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Report from Bangkok Post dated Monday 18 June 2007 :-

Backpackers a key market, hoteliers say
=============================

While Thai tourism authorities are increasingly focusing on wealthy tourists, the backpacker segment continues to grow strongly and should not be ignored, according to Victor Pang, vice-president for development of hotel chain Accor.

The number of low-cost, young backpacker tourists was rising worldwide, particularly from countries such as Japan, Hong Kong, Singapore and even Thailand, he said.

Mr Pang, speaking on Friday at a Bangkok Bank seminar on tourism trends, noted that low-cost airline traffic in the region was rising 20% per year, signalling the strength of the backpacker market.

Asia is a prime destination for many Western backpackers due to low costs and interesting cultural attractions in countries like Burma, Laos, Vietnam and Thailand.

''Backpackers today don't necessarily have long, unkempt hair, dirty clothes and little money. Now they are mostly smart, well educated, and have greater resources to purchase goods at a reasonable price,'' Mr Pang said.

Studies in various countries have also shown that backpackers stay in a country for much longer than other tourists and that more of their money ends up in the hands of local small businesses rather than big hotel chains, not all of them locally owned.

Mr Pang pointed to changing trends on Bangkok's Khao San Road, a world-famous destination for young tourists.

Room rates have now risen to as much as 2,000 baht per night in the area, compared with only 400 to 500 baht per night in the past. But business operators needed to distinguish between the low-end backpacker and the high-end when considering their market position and brand, Mr Pang said.

Location was also critical, and would-be hoteliers had to consider not just the surrounding tourist attractions, but also the potential to draw locals from the community.

William Heinecke, chairman of the hotel and food operator Minor International Plc, said he believed Thailand's tourism market would continue to grow strongly over the next five to 10 years.Asian inbound tourism in particular was projected to grow, thanks to rapid economic growth in the region.

''Thailand is located in one of the best locations within reach of China, Japan, India and Indonesia. Tourists are able to reach the country within a six-hour flight. This is a good advantage,'' Mr Heinecke said.

He noted that revenues per available room continued to grow, given relatively limited supply. But hotel rates in Bangkok now lagged behind those at comparable hotels in Hanoi and Ho Chi Minh.

Mr Pang agreed that Vietnam was developing quickly into a key competitor to Thailand for foreign tourists.

Investment in Vietnam had skyrocketed in recent years, thanks to market liberalisation and the country's favourable location in the region.


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Posted on: 1:47 am on June 18, 2007
     

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