Newsletter - July 11, 2002

Holiday Inn 50^th Anniversary Research Identifies What Matters Most to Consumers and Shift in Business and Leisure Travel Trends

Key Guest Preferences include “A Good Night’s Sleep”, “Overall Room Comfort”, “Bathroom Comfort” and “Arrival and Departure”

China emerged as the top business destination followed by Singapore, Australia and Thailand

As part of Holiday Inn Hotels and Resorts’ 50^th Anniversary in August 2002, Six Continents today released consumer survey results centered on guest preference initiatives that matter most to consumers. “A Good Night’s Sleep”, “Overall Room Comfort”, “Bathroom Comfort” and “Arrival and Departure” emerged as top preferences from more than 450 key consumers across major markets in Asia Pacific including Shanghai, Sydney and Kuala Lumpur. 

The Holiday Inn 50^th Anniversary Consumer Research is part of the group’s strategy to further develop a deeper understanding of what business and leisure travellers in key Asian markets desire from their hotel stays and identify changing travel trends.

“Consumers have told us that they want to be able to tailor their sleep experience to suit their individual needs. For example, a choice of pillows and mattresses are the most important considerations for sleep comfort. Soft and thick towels are also essential to a guest’s bathroom comfort.  For a hassle-free arrival and departure, they want registration cards to be ready upon their arrival and want to receive the hotel bill early in the morning,” said Richard Hartman, Managing Director, Six Continents Hotels Asia Pacific.  

“Holiday Inn is responding directly to consumers and over the next year will focus on guest-led innovations in four key areas cited in the research as most important to business and leisure travellers – “Good Night’s Sleep”, “Overall Room Comfort”, “Bathroom Comfort” and “Arrival and Departure.”  

“Our ultimate goal for Holiday Inn over the long-term is to hold the leading market position in the mid-scale segment in key countries in Asia Pacific such as China and Australia,” added Mr. Hartman.

Top Four Guest Preferences

A Good Night’s Sleep

 “A Good Night’s Sleep” was consistently cited as an important part of a relaxing stay across the markets surveyed.

“A Good Nights Sleep” was rated as “extremely important” by over 70% of business and leisure travellers from all countries polled.

A choice of pillows was one of the most important considerations for sleep comfort, while blackout curtains, choice of blanket or duvet and adjustable lighting followed.

Overall Room and Bathroom Comfort

“Overall Room Comfort” and “Bathroom Comfort” are also a priority for business and leisure travellers.  They identified the following areas:

Almost half of the business and leisure travellers surveyed considered bathroom comfort a critical factor.

More than 80% of leisure travellers rated shampoo as a critical bathroom amenity.

More than 80% of business travellers, on the other hand, considered fluffy towels essential to their stay.

Arrival and Departure

The survey also found that consumers desire efficient, hassle-free arrival and departure procedures, allowing them to maximise their business and leisure travel time.

Most guests want registration cards to be ready upon their arrival.

Business travellers prefer to be presented with the hotel bill early in the morning during check-out.

Leisure travellers would like to drop their keys in an express check-out box.

Changing Travel Trends

Key Travel Destinations

The report also revealed key growth markets for outbound travel in Asia. A highlight follows:

China emerged as the top business destination followed by Singapore, Australia and Thailand.

Overall, leisure travellers choose Australia, Singapore, China and Thailand as their destination of choice over Europe.

The survey found that Chinese business executives are now travelling more frequently (76% travel more than twice a year) than their Australian counterparts (24% travel twice a year).

96% of Malaysian respondents said that they travelled out of Malaysia twice a year compared to 60% of Chinese respondents.

Research Methodology

Conducted by Research Pacific Group, the Holiday Inn 50^th Anniversary Hallmarks Consumer Research targeted a total of 460 business and leisure outbound travellers. Respondents were selected based on specific age groups, gender, frequency of overseas/domestic travel, and level of authority in selecting hotels. All respondents surveyed were of local nationality and regular guests at three to four star hotel properties. The survey was conducted from April to May 2002. Interviews with the respondents were conducted face-to-face and lasted approximately 40 minutes.

