Should the Ministry of Tourism and Sports be split into two separate agencies?

The Thai Hotels Association (THA) wants to see the Ministry of Tourism and Sports split into two separate agencies.  That is how the article in The Nation starts out.

Ministry of Tourism and Sports

But, like most articles in The Nation, it takes a left turn about 1/2 way through.  The first part of the article has the THA wanting the Ministry of Tourism and Sports split.  I can see both sides of this since sports tend to attract tourists.  I can also see the want to have them separated.  Either choice won’t solve Thailand’s tourism problems.

THA’s biggest complaint is that the Ministry of Tourism and Sports has only met with the THA once this year and that his office’s main focus is on sports and not on tourism.

THA has further bitches and this is where the article strays from the discussion of splitting the Ministry of Tourism and Sports.

THA president, Prakit Chinamourphong, has identified 3 major problems that he wants the Thai Government (primarily the Ministry of Tourism and Sports) to resolve.  He has this partly correct but he misses out on a lot of reasons for a decline in tourist numbers.

First is to stamp out illegal operations – mostly guest houses, serviced apartments and condominiums – that are stealing many customers from hotels by offering much lower room rates.

Now this is a new one on me.  I have never, ever heard anyone complain about guest houses. serviced apartments, or condominiums being illegal. Sounds like sour grapes to me.  Always point the finger away from you when complaining.  Never look in-house to see what the real problems are and then work to resolve them.

I prefer guest houses when I travel.  They are roomier, friendlier, cheaper, cleaner, smaller, cozier, and I prefer to help out the moms and pops trying to make a living instead of corporate monsters.  Maybe Khun Prakit could learn a few lessons from guest houses and provide better service.

The average hotel room rate in Thailand is Bt3,000 per night, while Hong Kong and Singapore are commanding the equivalent of Bt7,500 per night.

Hotels in Hong Kong are running up to 90-per-cent occupancy year-around, while Thailand is only at 60 per cent.

This is not because of “illegal” guest houses, serviced apartments, and condominiums.  This is caused by a score of issues plaguing Thailand tourism – scams, filthy beaches, over-populated tourist areas, the Tourism Authority of Thailand lack of skills in attracting foreign tourists, nothing new to see in Thailand, crime, political turmoil, and on and on and on.

Never ceases to amaze me that the Ministry of Tourism and Sports and the Tourism Authority of Thailand (TAT) always paint a rosy picture claiming tourism is up year after year after year, yet the THA President claims only 60 percent occupancy.

The second is to limit new investment in crowded or developed areas to avoid a glut. The government should encourage operators to spread their business or investment to places with more room to grow.

Khun Prakit is too late with this.  Tourist areas in Bangkok, Pattaya, Phuket, and Chiang Mai are already over-developed.  There was no plan by the Ministry of Tourism and Sports whatsoever.  This problem is endemic in Thailand.  If someone sees someone else making money selling BBQ chicken on the side of the road, he will set up a BBQ chicken stand right next to him.  If they are both making money, a third, fourth and fifth will set up until there is a row of BBQ chicken vendors.  Soon, none of them will be able to make money.  It is the Thai way.

And the third is to prepare the country for the full opening of the Asean Economic Community in 2015.

The THA President is absolutely correct on this point -but it is already too late.  The Thai Government and the Ministry of Tourism and Sports is about two years behind the other nine nations of  the ASEAN community.  The Thai Government has done absolutely nothing for this major undertaking.  This is supposed to be the 10 nations of ASEAN working together to bring more business and tourism to the REGION.  But, Thailand doesn’t play well with others and would rather remain independent and do things the “Thai” way. You can see what Laos is doing and how they will take many tourists away from Thailand.

Part of this ignoring the ASEAN community is the result of the border clashes with Cambodia over the temple ruins at Preah Vihear.  Cambodia called on ASEAN to facilitate and act as mediator – something that Thailand abhors.  Thailand wants to resole this bilaterally – meaning they will stall and stall and stall and cry and whine and claim that the International Court of Justice (ICJ) is wrong and the Thai Government is right.

The ICJ declared in 1962 that Preah Vihear belonged to Cambodia.  At that time, Thailand agreed.  Now, Thailand is saying that only the temple belongs to Cambodia and the land it sits on belongs to Thailand.  Ridiculous.

The ICJ will rule in a few weeks (again) and if they find in favor in Cambodia (again) the current Democrat party will be in trouble as the decision should come out right before elections in Thailand.

Back to tourism.

Here is where the THA will get things wrong too.  They have the same mentality as the Ministry of Tourism and Sports and the Tourism Authority of Thailand:

The THA and the Thai Travel Agents Association plan to host the Thai International Travel Fair in Bangkok from August 18-21.

Already 657 tourism-related operators have booked spaces at the event, which is expected to draw 800,000 visitors and generate Bt900 million in revenue.

The 800,000 visitors will be Bangkokians looking to get free pens and plastic bags from the various booths.  This will NOT attract any foreign tourists.  If there are any bargains to be had, the local Thais will get them.  I have no idea where they get the 900 million baht revenue from.  This works out to about 1,125 baht per person attending.  Makes no sense to me.

There will be a waste of time meeting held on June 14th where the Hotel folks will complain to the Government folks, and nothing will happen with elections only two weeks away.

The THA will invite MP candidates or representatives from five major parties to meet with its members on June 14 to explain their policies to help the private sector and to hear what the private sector will need from the new government.

No guarantee that anyone of any importance will show up and no guarantee that anyone will do anything.  Would make more sense tome to wait until AFTER the elections and things have settled down a bit to present your case to the Thai Government and the Ministry of Tourism and Sports.

Oh well.  It looks like the Ministry of Tourism and Sports, with their underling the Tourism Authority of Thailand, will get an earful from the Thai Hotels Association, but, unfortunately for the THA, nothing will come of it.

Tags: asean condominiums guest houses Ministry of Tourism and Sports serviced apartments TAT tha thai hotels association tourism authority of thailand