If you ever read that the Tourism Authority of Thailand works well with the private sector in Thailand, don’t believe it.

Thailand has just suffered from the greatest natural Thai Government enhanced disaster in over 50 years and the Tourism Authority of Thailand is telling hotel operators NOT to cut their prices. This is Thai Economics.

Khon Kaen Silk Festival Parade

Two articles, one from the Bangkok Post, Hotels to offer deep discounts to restore traveller confidence, and one from The Nation, Inbound tourism likely back to normal by Feb, show that the right hand of the Tourism Authority of Thailand doesn’t know what the left is doing.

In the Bangkok Post article it says:

The Thai Hotels Association (THA) and the Tourism Authority of Thailand (TAT) are teaming up with an aggressive buy-one-get-one-free scheme, seeking to restore tourist confidence after the massive floods.

Yet in The Nation it says:

Long-haul markets, particularly the United Kingdom and Russia, will be next in line after Asia, as tourists in these countries need more time to prepare for trips.Moreover, the TAT will organise mega-fam (familiarisation) trips to rebuild the country’s tourism image and restore confidence among foreign tourists. However, TAT governor Suraphon Svetasreni urged operators to avoid cutting the price of packages and hotel room rates, as the cost of travel and accommodation in Thailand is already very competitive.

This is soooooooooooooo stupid!  The Tourism Authority of Thailand needs to help the tourism sector get back on its feet and reducing prices, offering a buy one, get one or something similar, and discounting airfares are needed especially with Thai Air cancelling 500 flights.  I believe The Nation article because I have seen that the Tourism Authority of Thailand does not work well with the private sector.

But, the Tourism Authority of Thailand lives in a fantasy world and doesn’t see the tourists going to Vietnam, Laos, and Indonesia who do have competitive prices and provide value for your money.

“We want tourists to know that the floods have already passed and Thailand is ready to welcome them,” Mr Prakit said. “We think the campaign will help increase average occupancy rate from 20-30% to 50-60%.”

20%-30% occupancy rate in HIGH SEASON!  This is a time of year when hotels, bars, and restaurants make more money in 3 months than they do in the other 9.  But, not at these low, low occupancy rates.  People have cancelled their Thailand trips and are going elsewhere and then they will discover that Thailand is not such a bargain after all and continue to go elsewhere. But, the Tourism Authority of Thailand continues to look at tourist arrivals through rose colored glasses and continues to post make-believe numbers.

I have seen this version of Thai Economics in previous years when Thailand and the Tourism Authority of Thailand suffered from low tourist arrivals due to SARS, Bird Flu, 9-11, and political unrest.  I wanted to buy some T-shirts in Pattaya and I know that T-shirts are about 100 baht and I can get 6 for 500 baht with a bit of bargaining.

I went to an area on Beach Road that I have shopped at many times and stopped at a T-shirt vendor and asked how much for a T-shirt.  I was quoted 600 baht!.  I had to stifle my laughter and asked how much would it be if I bought 6 T-shirts.  He whipped out his calculator and told me 3,600 baht and then gave me a 100 baht discount.  I started to walk away and he came after me and asked me how much I would be willing to pay.  I told him 500 baht for 6 shirts.  After making like I was going to walk away again, he told me OK.  This is how they Thais think. If there are few customers, I will just jack the prices up and hope to find one sucker instead of offering a discount and relying on volume sales.

Mr Prakit said the occupancy rate in November should be lower than 50% on average nationwide, versus 80% under normal conditions.

So, what will the Tourism Authority of Thailand do to help out in this time of need.  They will invite 500 travel folks to Thailand for familiarization tours (dog and pony shows), spend millions and millions of baht, and nothing will change.  The Tourism Authority of Thailand does not know what it is doing.

The Tourism Authority of Thailand  should be working with the private hotel sector and Thai Airlines and perhaps subsidizing the discounts.  It would be cheaper and more effective.

Instead of putting Thailand on sale and restoring tourism confidence, the Tourism Authority of Thailand is doing it best to keep foreign tourists away.

Tags: bars high season hotels occupancy rates private sector restaurants tourism tourism authority tourism authority of thailand tourism authority of thailand and thai economics