Bangkok – the most visited city in the world
According to the latest MasterCard Global Destination Cities Index, Bangkok took first place as the most visited city in the world in 2016 based on visitors staying overnight in the Kingdom.
Cities in the Asia pacific region made up half of all cities visited in the world.
The top ten list was as follows:
- Bangkok – 21.47 million
- London – 19.88 million
- Paris – 18.03 million
- Dubai – 15.27 million
- New York – 12.75 million
- Singapore – 12.11 million
- Kuala Lumpur – 12.02 million
- Istanbul – 11.95 million
- Tokyo – 11.70 million
Seoul – 10.20 million
Senior vice president, Asia Pacific, MasterCard Advisors, Eric Schneider was quoted as saying, “Asia Pacific has been the fastest growing region for international tourism since 2005, with underlying growth momentum expected to continue especially with the burgeoning middle class in Southeast Asia, China and India seeking new travel experiences within the region. Even as the tourism sector becomes more competitive, countries seeking to attract visitors need to continue to innovate and cater to the needs and preferences of the changing demographic of tourists today. Crucially, tourism has the power to drive significant social, economic, cultural and environmental development of cities in both developed and developing markets. While it brings challenges, it can also be the catalyst for large investment in cities and businesses and governments need to understand how to harness this potential in order to ensure continued smart development and sustainable growth in cities around the world.”
In previous years Bangkok and London have been seen vying for the top position but in the most recent index, Bangkok had a healthy lead over the British Capital with nearly 2 million more visitors during the period.
Attractions in Bangkok included the many temples such as Wat Phra Kaew, or Temple of the Emerald Buddha, Wat Traimitis, the “Temple of the Golden Buddha.” And Wat Pho, or Temple of the Reclining Buddha, the most popular attraction in Bangkok due to its detailed architecture. Also of interest was Wat Arun, or Temple of Dawn, which is particularly scenic in the morning light from the banks of the Chao Phraya River.
The grand palace was considered a must see by many international tourists.
Other attractions included the popular night markets such as Chat-u-Chak and the Ratchada Night Train Markets, famous for great food and all kinds of products.
Up market shopping malls such as Terminal 21, Siam Paragon and Central World amongst many others also were a big draw for visitors. These malls provide a great range of cafes and restaurants, department stores and boutique shops as well as the all-important air-conditioned environment.
Experiencing a trip in a tuk-tuk, taking a colorful taxi or riding the BTS were all attractions in themselves.
Bangkok also offers great parks and superb hotels to relax in, as well as a range of gyms and spas for maximum wellness.
Global Economic Advisor for MasterCard, Dr. Yuwa Hedrick-Wong, was quoted as saying, “The continuing strength of global tourism is one of the silver linings of an otherwise complicated and less-than-satisfactory recovery since the 2008/09 crisis. To a very large extent this is driven by an expanding middle class in many emerging markets. For such middle class households, traveling overseas is a priority as their discretionary spending expands.”
Asia pacific cities also dominated the index of fastest growing destination cities in the world with Osaka in first place there. Based on travel from China and Korea.
Nissan increases production as demand soars
Nissan is experiencing increased demand for its well liked models such as the Kicks e-Power SUV and is expanding its production in Thailand. Accordingly, it is looking to hire 2000 new staff at its production facility in Samut Prakan.
The President of Nissan in Thailand, Ramesh Narasimhan, was quoted as saying, “The increased production comes on the heels of growing exports, in particular for the Nissan Kicks e-Power and Nissan Navara,” adding, “Within Thailand, we also see strong demand for the all-new Nissan Almera, the urban sedan, and the Kicks e-Power.”
Nissan vehicles made in Thailand are exported to more than 100 countries worldwide. The surge in demand follows a dampening of business sentiment earlier in the year.
Mr. Narasimhan was also quoted as saying, “The increased demand for Thailand-made vehicles demonstrates the quality of our team and our products,” adding, “Nissan’s investment and additional job creation will positively contribute towards the automotive supply chain and the Thai economy.”
Thailand faces a difficult economic recovery without foreign tourists
According to Fitch ratings agency Thailand will have a difficult recovery ahead if a lack of foreign tourist arrivals persists for a long time. Last year, Thailand welcomed a record 39.8 million foreign tourist, but since April this year, the number has dropped to zero.
Global head of sovereign and supranational ratings at Fitch, James McCormack, was quoted as saying,
“I think it is very hard to see Thailand mounting an aggressive recovery in [economic] growth in the absence of some kind of improvement in the tourism sector.”
Yet there are other areas of the economy that can begin to make up for the lost revenue. Exports of goods and merchandise may grow if the global economy picks up steam.
As well, the government has joined many other governments around the world in increasing spending and public debt in order to offset the effects of the economic damage done by the coronavirus. The public debt to GDP ratio is currently at 48 per cent but it is expected to rise to 57 per cent. How the government manages this extra debt will be key.
Mr. McCormack was also quoted as saying, “The real focus is what happens afterwards. The policy framework that Thailand has had for many years is a prudent approach for public finance, so we expect that to continue in the aftermath of the crisis and for any elevated level of government debt to be brought back down again.”
Agoda lays off staff but sees resilience for the future
On-line travel portal Agoda announced that it is in a good position to weather a long-term downturn in the travel industry after laying off 1500 out of 5500 employees. Of the remaining 4000 employees, 2,200 are based in Thailand.
Regarding the layoffs, Agoda’s chief executive, John Brown, was quoted as saying, “It was one of the hardest days of my professional career,” adding, “But from a cash flow perspective we are okay and do not have to cut more staff even if the situation continues for 1-2 more years.”
For domestic bookings, customers are choosing a higher class of accommodation since their local travel trips are typically shorter than international holidays. As well, cheap domestic flights have enabled people to save money and this has often been used to upgrade to more luxurious hotels.
The most popular domestic tourism destinations for Thais are similar to those that were preferred by foreign tourists, namely Phuket, Pattaya, Chiang Mai, Bangkok, and Hua Hin.
