| LOYAL BIRTHDAY
GREETINGS
It is our pleasure to wish Her Royal Highness Queen Sirikit good fortune, health and happiness on her 74th birthday on August 12th.
ANYONE FOR (ELEPHANT) POLO?
‘Good Morning Chiangmai NEWS’ is proud to announce that for the 2nd year running we are on the Media Team for the event rated by TAT as the nation’s 6th largest annual tourist attraction.
Yes, September 4th-10th is King’s Cup Elephant Polo time again - and this year the event has moved north from Hua Hin to the Anantara Golden Triangle Resort, Chiangrai province.
Last year the media team finished a firm last behind experts from Germany sponsored by Mercedes-Benz and other experienced players who compete in the World Elephant Polo World Series in Nepal and Sri Lanka as well as Thailand. No fewer than 15 other teams from 3 continents beat us!
It’s all about raising money for a good cause of course, and to date over US$140,000 has been raised for the National Elephant Institute. But spectating is free and though the Anantara has its own elephant camp and manager, heavy hooves will be hitting the turf at the Chiang Saen Secondary School some 12kms from the Resort. The worst offence in the rules is for a jumbo to lay down in front of a goal! For more on the whackiest week in the north apart from Songkran, see www.anantara.com or e-mail us here at: gmorning@loxinfo.co.th
JAILBIRD DOC BACK INSIDE
A 67 year old Austrian doctor who has served 2 prison terms in the US for administering dangerous “cures” was arrested in Chiangmai and charged with falsely practising medicine.
Thai and Australian police took Helfried Sartori into custody and he is likely to be extradited to Australia to face at least one murder charge. Authorities say that he may be responsible for the deaths of several Australian cancer patients who flew to Chiangmai for his “liquid ozone” injections at fees of up to 900,000b. per patient. Other possible victims are being sought. A senior physician with the National Cancer Institute of Thailand called Sartori’s treatments “preposterous”.
NEW LICENCE LIMIT
Thai driving licenses will now be issued only to those foreigners who hold a visa (not Tourist) re-newed within Thailand for 1 year. House papers or a home rental contract must be shown, and a copy of a Thai i/d card if there is a Thai spouse. All inquiries to Immigration or the Land Transport office, Hang Dong Road.
ALL CHANGE, MID-LEAGUE
Chiangmai Pool League placings at July 27th:
1 Friends Corner 14
2 Half Moon Pub 14
3 Chiangers & Bangers 12
4 Blue Sky Bar 11
5 Out Back 10
6 The Wall 10
7 December Bar 9
8 Blue Sky Garden 8
9 La Villa 8
10 Happy Bar 7
11 Enjoy Place 7
12 Number 1 Pub 6
13 Rock Hard Bistro 5
14 The Local 5
Home games this month:
Aug 4: Enjoy Place, Out Back, Friends Corner, The Local, Blue Sky Garden, Half Moon Pub, Rock Hard Bistro.
11: Happy Bar, Out Back, Blue Sky Bar, The Wall, Chiangers & Bangers, December Bar, Number 1 Pub.
18: La Villa, Enjoy Place, Friends Corner, The Local, Chiangers & Bangers, Blue Sky Bar, Number 1 Pub.
25: December Bar, Happy Bar, La Villa, The Local, Blue Sky Garden, Half Moon Pub, Rock Hard Bistro.
BRINGING THEM HERE
Tourism is Chiangmai Provinces’s biggest earner after agriculture and it can be said that the city and immediate surrounding area rely on it. Here, 2 experienced managers of top-end Thai hotels – all of which are out to tempt a truly international market - highlight the challenges facing our next “high” season.
“There is going to be an unprecedented increase in tourist beds in Chiangmai, which has already started. We will need air
capacity to support this volume to sustain the growth.
Chiangmai is definitely receiving a lot of media attention. The Chiang Mai Night Safari is up and running and nearby the Royal Flora Ratchaphruek 2006 is taking shape, ready to open its doors on 1 November for 3 whole months - with anticipated visitors of over 20,000 per day and in honour of the 60th anniversary of His Majesty the King’s accession to the throne. Afterwards it will become a permanent fixture.
