CHAPTER:1 INTRODUCTION

1.1 GENERAL INFORMATION OF THAILAND Bangkok Capital City 1 hrs ahead of India. Time Difference Average Climate JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC in Bangkok 32 33 34 35 34 33 33 33 32 32 31 31 Max 22 24 26 27 27 27 26 26 26 26 24 22 Min 20 36 58 198 160 160 175 305 206 66 5 Rain MM 8 Daily Maximum & Minimum averages are guides only & may vary 1 USD = 30 THB Currency Conversion 1 THB = 1.50 INR* (Rates are indicative) Mostly Thai but Chinese, Malay and English also Languages spoken. British Style plug with two flat blades and one flat Electric plug grounding blade. Some areas also have plug with two circular metal pins. TUK TUKS: Also Known as Sam Lor(three Getting Around wheeled). A ride in Tuk-Tuk is mostly for the experience of the ride. Normally a very short trip will cost around THB 30. Negotiating and haggling is a must! TAXIS: Taxis come in funky colours like bright orange, red and even pink. The fare starts at THB 35, and gradually works its way up with THB 2 per kilometre. BANGKOK SKYTRAIN (BTS): The BTS or Skytrain, crosses the city and connects many of the most popular areas with a frequency of 3-6 minutes or so between 0630 hrs and midnight. Fares start at THB 15 for one stop. One day passes cost THB 120.

1.2 COUNTRY PROFILE THAILAND Formal Name: Kingdom of Thailand (Ratcha Anachak Thai). Short Form: Thailand (Prathet ThaiLand of the Free, or, less formally, Muang Thaialso meaning Land of the Free; officially known from 1855 to 1939 and from1946 to 1949 as Siam Prathet Sayam, a historical name referring to people in the chao Phraya Valleythe name used by Europeans since 1592). Term for Citizen(s): Thai (singular and plural). Capital: Bangkok (in Thai, Krung Thep,City of Angels). Major Cities: The largest metropolitan area is the capital, Bangkok, with an estimated 9.6 million inhabitants in 2002. According to the 2000 Thai census, 6.3 million people were living in the metropolitan area (combining Bangkok and Thon Buri). Other major cities, based on 2000 census data, include Samut Prakan (378,000), Nanthaburi (291,000), Udon Thani (220,000), and Nakhon Ratchasima (204,000). Fifteen other cities had populations of more than 100,000 in 2000. Independence: The traditional founding date is 1238. Unlike other nations in Southeast asia, Thailand was never colonized. National Public Holidays: New Years Day (January 1), Makha Bucha Day (Buddhist All Saints Day, movable date in late January to early March), Chakri Day (celebration of the current dynasty, April 6), Songkran Day (New Years according to Thai lunar calendar, movable date in April), National Labor Day (May 1), Coronation Day (May 5), Visakha Bucha Day (Triple Anniversary Daycommemorates the birth, death, and enlightenment of Buddha, movable date in May), Asanha Bucha Day (Buddhist Monkhood Day, movable date in July), Khao Phansa

(beginning of Buddhist Lent, movable date in July), Queens Birthday (August 12), Chulalongkorn Day (birthday of King Rama V, October 23), Kings BirthdayThailands National Day (December 5), Constitution Day (December 10), and New Years Eve (December 31). The Thai calendar has been adapted to the Western calendar of days, weeks, and months. Years are numbered according to the Buddhist era, which commenced 543 years before the Christian era. Therefore, 2005 is the year 2548 in the Buddhist era.

Flag: Five horizontal bands of red (on top), white, blue (double width), white, and red. The red stripes represent unity of the nation, the white strips represent purity of religion, and the blue stripe in the center represents the king.

GEOGRAPHY Location: Thailand is located in the center of peninsular Southeast Asia. Burma is to the west, Laos to the north and east, Cambodia to the southeast, and Malaysia to the south. The south coast of Thailand faces the Gulf of Thailand, while the Isthmus of Kra is bordered on the west by the Andaman Sea (part of the Indian Ocean) and on the east by the Gulf of Thailand. Thailand also has coastal islands in the Andaman Sea and the Gulf of Thailand. The largest, with provincial status, is Phuket, off the west coast; on the gulf side, the largest islands are Samui and Pangan. Size: Estimates vary. Official Thai sources report 513,115 square kilometers. U.S. government sources state that Thailand has a total of 511,770 square kilometers of land area and 2,230 square kilometers of water area for a total of 514,000 square kilometers. Land Boundaries: The total land boundary is 4,863 kilometers in length, including borders with Burma (1,800 kilometers), Laos (1,754 kilometers), Cambodia (803 kilometers), and Malaysia (506 kilometers). A dispute between Thailand and Laos over MeKong River islands continues to delay completion of an agreement on the demarcation of their boundary. Thailand has significant differences with Burma over the alignment of their boundary. There are disputed sections of the Thai-Cambodia border where border markers are missing. Land mines, the remnants of former conflicts, are still to be foundsometimes with lethal consequencesalong Thailands borders with Cambodia and Laos. Although Thailand has no actual border dispute
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with Malaysia, terrorist and insurgent activities in the frontier area lead to frequent border closures and tight security. Length of Coastline: The coastline is 3,219 kilometers long: 750 kilometers on the Andaman Sea and 2,469 kilometers on the Gulf of Thailand. Maritime Claims: Thailand claims a 12-nautical-mile territorial sea, a 200-nautical-mile exclusive economic zone, and a continental shelf to a 200-meter depthor to the depth of exploitation. Topography: Topography and drainage define four main regions: north, northeast, central, and south. In the north, the chief topographic features are high mountains along the borders with Burma and Laos and extending down the Isthmus of Kra to the southern border with Malaysia. The central plain, which extends to the Gulf of Thailand, is a lowland area drained by the Chao Phraya and its tributary rivers. The upland Khorat Plateau in the northeast drains into the River Mun. The narrow, tropical Isthmus of Kra runs from mainland Thailand to the border with peninsular Malaysia. It has a low-lying range of hills at the narrowest part, about 600 meters in elevation. The highest point is Doi Inthanon, in Chiang Mai Province in northwestern Thailand, at 2,565 meters above sea level. The lowest point is along the Gulf of Thailand at zero meters above sea level. Principal Rivers: The principal river is the Chao Phraya, which, with its tributaries, drains about33 percent of the national territory and flows south into a delta at Bangkok. The Mun and many other smaller upland rivers are tributaries of the Mekong, which forms the border between Thailand and Laos before flowing into Cambodia and Vietnam and into the South China Sea. Together, the Chao Phraya and Mekong systems sustain Thailands agricultural economy and provide waterways for inland navigation. Climate: A tropical country, Thailand has three distinct seasons. The first is a hot and dry season from February to May, with an average temperature of 34E C and 75 percent relative humidity.
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This season is followed by a rainy, cooler season brought by the southwest monsoon from June to September, with an average daily temperature of 29E C and 87 percent relative humidity. A cooler, dry season, caused by the northeast monsoon, lasts from November to January, with temperatures ranging from 32E C to less than 20E C and lower relative humidity. The Isthmus of Kra is always hot and humid and has the heaviest rainfall. The lightest rainfall is in the northeast. Temperatures in Bangkok range between 20E C and 35E C. Natural Resources: Thailands major natural resources are fluorite, gypsum, lead, lignite, natural gas, rubber, tantalum, tin, and tungsten. Renewable resources include fish and timber. Land Use: Roughly 20 percent of Thailand is covered by mountains and hills, the steepness of which generally precludes agriculture. As of 2005, rich arable land accounted for nearly 27.5 percent of the total area. About 6.9 percent was planted to permanent crops. Some 49,860 square kilometers of land were irrigated according to 2003 estimates. Environmental Factors: The depletion of the water table around Bangkok has led to land subsidence. Despite the annual southwest monsoon, Thailand is subject to drought. Other environmental issues include air pollution from vehicle emissions, water pollution from organic and factory wastes, deforestation, soil erosion, and wildlife population depletion from illegal hunting. Thailand is also vulnerable to devastating tsunamis, such as the one that struck the Andaman Sea coast on December 26, 2004. It killed more than 5,300 people, including foreign visitors, and left another 2,900 missing. Time Zone: Thailand has one time zoneBangkok time (Greenwich Mean TimeGMT plus seven hours). SOCIETY Population: Thailands population was estimated at 64,631,595 in July 2006, making it the nineteenth most populous country in the world. The population growth rate was estimated in 2006 at 0.68 percent. The net migration rate, also based on a 2006 estimate, is 0 percent. In 2005
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about 68 percent of the population lived in rural areas and 32 percent in urban areas. The largest population, according to 2000 census data, was in the northeast, with 20.7 million inhabitants and a population density of 122.9 persons per square kilometer. The central region, excluding Bangkok, had the next largest population in 2000, with 14 million inhabitants and a density of 137.8 persons per square kilometer. Bangkok itself had a population of 6.3 million inhabitants and a population density of 4,038 persons per square kilometer. The mountainous north had nearly 11.4 million people, with a density of 67 persons per square kilometer, while the south had 8 million people and a density of 113.9 persons per square kilometer.

Demography: According to estimates of Thailands age structure for 2006, 22 percent of inhabitants are less than 15 years of age, 70 percent are 1564 years of age, and 8 percent are 65 and older. Estimates made in 2006 indicate a birthrate of 13.8 births per 1,000 population and a death rate of 7 deaths per 1,000. In 2006 life expectancy was estimated at 74.6 years for women and 69.9 years for men, or nearly 72.2 years total. The infant mortality rate was estimated at nearly 19.4 per 1,000 live births in 2006. The total fertility rate for 2006 has been estimated at nearly 1.6 children per woman. Ethnic Groups: Official government estimates indicate that people of Thai ethnicity make up 75 percent of the population. Another 14 percent are ethnic Chinese, and 4 percent are Malay, leaving 7 percent as uncategorized. Additionally, as of 2004 Thailand hosted some 188,400 refugees from Burma, many of them ethnic, non-Thai-speaking Karen who fled their country in the face of fighting between Karen rebels and Burmese troops. An estimated 1 million members of hill tribes, collectively called highlanders, live in the northwest. Remnants of 1940s Chinese Nationalist military forces and their descendants and children of Vietnamese immigrants live in northeastern Thailand. Languages: Nearly 94 percent of the people speak Tai-Kadai (Daic) languages, with Thai (in various dialects) being predominant and the national and official language. Another 2 percent speak Austro-Asiatic languages, 2 percent speak Austronesian languages, 1 percent speak Tibeto-Burman languages, and 0.2 percent speak Hmong-Mien languages. Standard Thai is based on the dialect spoken in the Chao Phraya Valley. The Thai alphabet, with 44 consonants
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and 32 vowels, originated during the reign of King Ramkhamhaeng (Rama the Great, r. 1279-98) and is an adaptation of Mon and Khmer scripts derived from Indian Devanagari. Some 74 languages are spoken in Thailand, including numerous Thai dialects plus English, which is the secondary language among the well educated and is widely understood, especially in Bangkok and other large urban areas, where it is a major language of business. Ethnic and regional dialects also are spoken, as are various dialects of Chinese. Religion: The predominant religion is Theravada Buddhism, representing about 94 percent of the practicing population and about 90 percent of all Thai people. Muslims represent 4.6 percent; Christians, 0.7 percent; Hindus, 0.1 percent; and Sikhs, Bahai Faith, and others, 0.6 percent. Section 73 of the constitution states that the state shall patronize and protect Buddhism and other religions, promote harmony among the followers of all religions, and encourage the application of religious principles to create virtue and develop the quality of life. Religious instruction is required in public schools at both the primary and secondary education levels. Education and Literacy: The Ministry of Education supervises public and private education. Starting in October 2002, the education system offered 12 years of free basic education to students nationwide: six years of primary education beginning at age six or seven, followed by three years of middle school and three years of high school, ending at age 18. Education has been compulsory through the ninth grade (from age seven to 16) since January 2003. With the addition of two years of preprimary schooling, the length of education was extended to 14 years in May 2004. In 2006 an estimated 96 percent of students completed grade six, 80 percent completed grade nine, and 79 percent completed grade 12. In 2004 more than 8.8 million students were enrolled in 32,413 primary, middle, and high schools; 631,000 students were enrolled in 612 vocational education institutions. Thailand also has 20 state universities, 12 of which are in Bangkok, plus 26 private universities and colleges and some 120 other institutions of higher education. Some 1.9 million students were enrolled in postsecondary education in 20034. About half of all university graduates were women in 2004. The literacy rate in Thailand is 92.6 percent.

