Executive summary
Overcoming the Tsunami shock
The tsunami was, by far, the worst ever event to have hit the country in many decades. While mourning the loss of lives and other damage and devastation, the Thai government was one of the first to fully pledge and make concerted efforts with government associations and the private sector for a rapid recovery for the tourism market. Phuket; one of Thailand’s world renowned tourist destinations, had been directly hit by the waves, and within the first three months, was ready to welcome back visitors. Fear and superstition did dampen the arrival of tourists to the provinces affected by the tsunami, for Thais and Asians, but by the end of the year, international arrivals started to pick up and Thais will return for the commemoration ceremony to be held on the first anniversary of the event headline news dampened travel plans, but country still saw positive growth.
Hit with other negative events, from continued terrorism in the south, to fuel hikes, droughts and flash floods, it seemed that the country was facing a tough year for a healthy economy. Travel plans dampened for both international arrivals and domestic tourism, as caution was taken and trips postponed. However, as issues were tackled and plans implemented by the government, travel and tourism also reverted back to normalcy quickly, as travellers felt positive about safety and security. Overall, the country’s rapid recovery from the destruction and other negative events throughout the year ensured the travel and tourism market maintained positive growth for 2005.
Continued positive growth of domestic tourism boosted moral for industry
Domestic tourism continued to see healthy growth over the review period, with 2005 expected to meet the target of 76 million domestic trips taken. While efforts and attention for the six provinces were at the forefront of the news, Thais simply changed destinations to other regions of the country instead of cancelling travel plans. The positive growth for domestic tourism was one of the government’s strategies for the past few years to boost the Thai economy and encourage Thais to travel within the country. This has also encouraged operators in the market’s various sectors to feel more at ease, as they are already suffering from intense competition. Different campaigns and promotional packages were continuously launched for Thais to (re)discover the country’s beauty and unseen places. As such, domestic tourism grew to other regions of the country and should continue to grow in the future.
Budget airlines continued success since launch last year.
The launch of low-cost carriers in 2004 was the key factor for the upsurge in sales value for the transportation sector in 2005. Prices became affordable for the general mass and travellers were able to opt for an upgrade in mode of transport and/or travel further away from their original destinations. In 2005, budget airlines increased flights and destinations as they competed for share of domestic travel. Plans are also underway for extensions to more international routes, and this should happen in the near future. Air travel; contributing to 88% of overall value sales in transportation, saw positive growth of 6% in 2005, with budget airlines playing a significant role in this increase.
Hotels upgraded quality and services and consumers benefit
Hotel standards were continuously upgraded in the hope of not only attracting more customers, but also to be to increase rack rates. There was also an increase in number of chained hotels, both international and privately owned this year, which are all mid- to premium star ratings. However, Thailand already has more than 4,000 hotel outlets in the country and is a highly competitive market. With negative events throughout the year, hotels had no choice but to compete with promotional packages and discounted room rates to maintain a profitable occupancy rate, and lure more customers to the outlets. As such, consumers benefited overall, as they were able to make use of the better standard of quality and services, and at an affordable price.
Internet transactions still not widely used by locals but trend picking up
Internet transactions still contribute a very small percentage in total value sales across travel and tourism. Only recently have Thais become more familiar, as low-cost carriers actively encourage on-line booking and payment so as to be able to lower ticket costs. There were also more online sites set up by both direct suppliers and intermediaries, although still mostly frequented by foreigners. Currently, locals still utilize the internet as means of finding out general information. Traditional travel retailers still play an important role in the market as locals still prefer to contact and make reservations by phone or fax, and being able to inquire for information in person.
The online trend should pick up as locals familiarize themselves with this alternative choice. Better pricing online, and user friendly websites will help in the future.