About Holiday Inn Hotels and Resorts

With over 1,600 properties globally and 87 in Asia Pacific, Holiday Inn and Resorts has been the leader in the mid-market sector of the hotel industry for 50 years. A place where you can relax and be yourself, Holiday Inn is an established brand that recognises consumers’ important needs and assures consistency in delivery. Continuing 50 years of innovation, Holiday Inn will lead the field in guest led innovation, brought to life by its Asia Pacific service Hallmarks. American entrepreneur Kemmons Wilson opened the first Holiday Inn hotel in 1952 in Memphis and the brand has since become one of the best-known in the world.

Research Highlights Fact-sheet

Australia

Australians visited the United States more frequently than any other country in the world (36%); Europe (33%) and the UK (28%) were the next most popular travel spots

Australian leisure (25%) and business travellers (21%) considered good food/variety/restaurant options as important in selecting a hotel

Low price/value for money (2%) and a convenient location (5%) are not a key concern for leisure travellers

Cleanliness/hygiene is more important to Australian travellers (leisure – 20%; business – 14%) than their Chinese (leisure – 9%; business – 9%) or Malaysian counterparts (leisure – 6%; business – 9%)

Despite post-September 11^th sentiments, safety was low on the list of priorities for all respondents across Asia with Australians placing the least emphasis on this factor

China

Hong Kong was the most popular destination among Chinese travellers (25%), followed by Singapore (15%) and Japan (14%)

Chinese leisure (26%) and business travellers (42%) placed greater emphasis on a hotel’s environment/ambience/décor than their Australian (leisure – 13%; business – 8%) and Malaysian counterparts (leisure – 12%; business – 12%)

Low price/value for money, food variety and a hotel’s surrounding environment were least important considerations for leisure travellers in China

Malaysia

Singapore was the most frequently visited country among Malaysian travellers (72%), with Thailand (46%) and Indonesia (43%) trailing behind

Low price/value for money is more important to Malaysian leisure travellers (14%) compared to their Chinese (0%) and Australian counterparts (2%)

Malaysian business travellers (32%) considered a hotel’s image and reputation more important than Chinese (20%) and Australian travellers (11%)

Spacious and comfortable guest rooms ranked low on Malaysian travellers’ list of priorities compared to travellers in the region

Performance review :  South Korea

 - Asia Annual Review 2002  by Hotelbenchmark.com

Like Malaysia, South Korea is highly dependent on intra-Asian demand, but during 2001 the country sought to expand its base of inbound arrivals beyond these source markets. Following September 11, inbound arrivals fell by twelve percent between September and November.

Hotel performance in Seoul reflected the gradual weakening in economic performance resulting from the slowdown in export demand. Although the market retained its position as one of Asia’s most expensive markets, declining occupancy levels and a less than certain economic outlook stimulated some room rate discounting, placing downwards pressure on revPAR which fell by eleven percent on the prior year to US114 dollars.

In an effort to promote tourism infrastructure development during 2002, the Korean government has announced plans to ease restrictions on investment in the tourism sector. Barriers to entry, including the high cost of land, have in some instances prohibited development within Seoul. However, a relaxation of requirements will support the intended expansion of tourism infrastructure. Goyang City, a southern suburb of Seoul is earmarked for a significant boost to room inventory intended to ease a perceived shortage of accommodation in the metropolitan area. In addition, financial and tax benefits including lower-interest loans, enjoyed by small-to-medium sized businesses in other industries will be expanded to benefit tourism-specific enterprises.

Like Japan, Korea is set to benefit from co-hosting the 2002 FIFA World Cup - the first to be held in Asia and the first to be co-hosted. Each nation will host 32 games between May 31 and June 30, 2002. Ten new stadia have been built to host the event and these were completed in 2001 at a cost of US1.5 billion dollars. Other significant infrastructure developments have included the ‘beautification’ of roads and subway construction as well as the opening of a new international airport at Incheon, which when finally completed in 2020 will accommodate 100 million passengers. These developments stand Korea in good stead for continued tourism growth beyond the World Cup, which in itself is expected to attract 400,000 visitors and expenditure worth US600 million dollars.