 Health: Data on health care are out of date, but in 1995 Thailand had 0.3 physicians and 1.9 hospital beds per 1,000 population. In 2002 annual spending on health care amounted to US$321 per person in purchasing power parity (PPP). Total expenditures represented about 4.4 percent of the gross domestic product (GDP); of this amount, 57.1 percent came from public sources and 42.9 percent from private sources. Some 85 percent of the population had access to potable water in 2002, and 99 percent had access to sanitation. Human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS) is a serious problem in Thailand. The United Nations Programme on HIV/AIDS (UNAIDS) reported in November 2004 that the Thai government had launched a well-funded, politically supported, and pragmatic response to the epidemic. As a result, national adult HIV prevalence has decreased to an estimated 1.5 percent of all persons aged 15 to 49 years (or about 1.8 percent of the total population). It was also reported that 58,000 adults and children had died from AIDS since the first case was reported in 1984. The government has begun to improve its support to persons with HIV/AIDS and has provided funds to HIV/AIDS support groups. Public programs have begun to alter unsafe behavior, but discrimination against those infected continues. The government has funded an antiretroviral drug program and, as of September 2006, more than 80,000 HIV/AIDS patients had received such drugs. Highly pathogenic H5N1 avian influenza (bird flu) has been found among birds in Thailand as well as surrounding areas. The government has pledged financial support for the prevention effort, which mainly focuses on changing poultry farming methods. Major infectious diseases in Thailand also include bacterial diarrhea, hepatitis, dengue fever, malaria, Japanese encephalitis, rabies, and leptospirosis. Welfare: Thailand has social welfare and social insurance systems. Social welfare involves welfare services aimed at the poor, persons with disabilities, children, the elderly, women, minority hill tribes, and other disadvantaged individuals. The social insurance system provides sickness, maternity, disability, death, dependent child, old age, and unemployment benefits. There also is a social security system for private-sector employees and medical security and pension systems for public-service employees, employees of national enterprises, and military personnel.

 ECONOMY Overview: Thailands developing, free-enterprise economy has recovered from the Asian financial crisis triggered by speculation against the Thai baht in 199798. By 2002 Thailands standard of living had returned to the level prevailing before the financial crisis. The recovery reflected the benefit of reform measures tied to assistance by the International Monetary Fund, direct investment from Japan, the United States, Singapore, and other nations, and surging exports. During 20014 the economy grew at a moderate rate, but the rate of growth was slower than in the booming 1980s and the first half of the 1990s. A long-term shift from agriculture to manufacturing and services continues, but about 39 percent of the workforce is still employed in agriculture, forestry, and fishing, although this sector is responsible for only 10 percent of gross domestic product (GDP). The economy is heavily dependent on exports, such as textiles and computer components, which account for 60 percent of GDP. Between 2002 and 2005, the number of poor declined by around 2 million. In percentage terms, the poverty rate declined from 15.6 percent in 2002 to 12 percent in 2004 and to 9.8 percent in 2005, according to the world Bank.

The military coup that took place on September 19, 2006, has not had a serious impact on the economy. The baht and financial markets experienced brief declines but soon stabilized when investment experts speculated that the coup would help resolve a political standoff that was hurting the economy. Thailands bond ratings are unchanged; however, credit rating agencies have reported that they may be downgraded depending on future developments. According to investment experts, the economy is strong enough to overcome the temporary disruption caused by the coup. Gross Domestic Product (GDP): In 2006 Thailands GDP was US$196.6 billion, reflecting a growth rate of 4.4 percent over 2005. Per capita GDP was US$9,100 using purchasing power parity. In 2006 services constituted 45.2 percent of GDP, followed closely by industry with a 44.9 percent share. Agriculture accounted for the remaining 10 percent.

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 Government Budget: In 2005 Thailands central government budget was estimated at US$35.2 billion. The budget was essentially in balance, with a small surplus of around US$467 million. Inflation: Consumer prices increased by 4.5 percent in 2005, up from 1.8 percent the previous year, partly as a result of global demand for crude oil. Agriculture, Forestry, and Fishing: In 2006 agriculture, forestry, and fishing contributed less than 10 percent of gross domestic product (GDP) but employed about 39 percent of the workforce. Thailand is the worlds leading exporter of rice and a major exporter of shrimp. Other agricultural products include coconuts, corn, rubber, soybeans, sugarcane, and tapioca. In 1985 Thailand officially designated 25 percent of the nations land area for protected forests and 15 percent for timber production. Protected forests have been set aside for conservation and recreation, while production forests are available for the forestry industry. Between 1992 and 2001, exports of logs and sawn timber increased from 50,000 cubic meters to 2 million cubic meters per year. The regional avian flu outbreak led to a contraction of Thailands agricultural sector during 2004, and the tsunami disaster of December 26, 2004, devastated the west coast fisheries industry. In 2006 agricultural GDP was estimated to have contracted by 10 percent. Mining and Minerals: Thailands major minerals include fluorite, gypsum, lead, lignite, natural gas, rubber, tantalum, tin, and tungsten. The tin mining industry has declined sharply since 1985, and Thailand has gradually become a net importer of tin. As of 2003, the main mineral export was gypsum. Thailand is the worlds second largest exporter of gypsum after Canada, even though government policy limits gypsum exports to prevent price cutting. In 2003 Thailand produced more than 40 types of minerals with an annual value of about US$740 million. However, more than 80 percent of these minerals were consumed domestically. In September 2003, in order to encourage foreign investment in the mining industry, the government relaxed severe restrictions on mining by foreign companies and reduced mineral royalties payable to the state.

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 Industry and Manufacturing: In 2006 industry contributed 44.9 percent of gross domestic product (GDP) but employed only 23 percent of the workforce. This relationship is the opposite of the one applying to agriculture. Industry expanded at an average annual rate of 3.4 percent during the 19952004 period. The most important subsector of industry is manufacturing, which accounted for 34.5 percent of GDP in 2004. Thailand is becoming a center of automobile manufacturing for the Association of Southeast Asian Nations (ASEAN) market. By 2004 automobile production had reached 930,000 units, more than twice as much as in 2001. Two automakers active in Thailand are Toyota and Ford. The expansion of the automotive industry has been a boon for domestic steel production. Thailands electronics industry faces competition from Malaysia and Singapore, while its textile industry faces competition from China and Vietnam. Energy: In 2004 Thailands total energy consumption was estimated at 3.4 quadrillion British thermal units, representing about 0.7 percent of total world energy consumption. Thailand is a net importer of oil and natural gas, but the government is promoting the use of ethanol to reduce imports of petroleum and the gasoline additive methyl tertiary butyl ether. In 2005 daily oil consumption of 838,000 barrels per day exceeded domestic production of 306,000 barrels per day. Thailands four oil refineries have a combined capacity of 703,100 barrels per day. Thailands government is considering establishing a regional oil processing and transportation hub, serving the needs of south-central China. In 2004 natural gas consumption of 1,055 billion cubic feet exceeded domestic production of 790 billion cubic feet. Also in 2004, estimated coal consumption of 30.4 million short tons exceeded coal production of 22.1 million short tons. As of January 2007, proven oil reserves totaled 290 million barrels, and proven natural gas reserves were 14.8 trillion cubic feet. In 2003 recoverable coal reserves totaled 1,492.5 million short tons.

In 2005 Thailand consumed about 127 billion kilowatt-hours of electricity. Electricity consumption rose by 4.7 percent in 2006 to 133 billion kilowatt-hours. According to the state electricity utility, the Electricity Generating Authority of Thailand, power consumption by residential consumers has been increasing because of more favorable rates given to residential customers over the industry and business sectors. Thailands state-controlled electric utility and petroleum monopolies are undergoing restructuring.
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 Services: In 2006 the services sector, which ranges from tourism to banking and finance, contributed 45.2 percent of gross domestic product (GDP) and employed 38 percent of the workforce. Banking and Finance: Dangerous levels of nonperforming assets at Thai banks helped trigger the attack on the Thai baht by currency speculators that led to the Asian financial crisis in 199798. By 2003 nonperforming assets had been cut in half to about 30 percent. Despite a return to profitability, however, Thailands banks continue to struggle with the legacy of the financial crisis in the form of unrealized losses and inadequate capital. Therefore, the government is considering various reforms, including establishing an integrated financial regulatory agency that would free up the Bank of Thailand to focus on monetary policy. In addition, the Thai government is attempting to strengthen the financial sector through the consolidation of commercial, state-owned, and foreign-owned institutions. Specifically, the governments Financial Sector Reform Master Plan, which was first introduced in early 2004, provides tax breaks to financial institutions that engage in mergers and acquisitions. The reform program has been deemed successful by outside experts. As of 2007, there were three stateowned commercial banks and five state-owned specialized banks, 15 Thai commercial banks, and 17 foreign banks in Thailand.

The Bank of Thailand sought to stem the flow of foreign funds into the country in December 2006. This led within one day to the largest drop in stock prices on the Stock Exchange of Thailand since the 1997 Asian financial crisis. The massive selling by foreign investors amounted more than US$708 million. Tourism: Tourism makes a larger contribution to Thailands economy (typically about 6 percent of gross domestic product) than that of any other Asian nation. In 2004 some 11 million tourists visited Thailand. However, terrorism in southern Thailand and in Indonesia and natural disasters, most notably the December 2004 tsunami, have taken their toll on tourism. One of the negative side effects of Thailands tourism industry is a burgeoning sex tourism industry and a related threat from human immunodeficiency virus/acquired immune deficiency syndrome
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(HIV/AIDS). Labor: Thailands labor force was estimated at 35.5 million in 2006. About 39 percent were employed in agriculture, 38 percent in services, and 23 percent in industry. In 2005 women constituted 48 percent of the labor force and held an increasing share of professional jobs. Less than 4 percent of the workforce is unionized, but 11 percent of industrial workers and 50 percent of state enterprise employees are unionized. Although laws applying to private-sector workers rights to form and join trade unions were unaffected by the September 19, 2006, military coup and its aftermath, workers who participate in union activities continue to have inadequate legal protection. According to the U.S. Department of State, union workers are inadequately protected. In 2006 Thailands unemployment rate was 2.1 percent of the labor force. Foreign Economic Relations: Thailand seeks expanded trade through free-trade agreements and multilateral cooperation within such organizations as the Asian Development Bank, AsiaPacific Economic Cooperation, Association of Southeast Asian Nations, and World Trade Organization. Under the auspices of the Asian Development Bank, Thailand joined the Greater Mekong Subregions development program in 1992. Japan and the United States are Thailands top two trading partners and sources of direct investment. Thailand grants the United States preferential treatment for investment under the Thai-U.S. Treaty of Amity and Economic Relations of 1966. Despite close economic ties between Thailand and the United States, the relationship suffers from disputes over agricultural trade, intellectual property rights, and customs procedures. In July 2005, Thailand reached bilateral free-trade agreements with key trading partners, such as Australia, New Zealand, China, India, and Bahrain. However, the trade deals were unpopular with domestic political opponents of the Thaksin Chinnawat government (20016) who claimed that the agreements failed to sufficiently protect Thai interests. China is gaining importance as a trading partner and competitor for foreign direct investment and export markets, particularly in the areas of agriculture, computer hardware, and textiles. Imports: In 2006 Thailand imported US$125.9 billion of goods, including raw materials and intermediates (US$51.9 billion), capital goods (US$33.1 billion), fuel and lubricants (US$25.4 billion), consumer goods (US$9.5 billion), and consumer durables, such as electrical appliances
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(US$6 billion). Thailands principal import partners in 2006 were Japan (20.4 percent), China (10.6 percent), the United States (6.7 percent), Malaysia (6.6 percent), and the United Arab Emirates (4.8 percent). Exports: In 2005 Thailand exported US$109.2 billion of goods. Most exports related to manufacturing, including machinery and mechanical appliances (US$16.1 billion), electrical apparatus for circuits (US$8.9 billion), integrated circuits and parts (US$5.5 billion), and textiles (US$5.5 billion). Thailands principal export partners in 2005 were the United States (15.4 percent), Japan (13.7 percent), China (8.3 percent), Singapore (6.8 percent), and Hong Kong (5.6 percent). Trade Balance: In 2006 Thailand posted a merchandise trade surplus of US$2.3 billion. Balance of Payments: In 2005 Thailand had a negative current account balance of US$3.7 billion. This deficit reflected the deterioration in the merchandise trade account, mainly because of a sharp rise in the import bill. According to an International Monetary Fund report, the current account deficit stood at US$3.7 billion in 2005. External Debt: As of June 2006, total external debt was US$57.83 billion, or about 34 percent of gross domestic product (GDP). Foreign exchange reserves, once depleted during the financial crisis of 199798, increased steadily to US$41 billion in 2003, US$51 billion in 2004, US$52 billion in 2005, and US$59 billion in 2006. Foreign Investment: In 2005 foreign direct investment was inbound US$3.3 billion. The largest foreign investors were the United States, Japan, Singapore, and the European Union. Foreign Aid: On July 31, 2003, Thailand repaid its outstanding obligations under a standby arrangement from the International Monetary Fund designed to help it recover from the 199798 Asian financial crisis. Payment was made one year ahead of schedule, reflecting the achievement of macroeconomic and balance-of-payments stability. In 2005 the World Bank was funding eight development projects in Thailand. These projects encompassed the areas of social investment
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(US$300 million), education (US$225 million), land titling (US$118 million), technical assistance (US$30 million), and energy (US$245 million). Despite the devastating tsunami of December 26, 2004, the Thai government announced it did not need any international financial assistance in response. Currency and Exchange Rate: Thailands currency is the baht. On July 11, 2007, one U.S. dollar was equivalent to 31.74 Thai baht. Currency is issued in 10, 20, 50, 100, 500, and 1,000 baht notes. Coins are minted in 25 and 50 satang and 1, 5, and 10 baht denominations. Fiscal Year: October 1 to September 30.

