Airport drama has no happy ending for Thai tourism

[hogus]

Airport drama has no happy ending for Thai tourism

BANGKOK (Reuters) - From empty sun loungers at luxury hotels to vacant bar stools in dingy fleshpots, tourism in Thailand is going through its worst slump in decades, a result of the global economic slowdown and its own political turmoil.

"Right now, business is so slow. Some nights, only one customer," said Jodie, a 24-year-old transvestite go-go dancer teetering round the capital's Nana red light district in spike-heeled thigh-high boots.

Her gloom is echoed by everybody in an industry that accounts for six percent of the economy in the self-styled "Land of Smiles," and which directly employs 1.8 million people -- around the same proportion of the eligible labor force in Thailand.

Tourism Authority of Thailand (TAT) boss Phornsiri Manoharn estimates the 8-day closure of Bangkok's $4 billion Suvarnabhumi airport by anti-government protesters a month ago will have caused one million foreign visitors to cancel or go elsewhere.

"This is the hardest hit we've ever encountered in the 48 years we've been promoting tourism to Thailand," she told Reuters, saying the airport shutdown put the December 2004 tsunami, bird flu and SARS in the shade.

With arrivals numbers for the key holiday month of December likely to be 500,000 -- a third of forecasts -- the TAT's ambitions of attracting 15.5 million tourists in the whole of 2008 and 16 million in 2009 are lying in tatters.

Far from enjoying the 70 percent occupancy they normally see in December, Bangkok's top hotels are 25 percent full, forcing management to close floors, lay off contractors and ask staff to take unpaid leave.

At the height of the airport blockade, one luxury hotel was rumored to have had just one room occupied.

"It would be fair to say that this will be the lowest monthly occupancy we've experienced in the history of the hotel," said Wayne Buckingham, managing director of the 740-room Royal Orchid Sheraton on the banks of Bangkok's Chao Phraya river.

Particularly hard hit has been the hotel corporate and conference business, which is more sensitive than individuals to the travel warnings issued during the airport occupation, the climax of months of sometimes violent political confrontation.

"People have been through tough times in Asia before and they've got out of it at the other end, and we'll do as well. It's just that this one will take a bit longer," Buckingham said, estimating 12-18 months before things "return to normal." ....

The whole story: http://www.reuters.com/article/GCA-Cred ... 1H20081225

[hogus]

Thoughts:
If Mr. Buckingham is right, that it will take 12-18 months until things are "normal" again, many business-owners won't see these times , IMO.
I read in another report already, that 75 % (means 3 from 4) of local businessmen have problems with their liquidity...how they want to survive?
Additional the UDD (red-colored opposition) announced that they'll start with demonstrations asap to set the actual government-coalition under pressure, so that they'll be new elections nationwide.
I suppose the lack of tourists is just a small part and the beginning of much more trouble!

[faq2mfh]

What I can't get my mind around is how Thai's never connect the dots back to themselves. Before long this whole thing will be blamed directly on the farangs.
Does anyone think for a minute that local business folks understand how valuable foreigners are to their businesses and what it meant to close the airport for a week? They could care less and will give you a royal f_cking every chance they get.

Anyone ever held accountable in Thailand?

[Gridhead]

Following on from the airport closure and my enforced last minutes transfer of vacation from Hua Hin to Borneo Malaysia, who seemed more than happy to have my £4000+ for a months 5*, and coming after last year’s no drinking during the elections debacle I have a feeling there will be more than a few of us that will require some persuading to come back to Thailand.

Happy holidays to one and all and I hope all is resolved peacefully.

[nevets]

I went to Cha-Am today and to say it was dead as far as foregn tourists were concerned would be an under staitment, and i agree i dont think any Thai person ,would ever admit to being in the wrong its allways someone elses foult.

[lomuamart]

I'd agree with the sentiment that "normal" Thai people can't comprehend what's going on. I mentioned the OP's article to my Thai wife earlier and it was the same old, same old reply.
It's just not worth it for me to try and discuss it with her. She just gets defensive and says she dosn't care.
Part of the problem is that the Thais seem to fundamentally believe in this self-sufficiency, closed mind thing. I'm sure they would be well able to take care of themselves if necessary, but millions returning from the cities to the countryside could upset things a little bit.
I was reading articles about the new Foreign Minister's speech to assembled foreign correspondents. They were aghast at the fact he was saying that he found the airport closures good fun. (This was a few days ago, i think).
"It was a jolly good time with lashings and lashings of decent food and music". Or something like that. Idiot. Foreign Minister?
Anyway, the Thais are resilient people and I'm sure they'll survive - but at what cost?
Rant over and out.

[firebird]

I coudnt agree with you more Lomuamart,, Foreign Minister?? I just wonder how he might last at that rate.

