Tourism Sector Calls for Lower Electricity Charges

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The Tourism Council of Thailand is lobbying the government to reduce electricity fees for tourism-related businesses nationwide for up to two years to help the industry cope with a slowdown in business.

The Tourism Council of Thailand is lobbying the government to reduce electricity fees for tourism-related businesses nationwide for up to two years to help the industry cope with a slowdown in business.


Vichit Na Ranong, the council chairman, said the agency would petition Deputy Prime Minister Somkid Jatusripitak, who oversees the Tourism Ministry, to seek his support for a cut in electricity rates.


Members of the council agreed to push authorities for reductions at a meeting in Krabi last week.


Tourism businesses are required to pay electricity rates charged to the service industry, which is higher than rates paid by industrial firms.


Industrial companies avoid paying high electricity fees assessed during peak times by increasing their activities during off-peak hours to enjoy lower electricity rates.


But Mr Vichit said the service sector is charged a flat rate based on charges assessed at peak times.


He said electricity fees accounted for at least 10 percent of the total costs of the hotel industry, depending on the scale and type of services.


The council is also asking the government to reduce landing fees and airport taxes in the tsunami-hit provinces, Mr Vichit said.


Currently, only 10 percent of tourism businesses in those provinces are making ends meet while the rest are closing down. Many airlines have cut back on their flight services to tsunami-stricken areas while others have cancelled all flights to the region.


As part of the petition to the deputy prime minister, the council would also call on the government to speed up the disbursement of compensation to business operators affected by the tsunami, Mr Vichit said.


He said to help accelerate the recovery of tourism businesses in affected areas, the government should require state agencies to organise meetings in the six tsunami-hit provinces.


Phornsiri Manoharn, the deputy governor of the Tourism Authority of Thailand (TAT), said foreign tourist arrivals in Phuket fell to 159,423 for the first five months of the year, compared with 1.19 million the same period last year. Tourist arrivals to Don Muang airport over the period fell to 3.18 million from 8.18 million last year.


She said the agency agreed to a proposal from the private sector that more focus should be made to promote niche tourism markets.


Tourists in this market, such as yacht owners or ecotourists, tends to spend twice as much as mass market tourists, who currently average about 4,000 baht in spending per person per day.


Under the new policy, niche market tourists are expected to rise to 20 percent of all tourists from 15 percent now.


Facilities such as golf courses, spas, health centres and wedding facilities will also be improved to meet international standards to support the policy.


Sommas Siriwong, the TAT director for Malaysia and Brunei, said his unit had sought cooperation from Singapore Airlines and Malaysian Airlines to organise trips for Muslims from the two countries to visit Muslim communities in Thailand.


In addition, tourism executives also stress the need for the government to take greater action to correct the negative fallout resulting from heavy tourism development in certain areas.


An environmentally friendly management and an eco-tourism approach was needed, speakers said yesterday at a Travel Trade Forum titled "Thailand: A Model for Sustainable Tourism".


The forum is part of the Thailand Travel Mart 2005 Plus and International Travel Show 2005, running at the Impact Exhibition Centre in Muang Thong Thani from today through Sunday.


The first two days of the show, starting today, is for trade visitors, with the show to later be opened to the public during the weekend.


Organisers expect a total of 600 buyers from 50 countries to participate at the expo.


Source: Knight Ridder/Tribune Business News