TRANSPORTATION AND TELECOMMUNICATIONS Overview: Where topography allows it, Thailand has an extensive network of roads and railroads. Rapid transit is burgeoning in an otherwise gridlocked Bangkok. Tourism and improved economic development led Bangkok to become a major regional air hub. New technology development has brought some improvements to the nations telecommunications network. Roads: Estimates vary on the length of roads in Thailand. According to a U.S. government estimate in 2000, Thailand had 57,403 kilometers of roads, 56,542 kilometers of which were paved and 861 kilometers, unpaved. Other sources indicate a lower total of fewer than 45,000 kilometers. Streets in Bangkok are frequently gridlocked, with an overabundance of motor vehicles flowing into the central city via expressways. Railroads: Railroads are operated under the auspices of the State Railway of Thailand. In 2005 the system totaled an estimated 4,071 kilometers of narrow-gauge (1.000-meter gauge) track. The system currently has some 270 diesel locomotives and nearly 250 diesel railcars or multiple- unit cars. According to figures provided for 2002, 55.7 million passenger journeys occurred, and the rail system hauled 9.9 million tons of freight. Freight traffic is considered an important part of Thailands domestic container transport to and from seaport and inland
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terminals. Rapid Transit: The Mass Rapid Transit Authority of Thailand operates a full metro service on a 21-kilometer-long, 18-station line that opened in Bangkok in 2004. The inaugural line will be extended in phases totaling 27 kilometers, and two future lines, totaling 67 kilometers, are planned. Ports: Thailands ports in order of size are Bangkok, Laem Chabang, Pattani, Phuket, Sattahip, Si Racha, and Songkhla. The Thai merchant fleet comprises 400 ships of 1,000 gross registered tons or more, including 145 cargo carriers, 91 petroleum tankers, 60 bulk carriers, 32 refrigerated cargo ships, 29 liquefied gas ships, 21 container ships, 14 chemical tankers, 6 passenger/cargo ships, 1 passenger ship, and 1 specialized tanker. Inland and Coastal Waterways: Thailand has some 4,000 kilometers of navigable inland waterways, 92 percent of which, or 3,701 kilometers, are navigable by boats with drafts up to 0.9 meters. Thailands long coastlines lend themselves to intercoastal trade. Civil Aviation and Airports: In 2006 Thailand had an estimated 108 airports and three heliports. Sixty-six of the airports had paved runways, including eight of more than 3,047 meters in length. Bangkok International Airport at Don Muang, 24 kilometers north of the capital, is an important regional hub for pass-through flights and as a destination. About 80 airlines provide service to the Bangkok International Airport and carry a reported 25 million passengers and 700,000 tons of cargo a year. Ground was broken for a new Bangkok international airport at Suwannabhumi, 30 kilometers east of Bangkok, in January 2002, with a new projected opening in 2006. When Suwannabhumi opens, Don Muang will be used for domestic flights only. Other major airports are at Chiangmai, Hat Yai, and Pattani. There are two Thai flag carriers. Thai Airways International, founded in 1960, offers domestic and worldwide coverage with a fleet of 81 passenger and cargo aircraft. Since 1977, Thai Airways has been fully owned by the Thai government. Bangkok Airways is a privately owned company founded in 1968 as an air taxi company; since 1986, it has served primarily as a domestic carrier. It also flies to Phnom Penh, Cambodia, and offers charter flights to Burma; it has a fleet of 11 aircraft.
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 Pipelines: In 2006 Thailand had 3,760 kilometers of gas pipelines and 379 kilometers of refined products pipelines. Telecommunications: In 2002 the Thai government formed a new Ministry of Information and Communications to oversee all aspects of telecommunications. By 2006 the ministry was to have liberalized the provision of telecommunications services under World Trade Organization guidelines. However, the proposed privatization of the state-owned Telephone Organization of Thailand and Communications Authority of Thailand remains controversial. The ministry also is responsible for implementing the countrys information technology policy, called IT 2010, which is designed to strengthen Thailands telecommunications infrastructure as a means of promoting overall economic development. Thailands telecommunications network suffers from delays and other shortfalls in the provision of telephone services as a result of inadequate investment. The quality and availability of telephone service are much better in Bangkok and other cities than in rural areas. Mobile telephones (27.3 million in 2005) are much more prevalent than landline phones (6.7 million in 2004). In 2005 Thailand had 8.4 million Internet users, representing less than 11 percent of the population. State entities, including the police and military, and government allies own almost all television and radio stations and play an important role in determining programming content. The governments Public Relations Department requires that all Thai radio stations carry 30 minutes of official news prepared by Radio Thailand, the governments national radio network, twice daily. Radio Thailand has seven networks that specialize in such areas as news and information, public affairs, social issues, education, and foreign-language broadcasts. Thailand has five television channels, two of which are run by the central government, two by the army, and one by a private enterprise. Altogether, Thailand has 204 AM radio stations, 334 FM radio stations, 6 shortwave stations, and 111 television broadcast stations. Additionally, there are between 2,000 and 3,000 community radio stations, many of which operate outside the law by using frequencies restricted to government entities. Those that register are allowed to continue broadcasting but others, including those critical of the government, have been shut down.

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1.3 INTRODUCTION TO TOURISM INDUSTRY Many developing countries perceive tourism as a fast track to economic growth. They assume that tourism development requires less investment than other industries; and they believe tourism to be an effective means of creating job opportunities and increasing local income. Thailand has long ascribed to this point of view; and it has devised a tourism marketing approach which encourages low-, medium-, and high-cost mass tourism to nearly all regions of the country. With the ubiquitous "Land of Smiles" advertising slogan promoted around the world, Thailand has become one of the best known, and most sought after, international tourist destinations. Despite this success, however, the tourism industry in Thailand is not without problems and controversy. Critics charge that tourism promotion in Thailand has aimed at quantity rather than quality. The explosion of tourism has brought uneven distribution of financial benefits, in favor of large enterprises, while costs are shouldered by local people who have no direct gain from tourist promotion. Worse still are the environmental effects of unbridled tourism development. While the Thai tourism industry touts and actively markets the country's unique cultures, this commercialization of culture also causes its erosion or corruption. Additionally, interaction between rural Thai dwellers and sophisticated urbanites from more developed countries introduces values, behavior and attitudes which may have corrosive or negative effects on local residents. Under these circumstances, then, it is worth examining the advantages and disadvantages of the tourism industry in Thailandand what trends it might take in the future.

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1.4 THE ROLE OF TOURISM IN THE THAI ECONOMY The volume of tourists coming to Thailand may not compare to the 27 to 50 million people travelling to France, Italy or Spain every year. Yet, when compared to other high-volume tourist destinations around the world, the growth and development of the tourism industry in Thailand is impressive. Egypt receives approximately 2.6 million tourists per year, while India annually draws in approximately 1.8 million tourists. By comparision, Thailand now accommodates approximately 5 million tourists per year, one of the highest figures for Southeast Asia. The number of tourists coming to Thailand has steadily, and in some years, spectacularly grown from 1.2 million in 1977 to 5.7 million in 1993. The income accrued from tourism contributes substantially to the Thai economy, now accounting for 5.4 percent of the country's GDP. This rate is higher than any other ASEAN country, except Singapore, whose tourism revenue accounts for 11.4 percent of its GDP. The Thai Government's Sixth National Economic and Social Development Plan (1987-1991) gave particular focus and attention to the development of tourism; the result was a substantial boost to tourism revenue from 50,000 million baht in 1987 to 123,135 million baht in 1992. This was partially caused by the government's promotion of "Visit Thailand Year" in 1987, a marketing exercise which increased national tourism income by 34 percent in 1987 and by 58 percent in 1988. By 1991, income from tourism was equivalent to two-thirds of the country's agricultural export earnings, and was nearly the same as the country's income from textile and garment exports. The number of tourists coming to Thailand remained constant in 1991, despite the Persian Gulf Crisis and a military coup in Thailand. Although the industry It is important to note that the increase in tourism revenue since 1981 has mostly derived from greater numbers of tourists coming to Thailand, and tourists extending their stay, rather than from higher daily expenses.

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1.5 WHAT THAILAND OFFERS THE TOURIST POSITIVE AND NEGATIVE Thailand is famous for its impressive historical sites, its rich and vibrant cultures, its beautiful beaches, its scenic countryside, and its gentle, polite and genuinely friendly people. A 1990-1991 study on tourism, in which 1,450 tourist agencies in 40 major cities in 26 countries were interviewed, ranked Thailand first in the categories of warmth and friendliness, moderate accommodation cost and interesting nightlife. The country ranked fourth in the category of excellent cuisine, after France, Italy and Hong Kong. Thailand does not appear on the list of the 14 Asian and Pacific countries with beautiful scenery, but it was ranked second after Australia in terms of its overall appeal. Sadly, however, Thailand was also rated the second most polluted and unsanitary nation after India. Reviewing the attractions cited above, it becomes clear that other countries have similar attractions. What then accounts for Thailand's success in the tourism industry? The tourism industry came to the fore when Thailand was changing from a resourcebased to a labor- based economy, an adjustment which was well suited for tourism development. This was coupled with the fact that the training and material input for tourist services were not as complex or extensive as those required for other kinds of industries. The high standard of service offered in Thai hotels and restaurants has remained consistently impressive. Thai hotels are known for their reasonable prices and top quality service. Thai staff are known for their pleasant, friendly and gentle character. Likewise Thai International Airways is world-renowned for its outstanding in-flight service. Good managerial skills have assisted in the maintenance of high quality service in nearly every realm of operation. Public Sector InputInfrastructure Maintenance and Development The development of the tourism industry in Thailandand the comparative advantages which have been created through itare mostly a result of private sector investment and efforts. The public sector has not been active in upgrading infrastructuree.g., roads, telecommunications, water facilitiesto keep abreast with the industry's growth and to assure the industry's long-term stability. In certain areas, water allocation, waste disposal and the safety standards of public facilities are inadequate for the local population, let alone tourists visiting their villages or towns. Heavy traffic congestion in Bangkok is undoubtedly seen as a drawback by people contemplating a visit to Thailand. Likewise inadequate waste and rubbish disposal in Bangkok and Chiang Mai may be seen as problematic by visitors to Thailand. In Bangkok, 500 tons of
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waste accumulates every day without being properly disposed of. In Phuketone of Thailand's prime southern tourist destinationswater management is a serious problem. Water consumption has risen to 200 liters per person per day, while authorities have been able to supply only 27 liters per person per day. All such considerations make it imperative for the public sector to invest more in the country's infrastucture and to improve administrative policies on tourism. The important point here is that Thailand has long passed the first stage of tourism development which relied on nature. The second stage would require heavy capital investment in infrastructure. The AIDS Factor The rapid spread of AIDS in Thailand has had a decided impact on the tourism industry in that the country's reputation for having a high incidence of AIDs discourages desirable tourists from visiting it. Likewise the tourism industry has had considerable impact on the spread of AIDS in Thailand. Thailand has long been promoted as the "sex capital" of the world; encouraging tourists to come to Thailand specifically for this reason obviously brings a higher transmission of the disease from sources both inside and outside the country. (It should be noted that there are other important factors contributing to the high incidence of AIDS and HIV-positive cases in Thailand which have nothing to do with the tourism industry, one major one being Thai males' penchant for frequenting prostitutes both before and after marriage.) Initially, the Thai government did not take prompt and appropriate action to deal with the AIDS crisis. It did not try to curtail the sex industry, believing that it would naturally fade as the economy prospered and job opportunities increased. Later, as the Government began to realize the severity of the situation, it tackled the problem only by promoting the use of condoms, rather than by using a multi-pronged approach, which would have included the attenuation of the sex industry. Tourism and Environment When tourists first started to come to Thailand, they were charmed by scenes of children playing in emerald green rice fields, monks walking tree-lined lanes accepting alms in the first morning's light, and exquisitely picturesque village vistas, picture-postcard perfect. Thailand's race to industrialize has eroded this image. Factories, traffic and clogged, polluted highways as well as a quickly vanishing rural way of life have removed some of the attractions which bring tourists to
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Thailand. Nature-based tourism is quickly disappearing, as once pristine beaches and forest areas become heavily polluted or destroyed. Pattaya beaches, for example, cannot be swum in anymore. The famous Pa Tong Beach in Phuket has become so polluted so as to destroy fish and other marine life there. The Mae Kah canal running through the heart of Chiang Mai is now black with pollutants. Pattaya is a perfect example of how unmanaged, uncontrolled tourism destroys the environment and natural resources. Originally a small fishing village, Pattaya turned into an internationally known seaside resort in the short span of twenty years. At present Pattaya is second only to Bangkok in the number of tourists it receives. One in every three tourists visiting Thailand travels to Pattaya. The city's earnings from tourism in 1991 were 15,000 million baht, or 15 percent of the national tourist income. Environmental pollution and destruction, however, have brought about Pattaya's decline as a desirable tourist destination. Research conducted by the National Environment Board shows that since 1986 the quality of marine water at Pattaya has dropped below the acceptable standard, due to poor rubbish and waste water management; and only 10 percent of the coral reef east of Lan Island (near Pattaya) remains. Uncontrolled construction along the beachfront has added a further negative factor. All of the above resulted in a dramatic decrease in the numbers of tourists visiting Pattaya since 1987. What has happened in Pattaya perfectly illustrates the principle that tourist development goes hand in hand with responsible natural resource management. Investors must be made to understand that tourism relies on the conservation and sustainable utilization of natural resources, without which the industry cannot survive. They must be made to strictly comply with environmental regulations, and to contribute toward the environmental awareness of local residents and tourists alike. Quality Tourists Tourism in Thailand has often been criticized for aiming at expanding in quantity rather than quality. TAT has been pressured to search for an operational criterion targeted on "quality" tourists. Critics, however, often disagree in their opinions on what exactly a quality tourist is. Representatives from the Hotel Association often assert that quality tourists are the big spendersthose who stay in famous, international chain hotels, ride in chauffeur-driven limousines, and dine at expensive restaurants. Others argue that true quality tourists are those who most effect income distribution. A quality tourist, under this definition, stays in locally23

