Chiang Mai - Songkran Celebrations Heading Towards a Soaking !!

Songkran could be quieter this year, with the number of revellers expected to plunge 20-40 per cent out of concern about renewed political tensions. The worries stem from a major red-shirt anti-government rally today.

Tourism associations expect the number of foreign tourists to fall 40 per cent from last year, while domestic Songkran revellers could drop 20-30 per cent. That would mean the holiday could generate only Bt30 billion, less than earlier projections of Bt50 billion.

This would in turn put more pressure on the Kingdom to achieve this year's target of Bt500 billion for tourism revenue.

"Political chaos in Thailand is becoming the main factor in both inbound and domestic tourism. Even tourists familiar with Thailand, such as those from Singapore and Hong Kong, are now waiting for the situation to clear up," said Association of Thai Travel Agents president Apichart Sankary.

He said many tourists were delaying their bookings for the holiday until after today's rally had passed. Tourists in Chiang Mai have been urgently consulting travel agents for trips out of the city, for fear of political turbulence. Tour operators in Bangkok are asking for a 40-per-cent cash guarantee, to ensure that those booking actually do come to Thailand.

The tourism industry, which contributes 6-8 per cent of gross domestic product, suffered badly from last year's protest when Suvarnabhumi Airport was shut down. Many may lose their jobs.

Also in danger of lay-offs is the manufacturing sector, which is suffering from plunging exports. Labour unions worry that some employers may let workers go over the long holiday.

Domestic Travel Association president Maiyarat Pheera-yakoses said signalling a quieter celebration with lower advance bookings for hotels and resorts in Chiang Mai, which is the key destination for the water festival - likely occupancy forecasts this year for Songkran are only 50-60 per cent,down from 90-95 per cent last year.

Bangkok hotels are also suffering from lower forward bookings, she said, adding that domestic tourism had already dropped 40 per cent year on year in the first quarter.

Her association is scheduled to meet with Tourism and Sports Minister Chumpol Silapa-archa today to request help in the form of extra funding for a tourism fair scheduled for June.

Excluded from the downturn are Hat Yai and Pattaya. While hotel operators in Hat Yai expect higher occupancy rates next week, with many Malaysian tourists wanting to participate in a scheduled midnight Songkran event, Middle Eastern tourists will head to Pattaya.

This will help Pattaya, whose hotel occupancy is now only 50-60 per cent, down from 70-80 per cent at this time last year.

Thai Hotels Association president Prakit Shinamourphong said hotel occupancy in Phuket was now 65-70 per cent, down from 90-95 per cent at this time last year. The number of chartered flights for the Songkran period now numbers 80, sharply down from more than 200 last year.

To boost domestic travel, Thai Airways International is launching a hot-season campaign. Thai AirAsia is offering 10,000 domestic seats for Songkran travel starting at Bt100, and 40-per-cent discounts on international routes.

A survey by the University of the Thai Chamber of Commerce covering 1,213 respondents showed 87.2 per cent planned to spend Songkran in the Kingdom, while 12.8 per cent would travel abroad.

The ratio of travellers planning foreign trips is the lowest in four years, due to economic concerns.

While foreign trips cost an average of Bt53,000, domestic trips range from Bt3,000 to Bt4,000.


Source: The Nation 08/04/09