Cablegate: Thailand Tourism Still Strong, but Wary of Further

VZCZCXRO1182
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHBK #0361 0181003
ZNR UUUUU ZZH
R 181003Z JAN 07
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC 4174
INFO RUCNASE/ASEAN MEMBER COLLECTIVE

UNCLAS BANGKOK 000361

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: EIND ECON TH
SUBJECT: THAILAND TOURISM STILL STRONG, BUT WARY OF FURTHER
SHOCKS

REF: BANGKOK 14

1. Continuing discussQns with tourism industry contacts in
the local AMCHAM and the Thailand chapter of the Pacific Asia
Travel Association (PATA) since the reftel report indicate
that the New Year's Eve bombings in Bangkok have had very
little effect on tourism in Thailand to date. Contacts
report very few cancellations and solid performance for
current bookings. One contact noted that the timing for the
U.S. market was fortuitous, with other news items and the
holiday season relegating reports of the Bangkok bombs to
short columns on inner pages. Some have expressed optimism
for a strong year in 2007, while remaining hesitant to
speculate on the levels that might have been reached without
the adverse publicity generated by the coup and the bombings.

2. Despite the rosy picture, contact have also made clear
that there will be no further chances for Thailand. Thailand
has played its mulligan, as it were: if there are further
disturbances like the New Year's Eve bombings tourism in the
country will take a big hit. One contact revealed that the
U.S.-based organizers he works with on incentive and tour
packages have let him know they will stop selling Thailand as
a destination if there is more trouble.

3. Comment: In the tourism industry Thailand is a strong
'brand' with a well developed infrastructure, and the country
remains a popular and relatively safe destination.
Nevertheless tourism is a highly competitive sector and
further bad publicity is likely to have a significant impact
on the industry in Thailand as travelers begin to consider
alternative options in the region and globally.
BOYCE

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