The study indicated that of the total Chinese outbound travellers, an estimated 10 million people are high-value tourists.

With the mass-market Chinese visitor numbers now flowing steadily, TAT has decided to shift its focus to the high-spending, long-stay market in line with the overall strategy.

Press conference led by TAT Deputy Governor for Policy and Planning, Mr. Santi Chudintra and TAT East Asia Executive Director, Mrs. Srisuda Wanapinyosak was held recently to announce the results of a detailed China market research study.

The study showed that the high-value tourist market group in China is aged over 18 years with a good educational background, well-being, stable job, high-income, with average expenditure per trip that is thrice as normal tourists. It can be classified into the following three main groups based on demographics and lifestyles:

Reformer Group: This group includes people of good financial standing. They like to explore new experiences while searching for the meaning of life. They have high regard for preservation and show respect to the host country. This group comprises of about 2 million people.

High Value MainstreaSucceeder Group: This group includes determined people, working hard to get ahead in life and achieve more than others. They are made up of about 4.3 million people.

m group: These are wealthy people who constantly want to improve their own image and that of their families. They are careful spenders and tend to focus on comfort during their travel. Approximately 3.8 million people make up this group.

TAT aims to attract these customer segments by launching well-targetted and creative campaigns, based on the conclusions of the research. The campaigns will be coordinated and executed by all five TAT offices in China (Beijing, Shanghai, Guangzhou, Chengdu and Kunming).

China is now the top source of visitor arrivals to Thailand. Chinese visitors totalled 4,623,806 in 2014, a slight drop from 2013 (-0.29%). In 2015, TAT is expecting 5.6 million Chinese tourists generating revenue of 230 billion baht, up from 190 billion baht in 2014.

The profile of Chinese tourists is changing rapidly as travellers become more mature and experienced. Hence, TAT is seeing a huge diversity of Chinese tourists – from first-time visitors to group-travellers to more women travellers and young people, many of whom also speak good English.

Many Chinese are repeat travellers to Thailand. TAT is targeting these travellers through marketing campaigns that emphasise the fun of shopping, enjoying a Thai massage or a game of golf. They are also being encouraged to visit new destinations; such as, Northeast Thailand.

Chinese visitors have an average length of stay of 8.1 days and spending per person / trip of up to 41,390 Baht. They enjoy travelling to different destinations in Thailand. They also prefer to travel independently and spend more time experiencing a variety of tourism activities in the local areas.

According to the January 2015 statistics, Chinese visitors were up 57 percent (560,399). The fact that the tourism situation has returned to normal is an important plus point, as it will allow the airlines to expand capacity.