New Tourism Marketing Trends

Greg DuffellChief Executive Officer

Monday, 9th August 2010

Pacific Asia Travel Association (PATA)US registered N4P membership association1952/53 Hawaii to promote the sustainable

growth, value & quality of tourism to, from & within “Pacific Area” region

Global community of Tourism professionals incl. 1,100 corporate members (Govt + Pvte sector); 7,500+ individual members worldwide

HQ Bangkok, 35 staff; 5 regions; 40 Chapters

The PATA region

Industry Events

Research & Publications

www.PATA.org

Global Travel Community

24/7 INFORMATION ACCESS

TourismDirect Tourism Model

F&BTransportHospitalityEntertainmentGifts & SouvenirsRetail – Duty Free

6-7% GDP

Indirect Tourism Model

F&BRetail Health InsuranceEmploymentEconomic + FXManufactured goods Supply Chain ServicesPublic Transport (BTS/MRT)Public Services (Tourist Police)Private Transport (Vans, Taxi, Car)

14-19% GDP

7 to 9,000,000

7 to 9,000,000

GDP=pC+I+G(eX-i)

Voluntary transfer of resources from RICH to NOT-SO-RICHBenefiting mostly at the community level

ROI Tourism

Source: PATA

International visitor arrivals trends to March 2010 Southeast Asia

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%Ja

n-0

8

Mar

-08

May

-08

Jul-

08

Sep

-08

No

v-08

Jan

-09

Mar

-09

May

-09

Jul-

09

Sep

-09

No

v-09

Jan

-10

Mar

-10

IVA

yea

r-o

n-y

ear

% c

han

ge

Source: relevant NTOs, compiled by PATA

ASEAN tourism trends 1993-2009Indonesia, Malaysia, Philippines, Singapore, Thailand & Vietnam

Source: relevant NTOs, compiled by PATA

ASEAN tourism trends 2004-2012FIndonesia, Malaysia, Singapore &Thailand

Source: relevant NTOs, compiled by PATA

ASEAN tourism trends 2004-2012FCambodia, Lao PDR, Myanmar, Philippines & Vietnam

Thailand: top source markets

Source: relevant NTOs, compiled by PATA

Scale = Ten Thousand

Source: relevant NTOs, compiled by PATA

Scale = Ten Thousand

Source market: arrivals from China (PRC)Cambodia, Malaysia, Singapore, Thailand & Vietnam

Source: relevant NTOs, compiled by PATA

Source market: arrivals from IndiaMalaysia, Singapore & Thailand

Index of Foreign ArrivalsTo SEA and Thailand, year 2005 = 100.0

Thailand: international visitor arrivals trends

Source: TAT , Ministry of Tourism & Sports and eTTR Daily

Note: May 2010 figures are estimates based on Bangkok International Airport data, May 2010 from eTTR Daily

Thailand: international visitor arrivals trends

Source: TAT and Ministry of Tourism & Sports

Data: international arrivals (excludes overseas Thais)

Barriers to Travel

1Deters me

From visiting

3Does Not affect

My decision

Ranking

Terrorism 1.89

2Consider Changing

Destination

Infectious diseases 1.91

Racial discrimination 2.10

Natural disaster 2.18

Airport delays & hassles 2.40

1

2

3

4

5

Source:Visa+PATATravel Survey 2009

EMERGENCY DECREE

?26

1

2

3

Other Concerns

10 x Tourism Marketing Trends

1: ACCESSABILITY

60%

Alternate Gateway Hubs Emerging

PhuketHCMC

Singapore

Hong Kong

KLIA

Bangkok Manila

Kunming

Low Cost Carriers

Worlds Biggest & Best Low Cost Carrier Airport

2: COMPETITIVENESS

PRICING

20% - 70%

PRODUCT

Hong Kong

MACAU

Singapore Integrated Resorts

3: TECHNOLOGY

# 4

INVESTMENT

5: Sales & Marketing

CUSTOMER POWER“The worst place we

have every stayed at…”

PAX Early Warning Systems

6: Aging Populations

Thailand Long Stay

CruiseVALUE

7: Niche Market Opportunities

Under Water Weddings

GAP Year

SPA

Medical

Shopping

Experiential

8: Domestic TourismNo longer low costLocal seasonality

9: Rise of Regional States

Arrivals from SEA Traveling to 2nd Tier Destinations

Farm StaysCommunity Based TourismSoft Adventure ToursCultural/Heritage ToursVisiting Family & Friends

LOCATIONRegional Tourism

1.2m

96,643

96,643

639,

673

639,

673

152,

663

102,018

Regional Highways & Rail (?)

10: PARTNERSHIPS

PATA Task Force1975 – Chiang Mai, A program for Expanding

the Airport 1989 – A Tourist Development Study on Khao

Yai National Park2000 - Positioning the Thai-Eco-Land for

Sustainable Tourism Development: Trang, Krabi, Satun and Pattalung

2002 - Tailoring Chang Islands for the New Market

PATA Task Force 2010-11Thailand’s Sustainable TourismReview Public & Private sector Tourism

interestsCoordinate with MOTS, TAT, TCT, etcThai and Farang experts

1TOURISMDESTINATION

Together – Join PATAwww.PATA.org