New hotels are sprouting, with over 1,000 rooms scheduled over the next few years in the 4-5 star category, and new restaurants abound along with a plethora of spas. Chiangmai is really starting to cast away its old image of being a backpackers’ haven. ‘Travel & Leisure’ magazine declared that Chiangmai was the No.1 Best Value Destination in the World, with Bangkok at No. 2. Lanna is having a resurgence, but will there be the infrastructure to support the growing demand?
Our airport is undergoing expansion in the form of runways and terminals, but the most important thing is the number of flights that arrive directly here. It is essential that we have an increase in direct flights within the region.
Already in operation: Tiger Airways and SilkAir from Singapore (7 flights a week); AirAsia from Kuala Lumpur (daily); China Airlines from Taipei (3 flights a week); Mandalay Airways to/from Rangoon/Mandalay (3 flights a week); Lao Airlines from Vientiane and Luang Prabang (3 flights a week each); THAI International to Kunming (2 flights a week) and Chittagong (2 flights a week); Bangkok Airways to Jinghong (3 flights a week).
Talking with foreign travel agents and wholesale operators, I find that the “WOW!” factor arrives - and the bookings - when their customers can arrive at their end-destination without changing planes. The direct THAI flights to Los Angeles and New York make the whole ordeal so much more palatable!
Hongkong Express has just started twice-weekly direct flights, which are already having great load factors. Another prime destination to have a direct flight would be Siem Reap-Chiangmai. A large number of tourists coming to the north of Thailand feature Cambodia on their itinerary. Just one flight either way would save wasting a day travelling via Bangkok.
Hopefully Japan is another feeder market that will re-instate direct flights. And how about a direct flight from Phuket?”
Andrew Harrison, General Manager, Four Seasons Resort & Spa, Mae Rim (top) with one of the Resort’s water buffaloes, all of which have employee numbers.
ACCOMMODATING THEM
“Results for the first quarter of 2006 suggest that supply is still surplus to demand, particular in Thailand’s north and central regions. The Thai Hotel Association in its recent report said that occupancies in Chiangmai were down for the first quarter by 50% during the Songkran holidays - and from 76% last year to 68% this year in the central region.
Industry observers had long predicted that 2006 would be a better vintage than 2005, but few realised the extent of the quadruple combination of the World Cup; rising oil prices; a strong baht and the continuing political stalemate. Most believe that the southern unrest is not considered an international problem. The far south has received little in the way of long haul international tourists historically, and is therefore seen to have minimum affect on tourist arrivals.
The 5 star market describes last month as ‘sluggish’ with occupancies under performing in comparison to last year by 15-20%, although many of the 5 star hotels have increased rates over last year.
Many agree that 2006 is Thailand’s “Grand” Year and that we should achieve our target of 14.4 million foreign tourist arrivals. But there are others who believe it will be difficult. THA President Chanin Donavanik is less optimistic about the industry this year. “Thailand’s tourism industry might be losing international tourists to other destinations. When compared to other countries in the region, we lack new tourism magnets” said he.
Hong Kong’s impressive Disney World and Singapore’s launch into Resort Casinos are cited as Thailand’s missed opportunity by industry commentators.
Once again it would appear that the 4 star market is fairing better at filling rooms in the nations capital than the top end 5 star products, but they are experiencing lower food and beverage revenues than last year. The 5 star hotels lower occupancies are however balanced by higher yields, know in the industry as RevPar (revenues per available room). This might suggest price resistance in the luxury end, or over supply?
Hotels in the Sukhumvit corridor and Central Business District of Bangkok have been aggressively pricing their wholesale rates for next season, with 30-40% increases - and removing inclusive breakfast. The Grand Hyatt and the Sheraton Grande were identified as early initiators of this new pricing structure, with many others on the central Sukhumvit Skytrain route and side streets, following suit. The results so far have been that buyers have accepted these increases for next season. The real test will be to see if they use them!