The Oriental, Bangkok launches “Oriental Professional Thai Chef Programme” from October 1. 2002

AsiaTravelTips.com  -  The Oriental, Bangkok, in its pioneering tradition, is to launch its latest project in the form of "Oriental Professional Thai Chef Programme", a three-month curriculum combining theory and practice on all aspects of Thai cuisine, and is accredited by the Ministry of Education.

"Since 1986 The Oriental Hotel has been one of the pioneers in promoting Thai cuisine to the world through our famous Thai Cooking School and our Thai promotional trips overseas," says General Manager, Kurt Wachtveitl. "Today Thai cuisine is without doubt firmly established as one of the world's major cuisines. Its exotic taste and distinctive blend of flavours have a universal approach. Furthermore, the increasing worldwide popularity of Thai cuisine can be seen in the number of Thai restaurants in nearly all the major capitals of the world."

In view of this, The Oriental, Bangkok decided to launch The Oriental Professional Thai Chef Programme which is aimed at all cooks of Thai cuisine who wish to improve their cooking skills and/or wish to work overseas, and is designed to certify these cooks as Thai chefs which would enable them to prepare Thai dishes to the internationally-acclaimed high standards of The Oriental, Bangkok. Classes are conducted in Thai.

Limited to a maximum of 20 students, a special introductory fee of Baht 50,000 per student per course is on offer to the first group who sign up. 

Amongst the lecturers are outstanding academic figures including Professor Nisarat Suk-em, Head of Food and Nutrition, Rajabhat University.

Details of the Oriental Professional Thai Chef Programme are as follows: 

Course Description

· Course duration:

3 months (300 school hours) / 3 courses per year
5 days per week (Monday-Friday from 13.00 - 18.00 hrs.)
Monday: Fundamental Thai Cuisine Theory
Tuesday: Carving
Wed/Thurs/Fri: Cooking Class: 3 dishes per day/9 dishes per week
A total of 72 dishes in 3 months

· Tuition:

3-month course @ Baht 60,000 per student
(Special introductory offer of Baht 50,000 per student for the first group in October 2002)

· Applicant Qualifications

Between the age of 25 - 40
Interest in culinary arts and service
At least 3 years experience in cooking

Mandarin Oriental is the award-winning owner and operator of some of the world's most prestigious hotels. In total, the Group operates 18 luxury hotels in key business and leisure destinations, with three additional hotels under development, including New York (opening late 2003), Washington D.C. (opening 2004) and Tokyo (opening 2006). Mandarin Oriental now operates some 7,000 rooms in eleven countries with nine hotels in Asia, six in The Americas and three in Europe.

New Director of Operations for Six Continents Hotels

Six Continents Hotels has appointed a new Director of Operations to oversee its operations in Victoria, Queensland, A.C.T. and the Northern Territory and assist in the continued expansion of the Group's portfolio and global brands in Australia, New Zealand and the South Pacific.

With 20 years of experience in the hotel industry, Jan Smits was most recently General Manager Hotels & Resorts for Rydges Hotels and oversaw the operations of 35 Rydges properties around the world. Prior to this role, Jan spent 14 years with Southern Pacific Hotels - which was later acquired by Six Continents Hotels - as General Manager of several key properties throughout the region.

Jan will be based in Melbourne and will be responsible for Six Continents Hotels' interests in Victoria, Queensland, A.C.T. and the Northern Territory which include owned assets valued at more than A$200 million. 

"We are very fortunate indeed to retain Jan's services as Director of Operations in these areas. He has a particularly strong background in food and beverage, development and operations and his extensive knowledge of the hospitality industry will make him a real asset to the Group and our continued plans for expansion," said Six Continents Hotels' Chief Operation Officer for Australia, New Zealand and the South Pacific, Phil Lee.

