Tourism Authority of Thailand Presentation

Slide 1Establish in 1969
To Supply Information and Data on Tourist Area to Public
To Promote and Publicize Thai Tourism Industry
Since 1982 tourism industry provides highest source of income for Thailand
Company Profile
THAMMASAT CONSULTING
Situation Analysis
External Forces
10.6M 5.5M
30% World Growth
10% World Growth
Short Term
Medium Term
To Regain the Confidence to Southern Coastal Attraction and Achieve Pre-Tsunami Number of Visitors within 3 years
To create Thailand as a World Class Destination
To Increase Total International Receipt with the Rate of 120% within 5 years
Issues
Objectives
To Quickly Recover from the Tsunami Crisis and
Refine Tourism Product Quality in order to establish Thailand as a World Class Tourist Destination with the Total Tourism Revenue of 1,400 Billions Baht in the next 5 years
“ The Re-Shine of Andaman Pearl”
Promote 4 Major Coastal Destinations as Exotic, Beautiful, and Safer Beaches
Revitalizing Ruined Sites
Internal Development
Achieve 10.6 M of Visitors to South Coastal Area within 3 years
Accommodation
Induce Immediate Government Action
Quality Enhancement
Now I would like to draw your attention to our medium term strategy: “Tourism Product Quality Enhancement”.
This strategy aims to improve Thailand tourist destinations to meet world class standard, to better match with the changing need of the international tourists and live up to their expectation.
Reduce Crime Rate and Increase Visitor Confidence
Strengthen the “Core Competency” of Thailand
Ease of Info Access
“E-Tourism”
Now come to our last strategy: Target selection strategy.
Thailand has no problem in attracting tourists. But the thing is that those tourists, when they come to Thailand, they are not spending money. They come to Thailand because they believe Thailand is a cheap place to travel. So the question is “are we attracting the RIGHT group of tourist?”
Current Marketing Campaign 2005-2008
Happiness on Earth
To Increase Total International Receipt with the Rate of 120% within 5 years
Wedding and Honeymoon
530,603,692
530,603,692
530,603,692
530,603,692
530,603,692
530,603,692
530,603,692
9,957,265
11,650,000
9,902,500
10,793,725
11,873,098
12,822,945
13,848,781
-
708,581
632,409
744,471
917,189
1,139,148
1,476,336
11.65
9.90
10.79
11.87
12.82
13.85
-47.66%
20.00%
24.00%
30%
35%
5.00%
8.00%
12.00%
15.00%
20.00%
Recovery in 2 years
530,603,692
530,603,692
530,603,692
530,603,692
530,603,692
530,603,692
530,603,692
9,957,265
11,650,000
9,902,500
10,793,725
11,873,098
12,822,945
13,848,781
-
708,581
632,409
744,471
917,189
1,139,148
1,476,336
11.65
9.90
10.79
11.87
12.82
13.85
-47.66%
20.00%
24.00%
30%
35%
5.00%
8.00%
12.00%
15.00%
20.00%
Renovation and Standard Improvement Expenses will be financed by Local Government and Private Sectors.
Total Cost is 1,640,000,000 Baht per Year
Cost Estimation (Expenses to TAT)
Marketing Expenses
Number of Foreign Tourist
from 0.7% to 1.1% of the International Receipt
Corporations
MICE
Couple
Positioning
“ Thailand as a Perfect Balance between Exotic Place and a Modern World ”
Internal Development
Marketing Campaign
Issues
Strategies
To Quickly Recover from the Tsunami Crisis and
Refine Tourism Product Quality in order to establish Thailand as a World Class Tourist Destination with the Total Tourism Revenue of 1,400 Billions Baht in the next 5 years
Tsunami Early Warning System
Product Development : Campaign
Why MICE and Wedding/Honeymoon?
Others
Financial Navigator
Full authority and resources to restore Andaman Tourism
Beach Campaign
Kamala Beach: Safe Beach and Special Culture Orientation
Phi Phi Island: A paradise island for relaxing, diving and other adventure activities.
Khao Lak: Exclusive Beach Resort for Couples and Families
Organizing a number of Mega Tourism Events
Happiness Andaman
Goal: To encourage investment from private sector
Private sector: Hotel, resort, shopping mall
Incentive:
Location
Total of 79 warning tower
Benefits
Reduction in the loss of life and property in coastal communities
Elimination of false alarms which result in high economic costs for unnecessary evacuations
Ensure early detection of tsunamis and to acquire data critical to real-time forecasts.
Back Up
The Re-shine of Andaman Pearl Campaign
Objective: To promote 4 majors costal destination as exotic, beautiful and safer beaches
In order to gain back customer confidence to the coastal area
Beach Campaign
Focus : Modern Beach City Surfing, Sunbathing, Parachuting, Water-Skiing
Kamala Beach: Safe Beach and Special Culture Orientation
Focus : Enriching Cultural Beach Site
Phi Phi Island: A paradise island for relaxing, diving and other adventure activities.
Focus : Retain its Concept of Paradise Island Diving, Bungy Jumping, etc.
Khao Lak: Exclusive Beach for Couples and Families
Focus : Relaxed Beach Resort
Southern part of Thailand
Eco-tourisms definition
A form of tourism in natural areas that is based on the responsibility towards the ecological system of the area.
Sustainable tourism development with emphasis on community participation, safety of tourists and non-exploitation.
How
Uses celebrity endorsement
Friendliness
Honesty
Punctuality
Create awareness for Thais to be aware of the importance of the tourism sector
Message:
Being a good host contribute to the success of Thailand tourism industry
Successful tourism industry contribute to National wealth
Result:
Repeat visits
Back Up
Enable online booking
Rational:
In this era, countries are moving toward new digital economy.
E-tourism is a new channel that will attract and retain visitors to Thailand
E-tourism is critical to cope with changing demand
Implementation tactic:
Cooperation with private sectors, i.e. hotels, credit cards, shopping centers
Co-promotion will give mutual benefits to both parties
Communication channel: Internet
Rational:
Current marketing strategy is placing too much emphasis on traditional image of Thailand which is not a true picture of the present situation and might create a wrong image
Thailand is becoming a modern society with the more international lifestyle. Our proposed marketing position is aiming to avoid creating wrong expectation which could lead to dissatisfaction.
To support our long term goal of creating Thailand as a multi-faceted destination
Back Up
Heavy spenders
High growth segment (10% per year)
40% of visitors return for leisure visit
Wedding/Honeymoon
Entail several tourist i.e. family and friends of the couple
Long duration of stay
High spenders (three times more than they would on the average 5-day holiday)
Suitable with the existing product offering of Thailand
Back Up
Product
Facilities:
New exhibition center
Renovate business center
Interesting combination packages
Message:
Thailand are now ready to hold international business events. The participants are able to accomplish their business task while enjoying the beautiful sites in Thailand.
Primary Target: regional customer i.e. Japan, China, India, South Korea (Rational: already have existing manufacturing based in Thailand)
Communication Channel: brochure, TV commercials, internet, tourism magazines, etc.
Back Up
Wedding/Honeymoon – The Siam Romance
Special wedding package: wedding gown, photographers, various religious conduct, wedding planner, etc.
Honeymoon
Offer premium service and special honeymoon price package
Message:
Thailand will give the honeymooners the sweetest and unforgettable experience that will remain with the couple forever.
Target: Globally
Back Up
Immediate action: Strengthen regulations
Penalty include fine and imprisonment
Second action: Human resources management
Provide training sessions to the key managers about how to implement appropriate development & control measures, and on-site management system
Strengthen the management of these natural tourism resources
Third action: Provide Education
To emphasize the importance of healthy development without destroying natural resources
To emphasize on the negative effect of natural resources deterioration
Back Up
Issue: Product indifferentiation
Theme: “Discover More of Thailand”
To inform tourists about Thailand tourism product variety – in addition to beaches
How?
Hold world event to attract tourists
Promote other natural destinations besides beaches i.e. forests, mountains, etc.
Promote different sports/adventurous activities e.g. rock climbing, skydiving, etc.
Promote both traditional Thai culture and the modern Thai society
Back Up
TAT is a government organization, not a business organization.
TAT doesn’t make money by itself, it is GIVEN money by the central government.
It’s main goal is NOT to maximize its profit. It is created in order to support the tourism industry in Thailand
Therefore, It is not practical to use the organization revenues and net income to measure the result of our strategies.
So, we used the incoming tourists and the total foreign currency income to Thailand.
This logic also applied to our return on investment, since the cash inflows into the organization is almost irrelevant to our strategies. So we decided to use the estimated results of the strategies (Total international receipts, tourists expenditures) instead of the conventional financial measurements (NPV, IRR, etc.)
Back Up
Finance Back-Up
TAT is created to promote and publicized Thailand. Most of the work done aside of marketing activities are done indirectly through private sectors and local governments (subsidizing and negotiating).
The renovations and improvement of standard will be done largely through local governments and private sectors, therefore it will not be a cost burden to TAT organization itself.
Since the tourist assets are NOT owned by TAT itself, the improvement and renovations cannot be count as our capital investment.
Through those logics, we have concluded that all the costs regarding to our recommendations are expenses that will appear on the organization’s income statement, and there is no capital expenditure at all.
Back Up
Finance Back-Up
2005, TAT estimates that the number of foreign tourist will diminished by 15% due to the Tsunami.
However, through our strategies, we’ll be able to recover the previous number within 3 years.
After that, the tourists number should grow normally as forecast by TAT, since our strategies do not emphasized on increasing the number of tourists.
Back Up