Industry momentum picks up rapidly during the forecast period
The outlook for 2006 onwards, in terms of visitors and domestic tourists during the forecast period, will surely be good news. The country still has much to offer, whether the natural beauty or tourist attractions of cultural heritages and historical sites, to attractions and theme parks. Travel and tourism will be one of the Thai government’s priorities, as it accounts for a significant part of the GDP. All sectors of travel and tourism should benefit and see increase in value sales and positive growth.
Table of contents
1. EXECUTIVE SUMMARY
Overcoming the Tsunami shock
Other headline news dampened travel plans, but country still saw positive growth.
Continued positive growth of domestic tourism boosted moral for industry
Budget airlines continued success since launch last year.
Hotels upgraded quality and services and consumers benefit
Internet transactions still not widely used by locals but trend picking up
Industry momentum picks up rapidly during the forecast period
2. OPERATING ENVIRONMENT
2.1 MACROECONOMIC PARAMETERS
GDP and tourism
Disposable income
Consumer expenditure on leisure
Table 1 Operating Environment Parameters 2000-2005
2.2 POLITICAL AND LEGISLATIVE ENVIRONMENT
2.3 TERRORISM AND SECURITY
2.4 SUSTAINABLE TOURISM
2.5 POSITIVE GROWTH FACTORS
Summary 1 Positive Growth Factors
2.6 NEGATIVE GROWTH FACTORS
Summary 2 Negative Growth Factors
3. COMPETITIVE ENVIRONMENT
3.1 RECENT MERGERS AND ACQUISITIONS
3.2 KEY STRATEGIC ALLIANCES
Summary 3 Key Strategic Alliances 2001-2005
3.3 LEADING COMPANY PROFILE: AVIS RENT A CAR THAILAND
Company background
Summary 4 Avis Rent a Car Thailand Company Factfile 2005
Recent news
Summary 5 Avis Rent a Car Thailand: Summary of Key Events 2000-2005
Financial summary
Summary 6 Avis Rent a Car Thailand: Operational Indicators 2005
3.4 LEADING COMPANY PROFILE: DUSIT THANI PUBLIC CO LTD.
Company background
Summary 7 Dusit Thani Public Co Ltd : Company Factfile 2005
Recent news
Summary 8 Dusit Thani Public Co Ltd: Summary of Key Events 2000-2005
Financial summary
Summary 9 Dusit Thani Public Co Ltd : Operational Indicators 2005
3.5 LEADING COMPANY PROFILE: PHUKET FANTASEA CO LTD.
Company background
Summary 10 Phuket FantaSea Co Ltd: Company Factfile 2005
Recent news
Summary 11 Phuket FantaSea Co Ltd: Summary of Key Events 2000-2005
Financial summary
Summary 12 Phuket Fantasea Co Ltd : Operational Indicators 2005
3.6 LEADING COMPANY PROFILE: THAI AIRWAYS INTERNATIONAL PCL (THAI)
Company background
Summary 13 Thai Airways International PCL: Company Factfile 2005
Recent news
Summary 14 Thai Airways International PCL : Summary of Key Events 2000-2005
Financial summary
Summary 15 Thai Airways International PCL: Operational Indicators 2005
4. DEMAND FACTORS
4.1 LEAVE ENTITLEMENT
Table 2 Leave Entitlement: Volume 2005
4.2 HOLIDAY DEMOGRAPHIC TRENDS
Holiday takers
Sex
Age
Consumer segmentation
Table 3 Holiday Demographic Trends 2000-2005
Table 4 Holiday Takers by Sex 2000-2005
Table 5 Holiday Takers by Age 2000-2005
4.3 HOLIDAY LENGTH OF TRIP AND SEASONALITY
Length of trip
Seasonality
Table 6 Length of Trip 2000-2005
