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TAT eyes 1m Chinese visitors in October

The Tourism Authority of Thailand (TAT) hopes the Chinese market can surge to 1 million arrivals per month in October, as occurred in 2019,

thanks to increasing flight capacity and an influx of demand during high season, with e-visa issues resolved by that time.

Chuwit Sirivejkul, TAT regional director of marketing for East Asia, said the agency is confident that Chinese tourist growth is on track to surpass 5 million arrivals this year, generating 446 billion baht.

Flight slots between Thailand and China total 6 million available seats from April to October, an average of 600,000 to 900,000 seats per month. An estimated 840,260 seats are available in October.

Roughly 10,000 Chinese people are visiting Thailand each day, peaking at 18,000 to 20,000 per day during the Labour Day holiday earlier this month.

Airports of Thailand plans to increase ground handling services for two existing providers, Thai Airways International and Bangkok Flight Services, which should help facilitate growing demand, said Mr.Chuwit.

He said Thailand should expect a huge number of Chinese tourists in the second half, especially family trips between June to August during school holidays, followed by incentive business groups in September.

China's National Day, a seven-day holiday in October, should also accelerate travel demand through the end of the year, with more chartered flights, said Mr Chuwit.

Regarding the limited capacity for visa applications for Chinese tour groups, he said TAT will discuss the matter with the Foreign Affairs Ministry next week. The e-visa application system for Chinese tour groups allows 84,000 applications per month.

Following negative comments about safety in Thailand circulating on Chinese social media last month, Mr Chuwit said it resulted in a slowdown in secondary Thai tourist cities. The impact is short-term should not affect overall growth this year, he said.

At the end of May, Mr Chuwit said the TAT plans to invite Chinese influencers to Thailand to increase their confidence in tourism safety, via a press conference co-hosted by the Royal Thai Police.

He said despite promising growth, challenges include a lack of Chinese-speaking staff and financial tech development to cater to Chinese spending behaviour. Of the 8.5 million foreign tourists from January to April, Chinese tourists tallied 843,920.

TAT recently launched an ad campaign titled "Unboxing Thailand" targeting Chinese millennials, tallying 2 million views since April.

 

Source Bangkok Post

Survey Shows Positive Outlook for Southeast Asian Tourism Industry

Milieu Insight, Southeast Asia’s foremost consumer research company, recently surveyed 2,500 working individuals aged 20-65 in Indonesia, Thailand, Vietnam, Philippines, and Malaysia to gauge their travel plans for the upcoming summer. The results provide a positive outlook for the region’s tourism industry, with nearly 80% of respondents expressing a willingness to travel domestically.

According to the survey, almost half of the respondents plan to take two to three domestic trips this year, with 40% of Thai respondents planning four or more trips, the highest across the region for domestic travel intent. This suggests that travel companies should consider offering packages and promotions that cater to multiple trips to boost the frequency of travel.

Furthermore, the survey revealed that concerns about COVID-19 safety have diminished in most countries surveyed, except for the Philippines, which recorded the highest level of concern, likely due to the rise in cases in the country.

Regarding key considerations for domestic travel, travel spots and sceneries are top priorities for Indonesia, Thailand, and Vietnam, while safety tops the list for the Philippines. Regarding preferred destinations, Boracay in the Philippines, Bali in Indonesia, Da Nang in Vietnam, Sabah in Malaysia, and Phi Phi Island in Thailand are the top choices among respondents.

In addition, national carriers such as Philippine Airlines, Garuda Indonesia, and Vietnam Airlines are favoured by respondents from the Philippines, Indonesia, and Vietnam. In contrast, low-cost carrier AirAsia is the airline of choice for travellers in Malaysia and Thailand.

When planning activities, Southeast Asians proved to be foodies, with many planning food trips. Beach holiday activities were prevalent in the Philippines, while touring was a favourite activity for Thai respondents. Museum visits were also popular in Vietnam and Malaysia.

Overall, the survey highlights the importance of offering packages that cater to travellers’ preferences and the need for the tourism industry to focus on promoting domestic travel. With a diverse range of activities and destinations, the region has much to offer, and travel companies must take note of these trends to remain competitive.

To read more about the survey, visit the Milieu Insight website.

