Will military intervention end Thailand’s political impasse and bring normalcy to the country or will it put a spanner in the works to revive tourism?
Thai army chief general Prayuth Chan-ocha’s seizure of power in a coup d’état on May 22 dealt another blow to the country’s tourism trade, which was already reeling from six months of street protests.
The general said he staged Thailand’s latest coup to restore peace and order to the kingdom. Whether his bid will be successful in the long term remains to be seen, but the imposition of martial law brought an immediate end to the almost daily, and often deadly, clashes between pro- and anti-government groups.
Curfew curbs unrest, arrivals
Military rule and the curfew are clearly having chilling effects on the tourism industry, which accounts for about 6.5 per cent of the Thai economy and employs more than four million people.
Kubilay Atac, general manager of Pegas Touristik Thailand, one of the country’s largest inbound operators specialising in the Russian market, said the coup was having a “huge” negative impact on arrivals.
“The problem is nationwide, but Bangkok and Pattaya are the worse affected,” he said. “We’re receiving hundreds of calls a day concerning safety from overseas agencies and clients.”
Almost half of the MICE groups due to arrive in Thailand in the immediate term have cancelled, said Pornthip Hirunkate, managing director of Destination Asia Thailand and vice president of the Tourism Council of Thailand. FIT and group series are faring better, but cancellations still run at 20 per cent.
“We’ve talked with a lot of other people in the trade, and they’re experiencing the same impact,” said Pornthip.
Other travel specialists said while they had not had too many cancellations, advance bookings for this year’s peak season were down significantly. Many believe the best thing the local industry can do is to provide accurate updates to their clients about the ground situation and that Thailand remains open for business despite the constitutional and political crisis.
Hans van den Born, managing director of Diethelm Travel Thailand, said that during a recent regional company meeting in Bangkok, staff and executives hit the capital’s streets to interview tourists for their reactions on the current situation, most of which were positive. They are now showing the video clips to clients.
Chotechuang Soorangura, associate managing director of NS Travel & Tours, said his company had also used Facetime and Skype on their connected devices to show international clients a live feed of daily life in Bangkok.
While communicating with clients is key, many in the trade feel there is little more they can do at the moment and do not think promotions or heavy room discounts will help win back tourists, as Tobias Fischer, business development manager at Go Vacation Thailand explained.
“Until there’s some sort of end in sight to the current situation there’s no point in investing much in (hotel) promotions,” he said. “Tourists need to feel confident about coming to Thailand again.”
At press time, the nighttime curfew has been lifted in 10 destinations namely Phuket, Koh Samui, Pattaya, Hua Hin, Cha-am, Krabi, Phang Nga, Hat Yai, Koh Chang and Koh Phangan.
Most visitors to Thailand will not be affected by military rule. Key attractions, infrastructure and transport systems are operating normally. The curfew from 00.00 to 04.00, which remains in Bangkok and other parts of the country, is the issue that impinges most on the visitor experience.
People arriving or departing the country are permitted to travel during the curfew, but they are advised to keep their passports, air tickets and related information on hand in case they are stopped by the military. It is also a legal requirement to carry an official photo ID or a passport at all times when in Thailand. Spot checks are more likely given the current situation, and failure to produce the necessary documents can result in arrest. Meanwhile, passengers unable to secure transport from Suvarnabhumi Airport during curfew hours can use the CIP Lounges on the third floor.
Travellers are also urged to read the fine print of their insurance policies relating to claims directly related to a coup, said Michele Anne Minjoot, vice president and head of communications at ACE Travel Insurance.
“Thailand remains open for business and anybody traveling there should heed their local country’s travel advisory,” she said. “We have not imposed any additional policy restrictions or increased our premiums due to the coup d’état.”
But the fact remains that coups, curfews and martial law scare away tourists and business travellers, as do travel advisories which have been issued by more than 50 countries. As a result, Tourism Authority of Thailand (TAT) has shaved 2.6 million arrivals and 96 billion baht (US$2.9 billion) from its 2014 target.
Domestic crisis, regional impact
While neighbouring countries have not been immune to the crisis in Thailand, its overall impact is more ambiguous.
George Ehrlich-Adam, general manager, Exotissimo Vietnam, said: “We have had two groups that requested a change to Vietnam due to issues in Thailand, but we do not see any particular spike otherwise with shifted bookings. Our numbers are slightly up compared with last year, and as we are in the low season there is less of an immediate effect.”
Paul Stevens, vice president of operations for Accor Thailand, Vietnam, Cambodia, Laos, Myanmar and the Philippines, said: “It is hard to say whether or not the developments in Thailand have had an impact on the tourist traffic into neighbouring countries.
“However, while business in Thailand has been lower than expected, our hotels in Vietnam had a strong first quarter this year with almost 25 per cent increase in the number of guests.”
In Cambodia, Christian de Boer, general manager of Shinta Mani Resort in Siem Reap, saw an initial downturn in business post-coup, but this was swiftly followed by a last-minute surge in bookings a few days later from travellers diverting to Cambodia from Thailand.
But Steve Lidgey, general manager of Phnom Penh-based A Touch of Asia, remarked: “Business is definitely down in Cambodia against last year where the Western markets are concerned, and we expect fewer last-minute bookings. However, the Asian market, which is about 80 per cent of our business, remains strong.”
Likewise, Nick Reth, operations director and owner of Phnom Penh-based Apsara Tours, expects some negative impact as close to half of his clients, especially those from Europe and the US, visit Cambodia in combination with Thailand or Vietnam. “However, only a small number of groups have cancelled their trips due to the unrest,” he commented.
Over in Laos, “there has been a slowdown in terms of confirmation speed from clients interested in tours combining Laos and Thailand”, said Laurent Granier, co-founder and general manager, Laos Mood Travel. “Enquiries keep coming in, but people are cautious with the news and developments in Thailand – making them hesitant to pay deposits. Suvarnabhumi Airport is still a major gateway to Laos and clients will ask about the situation there.”
Country in limbo
In the bigger picture, Thailand is probably now as politically divided as it ever has been. With elections not expected to be held for at least a year-and-a-half and an increasingly vocal anti-coup movement staging small peaceful rallies, the potential for further unrest remains a distinct possibility.
That said, many trade players believe the country will weather the current political storm. Speaking the day after martial law was declared on May 19, Moevenpick’s COO Middle East and Asia, Andreas Mattmüller, said: “Thailand is like a cat, it always manages to land on its feet.”
The problem is, statistically speaking, if you drop a cat out of a tree enough times it will eventually break its back. With some 20 coups under Thailand’s belt since 1932, will this putsch be the one that tips the balance?
USEFUL INFORMATION
• Tourism Authority of Thailand Call Centre 1672
• Tourist Police Call Centre 1155
• AOT (Suvarnabhumi Airport) Call Centre 1722
• Regular official news www.tatnews.org
• Useful local blog with tourism and incident updates www.richardbarrow.com/@RichardBarrow (Twitter)
Additional reporting by David Andrews