owned hotels or guest houses, eats at local food stalls, and rides a tuk-tuk. Income generated by these tourists is thought to penetrate more deeply and widely to the poorer segments of the industry. In contrast, money from big spenders tends to leak outside the country through franchise royalties and remitted dividends. More idealistic observers define quality tourists as those who venture to new places to broaden their knowledge of the world and its peoples by being directly exposed to local citizens and their culture. Cultural seekers buying packaged heritage tours are not considered full-fledged, quality tourists in the eyes of the the cultural exchange argument is the most romantic, but the least operational. If this definition were taken seriously, Thailand would be left with only a few thousand "quality tourists." Most tourists simply want to escape from stress and strain, not to experiment with alternative ways of life and thought. As the trendat least for Asia-Pacific travellersis to take shorter and more frequent holidays each year, there is little time for personal and cultural exchange. If one was to define quality tourists as big spenders who are also culture seekers, what would be a likely group of such tourists? According to TDRI's survey of over 1,200 local and foreign tourists, quality tourists tend to be female, aged over 40, who spend more money and are more interested in cultural attractions. It may be easier to identify "bad" tourists. If bad tourists are those who come to buy sex, or come to trade or consume illegal drugs, they should be banned. The relevant policies should not tolerate such practices. Drastic action should be taken to eliminate such services. The responsibility for ending "bad tourism" would thus be shifted from TAT to the Ministry of Interior. Cultural Change as A Function Of Tourism Tourism is often attacked as one cause of cultural decline in Thailand. Some rituals, ceremonies and cultural events have become commercialized and have turned into a kind of show business where the focus is making money; this is perceived by some as being caused, or partially caused, by tourism. While it is undeniably true that the tastes of foreign tourists have an influence on the more tangible forms of culture, for example arts and crafts manufacture in Chiang Mai Province, and that some cultural events are organized with the express purpose of attracting foreign tourists, it is not correct to say that foreign tourists have a direct bearing on the evolution of Thai
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culture. This point is exemplified in a study done by Professor Nidhi Eoseewong on the Bang-Fai or Skyrocket Festival in Yasothorn Province. This was initially a folk ceremony to bring rain and to assure agricultural people of fertility and a bountiful harvest. Over the years, the festival has been greatly modified in form and spirit. No longer a village spiritual ceremony, it now has become more of a performance which people attend for pleasure and fun. It has acquired new socio-political functions, creating important bonds between village and city residents as well as village residents and state authorities. Its changes are less a function of tourism (few tourists attend the festival) and more a function of societal changes. Whereas formerly the ceremony was performed locally in villages for religious reasons, it has now been transferred to the auspices of provincial authorities who have turned it into a show to be attended by provincial residents. Thus the character and "raison d'etre" of this ritual have been completely altered through changing societal structure and values.

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CHAPTER:2 DISTRIBUTION CHANNEL

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2.1 INTRODUCTION

Thomas Cook was the entrepreneur in package holidays and tour operator. He became famous through the organization of the Great Exhibition in London in 1850, where 150.000 people participated, and which was affordable for everybody. This tour was the first form of package tourism, and since this happening, he started organizing tours from England to the Alps and to Paris. People became more aware of their spare time and wanted to use their time. Because of the lack of knowledge about different destinations and the difficulty of organizing everything by themselves lead to an increase of travel agencies. They were organizing the way of travelling, accommodations and all activities at the destination. As more as the demand for trips increased, whether for weekend trips or long-haul journeys, as more increased the number of tour operators. Tour operators and travel agencies are distribution channels, to make life for tourist easier.

The tourism and travel industry is comprised of a complex, informal global network of independent businesses which form the 'travel distribution chain'. This network allows overseas consumers to research, book and pay for your Australian-based product.

Travel distributors allow you to broaden your customer base far beyond the reach of your own limited marketing budget. They are particularly important to the inbound tourism industry as overseas consumers still rely heavily on the advice of local travel experts when planning their Australian holiday, particularly in long haul and emerging markets. Travel distributors can also provide insights and advice on international markets and suggest changes or improvements to your product that will help you meet the needs of your target market.

Buying your Product The travel distribution system covers all the channels through which an international traveller can buy your product. Other than approaching you directly, international travellers may book your product via: 1. Local travel agents
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2. Tour wholesalers/ operators that market directly to consumers (direct sellers) 3. Inbound tour operators or meeting planners 4. Online portals or individual Internet booking engines.

Distribution channels and consumer purchasing behaviour varies from market to market so you will also need to understand the structure of the distribution system specific to your target markets. Tourism Australia's market fact sheets provide more detail on the distribution system the way consumers purchase travel - in each market. When considering how best to distribute your product to international consumers, it is important to understand each channel and the relationships between companies within the distribution channel.

How the Distribution System Works The travel distribution system has traditionally been very structured, with clearly defined functions for each role in the chain. However as technology and company mergers transform the tourism industry, there is an increasing amount of cross-over in the roles and functions of various sectors of the distribution system.

The traditional structure of the distribution system includes Inbound Tour Operators (ITO's) based in Australia, tour wholesalers based overseas and the international retail agents, the link to the international consumer. However, this varies considerably from market to market. In some countries, such as Japan, the system is very structured while in other markets a structured system has not developed. Market fact sheets available on Tourism Australia's corporate website outline consumer travel purchasing behavior in each market, as well as providing a detailed description of the structure of the travel distribution system in international markets.

Company mergers around the world have prompted an increase in the cross-over of traditional distribution roles. Structured marketing agreements and cross-ownership are common relationships. For example, it is not uncommon for an inbound tour operator to be part of a larger company that also operates a wholesale arm in an overseas market, or for a travel wholesaler to also operate the travel agencies that sell its packages. As the traditional distribution system
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continues to evolve, it is important to clearly understand the structure of the companies that you work with and their relationships with other organisations.

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DISTRIBUTION CHANNELS

According to Kotler are distribution channels a set of independent organizations involved in the process of making a product or service available to the customer. The usage of this kind of intermediaries is, to bring the customer closer to the product itself, and offer an easy access. These distribution channels are mainly used in hospitality and tourism industry in form of travel agencies, tour operators, specialists, hotel sales representatives, incentive travel agents, government tourist associations, wholesalers, retailers and electronic distribution systems.

These channels are social systems, which have a variety of functions to fulfill concerning the consumer, like promoting the product or offered service, creating product awareness, but also to assist in researching and evaluating the different suggestions. According to Kotler and Sarkar is another task to find the balance between clients and suppliers competing needs. By negotiating, they try to find a compromise between consumers and manufacturers idea, to satisfy both sides. They provide the connection to the Global Reservation Systems (GRS) and Global Distribution Systems (GDS) like Amadeus, Worldspan and Galileo of e.g. airline companies (ITSA, n.d.). This GRS and GDS are also intermediaries, which have to be resolved to get the reservation done.

Distribution channels can vary between independent parties to associated systems, therefore the number of intermediary levels used differ, which means that a sold product can have not only one intermediary in between the consumer and the supplier, but it also can go through several different distribution channels, to a wholesaler, then to a retailer, who finally transfer the product to consumers. But within the years, distribution channel changed and were improved by new technologies.

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2.2 THE CHAIN OF TRAVEL AND TOURISM DISTRIBUTION

Renshaw has compared the traditional distribution channels for manufactured products with those for travel and tourism as shown in Figure 10.1These models warrant detailed comparison in order to identify where parallels can be drawn between the respective forms of distribution. The first distinction to be made is that between manufacturers in the traditional model and principals in the model for travel. A second distinction is that the tour operator does not sell these elements of a package on to a retailer who then holds stock. Instead, it is information about the created packages that is distributed at this time. This crucial factor in the distribution of travel and tourism products is returned to later Other industries
Manufacturer s Wholesalers Tour Opretor Retailers Travel agents Consumers Consumers

Travel industry
Principals Transport/accommodation

We can see that it is possible for intermediaries to use the various distribution channels and so to expand the market by bringing buyers and sellers together. The bulk of this work falls upon the tour operator or wholesaler who packages the main components of the tourist trip into a single product and sells this at one price through retail travel agents or through airline sales offices. By and large the role of the retail travel agent has been to provide an outlet for the actual sales of the tours, tickets and travel services, such as insurance or foreign exchange to the public. However, other channels can be used to marketing the tourist products based on the cost or the efficiency you estimate. Having decided upon an appropriate level of availability, a main concern will be the choice of
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marketing channels to be used to reach consumers. An initial decision therefore has to be the choice of distribution channel or the route by which the transfer of the title of a product or service moves from producer to ultimate consumer. When we design the distribution channels, we should take three aspects into consideration: the tourism product itself the customer travel intermediaries (their quality, their ability to promote and make sales, etc.) and the marketing environment (competitive situation, the distribution system of the main competitors, etc). By analyzing these, we can increase our competitiveness and avoid direct confrontation.

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2.3 DISTRIBUTION CHANNELS INFLUENCED BY NEW TECHNOLOGIES

In the last years, technology became more and more important for promoting and distributing different products. The first Computer Reservation Systems with direct contact to clients were introduced by different airline companies in the 1980s. After a few years, there was a change to observe towards Global Distribution Systems (GDS), which turned into the major booking system. That kind of booking includes always a commission, fees which have to be paid by the client by each transaction.

The introduction of information and communication technologies (ICT) effected a change in the booking system and the consumer behavior towards intermediaries like tour operators. ICT influences new trends, which are mainly located in the Internet, so e- commerce and e-tourism gain importance, more and more web-based travel agencies and e-mediaries are going to be launched in the Internet. These electronic ways to book a journey directly by the different companies has a huge impact on travel agencies, tour operators and distribution channels in general.

Therefore, the question of advantages and disadvantages of disintermediation of distribution channels comes up. What positive and negative effects have the elimination of intermediaries and the direct contact for customer and for suppliers?

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2.4 ADVANTAGES OF INTERMEDIATION

The disintermediation of distribution channels means the elimination of the middleman, which is mainly caused by re-engineering the tourism sector through, for example, new technologies. The importance of travel agencies is reduced by e-commerce, and the ability of online booking.

The disintermediation makes a direct contact between customer and supplier possible. According to Sarkar, manufacturers are more likely to sell their product directly and customers will prefer a direct purchase from the company.

An advantage of disintermediation is that experienced travelers often have more knowledge about their destination and location than some travel agency employees. Therefore it is easier for them, to book by themselves, because they know where to go and what to do. Travel agency staff is sometimes not enough trained for good recommendations and has not enough know-how.

According to an article of the Finnish Virtual Polytechnic which is based on Buhalis, a wellknown researcher about intermediaries, the new trend goes towards individual tourism, and decreased package holidays. Hence, the new tourist prefers to create his/her individual holidays, what he/she can do through web-agents. Web-agents make it possible to package products themselves; consequently the tour is more tailored on personal wants. Furthermore, emediaries are still possible to give discounts.

Another advantage of disintermediation is that suppliers have direct contact to their clients by usage of networks; therefore they have a greater overview and have a better understanding of their customers needs and wants. So, they can easier adapt to change in demand and perishability. Suppliers have the one-to-one situation, for individual service, but mass customization is possible as well.

Moreover, the commissions and fees for each sale of travel agencies disappear, like this the general costs for holidays decrease and both sides, customer and supplier can save money.
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Furthermore, both sides benefit from the wider choice, suppliers can offer by the exclusion of distribution channels.

Internet in general is the most influencing factor in disintermediation of distribution channels. Advantages the Worldwide Web offers include flexibility and the ability of a fast reaction on fluctuation in tourism demand. Furthermore, they are more competitive, because suppliers are able to respond to other manufacturers fast and directly. Moreover, customers are more likely to book their next trip at home, because it is much more convenient. They do not have to go to travel agencies and do not have to comply with opening times. E-mediaries are available 24 hours a day, seven days a week, and are not as time intensive as going to an agency.