9,957,265
11,650,000
9,902,500
10,793,725
11,873,098
12,822,945
13,848,781
-
Finance Back-Up
In 2005, our happiness on earth strategy is just in the initial stage. Also, most of our effort will be on the recovery of Tsunami strategy.
From 2007 onward, the expenditure per person should increase at a rapid rate.
Back Up
Financing Method
Finance Back-Up
Since we are a government organization, 97% of revenue are from the budget allocation of the central government.
Currently, the allocation rate is 0.7% of the total international receipt from tourism industry.
However, in the year 2005, both the number of tourists and the total international receipt will take a heavy hit from Tsunami. Thus, in 2005, the government budget allocate to us will not be enough to finance our strategy to recover tourism industry.
Therefore, it is absolutely vital for us to negotiate with the central government to increase the allocation % from 0.7% to 1.1%
After 2005, we can decrease the percentage a little year by year due to the increase in total international receipt, and it can be decrease to normal rate of 0.7% in 4 years.
Back Up
Finance Back-Up
TAT has estimated that the tsunami will cause a 47.66% decline in number of tourism to the southern provinces in 2005.
Through our Reshine of Andaman Campaign, we would be able to recover the number of tourist by 2008
The total expenditure will recover 1 year sooner due to the increase in expenditure per tourist resulting from our strategy.
Back Up

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Tourism Authority of Thailand Presentation