Background of Thailand revenue based and the recession

Thailand was known as the best country for tourisms. But there were some problems which are the causes of the recession in the tourism. The main cause is the political issue. Nowadays Thailand was separated to be 2 sides, yellow shirt and red shirt which have the conflict need and satisfaction in the political view. Both of them did harm things which affect the trust of Thai people. They are all fear of going out from their house in the time when the protestors come out and try to ask for their demands. For the tourisms, this cause is obviously for them to see that Thailand does not have the political stability. Then it is going to be harder for the tourisms to travel to Thailand because they will not think that Thailand is the nice country anymore and this cause will also decrease their trust of the safety.

Analyzing the PEST of Thailand

Political: The King of Thailand has little direct power under the constitution but is a symbol of national identity and unity. King Bhumibol — who has been on the throne since 1946 — commands enormous popular respect and moral authority, which he has used on occasion to resolve political crises that have threatened national stability. The politics of Thailand currently takes place in a framework of a constitutional monarchy, whereby the Prime Minister is the head of government and a hereditary monarch is head of state. Executive power is currently exercised by a military junta and its appointed Prime Minister and Cabinet. Legislative power is vested in a junta-appointed legislature. The Judiciary is independent of the executive and the legislature. Political activities are currently banned. Prior to the 2006 coup, the kingdom was a parliamentary democracy, with an elected bicameral legislature. Economical: Agriculture is the primary means of employment, but industry, commerce, and services account for the 80% of the gross domestic product.
Thailand is one of the world's largest producers of rice, and this accounts for much of the country's agricultural output. Bangkok is a major centre for the cutting and trading of gemstones, as well as the production of high quality gold and silver jewelry.
In the last few year electronics, computers and integrated circuits, have become a major export earner and look set to play and increasing role in the future. Oil refineries, chemical plants, steel mills and similar industries are mainly centered on Sri Racha (30km north of Pattaya) and Mab ta Phut just east of Rayong.
Changes in economic conditions will affect the organization directly. If the economy is good, No bad event occurs, it will enable organizations confidence in the operations. As well as customer confidence in the overall economy of the country can make the greater orders. But if there is the bad event which affects the economic stability happen, the requirements of customers will be decreased due to lower confidence. Cause of noise on the various diseases, such as crisis of Paxar and influenza in early 2547 which make East Asia's economic decline is due to all affected areas continued which will lead the reduction of making orders and the manufacture. Societal: In the Thai social system, the village is the unit. It was in former days, a self-contained one in its economy and needs. The people's habits and customs were based mainly o n agriculture and religion. Most villages had a Buddhist monastery and a shrine for a village deity. The monastery served their spiritual as well as the people's education. All arts, crafts and learning emanated from the monastery. From birth till death it centered round it. Its precincts were the meeting place for social gatherings on festive occasions. As to the village shrine it was used only occasionally in times of distress or on New Year's Day when offerings were made. It had nothing to do with Buddhism. Technological: For the technology of Thailand, there are the technology for the transportation and security but it is still do not have good enough quality.