 

Source DESTINATION THAILAND NEWS

SAIC Motor Starts Construction of New Industrial Park in Thailand

Chinese car manufacturer SAIC Motor has started construction of a new energy industrial park in Thailand, which is expected to focus on localized production of key auto parts for the company’s new energy vehicles (NEVs).

According to the carmaker, the Phase I construction of the park is estimated to be completed this year, while the complete construction of the park will be finished in 2025.

The new energy park, located in Chon Buri province, will cover 120,000 square meters and boast standard workshops, a container yard, and a logistics warehouse, as well as complete facilities including drainage systems and a parking lot. Several upstream NEV core and key component enterprises have expressed their intention to settle in the industrial park in the future.

As early as 2013, SAIC teamed up with Charoen Pokphand Group to found SAIC Motor-CP, a joint venture, in its bid to develop the vast ASEAN market.

SAIC’s MG brand, which entered the Thai market in 2013, has become an increasingly popular brand among Thai customers. As of April, MG brand’s total sales in Thailand notched up more than 173,000 vehicles. Last year alone, SAIC Motor-CP manufactured and sold about 32,000 whole vehicles - making it one of SAIC’s major overseas production and sales bases.

In 2022, SAIC saw its sales in overseas markets reach over 1 million vehicles, ranking top among Chinese carmakers for the seventh consecutive year and marking the company becoming the first domestic automaker to achieve this milestone.

 

Source NATIONAL NEWS BUREAU OF THAILAND

Chinese Look to Thai Property Market for Safe Investments Amid Uncertainty

Chinese nationals have been seeking out property purchases in Thailand since Beijing opened its borders this year.

Many Chinese are reportedly eager to invest in a residence overseas, keen for a safety net in case of another pandemic, and also to hedge against economic risks.

Data from website Trip.com showed that Thailand was the most popular outbound destination for Chinese travelers during the May Labor Day holiday, followed by Japan and South Korea.

The kingdom’s reputable international schools and quality medical facilities are also drawing increasing numbers keen to acquire a second home.

Thailand expects at least 5 million Chinese visitors this year, with some set to buy property, although the figure is still a far cry from pre-pandemic levels when they made up nearly a third of the 40 million arrivals.

Mesak Chunharakchot, President of the Thai Real Estate Association, said: "There is definitely demand from China for properties in Thailand."

He added that topping buyers’ lists are locations in major cities such as the capital, Bangkok, along with Chiang Mai in the mountainous north, the east coast beach resort of Pattaya, and the northeastern region of Isan.

Although Thai rules limit foreign ownership to just 49% of the units in any condominium development, prospective buyers are pouring in, bringing business to real estate agents who target Chinese buyers.

 

Source : NATIONAL NEWS BUREAU OF THAILAND

Thai property developer to sell fraction of condos by issuing digital tokens

Peerapong Jaroon-ek, chief executive officer of Origin Property, said at a press conference on Thursday that the issuance of digital token "RealX" for investment is aimed at making 361 units of three condo buildings — Park Origin Phrom Phong, Park Origin Phayathai, and Park Origin Thonglor — available as smaller investment units via tokenisation technology.

Digital asset investment firm Real Estate Exponential and TokenX, an initial coin offering portal that offers end-to-end tokenisation services, are partnering Origin Property in this venture.

Peerapong explained that this type of asset fractionalisation, made possible by current financial technology, was created to alleviate the pain points of the new generation and the general public who are interested in investing in the property sector.

He noted that the digital asset form enabled small investors to invest in expensive assets such as real estate. One RealX digital token will be equivalent to investing in a condo area of about 1 square inch.

It may not be the best way to own a luxurious condominium as buyers cannot move into it, but it is a long-term valuable option in the property investment cycle, Peerapong said.

Veraphong Chutipat, CEO of Real Estate Exponential, said that in the past, property investment was only available to the wealthy. Retail investors, however, can now gain access to this industry thanks to blockchain technology and tokenisation.

He emphasised that the RealX token is different from other cryptocurrencies as the token is backed by real luxurious condominium assets.

Jittinun Chatsiharach, CEO of Token X, said RealX was in the regulatory process with Thailand's Securities and Exchange Commission.