"We have major plans for expansion in Melbourne and Brisbane and Jan is the perfect person to drive this expansion. We hold extensive assets and interests in each of these States and I am confident that Jan's appointment will result in great things for Six Continents Hotels in Australia, New Zealand and the South Pacific," Mr Lee said

Hotel Construction Financing is Available, But Many Lenders  Interested Only in "Exceptional Situations”

The Atlanta Journal   -  Despite a tough market for hotel financing, North Point Hospitality of Alpharetta is moving forward with plans to build a SpringHill Suites in Buckhead. 

North Point, which paid $3.5 million for a prime piece of land overlooking Ga. 400, secured its development deal at a time when developers are building few hotels. Locally, there are several in the pipeline, but more are on hold or have been canceled. 

Banks and other lenders have gotten picky since Sept. 11, when occupancy plummeted at hotels across the country and the industry fell on tough times. 

In metro Atlanta, average occupancy for 2001 was 60.8 percent, down from 65.7 percent in 2000, according to Smith Travel Research. For May 2002, the most recent data available, occupancy was 58.7 percent, down from 64.4 percent in May a year ago. 

Getting financing "is very, very difficult for new construction," said Bob Hunter at Hunter Realty, a local hotel brokerage firm. 

Tom Dolan, senior associate at HVS International, a hospitality consulting firm based in Long Island, N.Y., said lenders are interested only in "exceptional situations." 

Traditional banks such as Lehman Brothers and Merrill Lynch have pulled back dramatically, he said. Equity investors are doing some deals, though many investors are more interested in fire sales of existing properties struggling in today's economy. 

A hotel worth $10 million in 2000 may be worth only $7 million now, he said. 

Jay Patel at North Point declined to share the details of his financing but said he is "in the process of putting the finishing touches" on it. He acknowledged that securing capital is difficult, but said, "there is money out there for the right projects, and I think this is one of them." 

Patel's project is one of the lucky ones because it has zoning, necessary sewer capacity and a high-visibility location, he said. Patel, whose family's company develops and operates hotels, said he hopes to open the 220-room SpringHill in the first quarter of 2004. 

A couple of other high-profile projects are also on track. Construction is under way on the downtown Omni's expansion, and Six Continents Hotels has applied for zoning for an Inter-Continental on Peachtree Road in Buckhead. 

"The debt financing market for new hotel construction is extremely tight," said Jonathan Kurnit, senior vice president of franchise and real estate development at Six Continents. "Fortunately, Six Continents Hotels has the financial strength and wherewithal that these capital market challenges have not been a consideration to us in the planning for the development of this project." 

However, plenty of other projects have been canceled or stalled. Developer Childress Klein Properties has designated land for hotel development at the Atlanta Galleria office park in Cobb County but can't find a buyer, said partner Connie Engel. David Eichenblatt said his plans for a hotel at 860 Peachtree St. in Midtown are "on hold." Hines decided to develop a restaurant park instead of a hotel at Overton Park in Cobb County, said John Heagy, senior marketing director at Hines. The decision was made because of the tough hotel-financing environment. 

Hunter said the economy will have to improve before many hotels start coming out of the ground. 

"I think we need to pause and catch our breath and wait for the economy to come back," he said. 

More than a Movie

Article from the June issue of Lodging Magazine   By Megan Rowe

Revisiting old pay-per-view models

Some hotel operators have a love/hate relationship with guestroom pay-per-view systems. While they like the potential to share in revenues generated by guests watching movies or playing games, they don't want to deal with technical hassles or the inevitable billing disputes at checkout.

Fortunately, pay-per-view providers have risen to these challenges. Today, alternatives are designed to minimize the potential for billing mistakes, and digital capabilities have simplified operations. And, keeping in step with guests' needs, programming continues to branch out beyond the traditional $9.95 movie model.

A typical response for a hotel faced with a guest at check out who questions a movie tab is to look the other way and delete it from the folio. Unfortunately, "we have contracts that say if someone enjoys the product, we have to pay royalties for it," says Chris Sophinos, president/CEO of On Command Corporation, based in Denver.

