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Methee Tanmanatragul: the zero option 'wrong'

From Hero to Zero: How Phuket Lost China

Tuesday, May 13, 2008
ATTITUDES need to improve if Phuket is to regain a healthy share of the 1.3 billion potential travellers in China, one of the region's most respected hoteliers has warned.

A ''Zero Tour Fare'' strategy by agents has destroyed the potential for Phuket to make quck inroads into the huge market, Methee Tanmanatragul, president of the Thai Hotels Association Southern Chapter, told Phuketwan.

''Some of the Chinese agents who handle 40,000 or 50,000 people a year thought they could make a lot of money by taking this kind of unscrupulous route to make money,'' Khun Methee said. ''It's just wrong.''

The ''Zero Tour Fare'' option leaves tourists in the hands of less than ethical dealers who maximise their income by dragging tour groups from one commission shopping venue or restaurant to the next.

The result: an unhappy group of tourists who never return.

''China has been creating a lot of millionaires in the past five to 10 years,'' Khun Methee said.

''But the system of tourism from China has been somewhat tarnished by some travel agents, who are taking their clients for a ride.

''It has reached the point where the government has warned the people repeatedly that when you go to Thailand, make sure you go with the right travel agent so you are looked after well.

''They even sent a letter of reminder to our organisation explaining how the Chinese tourists have been commercially robbed when they buy tour packages to come to Thailand.

''This has been going on for years. And that has led the Chinese to go elsewhere.''

Instead of coming to Thailand, Chinese tourists were heading for alternative destinations within three or five hours' flying time, places such as Hong Kong and Macau, Khun Methee said.

''We could have had many more of those people,'' he added.

The Zero Tour Fare option works this way: tourists who buy in China pay the advertised price for a package to Bangkok, Pattaya or Phuket.

However, the in-bound agent in Thailand is offering Zero Tour Fare. When the clients arrive at the destination they are ''taken to shop after shop after shop'' in order to make more commission.

''The poor tourist,'' Khun Methee said. ''Instead of coming to enjoy themselves, sightseeing and so on, they are taken to more shops, and more compulsory visits.''

The TAT has been looking at the issue and has set a minimum tour fare, prohibiting any in-bound tour to set a minimum price, to ''stop the whole unfortunate issue.''

''But I think they have to do it more strongly by taking more serious action,'' Khun Methee said.

''Everybody knows who is behind this but somehow this just goes untouched.''

Khun Methee said that the Korean market worked differently.

''It's fiercely competitive, but not to Zero Tour Fare levels,'' he said. ''Now there are some big Korean players, who have opened their own branch offices in the destinations.

''They have a reputation to maintain, so the price war is not that intense.''

It's all a matter of market maturity, Khun Methee added.

''China has been an emerging market only for the past 10 years but Koreans have been travelling for a long, long time,'' he said.

''The Zero Tour affair also happened 30 years ago with the Japanese market, and now that market is very, very mature.

''It will take a few more years for the Chinese market to be mature to the point where the tourists will not be taken for a ride any longer.''

Phuketwan: Literally taken for a ride in every way . . .

''Yes. Even Thai people 10 or 20 years ago, when they travelled to places like Hong Kong and Europe, they were taken for rides, too.

''First-time travellers depend solely on domestic tour guides. Whatever you are told, you believe them.

''But now, with globalisation and the Internet, people can make their own travel plans, book their own flights, book their own hotels.

''Only the number of China's tourists is far greater than Thailand, Korea and Japan combined. Don't forget: China has 1.3 billion people.''

So you see it as being very important to Phuket?

''Oh yes.''

In 2004, the numbers of Chinese visitors to Phuket, especially when combined with Hong Kong and Taiwan, made the group the most important to the future of the island.

That year, according to TAT figures, mainland China visitor numbers jumped to 119,384, with 230,890 more coming from Hong Kong and 232,680 from Taiwan.

In all, Chinese visitors were rapidly approaching 600,000.

The tsunami changed all that. And the market, which at that stage provided direct flights, has never recovered.

In 2007, tourists from mainland China rose to 168,707, while Hong Kong numbers fell almost nine percent to 75,174 and Taiwan slumped 28 percent to a dismal 51,924.

The total: less than 300,000, half what it was just three years earlier, when that market was the lifeblood of the green season. And with no sign of a recovery in sight.

Nevertheless, the tourism outlook generally is promising, said Khun Methee.

''We have surpassed the pre-tsunami level in terms of ocupancy and total arrival of tourists,'' he said.

''It looks set to continue, even through the green season.

''The Middle East is an emerging market. It's probably word of mouth.

''Thailand is being perceived as a country where we welcome all, regardless of what nationality and what religion you are.

''That goes back three or four years, so our good reputation has been spreading around the Middle East.

''Oil is going up in price. Over the past 10 years, the region has grown three times richer by doing nothing,'' he added.

''The Russians also have a lot of natural resources. Once they became entrepreneurs, they also have made a lot of money.''

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