As travel to Thailand becomes more expensive due to an appreciating Thai baht, tourism traffic could shift to neighbouring countries, according to operators in Thailand, Laos, Cambodia and Myanmar.
“The Thai baht peaked within the last four months and is now contributing to higher costs and expenses. International visitors will avoid visiting Thailand and look to other destinations instead,” said Luang Prabang- and Bangkok-based Padej Jantarasorn, executive marketing consultant and regional sales representative for Villa Santi and Santi Resort & Spa in the Laotian city, speaking to TTG Asia at the recent TTM+ in Pattaya.
Compared to the last three or four months, the average total cost of travel for Europeans visiting Vietnam (including flights, hotels, meals, activities, etc) costs five to 10 per cent less than to Thailand. Cost of travel to Seam Reap in Cambodia and Luang Prabang in Laos seem relatively unchanged but prices for both destinations become more attractive as travelling expenses in Thailand go up.
Om Pharin, chairman and CEO of Charming Cambodia Tours, said more foreigners flocked into Cambodia this year, with arrivals expected to keep growing thanks to competitive prices.
“The political situation in Cambodia is very stable and its currency has not changed much so tourists have (little reservations about coming here),” he remarked. Furthermore, Cambodia has been promoting more attractions including beaches and islands along with expanding airports and major roads across the country.
Khaing Khin Thar, representative of Myanmar Tourism Federation, said Myanmar should take advantage of its more competitive prices as cost of travel to South-east Asia’s most popular destination continues to rise.
“The stronger baht and higher cost of travel may force many tourists to shift to other countries, not only Myanmar but also to Laos, Cambodia and Vietnam,” she added.
According to Amy Poulton, marketing specialist for Wayfairer Travel in the UK, many European customers continue to travel to Thailand and elsewhere in South-east Asia. Despite the region’s rising cost of travel, it is still more affordable to travel to South-east Asia compared to the US or within Europe, she explained.
On the other hand, a strong Thai baht may not entirely benefit other South-east Asian countries, Padej suggested. A decline in the number of tourists to Thailand could also impact businesses in neighbouring destinations, as many tourists start their trips from Thailand as the main gateway into the region.
Even before the baht peaked, Thailand’s tourism faced difficulties arising from the smog crisis in the first quarter of the year. The Ministry of Tourism and Sports reported that Thailand received 13.9 million foreign tourists during first four months, up 2.1 per cent from the same period last year.
Despite China remaining the top source market, its growth rate dropped 3.4 per cent. Meanwhile, the entire Middle East dropped 8.7 per cent and overall Europe arrivals dipped by 1.6 per cent.
Based out of New Delhi, Huria will be responsible for growing Adara’s footprint in India and expanding the pool of data partners to deliver consumer insights to travel marketers.
Air New Zealand plans to launch five-times-weekly seasonal flights between Christchurch and Singapore this winter to appeal to the strong travel demand from South and South-east Asia.
Air New Zealand and Singapore Airlines currently offer a 10-times-weekly service between Christchurch and Singapore. The seasonal flights will bring the frequency of the service to 15 times weekly in the December 1, 2019 to February 15, 2020 period.
The airline is also deploying the larger Boeing 787-9 Dreamliner aircraft on the route, which would increase capacity including in the premium economy category.
Cam Wallace, chief revenue officer, Air New Zealand, said: “We have seen strong demand for travel to New Zealand in the South and South-east Asia market, and we expect (the additional flights to) appeal to travellers in this region.
Singapore is likely to continue serving as Air New Zealand’s South-east Asia hub. On the airline’s strategy in growing outbound markets Indonesia and Malaysia, where it does not fly to directly, Wallace said: “Both are key growth markets for Air New Zealand in South-east Asia as we continue to see strong demand from travellers in the region. At this stage, both markets are being well served through our recently renewed alliance with Singapore Airlines, providing connectivity through Changi Airport.
“Capitalising on its strategic geographical location, excellent air connectivity and world-class infrastructure, we are seeing plenty of opportunities to grow our presence in the region through our operations in Singapore. We will continue to assess opportunities across markets and leverage our well-established partner network in the region to capture demand.”
Meanwhile, Christchurch is expected to grow in appeal, benefitting from new destination offerings and intensified sales and marketing efforts.
“Christchurch is building new experiences at a phenomenal rate, with new bars, restaurants and artworks going up quicker than anywhere else in New Zealand. This new seasonal Singapore-Christchurch service complements the MoU signed between the airline and Christchurch city agencies in September 2018 committing to exploring joint marketing, enhanced freight and passenger capacity, and signature events.”
“These changes reinforce Christchurch and the South Island as a priority market for Air New Zealand, as we seek to leverage the strength of both airlines to deliver increased connections into the domestic New Zealand network,” Wallace said.
The airline is also running a tactical campaign with Christchurch Airport to promote South Island.
The campaign will span offline and online media buys to increase the awareness of New Zealand and Air New Zealand to consumers in Singapore, targeting the family market and professionals, managers, executives and businessmen.
“We are also working with key agents to develop new itineraries for the South Island,” he said.