Sophisticated software can tell the hotel's front desk whether the guest stopped watching a program or whether the system sputtered technically, and with only a 1 to 2 percent failure rate, a dispute is highly unlikely to result from a technical glitch.

The other source of billing questions—the preview period that ran a little long—is less of an issue these days. "We've been shortening the preview period—which used to run in the neighborhood of several minutes—to no preview period," Sophinos says. "We were getting guests confused as to when the preview actually ended. Now we're trying to let them know that once the leader plays, they have to pay for the movie." That's accomplished through a video accompanied by an audio message to avoid any misunderstanding.

Peter Klebanoff, vice president of industry relations for Sioux Falls, South Dakota-based LodgeNet Entertainment Corporation, says the days of unintentional orders are over. "With the nature of our protocol and the buying interface, it's virtually impossible to accidentally buy something." LodgeNet's movie selection process includes detailed descriptions of the movies and explains the process before the movie actually begins.

SVI Systems, a Peoria, Illinois, firm that caters to limited-service hotels, handles billing so front-desk clerks need never face this sticky issue. Guests pay for premium programming by swiping their credit cards on a device near the phone. Guests who prefer to settle their bills in cash can still do so by leaving a deposit for movies at the front desk.

Since pay-per-view providers profit from usage, they are always looking for ways to induce guest buy-in. Twin trends—a lack of time and the need to work while on the road—seem to be dictating some of the emerging options. Both On Command and LodgeNet are airing classic television shows for guests who can't commit to a two-hour movie. "Even with occupancy pretty flat this year, this area has been growing," Sophinos says. In some cases, such as with LodgeNet's system, guests can pause in the middle of a program and resume watching at a later time.

Pay-per-view music videos, CD jukeboxes, and digital music channels also are drawing more buyers. On Command's digital music channels include a mood screen that the guest can select. "So while they're banging away on the laptop, they can have a comfortable screen saver in the background," says Tad Walden, vice president of marketing.

"Music seems to be picking up," agrees Klebanoff. And games continue to be popular among Gen X travelers. But he says that unlike movie watchers, who want only the latest, game players seek out familiar content. "People don't want to sit there and learn how to play a game," he says.

Meanwhile, TV-based Internet services, generally priced on a 24-hour basis, continue to grow in usage as they get easier to operate and as travelers grow more addicted to email and Web surfing.

Overall, flexibility is the name of the game. "We're trying to offer product in a variety of pricing, genre, and length of time," Klebanoff says. Hotels with guest profiles that vary depending on the day of week or time of year are taking advantage of a wider variety of programming to satisfy their guests. On weekends or during the summer months, they might offer more family movies; during the off-season, a resort might lower the prices to mirror lower room rates, for instance.

And because they profit from increased usage, pay-per-view providers are inventing new ways to entice viewers. On Command recently launched a hosted entertainment show with a moderator who chats up the movies and other available options. The show can be customized with targeted messages from the hotel or chain.

Ultimately, Klebanoff says, hotel operators should view pay-per-view less as a revenue stream than as a valued amenity for their guests. "The objective is really to maximize the service to the guest—the overall impression of the hotel, rather than the revenue," he says. "What we try to remember is it's about making it the best experience for the guest."

Megan Rowe is a Cleveland-based writer and frequent contributor to Lodging.

China to be world's top tourist destination in 2020: tourism body 

AFP  -   China is set to become the world's top tourist destination in 2020, shooting past Spain and the United States and usurping current leader France, the head of the World Tourist Organisation told Tuesday's Le Figaro newspaper.

The general increase in international travel means the number of tourists going abroad each year will more than double by that date, from nearly 700 million currently to around 1.5 billion, Francesco Frangialli said.

"Asian countries will drive that growth," he said.

"As such, in 2020, China will become the top destination in the world ahead of France and the United States with 130 million tourist arrivals. There will also be around 100 million Chinese who will be visiting the world around that time."

With 76 million visitors last year, France easily remains the number one magnet for tourists.

But, Frangialli pointed out, Spain and the United States outrank France when it comes to tourist spending and time spent in the country.