The welfare of client and supplier is guaranteed by direct contact of suppliers and consumer, but also by using e-tourism and e-commerce.

New technologies will effect that all advertisement can be retrieved from WAP- cell phones and interactive digital television.

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2.5 DISADVANTAGES OF INTERMEDIATION

But there are opposite aspects of the elimination of intermediaries and the middlemen as well. According to OConnor is there a demographic factor which influences the usage of Internet, by gender as well as by higher and lower socio-economic groups. A research showed that men and higher socio-economic groups are more likely to use the Internet then women or lower socioeconomic groups. As a result of this research you can assume that women prefer going to travel agencies and tour operators. However this result is shifting over time and more and more women are familiar with the internet. Nevertheless, a lot of people prefer the direct contact with a human, because this personal touch adds value to the offered product and service. In a research, all respondents agreed that travel agencies perform better than travel Web sites in terms of the human touch and personal services (Law, 2004). But they also add value in form of professional advice, because tour operators can tell from experiences and offer free counseling services.

Another advantage is that travel agencies organize everything for the individual; they do not have to care anymore for travel insurances or Visa policies, because these applications are made by the agent. But also in ways of the complexity of the reservation systems and internet usage, it is easier for tourists only to go to an agency who is organizing everything for them. Especially for inexperienced travelers, it is really difficult to organize a whole trip by themselves. It is also a difficulty for them to evaluate different Internet sources of the whole electronic oversupply of choices. That leads directly to another disadvantage: the intricacy of evaluating offered bargains. Often in web platforms consumer can find opinions of former tourists, who have been to a special destination or who have used a special offer. But the danger is, that everybody is able to add whatever he/she likes, therefore often hotels or destinations use that as a tool of advertising their own product/service. The liability of the web sites is very difficult to check, like this the beauty is only skin-deep, and tourist can make really disappointing experiences.

Moreover, consumers can use the intermediary as a contact person, in case of problems. In addition, travel agents reduce insecurity by using insurances and taking over of responsibility. In this way, customers feel more convenient and secure while traveling.

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TOURISM DISTRIBUTION CHANNELS

Tourism can be traced back for centuries but because the elements of the product and conditions of the market-place have changed so enormously in the last few decades, there has been a corresponding requirement for a change in business method. This has lead to the adoption and use of tourism marketing. The distribution function plays an important part in the success in the tourism marketingThe nature of distribution can influence the price of a product or serviceA high pricefor examplecould be charged for exclusive availabilityThe cost involved in the use of different distribution methods variesAvailability can also influence promotional strategy to the extent that it may form part of the promotional message THE DISTRIBUTION OF SERVICES As mentioned above, much of the theory of distribution management is based on physical distribution which is not always wholly relevant to the distribution of servicesIndeedthis area has been neglected by some authors as compared to physical distributionIt ishowever, increasingly being recognized as an important area of both academic study and management practiceShostack has suggested that the idea of place decisions for services is confused as people grapple with the concept of a distribution channel for items which are intangible, often inseparable from the person performing the service and perishable in the sense that inventory cannot be carriedThe distinctiveness of services distribution can be examined by considering some of these characteristics of services DISTRIBUTION CHANNELS Products and services move from their original source to customers through marketing or distribution channelsMany organizations will use more than one distribution channelIn many industries intermediaries can help organizations to reach a wide audience whilst holding stock and sharing financial riskFor the purposes of servicesa distribution channel is still the sequence of firms involved in moving a service from producer, or principalto consumer as it is with physical goods

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Both direct sale and sale via intermediaries are used by service organizations and may even be used in combinationServices intermediaries tend not to hold stockhowever, and so are less likely to carry any riskIn common with physical goodsservices marketers need to conduct some sort of appraisal when selecting distribution channelsas each represents a unique blend of costs and benefitsIt is broadly accepted that there are three main choices in terms of channel network and these areas follows Intensive Distribution The principal uses as wide a network of distributors as possible to sell their productsUse by a tour operator of all ABTA travel agents in the UK would amount to this strategyIt is suited to products with broad market appeal and high volume sales Selective Distribution By using only a limited number of retailers or outlets a principal is adopting a more selective distribution strategyEconomies can be achievedin certain marketsby concentrating on using those intermediaries which achieve the best results for the principalThere has been a slight move towards more selective distribution strategies shown by UK principals in recent years in an effort to improve efficiency Exclusive Distribution Selecting to restrict availability and accessibility for the purposes of image is crucial to the success of an exclusive distribution policyThis approach is suited to organizations with a highly specialized product and little competitionSome customers may even expect to have to search for such products

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DIRECT VERSUS INDIRECT DISTRIBUTION METHODS

A distinction can be drawn between direct and indirect distribution, too. Direct distribution involves selling to the consumer without making use of a middleman. Methods include selling at the actual location of the productsuch as a hotel receptionat an organizations owned retail outletsuch as British Airways shops, or use of direct marketing methods such as direct mail. Indirect sales typically involve the services of a travel agent as there is currently little option in terms of the retail distribution of travel and tourism productsTravel agentsto date have faced little competition other than from direct distribution

Choice of direct or indirect distribution will vary with factors such as size of selling organization characteristics of the product and current marketing environmentThe choice of method is a matter for constant review and evaluationValuable measures in this respect will be speed efficiency; controlflexibility and costThere are both costs and benefits to the use of middlemenEvaluation of these is essential when selecting distribution channelsThere is no one correct answer as to which of these key distribution methods to useA process of application is required in every individual case and choices need to be constantly reviewed and evaluated.

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CHAPTER: 3 MARKETING & PROMOTIONAL ACTIVITY

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3.1 INTRODUCTION The Tourism Authority of Thailand (TAT) announced its promotional strategy for 2011 along with several initiatives designed for specific market segments. For next year, TAT will still use the highly-successful Amazing Thailand theme. It will be enhanced with the new tag line Always Amazes You to reinforce the many aspects of Thainess that are so appealing to visitors from all over the world. Some 15.5 million international tourist arrivals will be targeted for 2011, generating approximate revenue of 600 billion Baht (US$18.5 billion), an increase of 9 percent from last year, and the domestic tourism sector expects to have 91 million trips with revenue of 432 billion Baht (US$13.3 billion), a rise of 3 percent from last year. The Amazing Thailand theme has gained worldwide recognition, as it built up the countrys strong brand and positioning as a destination that offers tremendous value-for-money, a unique culture, and a wide variety of experiences to visitors. This theme is being complemented by the Always Amazes You tag line to reinforce the concept of Thainess that makes the Kingdom a truly exceptional destination and differentiates it from other countries, as well as have confidence in traveling to Thailand for their holidays and business meetings. For 2011, we will build on Thailands many traditional strengths as a preferred tourist destination by branching out into new market segments such as green and sustainable tourism, said Mr. Suraphon Svetasreni, governor of the Tourism Authority of Thailand. We will also expand traditional channels into more online and social media activations, reaching the next generation of visitors who have a desire for more interesting and stimulating travel experiences. OUTREACH VIA TRADITIONAL AND SOCIAL MEDIA CHANNELS The TATs marketing campaigns for 2011 will be highly visible worldwide through traditional promotional channels including TV commercials and vignettes, print advertising, out-of-home media, brochures, and posters. There will also be an increased use of celebrity marketing, inviting popular actors and sports figures to major events in Thailand, while also encouraging the movie industry to consider Thailand as a shooting location.

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In the new media space, TAT will reach the younger demographic of travelers using social media, such as an Amazing Thailand video channel on YouTube featuring short documentaries, more use of E-Books and E-Brochures, an iThai application to get Thai tourism updates on iPhone, and an Internet call center that visitors can contact via computer. We will also build on the member network of the Thailand Fan Club that has already been established in our Europe and Middle East markets.

Positive signs for the tourism sector in 2011

There are many positive indicators of a promising year for Thai tourism in 2011. They include the stabilization of the Thai political situation, with foreign governments easing their travel warnings about Thailand. Recent surveys of tourists in Thailand showed there is still a very positive attitude towards Thailand, with them considering it a friendly, exciting, and welcoming place with a lot of variety. Other positive indicators for the coming year include economies around Asia showing steady improvement, with countries such as India and Australia showing solid signs of growth. This is especially promising for short-haul markets such as India, China, and Indonesia, which have large populations of potential visitors just a few hours away. The airline industry is also demonstrating its confidence in Thailand with new flights added from key markets such as, Australia, India, Indonesia, Japan, Singapore, Vietnam, and Thailand. The Amazing Thailand Always Amazes You campaign will focus on specific activities that are popular with visitors from Asian markets. The value that Thailand offers to shoppers will be highlighted through the Amazing Thailand Shopping Paradise campaign. The foundation of this campaign is the Amazing Thailand Grand Sale, which will see even more activities and special offers from participating department stores. TAT will more actively engage target markets through their local media and support for tour companies to sell holiday shopping packages. There will be ongoing promotion of Thailands strength as a shopping destination. TAT will arrange for media familiarization visits to the countrys leading shopping areas. It will also work
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with major department stores to offer discount coupons to distribute to tourists and tour companies that offer shopping packages. Given the popularity of golf among Asian visitors, TAT will also highlight Thailands hundreds of world-class golf courses. The Amazing Thailand Golf Paradise campaign will include the Thailand Golf Invitation TAT 50th Anniversary Golf Tournament. Marketing activities will include support for TV golf programs, new promotional materials to highlight Thailand as a preferred golf destination, joint marketing, and support for Golf Package sales with tour companies and golf magazines, bringing leading golf columnists to Thailand so they can experience Thailands golf courses first hand, and inviting media to visit the Golf Travel Mart. The 5 Asian Tigers Golf Tournament will be hosted especially for the East Asia markets. Related activities include arranging a golf inspection trip for travel agents and media to try out golf courses in Chiang Mai and throughout the northern region during May 2011. Seminars and golf tournaments for consumers will also take place around this time. To appeal to the growing market of environmentally-conscious travelers, TAT will introduce the Go Green, Go Thailand campaign. It will bring travel agents and media to the Kingdom to survey Green Destinations, check out Green Label products, and join conservation activities such as planting trees and preserving coral reefs. They will also be invited to join the Thailand Eco and Adventure Travel Mart 2011. In addition to focusing on restoring Thai tourism for the remainder of this year, TAT is working closely with Thailands travel sector to develop products and marketing initiatives that will sustain tourism over the long term. We will announce many more initiatives during the coming months that will help to ensure we meet the countrys tourism targets for 2011, concluded Mr. Suraphon. For domestic tourism, the TAT plans to establish a new dimension in terms of value and understanding among Thai people about the important contribution their domestic travel makes to the Thai economy. By making domestic tourism an integral part of Thai peoples lives, the TAT hopes to shift the perception of Thai travelers and tourism owners and operators alike to a new awareness that will lead to sustainable tourism. The core tourism values that TAT aims to build are travel with awareness (pride), travel with creativity (gain new ideas and perspectives),
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travel together (to encourage unity and respect for diversity), travel with understanding (gain knowledge and wisdom), and travel by the heart (feel love and cherish the amazing moments). PROMOTIONAL ACTIVITIES FOR AMAZING THAILAND GRAND SALE 2011 For the first time, locally-made products are to be at the forefront of the Amazing Thailand Grand Sale 2011, the biggest annual shopping extravaganza to be held nationwide between 15 June to 15 August 2011.

As in past years, the annual Grand Sale is organised by the Tourism Authority of Thailand (TAT) together with VISA International and tourism related agencies. As of this week, over 15,000 shops, department stores, spas, airlines, hotels, hospitals, duty-free, jewellery, golf courses, and travel agents have agreed to participate.

This year, along with the brand-name products which are traditionally the most popular purchased items, special attention is being paid to promote the sale of locally-made products; such as, handicrafts, apparel, decorations and home-use products made under the umbrella of the One Tambon One Product (OTOP) scheme.

The OTOP scheme allows villages all over Thailand to specialise in making local products with the Royal Thai Government providing support for marketing, distribution and sales. The scheme contributes significantly towards job creation and poverty alleviation in the provinces.

Popular retail and wholesale markets where OTOP and locally-made products are available include Chatuchak Market, J.J. Mall, Pratunam Platinum, Outlet Mall and others.

The Amazing Thailand Grand Sale will be held in Bangkok, Chiang Mai, Phuket, Hat Yai, Pattaya, Hua Hin and Koh Samui Local shopping streets will be organised in all the participating cities.

TAT Governor Suraphon Svetasreni said, "Thailand is a shopping paradise for worldwide
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visitors, thanks to our value-for-money factor and extensive diversity of products and services. The Grand Sale is now in its 14th year and goes from strength to strength, thanks to the cooperation of all the participating companies, organisations and the support of our primary partner, VISA International."

As is normal every year, shoppers will also get shopping discounts of up to 80 percent on a broad range of products and services and up to 20 percent off on food and beverage. They will have a chance to win lucky-draw prizes and also avail of a month-long opportunity to become better acquainted with Thai culture and lifestyles.