Table 7 Seasonality of Trips: 2005
5. TOURISM PARAMETERS
5.1 BALANCE OF TOURISM PAYMENTS
Table 8 Balance of Tourism Payments: Value 2000-2005
5.2 INCOMING: ARRIVALS AND RECEIPTS
Arrivals
Incoming receipts
Expenditure per arrival
Table 9 Arrivals: 2000-2005
Table 10 Incoming Tourist Receipts: 2000-2005
Table 11 Incoming Tourist Receipts % Growth: 2000-2005
Table 12 Expenditure per Arrival: 2000-2005
5.3 INCOMING: COUNTRY OF ORIGIN
Top inbound countries
Growth inbound countries
Highest spenders
Capital city visitor trends
Table 13 Arrivals by Country of Origin: 2000-2005
5.4 INCOMING: MODE OF TRANSPORT AND PURPOSE OF VISIT
Mode of transport
Purpose of visit
Business trends
Leisure trends
Table 14 Arrivals by Method of Transport: 2000-2005
Table 15 Arrivals by Purpose of Visit: 2000-2005
5.5 OUTGOING: DEPARTURES AND EXPENDITURE
Departures
Outbound expenditure
Expenditure per departure
Table 16 Departures: 2000-2005
Table 17 Outgoing Tourism Expenditure: 2000-2005
Table 18 Outgoing Tourism Expenditure: 2000-2005
Table 19 Expenditure per Departure: 2000-2005
5.6 OUTGOING: DESTINATION
Top outbound destinations
Growth outbound destinations
Long haul vs short haul
Highest expenditure destinations
Table 20 Departures by Destination: 2000-2005
5.7 OUTGOING: MODE OF TRANSPORT AND PURPOSE OF VISIT
Mode of transport
Purpose of visit
Business trends
Leisure trends
Table 21 Departures by Mode of Transport: 2000-2005
Table 22 Departures by Purpose of Visit: 2000-2005
5.8 DOMESTIC: TRIPS AND EXPENDITURE
Trips
Expenditure
Expenditure per trip
Table 23 Domestic Tourist Trips: 2000-2005
Table 24 Domestic Tourist Expenditure: 2000-2005
Table 25 Expenditure per Domestic Trip: 2000-2005
5.9 DOMESTIC: TRIPS BY DESTINATION
Top domestic destinations
Growth domestic destinations
Business vs leisure trends
Table 26 Domestic Trips by Destination: 2000-2005
5.10 DOMESTIC: TRIPS BY MODE OF TRANSPORT
Table 27 Domestic Trips by Mode of Transport: 2000-2005
5.11 TOURISM SPENDING
National tourism spending
Outbound tourism expenditure
Table 28 Tourism Spending by Sector: Value 2000-2005
Table 29 Outgoing Tourist Expenditure by Sector 2005
5.12 TOURISM SPENDING: METHOD OF PAYMENT
Table 30 Method of Payments for Tourism Spending: % Breakdown 2005
5.13 FORECAST PERFORMANCE
Arrivals and receipts
Departures and expenditure
Table 31 Forecast Arrivals: 2005-2010
Table 32 Forecast Incoming Tourism Receipts: 2005-2010
Table 33 Forecast Departures: 2005-2010
Table 34 Forecast Outgoing Tourism Expenditure: 2005-2010
6. TRAVEL ACCOMMODATION
6.1 SALES AND OUTLETS BY SECTOR
2005 headlines
Sales
Outlets
Chains
Independents
Table 35 Travel Accommodation Sales by Sector: Value 2000-2005
Table 36 Travel Accommodation by Sector: Units 2000-2005
6.2 HOTELS BY REGION
Star ratings
Rooms and beds
Occupancy trends
Table 37 Regional Hotel Parameters 2005
6.3 ONLINE SALES
Online developments
Direct suppliers performance
Intermediaries performance
Table 38 Travel Accommodation Internet Sales by Direct Suppliers and Intermediaries: Internet Transaction Value 2000-2005
6.4 KEY PERFORMANCE INDICATORS
Sales
Outlets
Rooms and beds
RevPAR
6.5 HOTEL MARKET SHARES
