In his 1975 book, Southeast Asia on a Shoestring, Tony Wheeler, founder of Lonely Planet, devoted a large section to Thailand’s extra-ordinary scenery and wondrous temples – but on the cheap. Since then, students, hippies, drop-outs and partygoers from the US, Europe, Australasia, Japan and Canada have flocked to Thailand, Lonely Planet guidebooks tucked in their backpacks. And so tourism became big business in Thailand. But for many Thais, it is not yet nearly big enough.

 

The land of smiles, as Thailand is known, is still very welcoming. But it’s not the thought of more backpackers and travellers on a shoestring budget that are making Thais smile – it’s the prospect of getting a larger slice of big spending, brand-conscious tourism.

 

Strategic manoeuvering

 

The marketing groundwork towards turning Thailand into a big budget destination has been going on for years. From 1998 to 2000, the Tourism Authority of Thailand (TAT) ran an “Amazing Thailand” ad campaign that played up Thailand as an exotic destination. Tourist numbers did beat targets, despite Thailand being the epicentre of what became known as the East Asian Financial Crisis. The success of Amazing Thailand was such that it even spawned a copycat campaign – Amazing Finland.

 

Now the TAT is switching strategies, with a new, three-year marketing campaign, “Thailand Unforgettable”. “In a major departure from the previous policy, targets will now be revenue-based, designed to achieve a revenue target rather than an arrivals target,” the Travel Daily News quoted TAT governor Juthamas Siriwan as saying.

 

If successful, the campaign will have a major impact on Thailand’s economy. “Tourism is certainly a very important revenue generator for the Thai market and the Tourism Authority of Thailand has been doing a great job in introducing the unique beauty of the nation to the world at large, and, most importantly, meeting the expectations of inbound tourists,” says Steven Britton, Managing Director for Synovate Thailand. “Without doubt much of these expectations are matched by the natural environment, the blend of modern and traditional infrastructure, a wide variety of recreation activities, as well as the sensational cuisine.”

 

Niche holiday-makers such as golfers, shoppers, honeymooners, medical tourists and senior citizens will also be targeted with specific ad campaigns. “This (the new campaign) will allow us to better target the required market segments and also promote the geographical distribution of visitors nationwide so as to better distribute tourism earnings and also prevent over-congestion at popular tourist spots,” says one TAT official.

 

The playing field

 

Boosting tourism will be a harder challenge than in the past. There is fierce competition from popular destinations like Hong Kong and Singapore, while China, India, Indonesia, Laos, Malaysia and the Philippines are revving up their own marketing strategies. Hong Kong and China recently entered the ranks of the world’s top ten destinations in terms of arrivals, according to the World Tourism Organization. The latest rankings put Thailand at 18th.

 

To be competitive, say industry analysts, Thailand will increase tourism promotions in traditional markets and target new ones intensively. And with China’s massive population getting wealthier, Thailand is going all out to attract mainland money. Lavish videos are being released in China and tour guides are learning Mandarin to help capture more of that growing market.

 

Building that big time shine

 

Attracting more, high-spending tourists also means having the infrastructure ready to deal with the influx. In this, Thailand has been slow off the mark, but not inactive. The Thai government has completed some major projects in recent years, including an elevated electric railway to ease Bangkok’s notoriously congested streets.

 

But the culmination of these plans came on 28 September, when the new Suvarnabhumi Airport officially opened. Suvarnabhumi is Bangkok’s answer to other major airports in the region and replaces its older, overstretched international airport. The new airport is designed to handle up to 45 million passengers a year – the same volume as Hong Kong’s famed international airport.

 

Making sure that all those big-spending tourists have a luxurious place to stay is big business. “In recent years, Thailand has consistently and successfully marketed itself as a high-end destination, catering to a more discerning clientele in search of luxury products,” says Peter de Jong, President and CEO of the Pacific Asia Travel Association. “Nearly every Bangkok five-star property now offers spas and wellness products, whereas beachside resorts, such as in Pattaya and Hua Hin, are adding upscale properties catering to more affluent families.”

 

Shopaholics identified

 

Getting tourists to spend more on each trip makes sense, particularly for Thailand. Foreign tourists spend nearly 30% of their travel budget on shopping, according to Kriengsak Tantiphipop, Chief Marketing Officer of Siam Paragon, a big new shopping mall in Bangkok. Siam Paragon wants a big piece of that 30%.

 

Last December, the 500,000-square-metre mall debuted as Southeast Asia’s largest mall, and the biggest and most extravagant shopping centre in Bangkok. It features an opera house, an aquarium, cinemas and bowling lanes, as well as some 300 retail boutiques featuring brands such as Hermés, Prada, Gucci and Chanel. There are also showrooms selling Maserati, Lamborghini and Porsche cars.

 

“Thailand has always been a tourist destination, but it’s never been a shopping paradise,” says Supaluck Umpujh, Vice-Chairman of Siam Paragon Development. “We are repositioning our country to become a regional shopping destination like Hong Kong and Singapore. I think we have a lot of advantages – we have very beautiful tourist attractions already.”

 

Any concern that the recent military coup might damage the tourism industry so far appears unwarranted. The Financial Times reported that foreign investors would quickly get back to business and quoted International Monetary Fund Managing Director Rodrigo Rato as saying that “Thailand’s economy is fundamentally strong.” Steven Britton of Synovate says that most Thais appear happy that the political stalemate is over.

 

Thailand faces the task of luring big-spending tourists away from established shopping meccas. But combining the country’s famed natural beauty with five-star hotels and glamorous shopping might be the winning ticket. And that means backpacks may soon be replaced by Gucci shopping bags in unforgettable Thailand.