He also added that France's statistics were "inflated", explaining that a quarter of the visitors were simply passing through to neighbouring countries.

"France really tends to depend a little too much on its image. In value terms, it is slowly losing market share compared to Spain and Italy," he said.

Frangialli told Le Figaro that September 11's effects on world tourism had been "brutal", causing an 11 percent drop since the attacks on New York and Washington.

Plane travel overall was down, with people -- especially Americans -- preferring destinations closer to home. And Muslim countries were seeing significant declines in tourist numbers, he said.

Nevertheless, people were reluctant to give up on vacations abroad, and he predicted world tourism would turn around by the end of 2002 and resume its growth of around 4.5 percent per year.

M&C to  develop  fresh hotel concepts;
 
Business Times Singapore  -  Millennium  & Copthorne Hotels (M&C), the London-listed hotel subsidiary of City Developments, is developing more hotel concepts to be introduced to some of its 91 hotels worldwide following the success of its M Hotel brand in Singapore.

'We hope to roll out the new concepts within the next 12 to 15 months. It can be for our hotels in London, in Singapore,' M&C chairman Kwek Leng Beng told BT recently.

He declined to give more details, citing competitive reasons, beyond saying that the proposed formats will not be standard ones, and could include one that is funky.

The new ideas are being crafted to help the chain sharpen its competitive edge in various markets. Mr Kwek noted that the group had so far not spent a lot on brand development because it believed it was too early. But this is expected to receive greater importance.

Last year, the group repositioned its Harbour View hotel at Anson Road as an M Hotel, aiming at the corporate market, and achieved a 32 per cent improvement in the hotel's yields for the year.

But M Hotel is not expected to be used outside Singapore since the brand, seen as an abbreviation of Millennium, was created for use here, where the group is not allowed to use 'Millennium' for its hotels following a law suit filed several years ago by Pontiac Marina, owner of the Millenia Singapore development. 'We think we can come up with a better concept than M Hotel,' said Mr Kwek.

Mr Kwek also identified Italy, Spain, Switzerland, and Amsterdam as new markets where M&C hopes to have a presence, either by buying hotels or clinching management contracts. The chain also continues to look for opportunities to enter Tokyo and Bangkok.

'When I want to acquire, I acquire cheap. If I cannot acquire cheap, I want to get management contracts. For all our hotel acquisitions, there was no goodwill as we do not pay for intangibles,' he emphasised.

Observing that there are not many major hotel chains left to be bought, Mr Kwek said future acquisitions are hence more likely to be for individual hotels.

If, however, an opportunity to bid for a hotel chain arises, M&C will consider it. But this will be driven by price and not by emotions, he stressed.

'We do not do it for ego's sake but for the bottom line,' he said.

On Singapore, where M&C owns five hotels, Mr Kwek lamented that despite reasonably good occupancy rates, many operators, including international chains, were undercutting one another's room rates.

M&C fully owns or has stakes in most of the 91 hotels in its chain. However, since last year, it has embarked on a strategy to clinch pure management contracts without taking stakes in the hotels as a new revenue stream.

The group has bagged seven management contracts in the past 18 months for hotels in United Arab Emirates, Turkey, Morocco, and the Galapagos Islands.

While Mr Kwek acknowledged the practical necessity of winning management-only contracts to grow M&C, he has no illusions that such a strategy will take a long time before it contributes meaningfully to the bottom line.

Even so, Mr Kwek says he has learned from working with international chains which manage some of M&C's hotels, such as Hyatt and Regent. M&C can thus combine the various strengths of these chains with its own skills in controlling costs and maximising yields, he said.

Pre-Sept 11, M&C was one of the most profitable chains in the world, he said. But its pre-tax profit more than halved to 54.2 million (S$ 146 million) last year. M&C has said it expects better performance this year.

Thailand pushes bid for Asia’s ‘tourism capital’

TravelAsia.com  -  Thailand is not about to take competition for its market share sitting down. It is getting more aggressive in its tourism approach, revising its projections for fiscal 2002 and unveiling a three-year tourism master plan that hinges on strategic marketing and new product development, and on positioning the country as Asia’s ‘tourism capital.’