Table 39 Hotel National Brand Owners by Market Share 2001-2005
6.6 FORECAST SALES AND OUTLETS
Sales
Outlets
Online trends
Table 40 Forecast Travel Accommodation Sales by Sector: Value 2005-2010
Table 41 Forecast Travel Accommodation by Sector: Units 2005-2010
Table 42 Forecast Travel Accommodation Internet Sales by Sector: Internet Transaction Value 2005-2010
7. TRANSPORTATION
7.1 SALES BY SECTOR
2005 headlines
Sales
Table 43 Transportation Sales by Sector: Value 2000-2005
7.2 AIRLINE CAPACITY AND UTILISATION
Capacity
Utilisation
Table 44 Airline Capacity: 2000-2005
Table 45 Airline Utilisation: 2000-2005
Table 46 Airline % Utilisation 2000-2005
7.3 AIRLINE SEAT CLASS AND DISTANCE
Seat class
Distance
Table 47 Airline Volume Sales by Seat Class: % Breakdown: 2000-2005
Table 48 Airline Volume Sales by Distance: % Breakdown: 2000-2005
7.4 ONLINE SALES
Online developments
Direct suppliers performance
Intermediaries performance
Table 49 Transportation Internet Sales by Direct Suppliers and Intermediaries: Internet Transaction Value 2000-2005
7.5 KEY PERFORMANCE INDICATORS
Sales
Fleet size
Load factor
Revenue passengers-kms
Passengers flown
Sales per passenger
Table 50 Airline National Brand Owners by Key Performance Indicators 2005
7.6 AIRLINE MARKET SHARES
Table 51 Airline Market Shares 2001-2005
7.7 FORECAST SALES BY SECTOR
Sector sales
Online trends
Table 52 Forecast Transportation Value Sales by Sector: Value 2005-2010
Table 53 Forecast Transportation Internet Sales by Sector: Internet Transaction Value 2005-2010
8. CAR RENTAL
8.1 SALES BY SECTOR AND LOCATION
2005 headlines
Sales
Table 54 Car Rental Sales by Sector and Location: Value 2000-2005
8.2 MARKET STRUCTURE
Fleet size
Operators
Transactions
Table 55 Structure of Car Rental Market: 2000-2005
8.3 RENTAL DURATION AND TIME OF BOOKING
Rental duration
Rental duration breakown
Time of booking
Table 56 Average Car Rental Duration by Sector 2004-2005
Table 57 Average Car Rental Duration: % Share 2004-2005
Table 58 Time of Booking: % Breakdown 2005
8.4 ONLINE SALES
Online developments
Direct suppliers performance
Intermediaries performance
Table 59 Car Rental Internet Sales by Direct Suppliers and Intermediaries: Internet Transaction Value 2000-2005
8.5 KEY PERFORMANCE INDICATORS
Sales
Fleet Size
Transactions
Average rental duration
Average transaction value
Table 60 Car Rental National Brand Owners by Key Performance Indicators 2005
8.6 MARKET SHARES
Table 61 Car Rental Market Shares 2001-2005
8.7 FORECAST SALES BY SECTOR
Sector sales
Online trends
Table 62 Forecast Car Rental Sales by Sector: Value 2005-2010
Table 63 Forecast Car Rental Internet Sales by Sector: Internet Transaction Value 2005-2010
9. TRAVEL RETAIL
9.1 MARKET SIZE
2005 headlines
Sales
Outlets
Table 64 Travel Retail Value Sales: 2000-2005
Table 65 Travel Retail Outlets by Sector: Units 2000-2005
9.2 SALES BY PRODUCT
Accommodation only
Adventure/trekking holiday
City break
Cruise
Flight only
Other transport
Fly-drive
Package holiday
Travel insurance
Foreign currency
Traveller’s cheques
Others
Table 66 Travel Retail Sales by Product: Value 2000-2005
9.3 SALES BY DESTINATION
