By David Johnson
BANGKOK An alarming decline in European bookings has forced Thai destination management companies (DMCs) to step up their regional campaigns as the SARS hangover continues to linger.
However, DMCs warned European bookings would not rebound until 2005.
Mr Luzi Matzig, Asian Trails group managing director, said some DMCs faced the very real possibility of handling cheap, low-yield Asian business to minimise the impact of the European shortfall.
"DMCs with a high percentage of European meeting, incentive, convention and exhibition business will certainly find the going tough for a year or so," he said.
Mr Matzig said Asian Trails was now engaged in more active promotions in Asia, particularly Singapore and Malaysia, to counter a 20%-25%, year-on-year drop-off in European bookings from April to June.
Mr David Barrett, events manager, Diethelm Events, said his company was also focusing its marketing efforts closer to home after a sharp decline in European and Australian bookings.
"Business from Singapore has rebounded quickly and we are doing exceptionally well in this and other short-haul markets," he said.
Mr Barrett said Diethelm Events had seen its UK and German business - two key source markets - fall a staggering 97% in the second quarter this year compared to the same period last year.
He said the dramatic decline was mainly due to corporate clients choosing to stay closer to home, adding most European incentive programmes had been confirmed for next year and Thailand had largely been shunned.
"So we have truly missed the boat for 2004 and now have to look
one year ahead, targeting the next round of destination selections in 2004 for the 2005 trip deliveries," he said.
Mr Barrett said the European corporate meetings market had also been staying closer to home. However, unlike incentive programmes, clients were now selecting destinations within a short time frame - as little as three months in some cases.
"With this in mind, the Tourism Authority of Thailand, working with the private sector, need to step up the marketing machine in Europe, rebuilding Thailand's allure as an incentive and meetings destination," Mr Barrett said.