At the moment, every sector is focusing on preparing Thailand before coping with ASEAN Economic Community: AEC in 2015. This will inevitably affect business, industry and tourism industries which if Thailand can't cope with this big change in the next 3 years, the country may lose benefit from this AEC opening.
Many sectors raise a question on "What Tourism industry would encounter in AEC stage". For this issue, we have gathered the viewpoints from both private and government sectors to acquaint tourism industrial entrepreneurs with the situation and get themselves ready further on. In addition, Tourism Authority of Thailand (TAT) as the coordinator has already prepared such as founding ASEAN division; to in charge tourism in ASEAN region, marketing preparation, human development which these will start their operations from 2012 onwards.
Mr. Suraphon Svetasreni, Governor of Authority of Thailand and president of ASEAN Marketing subcommittee - in charge of coordinating and interlinking among regions under the concept "South East Asia : Feel the warmth" says about AEC opening "Even though AEC will benefit ASEAN region, high competition can't be avoided. In addition, wide opening must be done carefully, while we need to have good immunity system otherwise Thailand will be dropped behind. Thus, TAT should watch over the marketing along with human development".
On the other hand, private sector conquers this unification among 10 countries in ASEAN group, is the attempt to fight with the outside world particularly the great power China and India which without this unification, ASEAN region will be at disadvantage in the future. Thus, it is necessary to hastily make balance by propelling ASEAN to the top and Thailand; being voted in the group as the leader in Economy and Tourism branches must lead ASEAN to achieve the objective of AEC.
For hotel industry, Mr. Udom Srimahachota, Honorary Advisor, Thai Hotels Association, THA has been appointed by THA to watch over and coordinate with government sector regarding AEC opening in particular. Mr. Udom admits through his three years of responsibility that he gets opportunity to reflect his opinion to Department of Foreign Trade, Ministry of Commerce "In addition to AEC opening has both advantages and disadvantages. Even though AEC will convince more travels, arrival tourists, investment from oversea and incomes, some caution must be taken into account as well which today business sector should realize and give precedence to those factors".
AEC is composed of 4 sections in the following
1. Across Frontier Service Providing
2. International Goods Consuming
3. Investment and Business Establishment
4. Service Providing for Everyman
Which section 1 and 2 has been opened free, but section 3 is under the process of open free as well as section 4 in 2015. Some concern in Section 3 and 4 Mr. Udom says since this will be opened free without any condition therefore THA proposes the conditions and agreements with Department of Foreign Trade, Ministry of Commerce.
In section 3, there is a submission of agreement proposal no. 8 to Department of Foreign Trade in order to further pass on to ASEAN committee board, the detail of conditions composed as
1. Foreigner can hold shares up to 70% and Thai people for 30%
2. The investment must be made for 5star hotel upwards
3. The lowest investment must be 20 million baht per room and no less than 100 rooms
4. Capital fund must be transferred from oversea to Thailand 70% of the investment capital
5. Power to sign affected juristic person must be signed by Thai people only.
These conditions must be concluded by ASEAN committee board which expected the conclusion in the beginning of 2012, while the section 4, THA is gathering all conditions to further propose to Department of Foreign Trade.
However, the most concern in section 4 is Thai labor issue “If we allow the open free without any condition, Thai people will definitely get some impact and turn Thai people to the lower level personnel because foreign country will appoint people from overseas to the leadership level. Thus, we need to prepare our people especially in term of language communication capability”.
“What government should do to help the private entrepreneurs to handle AEC opening is in the following
1. Support funds and tourism for SME entrepreneurs
2. Support the training fund to develop Thai personnel
3. Decisively Enforce the law particularly hotel without the license or illegitimate hotel, to convince the quality investor to make the investment in Thailand” said Mr. Udom.
Mr. Kongkrit Hiranyakit, Policy and Planning President, Tourism Council of Thailand gives his opinion for what dimensions will occur after AEC’s open free in 2015 “I could see two changes in his regard. Firstly, the dimension of tourist – the tourist outside ASEAN group shall consider Thailand as the tourism hub to connect with other countries in the region, but Thailand should have the clear strategy. Secondly, investment – it shall make a big change in this regard caused by the objective of AEC to become one big market and the same production factor which will derive more investment dislocation”.
Besides, labor dislocation will divided into two parts which AEC opening will benefit entrepreneur in term of having freedom to select the quality personnel. In addition, Thailand has advantage for having labor cost resting in the capital level, while vocational personnel will encounter the high competition situation from foreigner as well.
However, AEC will significantly open opportunity and make a big challenge to Thai tourism industry which will definitely benefit the dislocation of product, service, quality labor and fund. In addition to tourism industry aims to have the number of ASEAN tourists visiting Thailand up to 4 million tourist or 26% of overall tourists in Thailand. This will create over 150,000 million baht of income.
Source: Thai Hotels & Travel
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