The dilemma faced by the industry is that whilst centrally located hotels continue to push up the yield, the divide between 4 and 5 star hotels is widening. Good news for buyers if they are prepared to locate 10 minutes further away from the CBD, where they can usually secure a nightly rate 3 to 4 times lower than the CBD hotels, by dropping one star only in quality.
So is Thailand’s hotel industry set for a major correction between the 4 and 5 star hotels on rates? I still believe not. Location is the key, along with competition in the immediate vicinity and within the competitor set. The 5 star hotels, with their control of the luxury leisure and corporate markets will do what they do - and the 4 star properties will be mainly driven by what their neighbours are doing!
Andrew J. Wood, International Councillor, SKAL Thailand & General Manager, Chaophya Park Hotels & Resorts, Bangkok (above, centre) with local SKAL President and Mandarin Oriental Dhara Dhevi GM Khun Sun Subsaeng (left) and David Hardy of 'Good Morning Chiangmai NEWS'.
* The world’s largest hotel chain, Best Western International, comes to Chiangmai Business Park near Carrefour having signed up the 80 room Khum Phaya Spa Resort with owner Khun Wachara Tantranond on July 7th.
* Earnings of over 18 billion baht are expected locally from the enormous Royal Flora Ratchapreuk 2006 horticultural exposition which lasts from November to the end of January. Thirty nations will display over 2.5 million plants and flowers at the specially created site between Hang Dong Road and Irrigation Canal Road and most of the feverish work on Chiangmai hotels is aimed at opening in time for it!
* Visitors using the Association of Thai Travel Agents member companies totaled 1.4 million in the first half of this year, up 400,000 on the same period last year. But the growth slowed as the year progressed with only a 1q2.2% increase in June. The ATTA put this down to rising fuel prices, the economic slow down and Thailand’s political uncertainty and their president predicted that this year’s target of 14 million arrivals would not be met.
NEWS OF THE FUTURE
* All who like older cars are welcome to the Classic Cars of Lanna social night at Suan Pak (Salad House) restaurant on August 3rd, and those who join (only 500b) can take part in the Evening Cruise and BBQ on August 17th. More info (tel): 06 911 6869 or e-mail: gmorning@loxinfo.co.th
* Live music with dinner at Chiengmai Gymkhana Club on August 4th from 7.00pm at 250b each. First Friday of every month from now onwards.
* A Children’s Health Contest with prizes for different age groups is being held on August 5th at the Lamphun Tourist Centre on the river. More info from: 0-5351-1766 ext 317 & 318.
* ‘Mishima: Letters, Eros, Death’ is the title of a film presentation and talk by Paul McCarthy at the Informal Northern Thai Group at 7.30pm on August 8th. Venue is the Alliance Francaise, Charoenprathet Road.
* The British Council Chiangmai presents 3 days of professional training workshops on ‘Report Writing for Business & Academic Purposes’ on the 9th, 16th and 23rd of August. Writing reports which briefly and succinctly capture the outcome of an event and capture the reader’s interest is a difficult task in a foreign language. The fee is 3,000b per entrant including refreshments. More? Call 0-5324-2103, ext 17
* A national holiday in recognition of the birthday of Her Majesty the Queen on August 12th will be held on Monday, August 14th and all government offices, banks, schools and post offices will be closed, except the one at the airport.
* The Debussy Festival continues with Bennet Lerner and friends at the piano of Payap University’s Multi-Media Room, Mae Ko campus. Tickets cost 200b for 7.30pm on August 26th.
NEWS OF THE PAST
In August 1996, ‘Good Morning Chiangmai NEWS’ reported:
* Many banks were refusing to accept US 100 dollar bills due to excellent fakes carrying the 1990 code.
* Thailand was to purchase 8 FA18C jet fighters from McDonnell Douglas valued at 9,000 million baht. Provided that the US bought 2,000 million baht’s worth of frozen chicken, rubber, leather, toys and rice.
* Malaysia proudly announced that cholera had been eradicated and hoped that hotel bookings would improve at its previous source, the popular Thai visa-trip island of Penang
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