Is it time for Thailand to shift gears?

Global brand strategy and communications agency, Keen, has called for Thailand to move away from its dependence on “increasingly irrelevant, low yield mass tourism”

David Keen, CEO of Keen, 

headquartered in Bangkok, said that macro statistics showing annual tourism growth in Thailand of 7.5 percent between 2005 and 2010, with visitor arrivals growing from 11.5 million in 2005 to around 15.8 million last year, was “increasingly misleading”.

“Look closer and you’ll discover that long-haul, long-stay, higher spending visitors are being replaced by shorter stay, mid-market visitors who spend less per capita per visit. 



“A new and unsustainable trend has emerged,” said Keen. “The country has to run faster to stay still.”

He added, “Because more tourists stay shorter and spend less, Thailand needs to maintain double digit growth in arrivals just to match the preceding year’s tourism earnings. 



“More hotel beds and airplane seats creates over capacity. Empty hotel rooms and low load factors are causing price dumping and desperate short-term marketing pitches to mass market suppliers.”



Keen said he was “increasingly concerned” that the oversupply of rooms and seats were among key factors pushing Thailand’s brand reputation into a downward spiral.

“Huge volume, cost-conscious tourists bring the country’s brand down, which in turn attracts lower yield tourists. 



“Political instability, long queues at Suvarnabhumi airport, over-crowding and environmental degradation are also damaging the brand.”

Keen said Thailand was witnessing the flight of quality to alternative destinations such as Malaysia, Vietnam, Sri Lanka and the Maldives. 



“We should move on from the worn out ‘Amazing Thailand’ mantra to a new era based on higher yield, higher value, leisure and business visitors,” he said.

TravelMole Tweet: This is the second time that David Keen has written off the Amazing Thailand campaign, which TravelMole reckons is simple but effective.

Low cost airlines, discounted last minute room rates are here to stay and will bring low-yield visitors not just to Thailand, but to Malaysia, Vietnam, Australia and other destinations served by the LCCs.

Never forget that many of today’s young budget fliers are likely to be tomorrow’s high-yield visitors – what comes around often comes back – with a bigger wallet.

By Ian Jarrett