What Thailand needs is niche

Andrew Wood, president, Skal International Thailand, shares his thoughts on marketing

andrew-wood-oct2013

The Tourism Authority of Thailand (TAT) has excellent products at its disposal but not surprisingly promotes all of them to all markets to maximise ROI. It has good campaigns and the record-breaking number of tourist arrivals is testament to Thailand’s intrinsic strengths and TAT’s marketing.

Is it a good policy to be all things to all men or should Thailand specialise as well?

Markets are changing and our marketing efforts also need to change. We should be cognisant not to just focus on destination but to also emphasise unique, new experiences that cannot be found elsewhere.

Thailand is a leader in the field of medical tourism and was a pioneer in Asia in this very lucrative niche. Medical tourist arrivals to Thailand had 40 per cent of Asia’s medical tourist arrivals in 2011. Its medical tourism market was around US$2 billion in 2011 and is expected to be more than double by 2015. Thailand has been one of the favourite medical tourism destinations due to its cultural heritage, state-of-the-art medical facilities, personalised hospitality and reasonable medical costs. The country takes pride in having the first hospital to receive the first JCI accreditation in Asia and has the highest number of JCI-accredited hospitals in Asia.

We can learn lessons from this successful marketing campaign. Thailand identified a demand in the market, and with our unique ability to offer high levels of service at relatively low cost and with companies such as Bangkok Bank investing in a total integrated five-star hospital experience in Bumrungrad, Thailand was able to provide world-class products to a market that was hungry for easily accessible and affordable quality medical care.

It is a specialised market requiring specialised promotion and specialised attendance at very specific tradeshows and conventions. Thailand’s record shows what can be done with a very careful rifle-shot approach to marketing (narrow and very targeted) as opposed to a shot-gun approach.

According to the UNWTO in 2007, over half a million Americans travelled abroad to receive medical treatment and since 2003, 1.3 million Britons aged 16 to 64 had dental treatment outside the UK because it was more economical.

By 2015, the health of the so-called Baby Boomer generation will have started to decline. With more than 220 million Baby Boomers in the US, Canada, Europe, Australia and New Zealand, this represents a significant market for Thailand.

I recently met up with a potential client who was in Bangkok to attend IT&CMA. The company deals exclusively in school sports tourism. This is another HUGE niche market, and we hope to tap into international schools travelling abroad with pupils, educators and parents. By their very nature, private independent schools are economically a different animal to what we might traditionally imagine. They have funds and opportunities for travel that are little understood.

You don’t need to be an expert to realise the Chinese are definitely coming to Thailand. Their presence and their numbers are clearly visible. During my visit to Shanghai earlier this year I was briefed by the TAT office on the expected number of arrivals to Thailand over the next few years: 4.2 million Chinese arrivals from an expected total of 24.5 million from all markets, i.e. one in seven tourists visiting Thailand in 2013 will be Chinese, rising to one in five next year. This is definitely not a niche market.

Will there be a backlash to such a weighted mix? Yes I believe so, not just because of Thailand’s response to tourist’s cultural/behavioural traits, but also the risk of too many eggs in one basket not being good for business.

Spreading the risk is important and niche markets can help. I believe that we need to offer, like medical tourism, complete integrated packages with a one-stop-shop approach that includes unique world-class experiences, be it golf, spas, beaches/resorts, cooking or culture. Luxury will also have a place and is usually recession-proof. Stretch the imagination – potential arrivals will pay for unique once-in-a-lifetime experiences and travel great distances to find them. Bespoke tourism tailor-made to your whims, likes and dislikes also doesn’t get more unique.

Thailand needs platinum-quality travel professionals to sell dreams not just holidays. If we can incentivise these visitors with tax breaks, such as tax deductibles or VAT refunds, and funnel marketing funds to the private sector too, all the better.

This article was first published in TTG Asia, November 1 – 14, 2013 issue, on page 3. To read more, please view our digital edition or click here to subscribe.

By Andrew Wood, president, Skal International Thailand

Sponsored Post