Thailand: The brand and its tourism appeal takes yet another beating

An ominous sense of déjà vu is inevitable, as the country’s latest crisis is a bloody reminder of how Thailand has struggled with destabilisation and uncertainty since former Prime Minister Thaksin Shinawatra was ousted from office in a military coup in September 2006.

The pro-Thaksin protesters are fighting to bring the Government down. They are adamant that Prime Minister Abhisit Vejjajiva came to power illegitimately and is merely a puppet of the military. The protesters have so far clashed with military forces and police, and have called on Abhisit to resign and call fresh elections. As the demonstrations and fighting have continued, some 21 people including civilians have been killed while more than 800 people have been injured.

In light of the violent clashes, Thai tourism arrivals could slump 20 per cent this year according to the nation’s Fiscal Policy Office. At the time of writing, flights for the Kingdom’s New Year holidays have already fallen 4.1 per cent, while the country’s full-year tourism revenue may fall by as much as 20.8 billion baht (US$645 million).

In late 2008, protests saw the country’s airports come to a standstill amid a familiar state of emergency. Businesses were nervy while tourists and visitors were left in a state of flux. Tourism Thailand was then believed to have slashed marketing spend in a “hectic” scenario planning initiative, aimed at assessing how much of an estimated US$10 million annual budget remained to boost the country’s international image after the protests ended.

The tourism body no doubt worked steadfastly last year to rebuild confidence but its previous efforts may well have been in vain. For now, Thailand looks like it has to start from scratch yet again.

Brand health diagnosis

John Goodman, regional director, Ogilvy & Mather Asean:

“Writing a week before publication, it is difficult to predict the future of Thailand in one month, let alone the future of the ‘brand’. A week ago the Government had momentum, the Red Shirt rebellion flagging. Over a weekend the balance of power shifted, and now the country is beset by rumour and speculation.

Ironically I happen to be writing this on Songkran day, Thai New Year, on the island of Samui. The traditional water festival is in full swing, locals and tourists soaking each other, an atmosphere totally unlike the tension and mistrust of Bangkok. The weather is perfect, the beaches alive. From a tourist point of view, Thailand has such strong appeal that it is hard to see political upheaval keeping visitors away for long.

Of course Thailand is far more than tourism. It’s the most vibrant and robust economy of Asean, with a consensus around democratic and free market values, even if the former have been sorely tested in the last four years.It’s still the ‘good house in a bad neighbourhood’ that it’s been for the past 50 years.

The answer for Thailand is a political one. The country’s harmony needs to return through a process of dialogue. There’s nothing marketers can do to resolve that.”

On-Usa Lamliengpol, chairman, Leo Burnett Thailand:

“Has ‘the land of smiles’ turned into divided, violent, angry mobs? Thailand, traditionally one of the leading tourist destinations in the world, is now listed as a place not to visit.

With the current situation, The Federation of Thai Tourism Industries estimates that Thailand stands to lose more than one billion dollars in tourism revenue, the number one revenue source of the country, if the issue is not resolved.
Damage has indeed been done to the country’s economy and more importantly, to ‘brand Thailand’.

However, despite what is happening, Thailand has a long list of strong brand equities that will continue to be attractive to past and potential travellers. Its award-winning, high-quality tourism and top-notch infrastructure are all deep-rooted qualities that will endure.

As the world continues to pay close attention to the situation in Thailand, it is very important that the government invests more effort to manage the crisis effectively and efficiently through clear communications to ensure a balanced coverage is being disseminated to the world. It may take some time for Thailand to get back to normal but I believe Thailand will always live up to its unique character and regain its footing.

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This article was originally published in the 22 April 2010 issue of Media.