Thailand's hospitality leaders discuss the effects of military rule on the country's tourism industry

Massive Protests. Election Results Nullified. Prime Minister Deposed. Martial Law. Coup. Curfews. These are the types of events that are supposed to turn a country into kryptonite for tourists. But time and again, Thailand’s travel industries have proved resilient in the face of political turmoil. Will the events of the last few days—and accompanying condemnations by western news media—mark a new chapter in what has seemed an ever-growing sector?

David Keen, Founder & CEO, QUO:  This situation is a total paradox. On one hand, over the last week, I’ve not seen a single soldier or any evidence of any kind of upheaval (apart from really serious traffic last night). And now, on the other hand, we have a military government and every foreign country dissing Thailand for the way it operates. Thailand itself is the greatest anomaly. Its history is one of going to the brink and then, almost miraculously, finding a way out. I believe there’s a majority of the leadership who are saying ‘enough’. We have to find a way to change the way the country operates without losing the essence of what is Thailand.

Peter Henley, President & CEO, Onyx Hospitality Group: Regrettably I feel that the power of international media is such that the terms ‘martial law and coup d’etat’ will not really be explained. Coverage over the last few days on BBC, CNN, etc. has veered towards a dramatization of the situation. Given the ‘sound bite’ approach to journalism today, there is little opportunity to present an objective appraisal of the true situation on the ground.

David Shackleton, Chief Operating Officer, Dusit International:

We should have one voice (preferably PATA or TAT) to speak on behalf of the travel industry. I would suggest it is worth having one of these organizations appoint one person to deal with the media/image to centralise our efforts. The message has to be consistent and constant and take a proactive approach with embassies to outline the facts.

Clarence Tan, Chief Operating Officer, IHG South East Asia & Resorts: Oddly enough, I feel safer than before, when we were waiting in anticipation of yet another deadline on 27 May…I took the opportunity to walk around the neighbourhoods of Ploenchit, Chitlom and Siam, and it was pretty much business as usual. But hotels, retail, restaurants and bars are quiet, as cautiousness has set in. A Straits Times article in Singapore reported that Singaporeans will continue to travel to Thailand. I believe more will return to the Land of Smiles. However, no smoke without fire. As long as martial law is in place, sadly, most visitors will continue to avoid Thailand.

Bill Barnett, Managing Director, C9 Hotelworks: The real question is: is martial law any worse than the sort of uncertainty we have faced over the past six months? In some ways it’s an improvement, as there is now a degree of certainty and a voice to speak to in terms of who is in charge.

DK: Ironically, the recent events could speed the recovery of Thailand’s brand image by increasing the country’s credibility. After months of being stuck at a political impasse, it appears this is the beginning of the end [of the political impasse] rather than the end of the beginning. Had martial law never been declared, we may have been stuck in the quagmire of uncertainty for many months to come.

Anthony Lark, V.P. Operations and Business Development, Montara Hospitality, Trisara Phuket: Brand Bangkok suffers badly, but Brand Phuket to a much lesser degree, as over the years, the island has become much more independent with direct non-stop flights from all over the globe. 

PH: The political crisis in Thailand is but one aspect of brand Thailand’s challenges. Environmental degradation, over-supply, over-building, tourist scams, etc. – these are long-standing issues that have taken their toll on the destination. Traditional long-haul markets such as Europe are already moving out of Phuket to Khao Lak and beyond as they seek an experience which matches the picture-perfect images that TAT presents. Martial law will, of course, have a negative impact on tourism – primarily short-term. In the medium and long term, we can expect to see a softening in MICE demand. Security is a major concern for event organizers. But brand Thailand is not just about the hospitality industry. Much has been written about investor confidence, and Thailand needs to re-establish itself as a safe and reliable partner for overseas investors

DS: I think the declaration certainly does not add to our credibility. Watch BBC, CNN, etc. The backdrop is tanks and machine guns. However I do believe this is another “blip” in a long road and nothing more.

AL: I’ve been in Bangkok since it was declared, yet I hear this has had very little if no effect on our business [in Phuket]. I do know some guests who have actually cancelled the Bangkok portion of the trip to stay longer at Trisara. Of course, we will never know about those guests who were planning to come and who decided to go elsewhere. 

DK: But no matter what happens, as in the aftermath of protests, coups, natural disasters and other chaotic events of years past, the hospitality sector will persevere and bounce back in record time. History has proved the resiliency of Thailand’s tourism industry.

BB: Recovery simply is not a relevant term in today’s context, as cycles are gone, and there is now only action and reaction. Travel times are shorter than ever before, and the hero to zero trend has never been higher.

PH: A lot depends on what happens now. We will experience a level of cancellations. It is, however, the impact on new bookings that is more serious. We have already seen a slow-down in demand, which has forced the industry to activate a wide range of promotions. True recovery can only start once the political crisis has been resolved. We must hope that at some stage a new government will address the other non-political challenges that brand Thailand faces, both for investors and the hospitality industry.

CT: We have seen the usual reaction of cancellations, but there is demand. And if I am optimistic, it will return quickly after a peaceful conclusion. We have already seen some signs of recovery prior to the martial law.

DS: Our initial reports indicate only few cancellations of FIT travellers, however the impact is in the MICE market. Unless the situation is resolved quickly and effectively the modest decline will continue. However I do believe we will recover quickly as soon as this mess is fully resolved.

DK: I actually have hope that this is a turning point that will revive confidence sooner than expected for MICE business. By forcing a political solution to the prolonged uncertainty, the action might reverse what was a rather grim MICE outlook just a few months ago. 

CT: If martial law stays indefinitely, it will be bad for business overall. Martial law scares customers away. MICE, I feel, will return in some force in 2015, post elections and stability. I have every confidence that it will bounce back quickly with a resilient economy.

DS: I believe the loss of MICE business will be short lived if the situation is resolved in the near term. But it needs to be soon. The longer it takes to resolve, the deeper and longer the impact. Meeting planners cannot afford to take the risk of more political disruption and protest.

PH: MICE is a fickle segment. We will feel the impact of the current troubles for a long time.

BB: Without a doubt MICE will be sidelined, it’s an insurance issue.

DK: In order to reverse the perceptions that make it an issue for insurers, it’s important for the tourism industry to help the world to understand the reality on the ground through our public relations, advertising and social media channels. Few if any tourists to Thailand have had their vacations negatively effected in any way by the protests, and so far it looks like martial law will make the situation even safer. It’s too easy for media to use the phrase ‘martial law’ without explaining that the beaches are open, as are the shops, and transport is running. Now more than ever, we need to shout about our world-class hospitality, beautiful nature and unbeatable tourism experiences.

BB: What hotels and the industry need to do is be viable, be vocal and take a role of leadership.

PH: There is an element of ‘David and Goliath’ in the idea of individual companies trying to overcome the media hype of global news channels. At the end of the day, a return to normality and consistent positive messages and images are what will change people’s perception

CT: We need to be as transparent as we can about the situation and advise caution when visiting Bangkok.

BB: Tourism can have a voice but it should not make promises it cannot deliver. They key is to be heard by government to address important things which could spur new business, i.e,. visa-free travel for travellers from China.

DS: The message should recognize the circumstances but stress in the vast part of the country things are continuing as normal. Our message reflects this and we are receiving great feedback.