Chinese tourists waiting for boat at Koh Larn off Pattaya coast

Thailand’s tourism is expected to keep its growth momentum in 1Q2017, which industry players have attributed to the quick recovery of Chinese and Russian markets.

Despite the downward trend in Chinese arrivals following the recent clampdown on zero-dollar tours, Lunar New Year reservations from China grew five per cent contrary to the projected four per cent drop, said Tourism Authority of Thailand (TAT) governor Yuthasak Supasorn.

Charoen Wangananont, president of Association of Thai Travel Agents (ATTA), expects a full recovery of Chinese arrivals within the first quarter, adding that this could be accelerated if the government extends the visa fee waiver for Chinese travellers ending in February to October.

Supawan Tanomkieatipum, president of the Thai Hotels Association (THA), has likewise observed strong bookings from the Chinese, Indian and Russian markets in the first quarter, and further projects average hotel occupancy to reach 70 per cent, up from 68 per cent during the same period last year.

In 1Q2017, TAT expects international tourist arrivals to grow three per cent to 9.3 million and tourism income to increase seven per cent to 490 billion baht (US$14 billion), while domestic tourism is expected to rise eight per cent to 32.5 million trips amounting to 240 billion baht in tourism income (up 12 per cent).

China (2.4 million visitors), Russia (460,000 visitors) and Malaysia (900,000 visitors) rank among the top three source markets in the current quarter, according to TAT.

(From left) European Travel Commission’s Eduardo Santander and ITB China’s David Axiotis

ITB China’s first partner destination for its inaugural tradeshow this year will be Europe when the three-day B2B travel trade fair takes place from May 10-12, 2017 at the Shanghai World Expo Exhibition and Conference Center.

An agreement was signed between David Axiotis, general manager of ITB China, and Eduardo Santander, executive director at European Travel Commission, on January 31, 2017.

Axiotis said: “China is the driving force for growth in outbound trips and Europe as a continent remains a dream destination for many Chinese tourists. Europe, as a partner destination, will help to better understand the needs of Chinese visitors within the European Tourism Community, especially in view of the 2018 EU-China Tourism Year.”

Santander added: “European destinations acknowledge the need to remain competitive in China. It is only through deeper cooperation with the Chinese authorities and the support and commitment of the European tourism sector to engage in joint public-private marketing initiatives, like this partnership, that Europe will succeed in fostering sustainable tourism growth from China.”

A dedicated Europe Pavilion at ITB China will showcase European tourism products and destinations such as Czech Republic, Belgium, Hungary, Estonia, Latvia, Lithuania and Serbia. The show will also feature individual presences from other major European destinations such as Portugal, Finland, Greece and Austria.

The European presence on the show floor is flanked by The World Bridge Tourism project (WBT), which is co-located with ITB China 2017. The WBT is a project jointly organised by the European Travel Commission and the European Tour Operators Association to match 150 tourism suppliers across Europe with the corresponding number of Chinese travel buyers.

The event is also supported by an extensive programme of research and webinars aimed at increasing the understanding of the needs of Chinese visitors within the European tourism community.

Josefa Tuamoto

The Solomon Islands saw a nine per cent increase in inbound travellers in 2016 and has set a similar target for this year, with much of its destination promotion efforts targeted at Asia.

“Australia and New Zealand have traditionally been our biggest markets for tourists, but we see countries like China, Taiwan and Thailand as the future of continued growth,” said Josefa Tuamoto, CEO of the Solomon Island Visitors Bureau (SIVB).

Around half of 22,400 tourists to the Solomons in 2016 were from Australia and New Zealand, but Tuamoto hopes that improvements in air links to Asia – notably through Air Niugini’s hub in Papua New Guinea offering connecting flights to Singapore, Japan and Indonesia – will boost numbers.

There is, however, no desire to turn the largely unspoiled Solomons into another Pacific resort such as Fiji or Bali, he stated.

“We do not want to be in that mass-market space,” said Tuamoto, himself a Fijian. “We consider the Solomons to be special and our most recent promotional campaign had By invitation only as its slogan. We want to get across the exclusivity of what we have and the campaign is gaining traction.”

Garedd Porowai, senior travel consultant for Honiara-based Charis Travel Services, said he saw a “significant rise in Asian participation on tours and packages” in 2016.

“Most are from Singapore, China and Japan, but I also (had) my first Indian customer last year. They are mainly highly-educated, multilingual and FIT or SIT stopping here en-route to their country of origin, usually via Port Moresby to Singapore, Narita or Hong Kong, flying with Air Niugini,” he elaborated.

Porowai believes the SIVB is “doing a great job marketing to Asia with minimal funding”, but would like to see the authorities relax the entry requirements for Asian tourists and improve basic facilities such as public toilets.

Other hurdles include a shortage of high-quality accommodation and national carrier Solomon Airlines being plagued by high ticket prices and unreliable service.

Still, Tuamoto is upbeat about the destination’s potential. “The problem is getting people to come here for the first time,” he said. “We are not worried about reaching out to repeat visitors because we know that after one trip, they will be back.”

IMPACT Challenger Exhibition and Convention Center at Muang Thong Thani

IMPACT Exhibition Management has earmarked 5.6 billion baht (US$159.4 million) over a three-year period to develop a new water park, attractions and hotels at IMPACT Muang Thong Thani complex in a bid to diversify its offerings and attain a more balanced revenue stream that is currently focused on MICE.

Opening this March will be the 587-room ibis Bangkok IMPACT hotel and The Portal, a four-storey retail building; while IMPACT Speed Park, a go-kart circuit, was already launched late last year.

The three billion baht water park, set on a seven-hectare plot, is scheduled for completion by October 2018.

Meanwhile, construction of a 386-room Pullman hotel will begin next year to replace the 100-room Eastin Lakeside Hotel. The new hotel will bring IMPACT’s supply to 1,300 rooms altogether when it starts operations in 2019.

Paul Kanjanapas, managing director of IMPACT Exhibition Management, aims to position Muang Thong Thani as a comprehensive leisure and business destination. “I envision that Muang Thong Thani will become a new tourist destination and generate income not only from MICE but also tourism,” he said.

“Although the current economic situation is not promising, IMPACT sees it as a good timing for investment. When construction completes and the economy recovers, IMPACT can start generating income right away.”

Although its performance for the 2016 fiscal year was 10 per cent off target, Paul is confident that IMPACT will reach its 2017 revenue target of 2.2 billion baht as trade fairs, consumer shows and concerts are making a comeback in 1Q2017 following a spate of cancellations in October when the Thai king passed away.

Furthermore, he is also expecting some diversion of MICE traffic from Queen Sirikit National Convention Center to IMPACT when the former closes for a major overhaul in mid-2018.