The first public initial coin offering is expected in June, with no more than 19,230,769 tokens at a price of 182 baht per token and a total value of no more than 3.5 billion baht, she said.

 

She explained that the funds would be invested in the Revenue Sale and Transfer Agreement contract, which will generate income from the project's assets for transaction expenses, loan payment from fundraising, and use as working capital of digital token issuers.

According to Peerapong, investment in Real X has a project life of 10 years from the start date of the project.

Holders of digital tokens will receive two types of returns: (1) a quarterly return on the net rental of the condo during the first five years, and (2) a chance to receive 10-25% of the condo price difference that is expected to increase after the sixth year of investment.

Retail investors cannot buy more than 300,000 baht per person in "RealX" digital tokens.

 

Source THE NATION THAILAND

 

Asean must press on with regional integration in increasingly troubled world: PM Lee

Asean must press on with its regional integration efforts – whether in economic collaboration or cooperation in transnational issues – amid an increasingly troubled global environment, said Singapore Prime Minister Lee Hsien Loong on May 10.

“Given the troubled global outlook, we must stay cohesive and united at the highest levels, including by embracing a shared vision for Asean’s future,” he said at the plenary of the Asean Summit in Labuan Bajo, Indonesia.

During the closed-door meeting, PM Lee said he welcomed two statements by Asean leaders – one on the development of the Asean community’s post-2025 vision, and the other on strengthening Asean’s capacity and institutional effectiveness.

These affirm the South-east Asian bloc’s shared commitment to “remain open, transparent, inclusive and rules-based, with deeper external engagements”, he said. They also push for new areas of cooperation, including sustainability, cybersecurity, and the digital and green economies.

On the economic front, PM Lee said there is a need to upgrade core agreements – such as the Asean Trade in Goods Agreement – to keep them relevant to evolving business practices, even as the bloc expands collaboration into new growth areas both within and with external partners.

Singapore “strongly supports” Indonesia’s efforts to develop the Asean Digital Economy Framework Agreement, PM Lee said, noting that there are “tremendous economic gains” to be reaped by improving the digital connectivity and literacy of people in Asean.

He added that Singapore also supports the strengthening of energy interconnectivity under Indonesia’s chairmanship this year. An Asean power grid, he added, would not only strengthen member states’ energy security and resilience, but also advance regional decarbonisation.

The Laos-Thailand-Malaysia-Singapore power integration project shows that multilateral power trading in the region is feasible, and more can be done to build on this, he said.

Beyond the economic sphere, PM Lee called for a step-up in cooperation on transnational issues, such as in areas of cross-border human trafficking and cybersecurity.

Deepening cooperation in these areas, he said, requires strong political support, particularly in an “increasingly troubled” post-Covid global environment.

PM Lee also welcomed Timor-Leste Prime Minister Taur Matan Ruak to his first Asean Summit as an observer, adding that the bloc looks forward to adding the country as the 11th member.

He said Asean is taking a significant step to adopt a road map for Timor-Leste’s full membership, noting that the “robust and comprehensive” set of criteria has been “extensively discussed and carefully designed”.

Following the plenary, PM Lee met Taur on the sidelines and affirmed the long-standing and positive relations between Singapore and Timor-Leste.

A spokesperson from Singapore’s Prime Minister’s Office (PMO) said Singapore looks forward to the active participation of Timorese officials in the Singapore-Timor-Leste Asean Readiness Support training package that the city-state launched in December.

Separately, PM Lee and Vietnam PM Pham Minh Chinh discussed cooperation between their countries and exchanged views on regional developments during a meeting on the sidelines of the summit.

The PMO spokesperson said Singapore and Vietnam have a growing partnership in the green and digital economies, and the leaders look forward to making progress in these areas.

The two countries are commemorating the 50th anniversary of diplomatic relations and 10th anniversary of their strategic partnership this year.

PM Lee’s third bilateral meeting on the sidelines of the summit was with the newly elected Laos Prime Minister Sonexay Siphandone.

The leaders discussed areas to deepen cooperation in the energy, digital and sustainability domains, said the PMO spokesperson, adding that both countries enjoy warm and friendly relations.

PM Lee also congratulated Dr Sonexay on his appointment, the spokesperson said, adding that this is their first meeting since the latter became prime minister.


