Massive quake is latest blow to Thai tourism hit by safety woes
International tourist arrivals are expected to drop by 10%-15% or even more in the next two weeks as Friday's 7.7 earthquake shook buildings in Bangkok and other Thai tourist hot spots, spooking prospective travelers, the Thai Hotels Association said.
About 10% of foreign tourists checked out early after the quake, said Thienprasit Chaiyapatranun, president of the association, citing an initial survey among the group's members. Some tourists, however, later returned to their hotels as they had no other options, he said.
"A short-term impact is expected for the tourism industry because of safety concerns,' Thienprasit said by phone on Saturday.
Even a short-lived impact on tourist arrivals will hurt an economy where the industry employs one in five of the country's workforce and accounts for about 13% of gross domestic product. Thai authorities are betting on an improved tourism performance to propel growth to 3% this year as merchandise exports, another key driver of growth, faces headwinds from the Trump administration's trade tariffs.
Thai authorities have in the meantime reassured foreign tourists. The country is safe for tourists, Minister of Tourism and Sports Sorawong Thienthong said Saturday, adding that the government has ordered a safety audit of hotels and major tourist attractions.
While the earthquake rattled buildings across Bangkok, leading to mass evacuations and suspension of public transport for a day, the city emerged largely unscathed in contrast to the massive destruction in Myanmar. The collapse of a high-rise building under construction in Bangkok was the biggest hit from the temblor, killing 10 workers and trapping dozens under its debris.
To be sure, tourist arrivals were already on the decline due to safety concerns in recent months. A series of high-profile cases of human trafficking to scam centers in Myanmar via Thailand prompted some travelers from China, Thailand's largest source for tourists, to shun the Southeast Asian nation.
Hotel bookings during the country's Songkran festival next month haven't been as good compared with two years ago, and post-tremor safety concerns could further hurt confidence among foreign visitors, Thienprasit from the hotel group said.
Foreign tourist arrivals have been falling on a weekly basis since the end of the Lunar New Year rush in early February. Bank of America economists expect downside risk to its forecast of 38.1 million tourist arrivals this year with the country moving into the low season when European tourists subside and Chinese tourist arrivals still showing no sign of recovery.
Thailand — popular among tourists for its pristine beaches, vibrant nightlife and Buddhist temples — has welcomed 8.9 million tourists since the start of the year, up 2.9% from year earlier, according to latest official data.
Foreign visitors traveling in groups aren't as concerned about safety as seen from the normal flight schedules at key Thai airports, said Adith Chairattananon, secretary-general of the Association of Thai Travel Agents.
"But tourists, who haven't made bookings to Thailand, may decide to halt travel plans,' Adith says. "The impact could surface in the next two weeks.'
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Nikkei Asia
18 hours ago
- Nikkei Asia
Trump tariffs: Asian reaction to new US 'reciprocal' rates
TOKYO -- Hours ahead of his Aug. 1 deadline for new "reciprocal" tariffs, U.S. President Donald Trump has announced the rates he is going to impose on imports of goods from dozens of countries. The new rates include 25% on India, 20% on Taiwan and 19% on Thailand, Malaysia and Cambodia. Countries that run a trade deficit in goods with the U.S., such as Singapore, will face the baseline rate of 10%. Some of Asia's smallest economies have been hit hardest: Laos and Myanmar both face 40%. For more in-depth reaction and analysis, here are some of Nikkei Asia's recent articles on the U.S. tariffs: - Trump unveils new sweeping tariff rates up to 41% - Taiwan says US tariff deal not final, calls 20% hit 'temporary' - China pauses US-bound company investment amid trade war - India's Modi faces opposition slam after Trump slaps 25% tariff - South Korean stocks plunge nearly 4% following US trade deal Follow the latest developments in this live blog (Japan standard time): Saturday, August 2 12:15 a.m. Malaysia's tariff deal with the U.S. is a "win-win," the Southeast Asian country's trade minister said. The deal demonstrates the strong bilateral relationship between the two countries, Malaysian Trade Minister Zafrul Aziz told a news conference. The U.S. tariff rate of 19% is "fair," he said, given the circumstances faced by neighboring countries in the region. Read more. Friday, August 1 5:15 p.m. Thailand's acting Prime Minister Phumtham Wechayachai said at a cabinet meeting that the 19% tariffs on Thai products "are the same rate as many countries in the region, which is good news," according to a government spokesperson. "A key step for the Thai government is to issue a joint Thai-U.S. statement," Phumtham said, which the representatives from both sides have drafted. Earlier, Finance Minister Pichai Chunhavajira indicated that, unlike some other countries, Thailand did not agree to eliminate tariffs on all American products. "For the types of products we are prepared for, we will give them 0%. What we are not ready for yet, we won't allow it at all, or we will allow it partially, asking for three to five years to prepare," Pichai told local media. 