North Asia holds key to Thai revival – Abacus
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Demand from the North Asian market has the potential to revive Thailand’s aviation and tourism industries, a new report has suggested.
According to Abacus International, North Asian markets are driving Thailand’s recovery following this year’s unrest and coup. Abacus-connected travel agents in Seoul reported a 67% spike in air bookings for Phuket in the second quarter of the year, while Bangkok reservations are up 19% year-on-year.
Demand for flights to the Thai capital from Shanghai and Hong Kong also climbed in Q2 2014, rising 31% and 18% respectively, compared to the first quarter when street demonstrations were taking place. Abacus also noted that the decline in flight bookings between Taipei and Thailand has “slowed dramatically, and should turn around soon”.
“Political unrest is not new to this market and our reputation for exceptional hospitality is working in our favour, with the caution post-coup giving way to more practical concerns over accommodation and exchange rates. Thailand could now be through the worst,” said Steven Ong, Abacus’ general manager for Thailand.
The Abacus analysis is supported by data from ForwardKeys.com, which earlier this year reported a 79% slump in bookings to Thailand from within the Asia Pacific region in the week of the coup.
Phuket bookings from 22 May to 16 June fell 13%, while Bangkok was down 42%. But the Northeast Asian rebound was rapid; early as the week of 10 June, mainland Chinese bookings to Thailand for arrivals in September were up by a factor of six compared to same period in 2013.
“Teflon Thailand always rebounds,” added Olivier Jager, CEO of Forward Keys. “Thailand’s amazing ability to recover quickly is once again materialising, with North Asia’s strong performance.”
For arrivals between October and December 2014, bookings from mainland China saw an average 8.6% increase, with Hong Kong edging up 0.3%. Bookings from Japan however, remain 31% lower.
Looking ahead, Abacus said it expects to see inbound booking volumes rise “between 8% and 15% in aggregate for business as well as leisure travel – assuming confidence from regional markets continues to rise.”
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