Source: The Business Times. Link HERE.

Jokowi seeks full implementation of Indonesia-South Korea trade cooperation

President Joko Widodo (Jokowi) has sought a full implementation of trade cooperation under the Indonesia-Korea Comprehensive Economic Partnership Agreement (IK-CEPA), including support for 18 projects proposed by Indonesia. Jokowi made the statement during a bilateral meeting with South Korean President Yoon Suk Yeol at Grand Prince Hotel in Hiroshima, Japan. Jokowi has also sought Yoon's support for the realization of commitments made by several South Korean companies to invest in Indonesia, including Lotte Chemical and CJ Group to establish a chemical plant in Banten and a bioproduct factory in East Java; LS Cable and TSE's commitment on the distribution of new and renewable energy; as well as the realization of investment on electric vehicle ecosystem.

Full Article: Antara News.

PH to expand skills framework for more sectors

The Philippine Skills Framework (PSF) aiming to build the skills and competencies of Filipino workers to support employability, will be expanded for more sectors.

Nelly Nita Dillera, PSF initiative project director and executive director of the Department of Trade and Industry-Philippine Trade Training Center, said other priority sectors for PSF development include the information technology and business process management, tourism, construction, additive manufacturing, food, and health and wellness.

Dillera said sectoral skills frameworks have been already developed for supply chain and logistics, game development and digital animation; and those that cross-sectoral in application including human capital development and marketing and sales.

She added components of PSF are career pathways, occupations and job roles, functional skills and competencies, enabling skills and competencies, and training programs for skills upgrading.

“PSF creates a common skills language for individuals, employers and training providers. (It) builds deep skills for a lean workforce, enhances business competitiveness, (and) supports employment and employability,” she said.

Dillera said the development of skills documents for various sectors benefit employers, individuals, education and training providers, and government, unions and professional bodies.

She said the PSF is a valuable tool for individuals looking to build their careers as it provides training for skills upgrading and deepening, and opportunities for career progression and conversion.

Dillera said employers building the skills of their workforce also benefit from the skills framework initiative, citing the recruitment and talent management, staff deployment, training and development, and performance and rewards management.

Asia-Pacific region urged to implement climate-smart trade, investment policies

Economies in the Asia and the Pacific region can implement climate-smart trade and investment policies to combat climate change given its exports of manufactured goods and investment in manufacturing industries, according to a study by the United Nations.

An United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) study said such policies are defined as all government regulations aiming to reduce or limit net greenhouse gas emissions that can affect foreign trade and investment.

It said eliminating fossil fuel subsidies and establishing carbon pricing mechanisms are among the main policies that internalize the environmental costs of greenhouse gas emissions.

The Race to Net Zero: Accelerating Climate Action in Asia and the Pacific said unilateral or regional carbon pricing mechanisms can help economies in the region prepare for potential border carbon adjustment taxes.

“Carbon-pricing instruments can be a powerful component of post-Covid-19 (coronavirus disease 2019) recovery packages, which could simultaneously address greenhouse gas emissions and raise much needed revenue. The proceeds from carbon-pricing schemes should be channeled towards green growth and the circular economy as well as to help those most affected by the schemes,” it added.

The UN study also recommends other climate-smart trade and investment policies, including liberalizing trade in environmental goods and services, addressing cross-border trade inefficiencies, setting emissions standards for imports, implementing non-tariff measures (NTMs), and addressing other wasteful subsidies.

“Barriers to trade in environmental goods, which include technologies vital for climate action, such as solar panels and wind turbines, are more prevalent than barriers to trade in carbon-intensive fossil fuels,” it said.

The UN study said that apart from a few notable exceptions, such as Japan and the Philippines, 21 out of the 26 economies examined are imposing more non-technical NTMs on imports of environmental goods than on imports of carbon-intensive fossil fuels.

While many countries in the region have set mandatory emissions standards on imports of vehicles, require energy ratings labels and ban trade in chlorofluorocarbons, the gaseous compounds most responsible for stratospheric ozone depletion, it added, “more should consider doing so.”

The study likewise advised economies in Asia and the Pacific to adopt climate-smart non-tariff measures and encourage voluntary eco-labelling.

