Jul 21, 2012

ASEAN - ASEAN: Tap middle class cash

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BANGKOK 20 July 2012: Thailand needs to tap ASEAN’s emerging middle class convincing them Thailand is a “must-see” destination, Association of Southeast Asian Nations general secretary, Surin Pitsuwan, told delegates attending an ASEAN Economic Community 2015 seminar Thursday.

The 10-member countries of ASEAN attracted 81 million travellers, last year, an increase of 10% year-on-year,  of which 60% were foreigners and 40% ASEAN citizens.

Mr Surin suggested: “Thailand should adopt a new model to improve the country quality and competitiveness instead of using cheap labour and natural resources.”

He told the tourism industry it needs to seek new partners in the region, create new attractions, activities, and tour programmes for travellers particularly for repeaters, many of them ASEAN citizens.

Emphasising the spending power of a middle class society in the 10-country region, Mr Surin said it was imperative for Thailand to play catch up.

“On average Thais earn US$4,300 to US$4,500 in income per head per year, which is the rate of a mid-income country when compared to neighbours Singapore at US$45,000; Brunei US$37,000 to US$38,000; and Malaysia US$9,400 to US$9,500.”

He was addressing around 200 business executives many of them from the tourism and service sector on the challenges they will face in the approach to ASEAN Economic Community 2015.

ASEAN in terms of revenue ranked ninth worldwide in 2011 with over US$80,000 million invested in the region.

Of that investment, 70% circulated in the services segment mainly to tap ASEAN’s growing middle class who have strong purchasing power.

“They need more quality of life and good services, therefore, Thailand needs to find out how to upgrade from a mid-income country to a higher ranking and achieve a US$10,000 per person per year income.”

“To do it the country needs to development research, design, create intellectual property, build new products and have proper copy right in terms of production to raise the country competency and get out of the mid-income trap.”

In addition, he recommended that there should be more cross border investment specifically between SMEs, while inbound tour operators in the meantime have to adjust themselves and turn to the outbound market to build intra ASEAN travel.

“This is the real integration of ASEAN to make the region a single destination,” he said.

He recommended that the Board of Investment of Thailand should be a leader to survey and study ASEAN member countries and provide information to Thai tour operators on potential hotel, tourist attractions and suitable places for investment.



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