GROUP 7 Members:

1. Vu Thi Kim Thanh

2. Dinh Van Thanh
3. Bui Thi Tien
4. Do Thu Trang
5. Doan Thi Tuyet
6. Hoang Thi Vi Yen
7. Nguyen Hoang Nguyen

Present
 THAILAND
Country Risk
 Presentation Contents:
1. Buffalo Tours
2. Thailand and its Tourism Industry
3. Risk Assessment of Thailand
• Political Risk
• Economic/Financial Risk
• Social Risk
1. Conclusions & Recommendations
 Buffalo Tours

A Vietnamese travel
agency specialising
in organisation of
tours to different
destinations in and
out of Vietnam
 Thailand & its Tourism Industry
 Thailand locates in South-East Asia and shares
border with Burma, Malaysia, Cambodia and Laos.
 Thailand has a population of 64 million people and
is a constitutional monarchy.
 Thailand is known throughout the world for its
excellent service and available consumer goods
for tourists. In addition, visitors are highly
appreciated by the famous slogan of Thailand
tourism industry “WELCOME TO THAILAND, LAND
OF SMILE”.
 Thailand has attracted 13.9 billion visitors and 55%
are return visitors annually.
 Risk Assessment of Thailand
Political Risk:
 Unstable government:
manifestations, strikes;
government change
unexpectedly happened since
the military coup d’eta in
September 2006;
 Domestic terrorism: terrorist
attacks in the far southern
provinces of Yala, Songkhla,
Pattani and Narathiwat as a
result of Muslims-Buddhists
conflicts; even in tourist places;
 Border and regional issues: Protestors outside the Building of
residual border disputes and Thailand Government in Nov08
historic antagonisms with
Cambodia; occasional incidents
of violence and banditry on
Thailand's border with Laos.
 Risk Assessment of Thailand
Political Risk (cont’d):
 Civil unrest: airports
closed and dominated by
anti-government
demonstrators; flights
cancelled and many
tourists stuck in Thailand
in late August and
November of 2008;
 Systematic corruption:
ranked 93th in the world
for transparency index 
Increase business
transaction cost;
 Close ties between
private sector and
politicians  affect
business environment.
Passengers stuck at Bangkok airports
Risk Assessment of Thailand
Economic/Financial Risk:
 The impact of global crisis → trend of travelling
overseas is going down;
 General situation: higher inflation and interest rates,
foreign debts;
 Trade: export falls with a slowdown in global demand.
Though export price and export volumn have
increased, export value nearly remains constant over
three years. The trade account deficit will probably
increase and current account will be close to zero;
 Currency risk - the devaluation of Baht;
 Price pressure: international fuel and commodity
prices.
Risk Assessment of Thailand
Economic/Financial Risk (cont’d):
 Though GDP has increased year by year, GDP
Growth rate is slightly declining:
Year GDP in % GDP
Billions of Growth
USD PPP

2004 413.46 4.63

2005 445.20 3.90
2006 483.55 4.40
2007 521.03 4.10
2008 561.33 3.20
 Risk Assessment of Thailand
Social Risk
 Ethnical and cultural
fragmented country:
• Rebel of Muslim in the South East: a
source of tension and social unrest
 Risk factor for safety
journey
 High HIV rate: 750,000 adult
HIV positives, 1.8% of
population
• highest in South East Asia
• second burden highest in the world

 Risk factor to sex tour

customers
Prostitutes in Bangkok
Conclusion & Recommendations
In general, Thailand has a moderate risk for
business and investment. Considering all
the risk factors above, Buffalo Tours has
decided to invest into tourism in Thailand
by providing tours to this country and set
up a branch in Bangkok. a
Recommendations for Buffalo
Tours
 References
 White, C. (2004). Strategic Management. Basingstoke, England:
Palgrave Macmillan.
 http://bbcvietnamese.com
 http://globaledge.msu.edu/countryinsights/risk.asp?
countryID=175&regionID=3
 http://bespokeinvest.typepad.com/bespoke/2008/12/country-
default-risk-rises-across-the-board.html
 http://www.coface-
usa.com/CofacePortal/US_en_EN/pages/home/wwd/inform/Countr
y_risk/Country%20Risk%20Assessment
 http://www.ondd.be/webondd/Website.nsf/AllWeb/Thailand?
OpenDocument&Language=en
 http://www.reuters.com/article/newsMaps/idUSTRE4B31SP20081
204
 http://www.pattayadailynews.com/shownews.php?
IDNEWS=0000002619
 http://www.adb.org/Documents/CERs/THA/2001/default.asp
Thank you for your attention!

Questions & Answers