Flurry of bombings hits Thailand’s resurgent tourism industry

THAILAND. The tourism sector has once again found itself the brunt of terrorism after a series of apparently coordinated blasts across Thailand over the past 24 hours.

Four people have been killed and many more injured, according to mainstream media reports.

Four bombs exploded in the popular resort town of Hua Hin, while several blasts also hit Phuket. According to the BBC the following areas have been attacked

  • Four blasts over 24 hours inHua Hin where two people have died
  • Two blasts in Surat Thani where one person has died
  • Two blasts in the tourist beach town of Patong on Phuket island
  • One blast in Trang where one person has died
  • Blasts in the beach province of Phang Nga

The attacks come just as Thailand’s tourism economy was booming. Visitor numbers soared by +20.44% last year but more importantly Chinese arrivals rose by +70.1%.

rsz_thai_news
Thai media The Bangkok Post (above) and The Nation report on the bombings

rsz_thailand_2Thailand’s ruling military authorities will need to move swiftly to control the situation or else heavy visitor cancellations and a decline in short-term bookings seem certain.

Driven by the increase in tourism, Airports of Thailand posted a +22.08% increase in non-aeronautical revenues for the quarter ended 30 June 2016 to THB 5,443.47 million – representing 43% of the airport operator’s income. The quarter maintained the strong financial performance of the previous six months, with the first nine months generating a +22.04% rise in non-aeronautical revenue to THB16,247.56 million.

For the nine-month period, passenger numbers at the six airports controlled by Airports of Thailand reached 90 million, a +12.21% gain year-on-year. That number comprised 51.16 million international passengers and 38.84 million domestic travellers.

rsz_thai_tableAirports of Thailand attributed the strong performance to a stable domestic political climate, a drop in fuel prices and government policies to stimulate the economy in general and tourism in particular. Today’s bombings put that progress at risk, and are clearly targeted at the all-important tourism sector.

For the third quarter, Airports of Thailand’s concession revenues increased by THB451.18 million or +15.42% due to an increase in the number of passengers and the revenues sharing rate. For the nine-month period ended 30 June concession revenues increased by THB1,606.23 million or +18.57%. Airports of Thailand said: “The main reason was an increase in the number of passengers and revenues sharing rate, especially revenue sharing from duty free shops increased by THB816.64 million.”

rsz_thai_3_monththai overall tab

The UN World Tourism Organisation strongly condemned the attacks today. Secretary-General Taleb Rifai said: “Thailand is one of the most consolidated tourism destination in the world. A destination where people of all cultures unite and enjoy tourism and its strong potential to foster development. We are fully confident that this will continue to be the case and we look forward to meet in Bangkok next 27 September for the official World Tourism Day celebrations.

“More than ever we need to work together to make a great success out of the celebrations of World Tourism Day, this will be the best expression of support and union against these hideous acts.”

Food & Beverage The Magazine eZine