Report on
Development of Tourism Industry in Thailand

Contributed by: Tourism Committee (Japan-Thailand Business Forum)

As our Committee for Tourism was established inside Japan-Thailand Business Forum last July, we started studying and now would like to submit some ideas to increase the number of the tourists to Thailand from Japan.

We made the interview with Mr. Charubun Pananon, the director of Tourism Authority of Thailand (TAT) in Tokyo in the end of August, and other Japanese who are interested in Thailand.

Although our study is not enough to our satisfaction, we dare submit our ideas even at this stage in order that we may get the comments to our idea from many persons concerned and may have more occasions to discuss on how to increase the number of visitors from many countries, especially from Japan.

• Submitted in October 2003 in response to an inquiry of Thai Ambassador to Japan.
• Keyword of this report is GMS (Greater Mekong Sub-Region). It consists of 6 countries alongside Mekong River, 4200Km, Thailand, Cambodia, Laos, Myanmar, Vietnam and Yunnan Province of China.

(A) Present Circumstances

Supply Side (Airlines and Travel Agents)

1. As the number of the Japanese visitors to Thailand is exceeding one million every year after 1999, the conventional way of the policy and propaganda may be regarded as an effective performance so far. The problem is how to increase the number of tourists more.
   When we observed the office of TAT in Tokyo, we could find the many kinds of pamphlets and leaflets showing attractive locations and historic sites in Thailand for pleasure and sightseeing. We can see the specific pamphlets such as ?gTraveling in Thailand by trains and buses?h, ?gBangkok Transit Tour?h and ?gKingdom of Golf?h. Besides these, there are area guides under the title of ?gIsan?h, ?gKanchanaburi?h, ?gAyuthaya?h, ?gHua Hin/Cha-am?h and so on. Explanation is good and understandable. We feel the challenging intent of TAT to develop the tourism industry in Thailand.
2. On the contrary, when we visit the travel agents in Japan, we find almost all pamphlets carry the tour of the conventional route to Chiengmai, Chiengrai, Sukhothai, Ayuthia, Puket, Kho Samui, Pattaya, or its combination. They offer only ?epackage tour?f for 5 to 7 days, visiting many places with tight itinerary without ample time in one place. They just demonstrate the cheap and reasonable prices. We think such ordinary conventional routes have been effective in inviting fresh visitors to Thailand, and will be so in the future, but not effective in inviting repeaters as mentioned below.
3. In bookstores and libraries in Japan, some travel guide books about Thailand are available, but most of them are covering only conventional routes, not including the specific area like north-eastern part of Thailand.

Demand Side (Tourists)

We asked questions to some educated persons and supposed travel repeaters what system and what information they want in traveling to Thailand

1. For the persons who have already visited Thailand for sightseeing, the pamphlets prepared in the travel agents are not attractive for them. They want the menu of many variety of package tour to select the desirable route and spot.They want to visit the specific places, for example, the ruins of Khmer culture in the north-eastern part of Thailand and in Cambodia.
2. There are many varieties of attractive pamphlets in TAT as mentioned above, but we wonder why those Japanese travel agents offer only something like customary set-menu to conventional places and do not handle the package tour to visit specific places. A-la-carte menu is also needed.
3. There are many persons who are interested in visiting the different places and locations. But they cannot find the attractive variation in the travel agents in Japan
4. When they visited Ayuthia, for instance, they were taken to the Japanese village where the statue of Yamada (Oya Senapimok) is located, and they received no explanation on history of Ayuthia period. The educated persons want explanation but the guide is mostly not trained for good explanation.
5. They acknowledged later that there is good historical museum in the city, to where they should have visited to get the historical information. The travel guides keep one-pattern performance, not considering the level of tourist. The travel agents should prepare the leaflets, explaining the history of Ayuthia.
6. When they go to neighboring countries of Thailand to see such ruins as Angkor Wat, Temples in Pagan, etc., they want to visit Thailand too in the same tour without the tight schedule in Thailand. They want to enjoy themselves by playing golf for example, or going to somewhere. In this case, the compulsory schedule is not needed in Thailand. They need free time. If they want to visit ruins or monuments, they had better apply the optional tour.