“Such measures could include requirements related to energy performance, emissions from cars, and certification of the legal and sustainable sourcing of timber. Additionally, governments may want to encourage the adoption of voluntary sustainability standards, such as eco-labelling of emission-intensive goods and food products,” it said.

The UN said trade facilitation measures could result in reduced greenhouse gas intensity of trade.

Digital trade facilitation, such as the implementation of automated customs and paperless trade systems, can contribute significantly towards reducing carbon dioxide (CO2) emissions, the study said.

“Streamlining trade procedures reduces trade costs, makes trade more inclusive and significantly lowers CO2 emissions associated with a given trade transaction. Governments may accelerate their trade digitalization efforts, including by acceding to the Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific,” it added.

Moreover, the UN study said foreign direct investment (FDI) can help mitigate greenhouse gas emissions.

“Foreign investors can back projects that reduce emissions and use clean technology. They can support climate-friendly sectors, such as renewable energy, and water and waste management, or the conservation and efficient use of natural resources,” it said.

To encourage climate-smart investment and private sector initiatives, the UN said governments can play an important catalyst role by directing the investment bodies under their control to reorient their funds towards investing in low-carbon businesses.

“They can encourage other investors as well as companies to increase their sustainability reporting, adopt internal carbon pricing and set emission reduction goals aligned with what is needed to limit global warming to 1.5°C,” it added.

Embracing new technologies key to achieving rapid growth

The Philippines can equip the youths with skills of the future through embracing new technologies to achieve rapid growth enjoyed by other countries that use innovation as a vehicle for boosting national incomes.

Ruben Pascual, Philippine Chamber of Commerce and Industry (PCCI) Secretary General, said the competitive advantage of the Association of Southeast Asian Nations (ASEAN) and Asia is the technology-oriented “demographic dividend”.

“This technology mindset could and should be oriented to our innovation, starting to channel this mindset into important skills such as the use of data analytics, mobile development, artificial intelligence, cloud technology and web design,” he said during the National Innovation Day 2023.

Pascual said preparing the young workers for industries of the future thus could “bring us to the rapid growth path that China, Japan, Korea, Singapore and Israel were able to achieve through innovation and applying higher values for their respective economies.”

He underscored the importance of innovation especially as the Philippine economy is set to rebound from the pandemic.

“Innovation will allow us to leapfrog from where we are now to where we want to be in the next few years. Innovation is recognized as a driver for attracting investments aiming for competitiveness in the global market, creating more jobs and achieving overall development,” he added.

Pascual said the PCCI is committed to support the National Economic and Development Authority (NEDA), the Department of Science and Technology and other stakeholders in “Filipinnovation” in strengthening the country’s innovation ecosystem to provide better and greater opportunities for businesses and Filipino workers.

For his part, World Bank operations manager for the Philippines Dr. Achim Fock said the Philippines has several high profile innovative sectors and companies such as in automotive, aerospace, business process outsourcing (BPOs), ecommerce, financial technology (fintech) and other digital services.

“Since the Covid crisis, the adaptation of digital technologies has been increasing steadily and many of these Philippine companies and innovative (ones) have presence in other countries in the region. More needs to be done,” he said.

Leveraging digital marketing solutions to grow international biz

Companies are advised to leverage digital marketing solutions to grow especially their international business or export and keep ahead of the competition.

“Digital marketing increases brand awareness, generates leads, improves customer engagement, and provides measurable results,” e-commerce advocate and digital influencer Janette Toral said in a webinar organized by the Philippine Trade Training Center-Global MSME (micro, small and medium enterprises) Academy.

Toral said digital spending includes influencer engagement and pay-per-click, social media and video advertising and the likes.

She underscored the aspect of commoditization involving indirect competition or products that may indirectly compete with what one is selling.

“Although branding is important, we cannot ignore the importance also of becoming price friendly for our target market but at the same time retain some certain level of profitability. So for commoditization, it challenges entrepreneurs to also think about how they are going to price their products,” she added.

Toral said there are a lot of factors that need to be considered to make products price competitive amid local and international competitors who are also producing the same products and maybe offering these at cheaper price.

“So these are some of the challenges and a lot of entrepreneurs turn to digital marketing to try to see if this is something that they can address,” she said.

However, Toral said marketing does not necessarily gain clients but a company should be credible so they will be interested to possibly do business with.