“The Thai tourism industry is facing intense competition,” says Juthamas Siriwan (Juthamas@tat.or.th), acting governor and deputy governor for marketing, Tourism Authority of Thailand (TAT). “We need to maintain a strong brand-image and positioning through well-targeted campaigns.”

The TAT recently revised earlier projections of 10.7 million arrivals this year to 10.86 million, 8.7 percent higher than last year due to the surge in tourist arrivals in the first five months (4.6 million). In May alone, inbound tourist arrivals totalled 930,000, up 20 percent year-on-year. Last year, Thailand welcomed 10.6 million international visitors.

For 2003 the projected target is 11.13 million international visitors, a six percent hike on 2002 projections. This is expected to generate 360.6 billion baht (US$8.6 billion) in foreign exchange, up 11.5 percent over projected earnings for 2002.

These targets are contained in the Tourism Action Plan 2003 made public by TAT chairman Somsak Thepsutin at the Royal Orchid Sheraton on June 24. The plan was a result of a series of consultations and brainstorms conducted by the TAT and the public, and dubbed ‘Focus Group Meetings’. These meetings have been held since the beginning of June, and ‘refined further’ at the TAT annual marketing meeting held at the Rose Garden Resort in Nakhon Pathom from June 17 to 21.

Patpong Abhijatapong, TAT deputy governor for planning and development, who heads the Focus Group Meetings, says the plan for 2003 embodies three major strategies: more effective direct marketing, development of new tourist destinations, and restructure of the tourism administration agency.

“The main tourism promotion and marketing theme for 2003 will be Amazing Thailand – Experience Variety, which highlights the variety of tourism products and services, Thai hospitality, and the country’s cultural, historical and natural heritage,” says Abhijatapong. “The strategic master plan also outlines the targeting of traditional and potential markets across Asia Pacific, Europe and the Middle East.” Segments identified include Mice and business travellers, long-stay visitors, youth, senior citizens, sports (golf and diving), religion, families and honeymooners.

Siriwan reveals that some 3,311 million baht has been budgeted for marketing and 3,575 million baht will be channeled into product development in fiscal 2003. The budget will be allocated via respective government agencies for the preservation of tourist destinations, services and tourist activities.

TAT plans are reportedly being well received by members of the tourism and travel industry. “The direct-to-market strategy, for one, would be a much more aggressive approach and with this, we can key in on markets that we can tap,” says Stanley Pao (stanley@dusit.com), general manager of Dusit Thani Hotel, Bangkok. “With this, we can keep reminding select markets of our destination’s potential and attractiveness, and by continuously repeating these to them, they will be interested. We know who our top markets are. We also know who we don’t have. Therefore, it may be a better and more effective way to spend tourism advertising dollars.”

Pao praises the development of new tourist destinations saying “it is always good to do so”, and agrees that Thailand should continuously offer new advertising campaigns to generate interest in the market. “Thailand should always be in the minds of the consumers,” he adds.

A key element of the plan is for the TAT and tourism-related public and private sectors to work more closely together on a number of developments and promotion projects to promote Thailand as a quality destination.

“Thailand’s tourism and development plans have become more integrated than before thanks to strong support from the government and private sectors,” notes Abhijatapong. “Cooperation is very crucial especially during these times of global tourism and economic slowdown.”

TAT will also promote domestic tourism by maintaining the monthly ‘Thailand Grand Festivals’ campaign, speed up the operations of TAT’s Tourism Business and Guide Registration Office, and target long-stay tourism. TAT expects Thais and expatriates to make about 63.07 million trips in 2003, up 2.5 percent over 2002. This will generate some 323 billion baht in tourism revenues, up 4.87 percent on projected earnings for 2002.

There is also a plan to form a federation representing tourism operators, hotels, restaurants, and gift shop operators in preparation for a full-fledged tourism and culture ministry that will be created later this year.