Bomb threats hamper waning European fliers

Incidents weaken demand already hit by soaring fuel prices, airfares

Bomb threats targeting several European flights on Thursday are likely to further disrupt long-haul tourism during the high season, following a 20-30% market contraction due to soaring travel costs.

The Association of Thai Travel Agents (Atta) is urging the government to incentivise 300 flights from China and Russia, targeting 2.25 billion baht in revenue from 45,000 tourists while restoring confidence in the Chinese market amid a travel alert issued by the Chinese embassy.

Nearly 30 flights across Europe were reportedly affected by bomb threats on Thursday, though all landed safely.

Tourism and Sports Minister Surasak Phancharoenworakul said the incident could affect the European market, further weakening demand already hit by soaring fuel prices and airfares.

The ministry instructed the Tourism Authority of Thailand (TAT) to step up marketing support for airlines within its existing annual budget to sustain demand during the high season.

If additional funding is needed, the ministry will ask the cabinet to allocate funds from the central budget at a later stage, said Mr Surasak.

Thanet Supornsahasrungsi, president of the Association of the Chonburi Tourism Federation, said the European market during this high season has declined by 20-30% year-on-year, mainly due to soaring airfares and waning confidence in transiting through Middle Eastern hubs, which normally offer cheaper fares than direct flights.

The recent bomb threats across Europe would further erode confidence among travellers still waiting to book, he noted.

However, those who have already purchased air tickets are likely to proceed with their trips as cancelling flights, particularly during the peak season, could bear an opportunity cost as it would be difficult to buy new tickets at the same price, said Mr Thanet. "The ongoing uncertainty surrounding conflicts in the Middle East and flight safety concerns following the recent bomb threats will continue to weigh on the long-haul market," he said.

"Pattaya may be able to secure strong Russian demand, but relying on a single market will not be enough to sustain the entire industry."

CHINESE COOPERATION

Mr Surasak said he met Chinese ambassador Zhang Jianwei on Thursday to discuss cooperation between the ministry and the Chinese embassy in addressing security concerns.

He said the embassy maintained that travel advisories were standard practice, as the Chinese government was obliged to alert its citizens, but media reports had exaggerated public concerns, resulting in declining Chinese arrivals since the Golden Week holiday in early October.

Following the meeting, Mr Surasak said the embassy, ministry and Tourist Police agreed to establish a joint working group to share information on illegal businesses using Thailand as a transit hub to scam Chinese nationals in Myanmar, including cases involving Chinese perpetrators targeting their fellow nationals.

Adith Chairattananon, honorary secretary-general of Atta, said the Chinese market may post growth this year based on a strong performance in the first half, mainly attributed to incentives for around 1,000 Chinese charter flights offered by the TAT.

However, the private sector is concerned that arrivals could slow in the final two months, largely due to the travel advisory issued by the Chinese embassy in Thailand.

The downtrend became more apparent after the Golden Week holiday in early October, as tourists are concerned about reports of the travel advisory circulating on social media, resulting in a decline in daily Chinese arrivals from an average of 10,000 to 7,000.

Without any additional measures, growth of the Chinese market is likely to remain below 10%, falling short of double-digit forecasts made at the start of the year, said Mr Adith.