Fears are being raised that price cuts intended to drive a tourism recovery in Thailand may further damage the country’s travel industry.
The industry is pursuing a ‘measured renewal’ following the recent political unrest which culminated in the army stepping in last month to break up the main anti-government protestors’ camp.
While the travel industry is now trying to encourage tourists to return to the country, concerns are being raised that hoteliers will be forced to cut prices too far.
Pacific Asia Tourism Association (PATA) Thai chapter chairman Albert Van Walbeek said: “Putting Thai tourism product suppliers under revenue management and cash flow stress does not help Thailand’s tourism industry.
“It will only create more post-crisis challenges for tourism organisations that have already suffered low occupancy and demand due to the political crisis over the last eight weeks or so.
“Thailand already provides services at a much lower rate than most Asian countries. It is arguably the best value destination in Asia now – without price cutting.”
While the industry flirts with proposals to drop room rates by 50 per cent, Van Walbeek preaches caution, arguing it might take up to four years to achieve the same average room rates as the 2009/10 winter.
The UK, US and other countries have all eased their warnings against travel to Thailand after the end of political protests in the Thai capital.
Mark Siegel, CEO of Bangkok-based Golfasian, said: “Cash incentives to stimulate travel aren’t the answer.
“Thai golf holidays, Thai holidays in general, are already affordable. We need to emphasise that not only is it safe travel here, but it was safe even at the height of the crisis in May.”
He added: “The divisions in Thai society are real, but they are political and internal and restricted to Thai citizens.
“Tourists were certainly inconvenienced by the difficulties in April and May, but they were never endangered.”
He added: “When you compare the actual risks of traveling to Thailand today, and compare them to travelling in countries where tourism is routinely affected by violent religious extremism (Bali, Israel), or countries where crime against tourists is somewhat routine in urban centres (South Africa, United States), there really isn’t a comparison at all.”
Last month’s demonstrations caused losses estimated at 60 to 70 billion Thai baht ($1.9 billion to $2.2 billion) in tourism-related revenues, according to Atthachai Burakamkovit, permanent secretary of the Thai tourism and sports ministry.
The government has earmarked 5 billion baht ($154 million) to help tourism-related businesses affected by the turmoil and rioting. The package awaits Cabinet approval.