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Phuket Governor Preecha Ruangjan wais departing  tourists today

Phuket in 2009: Disaster Forecast for Business

Wednesday, December 3, 2008
Latest Each Day on Phuketwan

FOR PHUKET and Thailand, the year ahead has already been turned into one of the most difficult ever. We sought opinions from the island's business and community leaders. Here's what they say:

Preecha Ruangjan, Governor of Phuket: Phuket will be affected by the airports blockade in Bangkok, and the general global economic downturn as well. Direct flights and charter flights are to be encouraged so that Phuket does not have to be concerned about problems in Bangkok in future. The number of tourists was trending down before the blockade. Phuket is a great tourist destination and will survive, just as it has survived other problems in the past. Some staff at spas have already lost their jobs because fewer tourists are coming from Japan and China especially now. The world economic situation will affect Phuket more than the PAD protests from now on, well into 2009.

Bill Owen, director of incentive and events organiser, Oriental Leisure: Sadly these past four or five months have really had a bad affect on the tourism business in general, culminating with the closeure of the Bangkok airports being a real devastating final nail in the coffin. Our business, and particularly the MICE sector, has basically come to a complete stop. We have already had four major cancellations, and one postponement for Phuket and one cancellation for a small executive forum in Bangkok for mid-December.
With the exception of business we have been ablr to re-book and reorganise in other parts of SE Asia, into Hong Kong, Singapore and Vietnam, our Thailand business is now at zero for the next few months.
We are currently exhibiting with a Thai delegation at Europe's leading MICE travel exhibition in Barcelona this week and are obviously out there to promote Phuket and Thailand as destinations. But clients are not interested right now as they really have lost faith in the stability of the country, both politically and safety-wise.
I think the end users, that is the actual customers, will want to come back sooner, rather than later, but feel all overseas agents who have been really hurt and affected badly over the past 10 days or so will turn off their marketing efforts for Thailand and will concentrate on safer, more stable areas such as Malaysia and the like. Other countries, I am sure, will benefit greatly by this whole affair.
So short term, we have been devastated. Medium term, with a little assistance on reduced rates from hotels, and a lots of hard work in the South-East Asian markets, we will get some of the MICE business back. This will take four to six months, minimum. Long term, one year or more will be required to win the return of international conventions and corporates.
So sadly, although I do and have supported the aims of the Peoples Alliance for Democracy throughout, the closure of the Bangkok airport was a definite 'shoot yourself in the foot' strategy for what was an already reduced MICE Market, which was about to be affected badly by the general world recession anyway.
Phuket will now have to go back to its roots: knocking on the corporate doors of our Asian neighbours to start all over, and slowly build our businesses again.
Since I started business in Phuket in early 1990s, there has been bird flu scares, numerous coups, the tsunami, several downturns in the economy, two Middle East wars, and more. The strong and professional companies will survive and get stronger. The inefficient and unprofessional ones will fail. And long term, Phuket will always be a great destination.

Claire Ratcliffe of Coral Seekers, a speedboat charter company operating since 1996: The company had four bookings cancel in the week the airport siege started, and this high season our bookings will be down by at least 50 percent from last year. We are hoping that when the airports reopen, people in the Asia-Pacific region will book last-minute holidays to Phuket, taking advantage of their expected greater spending power, because hotel prices will definitely be cut. We are also starting to advertise promotional offers for our trips, aimed at local residents and their families who come visit them. Our third child is due in two weeks and we have had to change doctors as a result of the airport situation. Our two sons were born using the same doctor at Bumrungrad Hospital in Bangkok, and we were expecting to have our third boy there, but worries about our ability to travel have forced us to move to a Phuket hospital. We have been left with no freedom of choice. The difference between this situation and the 2004 tsunami is that back then people wanted to come and help after the wave hit.

What the PAD says: The People's Alliance for Democracy has been rallying since May 25, 2008 for two objectives: to oopose attempts to amend the 2007 Constitution and to drive out the proxy-killer government in order to pave the way for new politics. Throughout the longest protest seen in Thai history, the PAD has carried out its duties of protecting the nation, religion, the Monarchy and the Constitution. The Constitutional Court's verdict is clear proof that the previous administration's power was not obtained through democracy under the Constitution but was accomplished through electoral fraud, and that the rally by the PAD was legitimate. The court's verdict leads the PAD to realise two of its goals:
1.The PAD is victorious in its attempt to protect the 2007 Constitution and made it possible to three ruling coalition political parties to be disbanded for electoral fraud.
2.The PAD is victorious in being able to drive out the proxy-killer government. The PAD now declares that the victory it attained in meeting the objectives of its gathering on December 2, 2008 is a ''victory of the people.''
The PAD would like to make the following pledges: If a proxy government of the Thaksin regime is set up again or if there is an attempt to amend the Constitution or the law to whitewash the wrongdoings of those in the Thaksin regime, to benefit politicians, or to lessen the power of the King, the PAD will return. From now on if there is any government which comes into power but is insincere in its efforts to launch new politics with the people, the PAD will return. We would like to sincerely thank the [people for being part of this historic event. Until we meet again, when the country needs us, with deepest respect, People's Alliance for Democracy.

Promchote Traivate, Director of Tourism and Sports Office, Phuket: Many tourists have cancelled bookings. More will cancel between now and February, some because there will not be airlines flying as frequently. But some tourists will continue to come, provided the airports are open. The world economic downturn will also affect numbers next year, but well-off travellers will be able to still take holidays on Phuket. Charter flights are a good thing for Phuket, so are direct flights. Total numbers will be down. The good thing is that many Europeans are regular travellers to Phuket, and they stay for a week or more. The people closer in the region who will stop coming tend to stay for shorter periods.

Sethaphan Bubbhani, Director of Tourism Authority of Thailand, Andaman region: There is no avoid it. Phuket bookings are down about 25 percent. Travellers are concerned about what might happen next politically in Thailand. About 60 percent of visitors, though, are repeat visitors, so they know and love Phuket and are likely to keep returning. One good point is that the value for money that Phuket delivers is good by comparison with other destinations, and Thai hospitality will not change. There are 25 airlines who run charters or fly here direct, and they will keep coming as normal. We have some good events coming early next year. There will be a mass Baba wedding on February 14, offering a different kind of Valentine's Day. It will take time to recover. While numbers will be down, there is a lot that is positive and appealing about Phuket. It will be at least two months before we can tell clearly what to expect next year and in the 2009-10 high season. The protests took Phuket occupancy rates from 80 percent to 50 percent. Forward bookings have also dropped dramatically, to 25 percent.

Phuket Gets Set For 'the Hell Season'
The only smiles in Thailand today are on the faces of protesters. Immense damage has been done to tourism, and to the lives of millions of Thais. What kind of ''victory'' is this?
Phuket Gets Set For'the Hell Season'

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Monday December 23, 2024
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