Those who book their travel plans in advance with participating tour operators and airlines in their respective countries will get additional benefits; such as, special discount card from leading retail outlets, discounted travel insurance and Fast Track coupons to cut waiting times at airport immigration channels.

The "Amazing Thailand Grand Sale Fair 2011" will be held at the Queen Sirikit National Convention Center between 28-31 July 2011, at which about 600 tourism-related products and services will be available for sale at discounts of between 10-80 percent.

Travel agents in Singapore, Malaysia, Hong Kong, China (Guangzhou, Shanghai), India (New Delhi, Mumbai) and Vietnam (Ho Chi Minh) that participate in the ATGS 2011 will have a chance to "Win A Trip to Thailand" with a total of five prizes, 2 persons per prize comprising a round-trip air ticket from their home country to Thailand; two-nights accommodation; shopping and dining vouchers, and spa and massage privileges.

Beside getting the discounts, both Thai and foreign tourists will have a chance to win a range of coupon-based prizes; such as,

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1. Foreign tourists will be able to fill out coupons for the prize-draw of a "30 Days Experience Thailand". Along with one companion, prize winners will be able to visit Thailand for 30 days, with first-class round-trip air tickets, domestic round-trip air tickets on all routes as per the tour programme, transfers, accommodation at deluxe hotels, meals, entrance fees for all sites, a Thai lifestyle and culture experience, guides and pocket money for 2 persons (10,000 Baht per person per day).

2. Foreign tourists will be able to book a travel package at special prices from travel agents participating in the ATGS 2011 project which include Singapore, Malaysia, Hong Kong, China (Guangzhou and Shanghai), India (New Delhi, Mumbai) and Ho Chi Minh (Vietnam). In addition, they will get a ATGS Privileges Card which will carry additional discounts of 5-10 percent over the normal discount.

3. Those that book seats on Thai Airways, Air Asia and Bangkok Airways will have a chance to win 10 prizes of 2-nights stay accommodation at the Accor Group.

4. Those that reserve online for accommodation at the hotels of the Dusit and Accor Groups will get special rates and an over-riding discount of 5-10 percent.

5. At KingPower Duty-Free, Suvarnabhumi Airport, tourists will get a 500 Baht coupon when they buy products worth over 5,000 Baht, In addition, car rental and mobile roaming companies will also offer special privileges.

6. The BTS Skytrain mass-transit system in Bangkok will be offering a 10 Baht discount for a One-day Pass ticket. Tourists can register online to avail of this.

7. Thai tourists will have a chance to win a 1,000,000 Baht coupon when they spend 500 Baht at
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participating shops and services. If they pay by cash or credit card, they will get 1 coupon but for payments by VISA card, they will get 2 coupons.

8. All tourists will have a chance to join the Top spender programme. Every Friday, Saturday and Sunday, tourists who buy products and services from shops on the shopping streets in each province can write their contact details on the back of the credit card slip and place it in boxes for the lucky draw. The first Top Ten spenders of each week will have a chance to win 10 prizes, for a total of 560 prizes, valued at 1,120,000 Baht.

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3.2 MARKETING TOOLS Website: www.tourismthailand.org

Print Advertisements

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49

TV & Print Advertisement theme

E-Magazine

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3.3 TOURISM MARKETING IN THAILAND The 1997 tourism marketing policy is designed to promote the image of Thailand as a tourist destination of quality, safety, with diversity of attractions. The quality of tourists, suitable management of tourism products to be offered, cooperation with neighboring countries and distribution of tours throughout all the regions for both Thai and foreign tourists will be considered. 1997 TOURISM MARKETING STRATEGIES To promote tourism along with development of products and services, cooperation will be emphasized with domestic private businesses through the Thai Tourism Society (TTS). Promotion activities for tourism will be conducted so that there will be a growing number of quality tourists from various markets who and reate stay longer in Thailand, bring income into the country economic advantages for the country as a whole. More consideration will to be paid to the benefit of tourism to the society in 1997. It offers local communities, business operators and all concerned parties participation in promoting and enjoying the benefits from tourism. The Thai strategy will also work directly with major tour operating companies in stimulating and supporting product offers and the new tour programmes in Thailand. Products of special interest will be emphasized with a view to upgrade the quality of Thailand's tourism. In order to support such activities and increase Thailand's tourism competitiveness, emphasis will be placed on cooperation with the countries in the Greater Mekong Subregion, the IMT-GT (Indonesia, Malaysia, Thailand, Growth Triangle Development Project), and improvement of the Internet data dissemination system. Thai people will be encouraged to travel in the country and increasingly spend money domestically in an effort to help lessen the problem of an overall deficit in the current account balance of the country. Thailand will aim to stimulate inter-regional exchange tours to be conducted throughout the year. In order to achieve this, family tours, holding meetings, and arrangement of incentive tours in the provinces will be promoted, among other things.

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 MARKETING FOR TARGET GROUPS International tourism market targets will focus on tourist number targets as well as the quality of tourists, consideration will be given to the generation of tourism income in the country, refraining from causing negative effects on Thai culture, natural resources, and environment and having the sense of responsibility as a good tourist. In this effort, emphasis is on good management and efficient development to prepare tourism products and the use of suitable marketing methods. This means choosing such products consistent with the behavior and needs of each group of tourists as the method to attract a growing number of quality tourists from various markets. Based on this idea, international tourists visiting Thailand in 1997 will be targeted at 7.84 million people, which is a growth rate of 7.4 per cent. Emphasis is placed on conducting activities in short-haul markets to raise the growth rate further, especially the East Asian markets (Malaysia, Japan, Republic of Korea, Taiwan Province of China and Indonesia) due to short distances from these countries to Thailand and the convenience in travelling to Thailand. In addition, these countries have a fairly high economic growth rates. They account for a significant number of recent tourists and they have a high spending rate, and strong tourism demand for the products and services that Thailand provides. The growth rate will be maintained in the long-haul markets from which large numbers of tourists have always been visiting Thailand. The economies in some of these countries are in the process of recovery and competition is rather high, but their growth rates are at a constant level. The targets in this group are Germany, the United Kingdom, France, Italy and the United States of America. Those countries not having very large number of tourists visiting Thailand are considered as having potential and positive growth trends, like Eastern Europe and Russia. Activities will emphasize cooperation with tour businesses and access to the travel trade as main factors. The target for the average length of stay will be kept at not less than 7.5 days. The target for income from tourism will be at least Baht 240,000 million, which is a growth rate of 11 per cent.

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There are a number of market segment targets that have been set. Female tourists have increased at a growing rate worldwide and women playa major role in making decisions to travel. Female tourists visiting Thailand grew from 28 to 38 per cent in 1995. Promoting 99 visits to Thailand by female tourists will constitute a publicity effort to correct the negative image of sex tourism. Honeymooner tourists pay growing attention to visiting Thailand, particularly those from markets in Japan and the Republic of Korea. They help promote the image of Thailand as a good quality, safe and impressive tourist destination. Elderly people are classified as the recession-free market segment. They have both time and money for travelling. During the past ten years, there was an increase in the proportion of tourists over 55 years of age from 13.38 to 16.87 per cent. The average growth rate was as high as 23 per cent a year. There are more than 100 million young people travelling all over the world, representing 20 per cent of the total number of tourists. There are high growth trends, particularly in the Asian and Pacific region. In addition, there are growing trends of youth being interested in adventure tours and tourism activities concerned with nature, consuming tourism products which call for suitable management measures and the proper marketing techniques so as to prevent possible negative environmental impact. In the recent period, Thailand has developed tourism products to meet the needs of the family segment in an integrated manner. They are deemed to be a group with high spending rates and they promote a good image of Thailand as a convenient and safe tourist destination. Current worldwide trends are dominated by the experienced tourist group, who make their decision to travel based on specific attention to particular matters beyond sightseeing tours in general. The development of products and facilities to attract tourists in this special interest group will upgrade the quality of Thai tourism. Backpackers are presently a significantly growing tourist segment and are regarded as being another segment with high income, since they have a longer period of stay in each country visited than other segments and have a change in structure by having a growing proportion of

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business executives and professionals. In addition, they also contribute to the distribution of tourism income and benefits to small-scale operators. Thailand has an interest in the expatriate market, because it is convenient for them to make recreational tours. The target is expatriates residing in Asian and Middle East countries, as well as countries in the Mekong Sub-region. Travelling for meetings in Thailand has had a growth rate as high as 30 per cent a year over the past ten years. Tourists attending meetings, seminars and incentive tours are classified as having a high spending rate and giving a rise to multiplier effects in tourism promotion. Encouraging Thais who reside in foreign countries to come home for visits will bring income back to the country, give a feeling of pride about being Thai and help publicize tourism to foreigners in various countries. At present, repeat travellers to Thailand constitute as much as 50 per cent of all tourists and grew by 18 per cent in 1995. This group has changing travelling behavior and needs. That is, they need new tourism products and are interested in complex dimensions of tourism. Keeping the growth rate of this segment will reflect Thailand's efficiency in developing and promoting an enduring form of tourism. A domestic tourism marketing target has also been developed. Thai people deserve an opportunity to make use of the tourism resources for themselves. Consequently, Thai tourists are being targeted to give rise to better income distribution, the reduced negative impact on culture, natural resources and the environment, the sense of being a good tourist, the chance to develop the quality of life, and the use of tourism as part of an educational process. Thai tourists making domestic tours in 1997 have been targeted to be about 58 million trips at a growth rate of 6 per cent. Action will be taken for primary target groups as follows: high income earners, government civil servants and state enterprise employees, family groups, pension groups, youth groups, meetings/seminars/exhibitions and incentive tour groups, and foreigners residing in Thailand.
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3.4 TOURISM PRODUCTS The following points will be taken into consideration with regard to products being offered. New products will be developed from existing ones, with emphasis on improving the style

and appearance of the product and value-added for greater attractiveness, instead of opening new tourist destinations; Products of each type will be offered together with information on product development,

existing management, the capability to respond, the limitations and cautions to be taken when offering; Participation by local people is taken into consideration in terms of both product

development, existing management and enjoying the benefits from tourism; Cooperation among units in the area is coordinated with TAT support by information to

stimulate appreciation of the importance of such product development for the overall benefit of the local community; and The situation and trends of tourism are taken into consideration, which will be the

determinants of the demand of the market. In addition to offering general tourism products such as nature, arts, culture, ancient ruins, and various tourism activities, special products will be emphasized for 1997. These include: Products jointly offered by the Mekong sub-region (Thailand, Lao People's Democratic Republic, Cambodia, Viet Nam, Myanmar, and Southern China) and the IMT-GT (Indonesia, Malaysia, Thailand - Growth Triangle) Feasible tour routes will be offered first, with emphasis placed on airline-linked routes. In the Mekong sub-region, tourist attractions designated by each member country will be offered jointly. Sub-regional Tourist "Jewels" will be considered as basic data, including the development of services that would facilitate travel linking such tourist attractions, by presenting Thailand's tourist attractions in combination with those in the respective countries, so as to add more interesting items and with a view of making Thailand the true gateway to the countries of the South-East Asian sub-region.