(B) Some ideas to develop the tourist industry of Thailand

Travel Agents

By reviewing the above (A), we can understand the demand of the repeater cannot be well met. To increase the number of the tourists, the important thing is how to attract the repeater to Thailand. There is big gap between the demand of the tourists and the supply of menu of the travel agents. Function of the travel agents is becoming very important, both in Thailand and Japan.

1. Local travel agents in Japan, as mentioned, will not provide satisfactory information menu to the expected travel repeater, so the parties concerned such as TAT, Thai Airways, local travel agents in both Japan and Thailand should cooperate each other to set up the new travel routes in accordance with the above demand. The Japanese travel agent should prepare the pamphlets so that the Japanese travelers may find the new attractive courses and routes in the GMS area.
2. When the Japanese travel agent does not cooperate to realize the above idea, the travel agent specializing in GMS should be established to satisfy persons going to GMS area. The Japanese travel agents are handling the many travel routes all over the world, so they will not pay much attention in cultivating the interesting routes in GMS area, but they will cooperate with the GMS travel agent, when the latter show the interesting new traveling routes.

Tour Route

1. To meet the requirement of tourists to visit the neighboring countries together with Thailand, the following route should be developed
   1. Free time Thailand 3-4 days plus Angkor Wat
   2. Free time Thailand 3-4 days plus Wats in Pagan, Myanmar
   3. Free time Thailand 3-4 days plus Himalayan tour in Nepal, etc. etc.
   In brochures of ANA and JAL, they arrange the tours to Angkor Wat in Cambodia, together with Ayuthiya in Thailand in one package. They are effective for the persons of first visiting, but not effective for the persons who already visited Ayuthiya. In most cases, the persons going to see Angkor Wat have been in Ayuthiya already. That is why there should be program of ?gfree time?h in Thailand.
2. Travel to North-eastern territory of Thailand should be developed. Not a few people want to make sightseeing Khmer culture ruins such as Phanom Rung, Phimai, Khao Phra Vihan, and other famous spots like Pha Taem, Khaeng Tana Park, etc. So, the travel to Ubon Ratchathani area shall be developed so that tourist may go by just applying the optional or domestic tour. The travel agents of Thailand should prepare variety of the tour to such provincial area, as an optional one.
3. Renovation of some sightseeing spots
   It is recommendable to renovate the infra-structure of the existing spots for pleasure, especially sea-side resort area, to compete with Hawaii and Guam.
   1. Pattaya
      It is recommendable to renovate the infra-structure of the existing spots for pleasure, especially sea-side resort area, to compete with Hawaii and Guam.
   2. Phuket
      The public space of the island is not well arranged and not attractive for the tourists. Tax-free zone will be one of attraction. The hotel rates in Puket seems expensive comparatively, so reduction of hotel charge is recommended to receive the more tourists
   3. Sukhotai
      Quality of hotels has to be improved.

(C) Our Suggestion

It is very important that the travel agents in both Thailand and Japan should become much aggressive to set up the new route and system. We understand they are commercial organization, so they will consider profitability, first of all.

When they are not cooperative with the idea mentioned above, we think the challenging travel agent concentrating in the travel of GMS area had better be established.

GMS countries have to cooperate each other in establishing such travel agent. If GMS countries do not cooperate, Thai government is strongly suggested to establish it independently, as Thailand is the center of the area, having the hub airport to those countries. Thai Government had better expend the subsidy to the travel agents, if necessary for the initial period, to pave the way for developing the tourism in this region.

It will be worth-while effort for Thailand. All parties concerned, like Thai Airways, hotels, transportation companies, etc, will get nice benefit, when the tour is developed in GMS territories, as all tourists drop in Thailand on the way back or to those areas. Thai Airway will play an important role in this function, as the airline can cover total territory of GMS.

From the beginning, we may not expect the remarkable increase of tourists visiting GMS area, and new routes, but we have to say to try first, as there are big demands of tourist in those areas, if the tour is arranged according to (B).