3:45 p.m. Soh Thian Lai, president of the Federation of Malaysian Manufacturing, pointed out that the burden of tariffs is often shared across the supply chain. "A reduction in tariffs benefits not only Malaysian exporters but also U.S. importers. It improves the overall cost equation and can stimulate demand for Malaysian goods, especially in sectors where price plays a crucial role in purchasing decisions," Soh said. While it is still too early to assess the full impact, he anticipated that several export-oriented industries like electrical and electronics machinery and equipment, rubber-based products and processed industrial goods, may benefit from improved competitiveness and increased demand. And while some front-loading of orders may have occurred earlier, Soh predicted that the tariff cut is likely to encourage more exporters to consider "taking on new orders." 2:15 p.m. Alexandra Hermann, lead economist at U.K.-based consultancy Oxford Economics, said the 25% tariff rate on Indian exports -- higher than Asian peers such as Vietnam, Japan and South Korea -- will put the country at a disadvantage in the medium term, damaging "export prospects and investment appeal." Hermann warned that Trump's threat to penalize Russia's trading partners could also weigh on India, forcing it to replace discounted Russian oil. "Though probably temporary, an additional 100% duty over the remainder of Q3 would shock confidence and could push global oil prices to $80-$90, raising India's import bill," she said. "Public finances would likely take some of the hit to cushion the inflationary impact in the near term, with state-owned oil refiner margins potentially absorbing most of the cost." Hermann added that there is still room for negotiations, as indicated by Trump, with final tariffs of 15% "a plausible upside scenario." 2 p.m. Kriangkrai Thiennukul, president of the Federation of Thai Industries, stated that Thailand's success in negotiating the rate down from 36% to 19% reflects close cooperation between the public and private sectors. "This tariff rate is at an acceptable level. No one gains or loses too much. Overall, Thai products can still compete, but businesses with margins below 10% will need to cut costs, improve efficiency and negotiate with trading partners." 1:50 p.m. By midday, the Kuala Lumpur Stock Exchange was up nearly 20 points, or 1.3%, at 1,531.88, after slipping from its sharp rise to 1,533.10 at the opening. Hong Leong Investment Bank (HLIB) said in a statement that the EMS, or electronic manufacturing services, and glove industries are regarded as immediate beneficiaries of the tariff announcement. However, it noted that both sectors are "still grappling" with industry-specific headwinds, which could temper further rises. HLIB said its target for the benchmark KLCI for the rest of 2025 will be 1,640. 1:15 p.m. Top executives at Singaporean lender Oversea-Chinese Banking Corp. on Friday highlighted uncertainty and volatility from Trump's continuing trade war. While OCBC's home market Singapore, which has a trade deficit with the U.S., is set to have its tariff rate kept at the baseline of 10%, the bank counts China, a main target of Trump's protectionist campaign, as a key external market. "The impact we see in the environment is really customers re-evaluating their investment decisions," OCBC's Deputy CEO Tan Teck Long said during an earnings briefing on Friday. "When the tariff charge on China products was very high at triple digits, we found that the merchandise from a major manufacturing country such as China found its way to other markets ... [and] some of the local businesses suffer from this intense competition." 1 p.m. Tricia Yeoh, associate professor at the University of Nottingham Malaysia, raised concerns that the U.S. could place further pressure on Malaysia to concede on non-trade matters, including its relationship with China and countries in the Middle East. "If so, we are entering an interesting and unprecedented new global order, one in which non-traditional matters of security and foreign policy are grounds for negotiating traditional trade and economic deals," she said. All in all, she said she remains "cautiously optimistic," while countries in Southeast Asia and beyond need to be prepared to negotiate in unconventional ways. 12:45 p.m. For those of you focusing on Southeast Asia, here's a chart comparing how the U.S. tariff rates have changed from the initial announcement in April. 12:35 p.m. Deborah Kay Elms, head of trade policy at the Hinrich Foundation, a trade advocacy group, said the public would benefit from "greater clarity" from the White House, specifically on the transshipment provision, which indicates that "anyone found guilty" of doing this to evade duties will face a 40% levy. "It does not (at the moment) indicate Chinese content," she told Nikkei Asia. Elms argued the "bigger challenge" is that the tariffs in their current state are simply high. "There will be changes ahead. The document reserves the right for the president to modify rules. His agencies have a lot of latitude in implementation." 