Thailand’s Department of Tourism has reported a 2.5% November arrivals rise, as the King Power Group (Thailand) looks set for $1.8bn this year.

The good news for tourism and KPIG’s DF&TR business is that this is the second month of arrivals growth in a row, although Thailand is still recovering under the martial law umbrella that was introduced back on May 22.

The reality is that tourist arrivals have fallen by -8.61% this year to 21,938,435, although the Tourism Ministry is hopeful it will end 2014 with 25m – still 1.5m less than last year’s 26.5m. [Sources: Immigration Bureau; Police Department; Ministry of Tourism and Sports, Thailand].

In particular, the MInistry of Tourism will be hoping for improvements from three of its most important tourist arrival nationalities. Between January and November of this year, Chinese tourist arrivals numbered 4.1m to Thailand which was just -5.56% down on the same period last year, although some other visitor arrival falls were more dramatic.

For example, Japanese visitors to Thailand in the first 10 months numbered 1.1m, although this number was -18.94% down on the same period last year. Similarly, Korean visitor arrivals numbered just over 1m over the same period this year and down -15.03% on the first 10 months of 2013.

 

The sheer numbers of Chinese customers at King Power’s Srivaree downtown Complex in Bangkok belies the ‘fact’ that Mainland Chinese visitors to Thailand are actually down this year. [Pictures taken on TRBusiness’ visit to Bangkok last month-Ed].

 

KPG FORECASTS Bht.62.41BN ($1.8BN) THIS YEAR
Despite the pressure on tourism numbers during the year and the Thai Political crisis rumbling on [seemingly quietly] in the background, the King Power Group’s total sales turnover is expected to reach Baht.62.41bn ($1.8bn) this year, according to its own projections. This forecast was published in its anniversary book released last November to celebrate its 25 years in business.

As is well known, King Power operates stores at Bangkok’s Suvarnabhumi and Don Mueang airports, plus its downtown stores in Bangkok and Pattaya, alongside the regional airport locations of Phuket, Chiang Mai and Hat Yai.

The volumes of merchandise sold by the retailer at its Suvarnabhumi Airport outlets alone in 2013 were also impressive. For example, it sold 1,348,527 bottles of whisky, 835,036 boxes of souvenir chocolates from Thailand, 691 tonnes of dried fruit, 147,788 imported handbags, 400,718 lipsticks and 13,396 local handbags.

 

Mainland Chinese customers prepare to ‘shop the store’ after being bussed to King Power Group Thailand’s Srivaree Complex last month.

 

The group’s sales breakdown by value in 2103 was as follows: Cosmetics 24.57%; fashion 16.41%; watches 16.04%; Perfume 11.36%; Liquor 10.01%; Food 8.65%; Souvenirs and local products 7.16%; Electronics 2.96%; and Tobacco 2.84%.

[TOP IMAGE: The Srivaree Complex in Bangkok is the largest downtown duty free mall in Thailand].