Channel NewsAsia - Authorities step up efforts to boost Thailand's tourism industry - channelnewsasia.com

CHIANG MAI, Thailand: Thailand's tourism industry has been hit hard by the ongoing political unrest in the kingdom, but efforts to woo visitors back are in full swing.

Tourism makes up just 6.5 per cent of Thailand's GDP, but welcoming visitors is what the kingdom is best known for.

Protests by the "red shirts" and violence in Bangkok earlier this year had a big impact on cities like Chiang Mai, where tourism accounts for nearly 40 per cent of the local economy.

Occupancy rates at local hotels dropped sharply, reaching a low of 10 per cent at times.

Sarawut Saetiao, the president of the Chiang Mai Tourism Business Association, said: "If we compare this year's first quarter to last year's, this year has been better. But in the second quarter, we suffered badly. Cancellation rates were very high, especially from foreign tourists. The financial loss in Chiang Mai was over US$300 million."

Mass cancellations are extremely damaging for the meetings, incentives, conventions and exhibitions (MICE) sector.

Companies must take into account participants' safety and their own viability.

Efforts to revitalise the MICE sector aim to convince decision makers that Thailand still has a lot to offer, despite the unrest.

Akapol Sorasuchart, who is the president of the Thailand Convention and Exhibition Bureau, said: "Of course hope is not enough. You can't go and tell people that 'I hope that it won't happen.' We hope that they learn that business is (separate from) politics. If you try to mix the two together then it is bad for the country."

700,000 visitors a year come to Thailand for meetings, conventions and exhibitions - accounting for 10.7 per cent of tourism as a whole. And by 2016, officials hope the kingdom will be the most popular MICE destination in Asia.

Thailand's tourism industry has gone through many obstacles in the past several years, but has proven to be extremely resilient.

Janet McNab, the general manager of Four Points Sheraton, Bangkok, said: "I think Thailand has great brand equity. I think we are starting to see a bounce back. But I think...the sheer strength of Thailand as a destination is one of its best marketing tools."

In fact, the Pacific Asia Travel Association predicts a 6 per cent increase in tourism next year, if there are no political problems. - CNA/ms

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