Monday, June 20, 2022

The Tourism Industry Is Still In ICU

Discouraged by the news of the transformation of the tourism sector being suggested by the government, a friend who is currently domiciled abroad has put on hold his million dollars FDI resort project – he will wait for the dust to settle.

Post pandemic, Thailand has recorded just about 7% tourist arrivals - compared to 2019.

Bali is doing even worst.

Cost of air tickets have more than doubled – air tickets that could be had for US$300.00 before the pandemic is now quoted at US$750.00. NYC-BKK-NYC round trip cost has shot through the roof – it is now quoted at over US$2,000.00.

The government of Thailand deferred the imposition of US$9.00 fee – when some analysts cautioned the government that it would impact tourist arrivals. As opposed to that we are talking of imposing US$ 200.00 SDF.

During the PMO’s briefing on last Saturday, I submitted to the government that two of our tourism products should be considered for preferential treatment – birding and trekking. I was informed that no tourism product would be accorded special status. But the truth is that these two offerings are indeed SPECIAL – because they are the longest duration tour packages – anywhere from 14 days to 24 days. The imposition of US$200.00 SDF will effectively kill these two products.

Bhutan as a birding destination is so important to the global birdwatching community that the world's #3 birder came to Bhutan to record two of his life birds. Peter Kaestner, during his tenure as the Deputy Ambassador of the US based in New Delhi, came to Bhutan to see the White-bellied Heron and the Fulvous Parrotbill - two birds he had never seen in his life before. The Bhutanese Embassy in New Delhi and the Ministry of Foreign Affairs in Thimphu requested me to act as his guide. I did - and happily Peter was able to see the White-bellied Heron in Lekithang in Punakha on the first day and the Parrotbill on the second day - in Dochu-La.

The issue of few hundred hotels going out of business caused by the high SDF came up. It was opined that the construction of these hotels was purely a business decision. I countered that the proliferation of the hotels in the country came about because of the country’s enabling and conducive policies in place. When that situation is altered – the onus will be on government who does it - to provide alternative avenues for the hotels.

Yesterday a hotelier friend called me up to update him on the latest on the transformation policy of the government. I told him that we would know for sure today when the issue would be deliberated in the National Assembly. But I told him to start digging a hole in the ground in which to hide - just in case.

He said he will do no such thing – he said he would lock up the hotel and hand over the keys to the bank.

But yesterday evening a friend offered the view that according to him the biggest tragedy in the whole affair is Yeshey Dorji – I am the most concerned and make the most noise – and I don’t even have a tour operation license to my name!

4 comments:

  1. I browsed through the Bill and was struck by how concise it was - for such an important Bill, the only thing that stood out was point 7, the levy.

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  2. We are all concerned, in the industry or not. I am. Thankyou for your clarity, vision and honesty. Patrizia

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  3. Sadly, politicians are ass47 members in the assembly nobody had the guts to point out how senseless this Bill was at this time. If tourism mattered, read this bill - 15 pages, 7 in Dzongkha and 7 in English and the only substance was Point 7.

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  4. Maybe the hon'uble legislators believe in "Lucky number 7".

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