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 Ecotourism Ecotourism will be classified according to the existing products, e.g natural and historical, with emphasis placed mainly on management aspects and according to the Thai standard. For products of these types, emphasis will not be placed mainly on the economic return, but the outcome of publicizing the image as an aspect of environmental preservation that will give a long-term result of conserving tourism resources. Approaches to development and promotion of ecotourism will be added side-by-side with mass tourism in a way that each complements the other. Examples of products of this type are bicycle tours of Sukhothai and walking tours of Ayutthaya. Shopping The diversity of products available in Thailand, both indigenous and modern, in Bangkok and the provinces, will be emphasized. The identity of shopping in each region or area is presented with art and culture added to offer products of each type. Routes will be organized linking sources of products into a tour circuit to increase attractiveness, and the atmosphere of being a shopping destination. This includes support by TAT duty-free shops and Naraiphand Shop, which belong to the government. The products will be primary sources of income into the country, according to the high carrying capacity and capability to meet the needs of all tourist segments. Meetings, seminars, exhibitions and incentive tours Thailand has facilities for meetings and seminars at the level of international standards. When added to diverse tourist attractions, they form an advantage for Thailand compared to neighbouring countries. At present conference centres in the provinces are under construction, and TAT will proceed to publicize the readiness of the services and the service hours of such conference centres. Products of special interest Products of special interest will be developed from existing ones based on deference to products in neighboring countries and to offering new options to tourists. Prese Nation of the environment, Thai cultural legacies and the objective of upgrading the quality of overall tourism in the country will be taken into consideration, particularly products with a positive image, such
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as Thai food, Thai fruits, sports, religion, way of life and health. There will be related activities. such as holding Thai food festivals country-wide, arranging agro-tourism and waterway sightseeing tours in provinces near Bangkok. TAT and private agents will jointly appoint a working group to prepare a directory of tourism products for a period of five years (1997-2000) and determine consistent products to offer each year. Marketing activities will seek to join business operators in presenting tourism products consistent with the behavior and needs of tourists in each segment under the principal activities of both domestic and overseas offices of TAT and activities by TAT headquarters. Advertising companies will be employed to join in conducting advertising for the domestic and international markets. The theme for the domestic market is 'Thiew Muang Thai Mai Pai Mai Ru". In order to ensure that the "Thai Tour Thailand Project" works effectively, advertising activities will be conducted continuously from 1996. Groups of working people, elderly people, youth and families, and conservation tour groups will be targeted by information dissemination in various media. There will be television spots and advertising patterns for each target group to promote traditional festivals by employing or supporting the arrangement of television programmes, such as "Tour Thailand in 1 Minute", "TAT News", "House No.5", "Challenge to Tour Thailand", "Little Child Can Do", programmes. Short amusement-type plays will be produced for youth to promote tourism, including environmental conservation stories by employing or supporting the arrangement of popular radio programmes among various groups. The Grammy Company will compose a song promoting tourism among youth entitled "Tour Thailand". Emphasis will be placed on joint advertising with business operators at an expense ratio of 70:30. The theme for overseas markets is "Come to Exotic Thailand; Experience the Splendors of a Kingdom". Television spots and advertising patterns will be made for each target group in the native languages of various markets. In cooperation with tour operator companies, promotional ads will be produced for large-circulation and high-frequency magazines, particularly magazines for women. Public relations will be conducted to create a positive image for the organization and the country by emphasizing the publicity of development achievements, such as success in dealing with the problem of AIDS, measures to punish people indulging in child prostitution,
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tourism cooperation with countries in the Greater Mekong sub-region and the IMT-GT and the development of facilities and suitable management for various tourist attractions. In addition, for family trips to Thailand emphasis will be placed on organizing specific familiarization trips for each type of tourism product to be promoted in 1997. Greater importance will be attached to the criteria of agents or press selection. There are also plans for publicity about various special occasions, for example, Revisit Thailand Year 1998-1999, for which a suitable name is currently under consideration; the hosting of the Asian Games 1998; the celebration of the 6th birthday aniversary cycle of His Majesty the King in 1999; and Thailand as a stopover destination before and after the Olympic Games 2000, which will be publicized by means of modern technologies like CD-ROM and the Internet. Sales activity for the domestic market "Thais Tour Thailand" projects will be jointly prepared with business operators from both Bangkok and the provinces at a larger scale than last year. Other activities will emphasize groups of youths and laborers. and special interest products will be presented by including them with knowledge and understanding about conservation. Sales activity for overseas markets involving the principal international promotion fairs will be organized jointly with business operators, namely: ITB, Berlin; WTM, London, and fairs aimed at specific targets, such as WYSTC(youths), Sea Trade (cruise), and PATA Ecotourism Society. Such fairs may be held in new markets with high potential and low investment, such as Indonesia and China. In addition, overseas offices will hold seminars in major towns and support tour operator companies in arranging new routes. This includes the production of travel manuals publicizing tourism products to be emphasized in 1997, such as tour programmes linking Thailand's tourist attractions to those in the Greater Mekong sub-region, ecotourism programmes, shopping, etc. In terms of sales aids, there will be documents supporting major products, namely, shopping manuals, Thailand Atlas Notebook, video-tapes supporting the promotion of tourism in the Mekong River sub-region by linking tourist attractions in the northern and north-eastern regions of Thailand, "Thailand: Gateway to Indochina" and "Thailand in Brief'. Tourist guides will offer new options so as to avoid traffic problems, with guides to walking tours of Bangkok, waterway tourist guides, including considering developing efficient audio-visual media. More international meetings will be promoted for Thailand. Primary targets will be the meeting and incentive tour markets with a focus on Asian meeting planners and
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incentive planners. Their travel to Thailand for this purpose in the past year was higher than other regions, with the European, American, and Australian markets being the next most popular markets. Thailand is now developing meeting, seminar and exhibition facilities by constructing international conference and exhibition centres at Pattaya, Hat Yai, and Phuket. TAT will publicize the readiness of their services and their business hours. In order to supervise and support the tourism marketing plan so that it proceeds in the proper direction, necessary marketing data will be studied and analyzed as well as regularly disseminated to the parties concerned. This will update the implementation of activities consistent with the tourism situation.

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CHAPTER: 4
TOURISM INFRASTRUCTURE

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4.1 INFRASTRUCTURE DEVELOPMENT Infrastructure plays a crucial role in economic development and enrichment of living standards. In economic development, appropriate infrastructure can improve the investment climate, facilitate trade processes, and increase efficiency in everyday business activities. Access to infrastructure services such as electricity and water can greatly enhance a societys living standards. Development of infrastructure is dynamic. Various stages of economic development require different levels of infrastructure upgrades or enhancements to properly accommodate changing types of economic and social activities. The term infrastructure is rather broad and covers many activities. In this report, infrastructure is categorized into the following subsectors: transport, energy, telecommunications, and water, sanitation and low-income housing. Transport - Transport development directly contributes to an improvement in standards of living. Roads provide access to schools and hospitals and connect communities. Urban mass transit saves time and expense. And inter-city passenger transport makes it more convenient for people to travel either for pleasure or business. In addition, transport development can help to facilitate economic development, for example, by reducing the costs of doing business. Energy - Energy is a necessity for everyday life as well as for production. Energy issues

mainly revolve around scarcity, security, and pricing. Rising oil prices reinforce the significance and at the same time encourages the need to promote energy efficiency and renewable energy. The bottom line is that every activity requires energy; the question is how one can utilize it in a sustainable way. Telecommunications Widespread availability of affordable broadband access infrastructure will be instrumental in developing a widespread information economy and facilitate e-commerce. This is a dominant theme for developed and middle income countries, and the next major area for productivity improvement after industrialization. Thailand needs to develop and implement policies for its telecommunications sector that promote timely and costeffective deployment of new technologies while supporting adequate and fair competition Water, Sanitation and low-income housing - The core issues for water provision and

appropriate sanitation services are basic consumption, health, and hygiene concerns. Adequate water supply is a pre-condition for poverty reduction and improved livelihoods and a basic factor
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of production for industrial activities. Sanitation systems, such as waste and wastewater management, are essential to protect the environment and sustain standards of living in urban and rural areas. Infrastructure development in each of the subsectors eventually translates into the well-being of a population, either directly or indirectly through business and production. The key concern in infrastructure development is that the costs and benefits of normally large investments are distributed fairly, and the policy and its framework address the right priorities. Infrastructure development can also enhance, or sometimes impede, economic development in a much less tractable way. As most infrastructure projects require a large amount of financial and other resources, the government often faces choices and dilemmas in prioritizing projects. A good project gone wrong or a wrong project selection leads to an inefficient use of public money; creates problems with the public and incurs losses for the public. Careful planning is required to ensure effectiveness of infrastructure development. THAILANDS INFRASTRUCTURE DEVELOPMENT Thailand is facing a series of infrastructure challenges, including, for example, the need to catch up with economic development (within the country and with the competing economies), manage growing urban areas, and ensure sufficient basic services for the poor. Most of the infrastructure development in Thailand has been demand responsive and focused mainly on infrastructure provision. Availability and accessibility appear to no longer be challenges. The road network coverage has reached 98.5% (paved); electricity reaches 99% of the population. The next step for Thailand is to move toward ensuring quality of service deliveries, management, and sound regulation. Because of the governments financial constraints, prioritization is also very important, given the fact that the demand for investment is always larger than the available resources. While a clear policy framework is needed, the development direction set forth by the policy makers should be based on reliable facts and data reflecting Thailands current status of infrastructure development. Systematic, periodic, and internationally consistent infrastructure

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information collection will provide Thai policy makers with good background to better assess the current situation, identify bottlenecks, set clearer policy, and prioritize projects more effectively. OVERVIEW OF THAILANDS Infrastructure Development Strategy for NESDBs 10th National Plan The three areas of infrastructure development identified in the 10th National Development Plan are as follows: infrastructure and logistics services, energy efficiency and alternative sources of energy, and the framework for overall infrastructure development. Below is an outline excerpt from the plan. (1) Development of infrastructure and logistics services to support production structural adjustment. Infrastructure development aims to support the competitiveness and enhance efficiency of the private sector both in production and services sectors. (a) Develop up-to-date and efficient transport, logistics services, and telecommunication systems. Develop a domestic and international logistics network through multi-modal transportation, feeder systems, and distribution centers at strategic production locations. Enhanced trade facilitation is also a key concern. Enhance efficiencies in logistics management within the production sectors, particularly along the supply chain Support transport modes and transport management which are energy-efficient, particularly development of rail, waterway, and delivery of energy through pipe lines. Energy-saving transport and increased use of modern technology to reduce the cost of transport is encouraged. Develop an urban mass-transit network to enhance efficiency, safety, time-saving, and reduction of energy usage Develop a telecommunications network that is efficient and up-to-date. Competition in service provision and a return on investment are emphasized, in order to serve production, private, and service sectors, and to enhance governments services.

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(b) Transparent and efficient management of infrastructure under stakeholders participation. Create stakeholder participation in infrastructure project development Emphasize careful project studies on feasibilities, environmental impacts, social impacts, and health-related impacts to ensure the projects viability with clear mitigation plans Support public-private partnership in infrastructure investment through improved regulations and laws. Regulators for each sector are important for consumer protection and transparent and fair competition. Support demand management initiatives, which aims to create awareness in efficient resource utilization (2) Improved energy efficiency and expedition of alternative energy initiatives in order to reduce energy imports, costs to both producers and consumers, and pollution. (a) Find new energy sources, both domestic and international, and secure energy reserves that ensure long-term energy security for Thailand. (b) Increase energy efficiency in transport, manufacturing, and household sectors through incentives and law enforcement. For example, provide investment incentives for high valueadded industries with low-energy consumption and regulations for importing energy-inefficient machinery. Other strategies to enhance energy efficiency are proper city planning, transport structural reform, logistics management, development of rail and waterways as alternative modes of transportation, and industrial cluster development. (c) Campaign for energy conservation and for alternative energy usage in every sector. For example, promoting NGV, gasohol, and biodiesel for vehicles. Consultation services for households, and private and public organizations, regarding alternative energy and energy efficiency to help create awareness in energy conservation. (d) Research on alternative and renewable energy including new fuel and electricity generating technology. Research should encompass technical, economical, and environmental aspects of alternative and renewable energy. The programs should also include capacity building activities and public information dissemination of research results.
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(3) A framework for fair distribution of benefits of infrastructure development, particularly in favor of rural areas. This is to enhance access, ensure sufficient provision, and be responsive to the demand for infrastructure. Well-established stakeholder participation, expanded coverage on telecommunications and media, access to clean water through piped water systems in rural areas, and city planning, which will bring residents close to production bases, should lead to better distribution of infrastructure and related services around the country. This should in turn contribute to the alleviation of a rural-urban disparity.

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4.2 Travel & Transportation Thailand travel is convenient for visitors as there are many ways to get to Thailand and even more ways to travel in Thailand, whether your destination is Bangkok, Phuket, Chiang Mai, or the most remote provinces. It is possible to enter Thailand by air, land, or sea from countries throughout the region and across the globe. Airlines Bus & Coach Private Charter Train

4.3 Travel around Thailand For both visitors and Thais, travel in Thailand is very convenient; the Thailand transportation infrastructure is modern and well-organized, and exploring the country is a very straightforward experience. Whether your Thailand travel preference is air, rail, bus, road, or water, most modes of Thailand transportation are use to catering to foreign visitors and have frequent departures. Consequently its easy to move about the country or explore sights around particular destinations. The inland cities and coastal resorts are well connected to each other, so when you travel in Thailand you can spend a few days in Bangkok, a few more at the beach, and still visit Chiang Mai or Ayutthaya alternatively traveling via bus, boat, train, or plane to get from A to B to C. Bookings and reservations for travel in Thailand should be done in advance as even in the low season many Thai people holiday in their own country and transportation is often booked well in advance. Nonetheless, when you travel in Thailand, there are always options for travelers, even at the last minute, particularly as departures of busses, planes, and trains are very frequent. When you travel in Thailand you can select from many domestic air carriers that service a majority of Thailands large provincial cities; local trains that connect Bangkok to all regions of the country; and long distance coaches that connect all major cities.

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4.4 Where To Go In Thailand There are five regions of Thailand: North, Northeast, East, Central, and South, which are divided into 75+1 provinces, each geographically distinct from the others; each Thailand province contains unique cultural, historical, and natural attractions from the northern peaks (replete with wildlife and home to exotic hill tribes) and the central plains (the Rice Bowl of Asia) to the northeastern plateau (stretching to the Mekong River border with Laos) and the spectacular beaches and islands of the south (including both Phuket and Samui).

4.5 Major Attractions in Thailand Bangkok All too often just a place of transit but its well worth taking a few days to explore Bangkok. There are countless things to do and youll find extraordinary people and places to visit around every corner. Barter for all sorts of goodies at the largest outdoor market in the world, the Chatuchak weekend market, or get along to MBK, an air-conditioned shopping haven. The Kings Palace is also well worth a visit, along with any number of temples including Wat Pho and the Temple of the Dawn.

