Research identifies free trade challenges

Thailand’s travel and hotel SMEs are not prepared to compete for business once the ASEAN Economic Community kicks in 2015, Kasetsart University’s Centre for Applied Economics Research reported this week.

The university presented its SWOT analysis called ASEAN Tourism Industry Research at the Association of Thai Travel Agents monthly meeting, Thursday.

Project leader, Kampanat Pensupar, said the six-month (January to June 2011) research on ASEAN member countries’ strengths weaknesses opportunities and threats  showed Thailand SMEs need to build strategies, tighten awareness and improve competitiveness to prepare for the ASEAN Economic Community 2015.

“ Definitely, Thailand can grab and expand tourism opportunities when the free trade era opens, but travel companies, hotels and restaurants need to improve capabilities and be prepared to invest heavily to compete, ” Mr Kampanat said.

“We have the hospitality and service mind. That is our strength to compete, but we are weak in international languages particularly ASEAN languages and this could be a massive disadvantage.”

The report notes that Thais lack experience working in top positions in travel and tourism and this is a weakness that will hinder the ability to compete in ASEAN countries particularly Singapore, Philippines and Malaysia.

Most international hotels based in Thailand, by-pass Thai executives preferring to promote and give top posts to expatriate managers.

“The solution is to make partnerships in other ASEAN countries, while Thailand must tighten up its work permit regulations by demanding foreigners speak some Thai to be eligible for a work permit,” he said,

Research recommendations:

• Integrate government , private sectors and related tourism associations development to expand tourist routes in the region;

• Introduce a low-interest loan facility underwritten by the government;

• Build diversity into tourist destinations and activities particularly ecotourism, educational and sports, healthcare, culture and heritage, community and adventure categories;

• Expand online media to promote tourism;

• Improve tourism personnel skills, specifically in the service sector together with the adoption of ethical business practices;

• Build job training, expand international language courses for students of hotel management at university;

• Study ASEAN tourism behavior to identify opportunities and challenges.

CAER collects research data through interviews with tourism and related ministries, tour operators and including counterparts in ASEAN member countries.

Source - ttrweekly