Analyzing SWOT of Thailand

Strengths: 1. For Thailand, the strength is good infrastructure. Conditions coupled with geographic location. Allows the manufacturing hub of Asia, Thailand also has a uniquely Thai. A bounty and ways of life of people is very comfortable. 2. Trends into the social world to the elderly is therefore opportunity to Thailand as a source of medical centers and various health activities of the world. 3. Thailand is unique in activities related directly to customers. A media and entertainment industry. 4. Thailand is ready for services. Tourism and hotel and restaurant. The heart of economic development in nowadays is the development and investment in people and human resource which is the only thing that can make a difference and add value to the business. Weakness: 1. Level of knowledge of the Thai people have a delayed development. And does not change much knowledge of the Thai index. Increased from 73.5 percent in 2544 to 74.1 percent in 2545 to a little better. Although the opportunity to attend the high school and early high school is increased. This is the "most vulnerable" of Thailand and a "big obstacle" to the country to sustainable development because of large social base or most people who have "Little knowledge" makes development difficult, so often become "victims" of smarter people. 2. The weakness of political stability, people divided into different sides which having different attitude obviously and found to be more serious every time. Opportunities: From the economic crisis that occurred around the world, it is obviously that Thailand is forwarding to the right way. To reduce the impact from the economic crisis that may happen when there is a problem with the traditional core market of trade value with neighboring countries within the economic cooperation that have been conducted over the last 10 years instead. However, there are many transport network path to cooperation with neighboring countries to complete. Opportunities to Thailand recently, Thailand have significant potential that exists. Only the how to use the opportunity to be the benefit such as the global economy is still not fully recover and need to improve themselves. When the economic is recovered immediately, there will be 3 issues. 1. Public policy in logistics Systems. 2. Transport and infrastructure 3. Ways to adapt. Take a look at the potential of Thailand in terms of Thai stronghold, Thailand is the suit place for the manufacturing and trade. Excluding Singapore where is the world’s major shipping routes through 5 years. Thai government can see the cooperation from neighbor countries and they approve the framework of dialogue and cooperation such as cooperation framework in the Mekong Basin Sub-region (Greater Mekong Sub region: GMS) 6 countries in the People's Republic of China will have hobo Guangzhou province and Hunan to join the as new members. Threats: The main militant threat in Thailand has been the violence that has raged in the country's southernmost provinces for years, resulting in the death of more than 1,000 people. Although Thailand is predominantly Buddhist, Muslims make up the majority in the country's southernmost provinces of Narathiwat, Yala and Pattani. Violence in the restive region spiked in October 2004, when 78 Muslim men died while in custody of the Thai army following their arrests during a riot. Since then, frequent attacks have occurred against Buddhist and government targets, which Bangkok has blamed on militant Muslims. Although the violence has not spread outside the restive provinces along the Malaysian border, the area is very close to some of Thailand's most important resorts, including Phuket. In the past, these attacks have taken the form of drive-by shootings, beheadings of Buddhists and bombings, targeting Thai police, government workers and civilians. The violence occasionally surges, and there are indications that militants are expanding their capabilities and target sets. To date, however, militants in southern Thailand have refrained from using suicide bombers to stage attacks. The Thai separatist group Bersatu has threatened to attack the tourist resorts in southern Thailand, but no attack has materialized, indicating that the threats are probably propaganda ploys rather than serious threats. Bangkok has several times dodged the bullet of militant attacks. Thailand's capital has been used as a transit and staging point by Jemaah Islamiyah (JI) and al Qaeda operatives, including Ramzi Yousef. Although Thai Muslim militant groups such as the Pattani United Liberation Organization have threatened to attack targets in Bangkok and tourist resorts, such an operation also has failed to materialize. With both militants and Westerners present, however, Bangkok certainly remains at risk.

Marketing Plan

For the hotel businesses in Thailand which face the problem in the direct way of decreasing amount of tourism around Thailand. The marketing plan will be set up according to the measurement as following:

Target: The main target will be the tourisms from Europe according to the different culture and image of country which can attract them to travel to Thailand. Other target will be the tourisms from Asia such as Korean people and from other areas around Asia There are a number of that have been set.
1) Female tourists have increased at a growing rate worldwide and women playa major role in making decisions to travel. Female tourists visiting Thailand grew from 28 to 38 per cent. Promoting visits to Thailand by female tourists will constitute a publicity effort to correct the negative image of sex tourism.
2) Honeymooner tourists pay growing attention to visiting Thailand, particularly those from markets in Japan and the Republic of Korea. They help promote the image of Thailand as a good quality, safe and impressive tourist destination.
3) Elderly people are classified as the recession-free market segment. They have both time and money for travelling. During the past ten years, there was an increase in the proportion of tourists over 55 years of age from 13.38 to 16.87 per cent. The average growth rate was as high as 23 per cent a year.
4) There are more than 100 million young people travelling all over the world, representing 20 per cent of the total number of tourists. There are high growth trends, particularly in the Asian and Pacific region. In addition, there are growing trends of youth being interested in adventure tours and tourism activities concerned with nature, consuming tourism products which call for suitable management measures and the proper marketing techniques so as to prevent possible negative environmental impact.
5) Travelling for meetings in Thailand has had a growth rate as high as 30 per cent a year over the past ten years. Tourists attending meetings, seminars and incentive tours are classified as having a high spending rate and giving a rise to multiplier effects in tourism promotion.
6) At present, repeat travelers to Thailand constitute as much as 50 per cent of all tourists. This group has changing travelling behavior and needs. That is, they need new tourism products and are interested in complex dimensions of tourism. Keeping the growth rate of this segment will reflect Thailand's efficiency in developing and promoting an enduring form of tourism.