Phuket

Dubbed the Pearl of the Andaman, Phuket remains one of the most popular beaches for tourists and with good reason. Beautiful white sand, palm trees, and clear blue water create a great atmosphere for some prime R & R. Get away from the hoards in Patong and head along to one of the gems of Phuket the beaches of Kata or Karon. There is plenty to see in Phuket jump on one of the day tours (deep link to a tour) to explore the islands and caves, go diving, visit the wildlife sanctuary or simply grab a table at a restaurant to sample the delish seafood.

Chiang Mai

Situated in Northern Thailand, Chiang Mai is quite a mountainous region and great for those more adventurous travellers keen to trek through forests, visit waterfalls and discover the wildlife. Jump on a tour to visit a hill tribe including the long neck Karen tribes in a nearby province. Your visit to Chiang Mai isnt complete until youve paid a visit to Doi Suthep Chiang Mais famous temple situated high in the mountains and giving you a great view of the
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city in the distance. If youre feeling fit there are 290 steps to take you to the temple or you can take a rail car.

Krabi

A rock climbers heaven, youll find stunning limestone cliffs and rock formations in Krabi. You should also head along to the National Park located about 40 km outside of town to be at one with nature and soak up the rivers, caves and amazing natural scenery. Krabi is also home to some great beaches including Ao Nang and Hat Rai Leh, which offer numerous diving trips, restaurants and shops.

Koh Samui

Despite the fast pace of development, Koh Samui has been able to maintain its image of a tropical beach resort fringed by coconut trees. Hit the beach or tour the surrounding islands by day and sample the bars and clubs at night. Koh Phangan, home to the full moon party, is also only an hour away by boat, making Koh Samui a great place to take a break from the craziness.

4.6 Places for Accommodation Hotels Swissotel Nai Lert Park Bangkok Peninsula Bangkok Sukhothai Hotel Bangkok Lebua at State Tower Bangkok Sheraton Resort Pattaya Banyan Tree Resort Phuket Mandarin Oriental Dhara Dhevi Hotel Renaissance Phuket Resort and Spa Dhevan Dara Resort & Spa Siripanna Villa Resort & Spa, Chiangmai Greenery Resort

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Apartments The Ascott Sathorn Serviced Apartments Bangkok Anantara Bangkok Sathorn Nara Residence The Color Kata

Boutique and Design Accommodations Thailand features numerous boutique hotels and design hotels that are as stylish as they are comfortable. Puripunn Baby Grand Boutique Hotel Chiang Mai Avantika Boutique Hotel Phuket The Dewa Ko Chang LE BAYBURI The Baray Villa, Phuket De Naga Thanyamundra Organic Resort

B&Bs and Guesthouses Staying in a Thailand guesthouse is one of the most popular accommodation options for visitors to Thailand. Top North Guest House Y L Residence The Color Kata

Home stays Thailand Home stays are just what they sound like, staying as a guest in the home of a Thai family. These unique cultural experiences are available throughout Thailand. Mae Ping Home Stay Hotel

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CHAPTER: 5 THAILAND TOUR ITINERARY

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5.1 CONFIRMATION SERVICE VOUCHER Friday, 28 September 2012 Departure Date Tour Name No of Nights No of Passengers Passengers Name Rooming 02nd OCT 2012 THAILAND MONSOON 04 NIGHTS / 05 DAYS Adult 04 1. GHASURA / IMRANKHAN ASHARAFKHAN MR 2. PATEL / YASH MAHESHBHAI MR 3. PATEL / YOGESHKUMAR MAFATLAL MR 4. PATEL / ASHISH DHAYABHAI MR 02 TWIN / DOUBLE ROOM

FROM TO MUMBAI BANGKOK BANGKOK MUMBAI CITY Pattaya Bangkok

FLIGHT AI 330 AI 331

DATE 02 Oct 06 Oct

DEP 0200 2050 IN DATE 02 Oct 04 Oct

ARR 0745 2320 OUT DATE 04 Oct 06 Oct

CLASS Economy Economy NIGHTS 2 Nights 2 Nights

HOTEL Royal Orchid Resort Bangkok Palace CONTACT Cox & Kings India DS TRAVELS

ROOM TYPE Deluxe Superior

COUNTRY INDIA THAILAND

CONTACT NO Ms. Rozina Lakhani : Mobile: 09920811899 Office Tel: 66 2 7434415-9,Fax: 66 2 7434414 / 7434480 Emergency Number in Bangkok : David: 66 81 8064622, Betty: 66 81 7354357 Geff: 66 84 0866467 Emergency Number in Pattaya : Inthira (Indy) - 66 89 9838704

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5.2 COST SHEET PER PERSON PARTICULAR AIR FARES (ROUND TRIP MUMBAI-BANGKOK-MUMBAI) PATTAYA HOTEL (2 NIGHTS) BANGKOK HOTEL (2 NIGHTS) OTHER MISI EXPENCES (LOCAL TRANSPORT, FOOD, THEME PARK TICKET) TOTAL EXPENCES TOTAL PACKAGE OF 04 PEOPLE EXPENCES (IN INR) 15,845/7,000/8,000/10,000/40,845/-

Rs. 40,845 X 04 PERSONS

PACKAGE INCLUDES Roundtrip Economy class airfare Current applicable taxes Accommodation for 2 nights in Bangkok Accommodation for 2 nights in Pattaya Daily breakfast Alcazar show tickets Half day coral island tour with lunch Half day Bangkok city tour Safari world and marine park ticket with lunch

Rs. 1,63,380

On arrival, get complimentary water bottle and cold towel Roundtrip airport transfer Service tax of 3.09% included

TOUR PROFIT

Profit Rs. 4000/per X 04 persons

Total Profit 16,000

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5.3 DAY WISE ITINERARY OF THAILAND The below itinerary is subject to change with / without notice. Please refer to the itinerary exchanged by the local supplier on your arrival. DAY 1 ARRIVAL BANKOK ON TO PATTAYA

02 OCT 12 Welcome to Thailand 0745 HRS Our person will be waiting at Exit Gate 10 / Door C in the airport arrival hall Airport Rep:Mr.Don:081 699 3912 / Mr.Toiy -66816845279/Mr.Zeen66819351819 You will be transferred to Hotel in Pattaya Seat in coach basis Check in to your hotel. (Check in to your hotel is at 1400hrs; early check-in is subject to availability).

1830 HRS

ALCAZAR SHOW-SEAT IN COACH TOUR Enjoy a night of magic as you witness dazzling performances by transvestites. Get ready to be entertained in grand style by professional artists presenting creative impersonations through songs and tales accompanied by a fantastic modern sound and light system. Suitable for all age groups, the Alcazar Show is a marvellous extravaganza of music, dance and glitzy costume.

Accommodation: ROYAL ORCHID RESORT (DELUXE ROOM), PATTAYA Address: 256/24-26 Moo 5,North Pattaya, Pattaya-Naklua Road Soi 20, Pattaya, Chonburi,20150 Thailand Tel:+66 38 371 290 DAY 2 PATTAYA HALF DAY CORAL ISLAND TOUR WITH LUNCH SEAT IN COACH TOUR Sail across the sparkling water of the Gulf of Thailand to the offshore island, popularly known as the Coral Island. The island is blessed with beautiful sandy

03 OCT 12 Buffet Breakfast at hotel 0830 HRS

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white beaches and an abundance of coral. Admire the colourful corals and varied marine life from your glass-bottomed boat. Relax, swim, dive, snorkel or simply enjoy sunbathing on the golden beaches.

Accommodation: ROYAL ORCHID RESORT (DELUXE ROOM), PATTAYA

DAY 3

PATTAYA - BANGKOK

04 OCT 12 Buffet Breakfast At Hotel Check Out Of The Hotel 0830 HRS 1230 HRS Today you will be transferred to Bangkok hotel on Seat in coach basis HALF DAY BANGKOK CITY TOUR SEAT IN COACH TOUR Thailand is known as a Buddhist country with many beautiful temple built in exotic architectural styles, visiting Wat Tri-Mitr with its huge Golden Buddha, Wat Po the city's oldest temple and home to the country's longest with its huge Reclining. Check in to your hotel (Check in to your hotel is at 1400hrs; early check-in is subject to availability). Accommodation: BANGKOK Address : City Square, 1091 /336 New Petchburi Rd, Bangkok 10400, Thailand. Tel:(662) 253-0510 DAY 4 BANGKOK SAFARI WORLD AND MARINE PARK WITH LUNCH SEAT IN COACH TOUR BANGKOK PALACE (SUPERIOR ROOM),

05 OCT 12 Buffet Breakfast At Hotel 0830 HRS

Safari World is a 170-acre leisure and wildlife park, where you will come across thousands of rare and endangered species roaming freely in their natural habitat. Spend the day in the wild as you drive through the splendid Animal Kingdom.
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Enjoy a wide array of entertainment, such as the Dolphin Show, Sea Lion Show, Orang-Utan Boxing Show, Stunt Show and the Bird Show.

Accommodation: BANGKOK DAY 5 DEPART- PHUKET

BANGKOK

PALACE

(SUPERIOR

ROOM),

06 OCT 12 Buffet Breakfast at hotel 1200 HRS 1600 HRS Check Out Of The Hotel Today you will be transferred to Bangkok Airport for your return flight back home on Seat in coach basis. END OF SERVICES

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5.4 BILLING INSTRUCTIONS

Bill to Cox & Kings Limited for the above mentioned services. All extras to be collected directly from the guest. OSI INFORMATION FOR PASSENGERS 1) Hotel / Flights / Itinerary / Timings are subject to change with / without prior notice. 2) Hotel may require Cash deposit / Credit Card guarantee for extras (like Room Service, telephone Calls, Mini Bar usage etc) utilised during your stay. 3) Hotel Check in is 1400hrs. Check out is 1200hrs. All Airport transfers / Sightseeing are on airconditioned Seat-in-Coach basis (SIC), unless otherwise mentioned. SIC operates at a predesignated timings and route, based on shared vehicle transfer, share your coach seat with other tourist. SIC sightseeing tours are conducted by English speaking guide. This service is slow than the more efficient private transfer / touring, but is more economical and offers great value for money. 4) It is advised / recommended to reconfirm your next day services 24hrs prior with our representative. 5) Porterages / Tips / Laundry / Telephone Charges are not included in the holiday package. 6) You need to carry Photo-copy of Thai visa along with you which needs to be presented at the customs and immigration upon arrival at the Bangkok International Airport for Visa on arrival The process would take approximately 30-45 minutes. However, the actual time may differ depending on the tourist arrival load. 7) According to the Thailand Immigration rules & regulations all clients arriving into Thailand should be in possession of USD 500/- in Cash / T.Cs. Please ensure to carry the same, if not there are chances that you may be deported.

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IMPORTANT NOTES

MEET & GREET AT FOREIGN AIRPORTS Upon arrival, please immediately proceed to the Immigration counters for clearance. DO NOT STOP AT THE DUTY FREE SHOPS FOR SHOPPING. Our representative will be waiting at the arrival hall outside the baggage claim area with a signage card.

TRANSFER & TOUR INFORMATION For all transfers and tours please wait at the Bell Captain or Concierge Counter at least 10 minutes before the scheduled pick-up time. DO NOT WAIT IN YOUR ROOM OR IN HOTELS COFFEE HOUSE. Please be punctual as most of the hotels do not allow waiting in the drive-away area for security reasons

SEAT IN COACH SIGHTSEEING Note that SIC Tours run on fixed timings. It is on free seating basis, with tourist from all over the world. Therefore, punctuality is of utmost important. Coach will not wait or turn back if you are late. There will be no refund if you are late for the transfer OR tour.

PRIVATE TRANSPORTATION SIGHTSEEING This service offers you to have your own privacy and convenience to travel at a pre-decided time. Depending upon your budget we may offer an air-conditioned vehicle. The class of the vehicle offered may vary depending on your needs and budget. In certain destinations the driver acts like guide whereas in other destination we have a separate licensed English speaking guide for sightseeing services. This cannot be assumed that the vehicle is at disposal throughout the day.

BAGGAGE ALLOWANCE Economy Class 20 Kilos

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HOTEL INFORMATION If there is any mis-use of room. Hotel has the right to charge the same to client. All personal bills should be settle sufficient time before departure so that your transfer is not delayed. Official Check-in time: 1400 hrs onwards. Official Check-out time: 1200 hrs

AMENDMENT / CHECKING OF PICK-UP TIME Pick-up time or Amendment of transfers or tour date please call Emergency number a day prior to schedule service.

MEALS Meals served will be a set meal OR a buffet meal as organized. We have given an elaborate menu to ensure that you have good meal. Please note no drinks (Alcoholic or non-alcoholic) are included in the tour.

SERVICES OF ENGLISH SPEAKING GUIDE All services will be handled by English speaking local guide and will be operated as per the schedule itinerary and timings.

PORTERAGES / HANDLING OF LUGGAGE / BAGGAGE ALLOWANCES Porterages are not included on the tour; it is the responsibility of the traveller to ensure that their personal luggage is taken care off. COX & KINGS bears no responsibility. NON UTILIZATION There will not be any refund for non-utilization of any services

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