Thailand and Kenya tourism sectors face an uphill battle

The Tourism Authority of Thailand and Kenya Tourism Board are among the most active tourism organisations in Southeast Asia and Africa, respectively.

In their control are millions of dollars pumped into marketing and advertising campaigns across print, TV and online every year promoting the best attributes both countries offer the international visitor.

Whether it is bustling markets or pristine beaches, cultural sights or safaris, festivals or medical tourism, or just simply fine hospitality for what they are known, between them there is no doubt Thailand and Kenya offer tourists from around the world a unique value for money experience.

Both nations rely heavily on tourism to prop up their economies.

Out of their control, however, is anything that rocks the economy which can have a drastic effect on tourism revenues forcing the industry to quickly get back on its feet. Tourism in Thailand and Kenya are currently suffering from the impact of events out of their control.

This week, martial law was imposed across Thailand aimed at restoring peace and order, to combat anti-government protests that have hit the streets of the capital Bangkok on and off for the past three years.

The last six months, in particular, have witnessed heightened unrest between the government and opposition. Thailand’s tourism industry has come out to reassure travellers that not all is bad as what is made out to be.

Shopping malls, airports, tourist attractions and public transport continue to operate normally, and the public is urged not to panic, but to live their lives as normal as possible.

Tourists visiting  Thailand are advised to be vigilant and avoid rally sites and demonstration marches as protests take place in central areas.

Thailand recorded 26.7mn tourist arrivals from around the world last year, up nearly 20% on the 2012 level, but growth numbers for 2014 have been downgraded to just 28mn, hit directly by the troubles that have affected confidence from the international visitor. Tourism accounts for about 10% of Thailand’s GDP.

The Thai Hotels Association said earlier this year that occupancy rates had dropped to as low as 45% from the usual average of 90%.

Bangkok’s hotel occupancy has fallen more than 30% this year while the national carrier Thai International Airways recently posted a net loss of THB2.6bn ($80.4mn) for the three months of 2014, down drastically from a THB8.3bn profit in the same period last year. The carrier said results were “greatly impacted” by protests in the capital and across the country.

Thailand’s currency, the Baht, and Thai shares have fallen with the country’s benchmark stock index shedding 12% of its value over the past 12 months as political events affected domestic business and deterred foreign investors.

Economists have cut Thailand’s growth outlook for 2014, forecasting an expansion of around 1.9%, lower than the previous estimate of between 4 to 5%.

In real terms, this means between $8bn and $10bn of economic growth lost in Thailand this year – a huge amount to bear as Thailand is the only major economy in Southeast Asia that is contracting.

By contrast, the Kenyan government has hit out at countries which have issued travel advisories cautioning their citizens from travelling to parts of the east African nation unless it is absolutely essential.

Kenya is fuming about travel warnings issued by governments in Britain, US, France and Australia. Hotels have reported cancellations and holidaymakers from overseas pulling out of Indian Ocean hotspots around the coastal area of Mombasa.

Fatal terror attacks at a shopping mall in the capital Nairobi last year that led to scores of deaths followed recently by explosions at a luxury seaside hotel injuring many, have culminated in international travel alerts over fears of further attacks.

The warnings, together with almost 1,000 early tourist departures from hotels and cancellations of holiday charters are harming Kenya’s tourism sector, which President Uhuru Kenyatta described was “on its knees”.

Kenya says job losses are inevitable soon in a sector which the World Travel and Tourism Council estimates employs around 150,000 people – 10% of Kenya’s workforce. Through to October, more than $57mn in tourism-related revenue is expected to be lost, according to the Kenya Tourism Federation.

Tourist arrivals in Kenya had grown from 1.2mn in 2008 to 1.8mn in 2011, but dropped to 1.7mn in 2012 and a further 15% to almost 1.5mn last year, largely due to security concerns.

The current situation is during Kenya’s low season with the real peak expected from October onwards if there is a reversal in fortunes.

Travel advisories have become common practice in the event of serious incidents but are issued with one thing in mind: the safety of travellers. While some argue travel advisories are put in place too soon, others say they are not needed at all as they are harmful to the country’s economy.

Entire countries are not necessarily off limits just because of a travel advisory in a particular region, but the interpretation through media coverage can easily mean the whole nation – a total no go across a country when one is issued. Hence, travel advisories often dent forward bookings.

Egypt, Tunisia, Thailand, Turkey and now Kenya have all been subject to the dreaded complete or partial ban on travel to parts of their countries. But it is up to consumers to decide based on their confidence. They have more choice today and can easily switch destinations and better spend their money elsewhere.

It is this confidence level that needs to be rebuilt.

In the case of Thailand and Kenya, in good and bad times, their tourism sectors work together and pull through together with a both a short-term and long-term approach.

Their respective tourism boards are active, drawing hotels, restaurants, attractions and of course airlines to help stimulate a staple industry, one on which they thrive on for sustainability. Joint activities are now being mapped out to stage a series of familiarisation trips for media, tour operators and travel agents in a bid to revive their tourism sectors.

The aim: to showcase not all is bad as it appears. Seeing the situation first hand for those who sell the product or write about the product is key to restoring confidence. It is at times like these that international travel partners who invest heavily in promoting tourism to a country strengthen their relationships with the country they have done business with for so long.

The Tourism Authority of Thailand (TAT) is preparing to launch a range of tactical campaigns and special tourism activities for the European and Middle East markets to retain tourists’ confidence and revamp the country’s tourism industry, as part of plans to combat recent challenges and setbacks.

It is getting into full drive with marketing and promotional efforts focusing on its ever-popular Amazing Thailand campaign.

In the Middle East, from which Thailand welcomed 630,000 visitors last year, TAT will partner with Emirates, Etihad and Qatar Airways to organise trips for the media and travel trade. However, Thailand has to compete with the re-emergence of Europe’s top destinations which are attracting visitors thanks to a relaxation of visa restrictions for Arab tourists.

In Europe, 25% contributor of tourism arrivals to Thailand, TAT will join hands with airlines and tour operators to launch special promotional tour packages as well as co-operate with online travel agents to introduce tactical campaigns via digital platforms. There will also be Amazing Thailand roadshows in various European countries.

The “Amazing Thailand Grand Sale 2014” will see a record 15,000 entities participate in a shopping extravaganza across seven of Thailand’s key tourism cities between June 15 and August 15.

The two-month annual event is expected to be the best ever. Thawatchai Arunyik, the governor of the Tourism Authority of Thailand, says: “This year’s Grand Sale will showcase an important part of our tourism recovery strategy for 2014.”

Source markets – Europe in the case of Kenya and Thailand and China for the latter – cannot alone be relied on for business. The need to continue developing source markets is important thanks to long-standing relationships, but so too is creating new ones as part of diversification strategies.

The Kenya Tourism Board this week embarked on a campaign targeting at least 1mn Chinese tourists a year. Not the biggest market, but a fast emerging one. China’s travellers are the Japanese of yesteryear. Adventurous with deep pockets travelling on luxury holidays to all corners of the world.

Kenya has had its up and downs over the years but has managed to pull through. The tourism board will work closely with national carrier Kenya Airways, international tour operators and charter companies to ramp up promotional efforts ahead of the peak holiday season in five months’ time. The challenge is to restore confidence now to boost bookings for the future.

Like Thailand, Kenya has an aggressive tourism board with a well-established structure to rally the players in a bid to lure back the tourism dollar.

But despite the promotional dollar spend, another series of events that negatively impacts the image of both nations will surely prove more costly which neither can afford to take in.

It is a tale of two nations facing an uphill task as they bid to restore confidence in their tourism industries.