Market size: in this report will focusing on the tourism market in each part of Thailand. 100% of market size in Thailand is 20% in the Northern (Chiangmai Maehongson, Chiangrai and etc, 20% in the Southern (Phuket and etc.) 25% in the Eastern (Pattaya beach and other beaches) 20% in Bangkok and central of Thailand (Ayutthaya) and 15% in the North-Eastern. - Northern: the attraction place will be the temples and natural places such as Pai, Maehongson and Doi – Suthep temple. And the handmade products which can gain good amount of profits. - Southern: the islands in the southern are the source of profits including the hotel services. - Eastern: Hotel services and night club are the source of profits which are popular and well known by foreigner tourisms. - Bangkok and central of Thailand: For Bangkok and area around Bangkok, the place and things that can attract tourisms are Thai life style and Thai food including Thai show such as Thai dance. - North-Eastern: Thai suburban life style is the feature of North-people which can attract group of tourisms that want to learn the way of life including the locations for the religious can make profits and well known.

Competitors: The main competitor in the tourism market will probably be Hong Kong, Singapore, Malaysia and Switzerland according to the Tsunami event which was their opportunity to create low price package to travel to their countries. Another strong competitor is India where they focus on the tourisms who travel for the healthy. India tries to improve and develop it self to attract tourisms to use their service and if Thailand has no development, it is possible that India can get most tourism with them.

Critical advantages: 1. Hub of ASEAN, Thailand was one of the founding members of ASEAN and has been instrumental to the formation and development of the ASEAN Free Trade Area (AFTA). As a member of ASEAN, Thailand has forged closer economic cooperation with ASEAN member nations, and Thai manufactured products and services have access to the markets of ASEAN, which includes all 10 ASEAN countries. ASEAN is home to more than half a billion people, GDP in excess of US$700 billion and intra-ASEAN trade of more than US$1 trillion per year. 2. Growing Economy. Economically, this country of 64 million people is characterized by steady growth. Abundant natural resources and a skilled and cost-effective work force help attract foreign investment, enables them to prosper and help develop industry in Thailand. 3. Sufficient infrastructure, Thailand has good infrastructure for foreign investors. Improved and modernized transportation facilities, as well as upgraded communications and IT networks, ensure optimum business and living conditions. State-of-the-art industrial estates boast sophisticated facilities and superior services. Thailand has gained a well-known reputation throughout the world for its gracious hospitality. 4. Friendly and rich culture, the friendliness of its people and the diverse nature of Thai culture make visitors feel at home in Thailand. 5. Health care service, In terms of healthcare, the country has developed a good reputation globally, due to its internationally qualified doctors and medical staff, and modern facilities and equipment. It is so good that one of the fastest-rising tourism sectors is medical tourism, with international patients visiting Thailand to take advantage of Thailand's world-class and extremely affordable health care system.
(Reference: http://www.boi.go.th/english/why/thailand_advantages.asp)

Marketing Strategies

1) To present Thailand as a beautiful and peace country for traveling and relaxing, offering the quality services and attraction place. And also trying to show the image of country which is different from other competitors.
2) Create a comprehensive approach to development and standardization of products and services, especially in tourist areas may occur, including location, natural history and cultural tourism as a product feature and activities continue to meet the needs of each target group to be ready in terms of the carrying capacity.
3) Government creates the policies and deal with hotel and attraction place to cooperate. For example, government can create the package and deal to the hotel for groups of tourism who want to stay in Chiangmai to get the discount or the gift voucher. And for tourisms that like spending their time at the island in the south of Thailand, Government can create the policies of the airway price discounted and deal to all Thai airways. Advertising the promotion of different package in different place in Thailand to attract different group of customers. For example, promote the discount of climbing package for male group and spa gift voucher for female group
4) Expansion of Tourism Areas, cooperate with neighboring countries so as to position Thailand as a regional tourism hub and push for Thailand to be a center for tourism services studies and training.
5) Restructuring, pushing for the tourism business to be a national and inter-ministry agenda to be assigned to various ministries involved be the government.
6) Government can issue the measures of insurance safe tourisms that travel to Thailand and has been hurt or damaged or unable to travel out from Thailand because of the insurgency. To build the confidence and trust in the safety for tourisms.
7) Adjustment of Tourism Key Factors: Target quality tourists while maintaining the quantitative growth of both domestic and international markets. Enhance the worthy and reasonable tourism sales promotion. Increase competitive potential through an IT marketing network. Including enhance target marketing side by side with mass marketing.
8) Division of roles and responsibilities of the new Ministry of Tourism and Sport established an agreement with the tourism product development that is under the responsibility of the Tourism Authority of Thailand, now charged all of the travel market.
9) Set up the festivals which show the potential and feature of Thai tourist market such as Thai products which have low price and good quality and also the handmade products and also Thai dance style and culture to persuade tourisms to travel to Thailand and spend more time here.