Chiang Mai expects more flights, events to help spur market in 2008

Business News - Tuesday December 11, 2007

TOURISM / OUTLOOK & PROJECTIONS

Chiang Mai expects more flights, events to help spur market in 2008

CHATRUDEE THEPARAT

Chiang Mai _ The Chiang Mai Tourism Business Association expects the oversupply of hotel rooms will fall next year with more direct flights to the province and more year-round tourism activities.

Royal Flora Ratchaphruek, a three-month international horticultural exhibition that ran from November 2006 to January 2007, prompted a mini-boom that increased the number of rooms in the province from about 8,000 to 20,000.

The expo drew 3.8 million visitors, well beyond its target of three million people, and injected around 27 billion baht into the local economy.

The occupancy rate of hotels in Chiang Mai is now 60-70% in the high season and 30-40% in the low season.

But the Chiang Mai Tourism Forum, held from Dec 6-9, has brought new hope, attracting keen interest from regional buyers and local entrepreneurs, according to Worabhong Moochaotai, the secretary-general of the Chiang Mai Tourism Business Association.

There were 120 buyers from the Far East and Southeast Asia and 50 local sellers representing golf courses, spas, boutique hotels, shopping plazas, hospitals and restaurants.

He said the association expected the forum would generate opportunities for the tourism industry of Chiang Mai and the surrounding area. The provinces expected to improve the quality of products and offer more variety to attract visitors to Chiang Mai all year.

Buyers urged more flights, more variety of tourism products such as weddings, golf, adventure travel and Mice (meetings, incentives, conventions and exhibitions).

He said the Tourism Forum next year would be expanded with more participants from surrounding areas such as Chiang Rai, Mae Hong Son and Lampang. The operators in the northern provinces also would participate in an overseas tourism roadshow.

Visitors are changing their destinations to other areas because of longer hours for connecting flights between Suvarnabhumi, Don Meuang and Chiang Mai.

The province has asked airlines to offer direct flights but there was insufficient demand in the low season.

Chiang Mai is served by Thai Airways International, Nok Air, Bangkok Airways, Thai Air Asia, PB Air, One-Two-Go, Silk Air, Tiger Airways, Air Mandalay, Lao Aviation, China Airlines, Korean Air and Hong Kong Express Airways.

Early next year, THAI will open direct flights from Tokyo and Shanghai, while the Australian budget carrier JetStar will offer flights from Sydney.

In 2006, five million people visited Chiang Mai, generating 46 billion baht of revenue. The visitors included two million foreign visitors and three million Thais. The association expects two million foreign visitors this year but 10-15% fewer Thai visitors.

The association projects 5-10% growth in visitors in 2008, and 3 billion baht more in revenue, from 46 billion in 2007.

By : Bangkok Post