Table 67 Travel Retail Sales by Destination: %Value Breakdown 2000-2005
9.4 TRAVEL AGENCIES: EXCHANGE SERVICES
Table 68 Travel Agencies Offering Exchange Services 2000-2005
9.5 EXCHANGE SERVICES BY OUTLET AND TYPE
Outlet sales
Product type
Table 69 Exchange Services: Sales by Outlet 2005
Table 70 Exchange Services: Sales by Type 2005
9.6 ONLINE SALES
Online developments
Direct suppliers performance
Intermediaries performance
Sector trends
Table 71 Travel Retail Internet Sales by Direct Suppliers and Intermediaries: Internet Transaction Value 2000-2005
Table 72 Travel Retail Internet Sales by Broad Sector: Internet Transaction Value 2000-2005
9.7 KEY PERFORMANCE INDICATORS
Sales
Outlets
Web platforms
Table 73 Key Travel Retail Companies Key Performance Indicators 2005
9.8 MARKET SHARES
Table 74 Travel Retail Market Shares 2001-2005
9.9 FORECAST SALES AND OUTLETS
Sales
Outlets
Online trends
Table 75 Forecast Travel Retail Sales: 2005-2010
Table 76 Forecast Travel Retail Outlets by Sector: Units 2005-2010
Table 77 Forecast Travel Retail Internet Sales by Direct Suppliers and Intermediaries: Internet Transaction Value 2000-2005
Table 78 Forecast Travel Retail Internet Sales by Broad Sector: Internet Transaction Value 2005-2010
10. TOURIST ATTRACTIONS
10.1 SALES AND VISITORS BY SECTOR
2005 headlines
Sales
Visitors
Table 79 Tourist Attractions by Sector: Value 2000-2005
Table 80 Tourist Attractions by Sector: 2000-2005
10.2 ONLINE SALES
Online developments
Direct suppliers performance
Intermediaries performance
Table 81 Tourist Attractions Internet Sales by Direct Suppliers and Intermediaries: Internet Transaction Value 2001-2005
10.3 KEY PLAYERS: VISITS
Table 82 Leading Tourist Attractions by Visitors 2001-2005
10.4 FORECAST SALES AND VISITORS
Sales
Visitors
Online trends
Table 83 Forecast Tourist Attractions by Sector: Value 2005-2010
Table 84 Forecast Tourist Attractions by Sector: 2005-2010
Table 85 Forecast Tourist Attractions Internet Transaction Value Sales by Sector: Internet Transaction Value 2005-2010
11. DEFINITIONS
11.1 TOURISM PARAMETERS
Arrivals
Departures
Incoming tourist receipts
Outgoing tourism expenditure
Domestic tourists
Domestic trips
Domestic tourist expenditure
Tourism spending
Method of payment
11.2 TRAVEL ACCOMMODATION
Campsites
Chalets
Guesthouses
Hostels
Hotels
Motels
Private accommodation
Self-catering apartments
Other
Hotel chains
Hotel independents
Number of bed nights
Occupancy rates
RevPAR
Number of rooms and beds
Tourist locations
11.3 TRANSPORTATION
Air
Bus/coach
Chauffeur-driven car
Cruise
Ferry
Rail
Airline capacity
Airline utilisation
11.4 CAR RENTAL
Sectors
Location
Transactions
Fleet size
11.5 TRAVEL RETAIL
Travel agents
Tour operators
Exchange services
Travel retail product breakdowns
By destination
11.6 TOURIST ATTRACTIONS
Art galleries
Casinos
Circuses
Historic buildings/sites
Industrial tourism
Museums
National parks/areas of natural beauty
Theatres
Theme/amusement parks
Zoos/aquariums
Others
11.7 INTERNET SALES
Direct suppliers
Intermediaries
11.8 INTERNET SALES: DYNAMIC PACKAGING
11.9 INTERNET SALES: TRADITIONAL PACKAGE HOLIDAY
11.10 GDS
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