GROUP 7 Members:GROUP 7 Members:
Present
1. Vu Thi Kim Thanh1. Vu Thi Kim Thanh2. Dinh Van Thanh2. Dinh Van Thanh3. Bui Thi Tien 3. Bui Thi Tien 4. Do Thu Trang 4. Do Thu Trang 5. Doan Thi Tuyet5. Doan Thi Tuyet6. Hoang Thi Vi Yen6. Hoang Thi Vi Yen7. Nguyen Hoang Nguyen7. Nguyen Hoang Nguyen
THAILANDCountry Risk
Presentation Contents:Presentation Contents:
1.1. Buffalo ToursBuffalo Tours
2.2. Thailand and its Tourism IndustryThailand and its Tourism Industry
3.3. Risk Assessment of ThailandRisk Assessment of Thailand• Political RiskPolitical Risk• Economic/Financial RiskEconomic/Financial Risk• Social RiskSocial Risk
4.4. Conclusions & RecommendationsConclusions & Recommendations
Buffalo ToursBuffalo Tours
A Vietnamese travel A Vietnamese travel agency specialising agency specialising in organisation of in organisation of tours to different tours to different destinations in and destinations in and out of Vietnamout of Vietnam
Thailand & its Tourism IndustryThailand & its Tourism Industry
Thailand locates in South-East Asia and shares Thailand locates in South-East Asia and shares border with Burma, Malaysia, Cambodia and Laos. border with Burma, Malaysia, Cambodia and Laos.
Thailand has a population of 64 million people and Thailand has a population of 64 million people and is a constitutional monarchy. is a constitutional monarchy.
Thailand is known throughout the world for its Thailand is known throughout the world for its excellent service and available consumer goods excellent service and available consumer goods for tourists. In addition, visitors are highly for tourists. In addition, visitors are highly appreciated by the famous slogan of Thailand appreciated by the famous slogan of Thailand tourism industry “WELCOME TO THAILAND, LAND tourism industry “WELCOME TO THAILAND, LAND OF SMILE”. OF SMILE”.
Thailand has attracted Thailand has attracted 13.9 billion13.9 billion visitors and 55% visitors and 55% are return visitors annually.are return visitors annually.
Risk Assessment of ThailandRisk Assessment of Thailand
Political Risk:Political Risk: Unstable government: Unstable government:
mmanifestationanifestations, strikes; s, strikes; government change government change unexpectedly happened since unexpectedly happened since the military coup d’eta in the military coup d’eta in September 2006;September 2006;
Domestic terrorism: terrorist Domestic terrorism: terrorist attacks in the far southern attacks in the far southern provinces of Yala, Songkhla, provinces of Yala, Songkhla, Pattani and Narathiwat as a Pattani and Narathiwat as a result of Muslims-Buddhists result of Muslims-Buddhists conflicts; even in tourist places;conflicts; even in tourist places;
Border and regional issues: Border and regional issues: residual border disputes and residual border disputes and historic antagonisms with historic antagonisms with Cambodia; occasional incidents Cambodia; occasional incidents of violence and banditry on of violence and banditry on Thailand's border with Laos.Thailand's border with Laos.
Protestors outside the Building of Protestors outside the Building of Thailand Government in Nov08Thailand Government in Nov08
Risk Assessment of ThailandRisk Assessment of Thailand
Political Risk (cont’d):Political Risk (cont’d): Civil unrest: airports Civil unrest: airports
closed and dominated by closed and dominated by anti-government anti-government demonstrators; flights demonstrators; flights cancelled and many cancelled and many tourists stuck in Thailand tourists stuck in Thailand in late August and in late August and November of 2008;November of 2008;
Systematic corruption: Systematic corruption: ranked 93th in the world ranked 93th in the world for transparency index for transparency index Increase business Increase business transaction cost;transaction cost;
Close ties between Close ties between private sector and private sector and politicians politicians affect affect business environment.business environment.
Passengers stuck at Bangkok airportsPassengers stuck at Bangkok airports
Risk Assessment of ThailandRisk Assessment of ThailandEconomic/Financial Risk:Economic/Financial Risk: The impact of global crisis The impact of global crisis trend of travelling trend of travelling
overseas is going down;overseas is going down; General situation: higher inflation and interest rates, General situation: higher inflation and interest rates,
foreign debts;foreign debts; Trade: export falls with a slowdown in global demand. Trade: export falls with a slowdown in global demand.
Though export price and export volumn have Though export price and export volumn have increased, export value nearly remains constant over increased, export value nearly remains constant over three years. The trade account deficit will probably three years. The trade account deficit will probably increase and current account will be close to zero;increase and current account will be close to zero;
Currency risk - the devaluation of Baht; Currency risk - the devaluation of Baht; Price pressure: international fuel and commodity Price pressure: international fuel and commodity
prices.prices.
Risk Assessment of ThailandRisk Assessment of Thailand
Economic/Financial Risk (cont’d):Economic/Financial Risk (cont’d): Though GDP has increased year by year, GDP Though GDP has increased year by year, GDP
Growth rate is slightly declining:Growth rate is slightly declining:
YearYear
GDP in GDP in Billions Billions of USD of USD
PPPPPP
% GDP % GDP GrowthGrowth
20042004 413.46413.46 4.634.63
20052005 445.20445.20 3.903.90
20062006 483.55483.55 4.404.40
20072007 521.03521.03 4.104.10
20082008 561.33561.33 3.203.20
Risk Assessment of ThailandRisk Assessment of ThailandSocial RiskSocial Risk Ethnical and cultural Ethnical and cultural
fragmented country:fragmented country: • Rebel of Muslim in the South East: a Rebel of Muslim in the South East: a
source of tension and social unrestsource of tension and social unrest Risk factor for safety Risk factor for safety
journeyjourney
High HIV rate: 750,000 adult High HIV rate: 750,000 adult HIV positives, 1.8% of HIV positives, 1.8% of populationpopulation
• highest in South East Asiahighest in South East Asia• second burden highest in the world second burden highest in the world
Risk factor to sex tour Risk factor to sex tour customerscustomers
Prostitutes in BangkokProstitutes in Bangkok
Conclusion & RecommendationsConclusion & Recommendations
In general, Thailand has a moderate risk for In general, Thailand has a moderate risk for business and investment. Considering all business and investment. Considering all the risk factors above, Buffalo Tours has the risk factors above, Buffalo Tours has decided to invest into tourism in Thailand decided to invest into tourism in Thailand by providing tours to this country and set by providing tours to this country and set up a branch in Bangkok.up a branch in Bangkok. a a
Recommendations for Buffalo Recommendations for Buffalo ToursTours
ReferencesReferences White, C. (2004). White, C. (2004). Strategic ManagementStrategic Management. Basingstoke, England: . Basingstoke, England:
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idUSTRE4B31SP20081204idUSTRE4B31SP20081204 http://www.pattayadailynews.com/shownews.php?http://www.pattayadailynews.com/shownews.php?
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Thank you for your attention!Thank you for your attention!
Questions & AnswersQuestions & Answers