“So the first thing that they will have to identify is that, are you credible enough as a business? What is your vision as a business?... Does it have a certificate of product registration, does it have the necessary import or export permits so that your international clients can feel comfortable in dealing with you?,” she said.

Through building trust, Toral said leads will be confident to inquire about products and services and may want to do business with a business.

“So our communication through digital marketing must show that we are competent, must show that we have integrity as an entity, how we honor customer complaints, (and) how we prioritize customer satisfaction,” she said.

“Because the moment you compromise that (customer satisfaction), it affects your integrity, it also questions your commitment and it will create an impression that you are not a reliable business entity at all so all of your digital marketing efforts will be wasted if the backend operations of the business that is supposed to fulfill the products that are being created and to be delivered to the customer does not meet your customers’ expectations,” she added.

Toral said companies need to invest in digital marketing as content creation plays a big role.

“If you are only advertising on one portal or one marketplace and your whole marketing effort is entirely focused on that, maybe when people search for you, there will be limited information that they’ll be able to find and it may lead to uncertainty if people really want to do business with you,” she said.

Toral further said companies whose products have the necessary documentation for it to be exported can join platforms like Alibaba, Lazada International and Amazon.com.

“So there are many options for you out there but I guess it depends on the countries that you are targeting but those sites are usually a good start. You have to provide value and solve problems so connecting with customers is not just about showing ads. Connecting with customers or connecting with your prospects is all about adding value and solving problems,” she said.

Consumer profiles driving businesses in 2025 cited

A report by trend forecaster WGSN has identified consumer profiles that will drive businesses in 2025 as brands are encouraged to provide products and services that will make life easier and more affordable.

“It’s critical that you provide relief for consumers as they grapple with the pressures of inflation, recession, climate change and geopolitical instability. Identify how your brand can offer a sense of calm, escapism or even humor…,” it said.

The four consumer profiles include The New Nihilists, The Reductionists, The Time Keepers, and The Pioneers.

The New Nihilists are overwhelmed by global problems and they have lost faith in the ability of governments or institutions to fix them so they are seeking solace by stepping back from the world.

“New Nihilists gravitate towards speculative ideas and creative genres that are outside the mainstream, whether it’s regenerative capitalism, chaos culture, hope punk fiction (dystopian themes with optimistic outcomes), or gaming and psychedelics as a form of therapy. To reach them, you need to show that you are on their level,” the report said.

After embracing digital convenience and remote living during the pandemic, The Reductionists are looking to re-establish in real life (IRL) connections and communities with a more human touch.

“They believe that economic growth should be a means to support people and the planet, not the other way round, and they shop with these values in mind. They still want their time-saving conveniences and efficiencies, but they need these things to be sustainable and ethical, powered by fairly paid workers and business models that give back more than they take,” the report said.

It added they can be found by supporting ethical businesses such as vacation rental platform Fairbnb, which directs half of every commission fee to local community projects, or Delivery Co-Op in the United States, which charges customers a monthly membership fee so it can provide drivers with fair wages and benefits.

The Time Keepers are rallying against social media snippet culture by investing their minutes and hours in things that add value to their world.

“These consumers need services that free up their time, and rental or fractional ownership models that free them from full-time commitments,” the report said.

The Pioneers are movers, shakers and opportunity-makers who thrive on change and new ideas. They live with one foot in the physical world and one foot in the digital, and they are determined to bridge the gap between the two.

“Pioneers need solutions that improve the world, whether that’s universal designs that can be used by people of all ages and abilities, or more personalized products and services that will be loved for longer and wasted less. These curious consumers are equally comfortable in physical and digital worlds – for them, the purpose is more important than the platform,” it added.

To succeed, brands are called to build connections and communities, offer quality over quantity, and help people switch modes.

“Make the world feel smaller and friendlier by embedding a human touch into your products and services, and by ensuring that your business makes a positive impact in the world. Treating people and the planet with kindness and respect is the best way for your brand to build a lasting, loyal community,” the report said.

As hybrid lifestyles continue and the metaverse develops, it added it will be imperative to help people to switch between these different versions of themselves, and also “help them ring-fence their privacy and personal space in a world with fewer boundaries.”

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