If he thought it was a lot of fun, try telling that to the thousands of tourists a lot of them with children who were stranded at the Airports waiting to get back home; I know of 1 case personally who very nearly lost his job because of the fact he could not get his flight back home on time.

I just cannot understand the Thai mentality sometimes, they seem to think that tourists are doing them some sort of favour by coming to Thailand when there are equally nice and more stable countries lying just to the south of them, Malaysia, Singapore, Indonesia, are examples.

I just hope that the Thais can give this government at least a chance to sort things out I have many,many Thai friends there and it hurts me to think that they could be suffering as a result of all this.

Sorry for rant :-)

[Spitfire]

Think that's called denial Lomu, and I agree about the bit "...at what cost..", oblivious to what's going on. As another distinguished poster put it "They don't give a rat's arse about any of it!"

Agree also with the bit about a few million people relocating back to villages/countryside, could cause a lot of unforseen problems, particulary regarding crime.

Found this picture of the Foreign Minister.

[caller]

I think the folks returning to the provincial cities and countryside are going to be a problem. My wifes sister works at the huge Seagate factory just outside of Korat and she's been laid off for two weeks on half pay as there is no work. The factory is closed. There couldn't have been a worse time for the PAD's action and don't forget, the new PM has defended the Foriegn Ministers comments about the airport - not big news, but reported in the UK, well in some places anyway.

Edit - the wife's just mentioned that prior to the closure, her sister was only working 3/4 days weeks in any case, whereas before, like when we were there in April, she always worked overtime on Satrurday and Sunday. Seems like they have been told things will get better in the new year!

[Spitfire]

My wifes sister works at the huge Seagate factory just outside of Korat and she's been laid off for two weeks on half pay as there is no work. The factory is closed.

Wow Mr C, I live about 10 klicks from that factory, didn't realise it was that bad, they make computer components, don't they? Used to see their buses every day around the 'Save One' market all the time.

Didn't realise it was that bad, they.......well, "were", a massive employer.

Trouble is brewing if the factories are laying off people and closing, easy to forget just how many Thais are employed in such places.

[redzonerocker]

My wifes sister works at the huge Seagate factory just outside of Korat and she's been laid off for two weeks on half pay as there is no work. The factory is closed. There couldn't have been a worse time for the PAD's action and don't forget,

do you think the PAD action was the only cause of the economic problems?
it certainly didn't help matters & i'm sure it's harmed the tourist industry, but in the bigger picture, the closure of the factory is more likely just the beginning of the world recession starting to effect thailand & the rest of the asian economies

[caller]

Agree with you RZR, the point I was making is how the clear impact on immediate tourism that the airport closure has had, and how that will force people home from tourist areas where work is (seemingly) currently scarce and the fact there's nothing for them where they are heading!

Spitfire - the wifes sister lives just off the Highway between the factory and Sikhui at a place called 'Sung Nearn' (wife's spelling). It's on the same side as the factory. Went there in April. The wife has Aunt's who farm in Sikhui - they have a big herd of Fresians!

I don't think the closure is permanent, more a sign of decreasing demand.

[redzonerocker]

Agree with you RZR, the point I was making is how the clear impact on immediate tourism that the airport closure has had, and how that will force people home from tourist areas where work is (seemingly) currently scarce and the fact there's nothing for them where they are heading!

yes i get your point caller & i suppose most of the workers returning home to the rural areas will survive the downturn a lot easier with their families than they would alone in the cities
it could be extremely tough times ahead for a lot of people

[Spitfire]

yes i get your point caller & i suppose most of the workers returning home to the rural areas will survive the downturn a lot easier with their families than they would alone in the cities
it could be extremely tough times ahead for a lot of people

That's true Red, in the village there's no rent etc, family home and all that goes with it for them, default actions/surival instincts etc on their part. The problem is that there is also no work there and making money is very hard, they write poetry about how hard life is in such places, it's 'back to basics', and they have to pick up the life that they tried so hard to escape in the first place, even if only for a certain amount of time.

There will be a lot of unemployed, bored, ex-city dwellers 'lolling' around all over the show.

This will become an even more common than it is already in such places.




"The Devil will find work for idle hands" is applicable here I think. What I mean is in an drinking related sense.

[jonk1981]

backing up what gridhead said.....

my partner and i had to cancel 36hrs. before the swampy closure having waited 7 months for our jollys to hua hin.this would have been my 6th visit in 8 yrs and I was very much looking forward to returning again.
Ive just re booked through our travel agents to go to malaysia going in february 09.
its going to take some persuading for me to re visit soon as I cannot afford the dispruptions and unreliability that this airport closure has now thrown up.
I blame the PAD for taking it too far and the govt. for not seeing the long term implications of this by allowing it to happen. And when you read various articles throughout thailand you get the feeling its just a matter of time before it happens again.
I hope to return at some time but for the time being im afraid LOS has now slipped down the list and I know there are a lot of people out there thinking the same