12:20 p.m. Malaysia's Trade Minister Zafrul Aziz welcomed the outcome, saying that it reflects "strong and enduring economic ties" between the two countries. "It is also a testament to Malaysia's credibility as a reliable trade and investment partner. We thank our counterparts in the U.S. especially the U.S. Trade Representative's Office and the Department of Commerce for their constructive cooperation and support throughout the negotiation process," Zafrul said in a statement. The statement also noted that Malaysia had "stood firm" on various "red line" items such as its affirmative action Bumiputera policy, procurement and opportunities for local companies. 12:10 p.m. Brian McFeeters, CEO and president of the US-ASEAN Business Council, said that since the "reciprocal" tariff rates for exports to the U.S. from several Southeast Asian countries are the "same or close," there should not be "massive shifts" in movable production. "The ASEAN countries have engaged in constructive negotiations with the U.S. administration and there may be scope for further tariff adjustments or other changes in the coming months," McFeeters told Nikkei Asia. 11:55 a.m. Piyasak Manason, head of economic research at InnovestX Securities in Bangkok, said the 19% U.S. tariff represents a "relatively positive outcome" for Thailand. "This tariff level allows Thai businesses to maintain competitiveness while managing the adjustment costs," he wrote, as Thailand's tariff rates were similar to those of regional competitors. At the same time, he warned that several key Thai export industries, such as electronics, machinery and processed foods, will face substantial pressure. "This tariff level allows Thai businesses to maintain competitiveness while managing the adjustment costs," he said. At the same time, the key is "how quickly Thai businesses can adapt through market diversification, productivity improvements and value-chain repositioning." 11:50 a.m. Cambodia's Deputy Prime Minister Sun Chanthol, who led negotiations with the White House, said that while the government welcomed the lowered tariff rate -- Cambodia was facing 49% in April -- it would continue to work with the U.S. to bring it down further. He said that all imports from the U.S. would face 0% duties. Chanthol added that the prospects of tariffs had spurred the government to increase its investment in the domestic market and infrastructure, saying the government would create 300,000 jobs a year. "For Cambodian workers in other countries, please come back home. We will have lot of jobs," he vowed. Chanthol also announced Cambodia was buying 10 Boeing planes for its national carriers, with the option of buying 10 more. Ken Loo, spokesperson for the Textile, Apparel, Footwear & Travel Goods Association in Cambodia, said the tariffs were likely to hit exports even though Cambodia is in the same range as some of its garment-exporting competitors like Vietnam, Indonesia and Bangladesh. "For sure this will affect exports in the short term, because I think this is going to result in lower profitability or higher consumer prices across the board," Loo said. 11:45 a.m. Stephen Olson, senior visiting fellow at the ISEAS -- Yuosf Ishak Institute and a former U.S. trade negotiator, told Nikkei Asia that Trump has "fundamentally rewritten the rules of global trade." "Instead of the U.S. at the head of a system created to reduce trade barriers and conduct trade relationships according to predictable, mutually agreed rules, countries wishing to trade with the U.S. will now face dramatically higher tariffs that could be further increased at the whim of a president who has shown a disdain for trade rules and trade agreements -- even those which he himself has signed," he said. Olson said that while many countries continue to adhere to the principles of free trade, the U.S. is effectively opting out and it "remains to be seen how or if that system can continue to function." He warned that the latest announcement is unlikely to be the end of the story. "Trump regards this as an ongoing reality show. More 'deals' or further tariff increases are almost certain to follow." Southeast Asian countries hoping to pursue export-led development "will be especially hard hit," he said. As for China, Olson said it "has an opportunity to pick up the pieces and seize the mantle -- perhaps rhetorically more than in practice -- as the leader of rules based trade." At the same time, Trump's imposition of a 40% transshipment duty will be perceived as directed against Chinese interests and "will inevitably spill over" in the superpowers' ongoing trade negotiations. 11:35 a.m. Nazir Razak, chair of the ASEAN-Business Advisory Council (ASEAN-BAC) said the reduction in tariffs on Malaysian goods from 25% to 19% is a "positive step forward" and hopefully there would be opportunity for further engagement and reductions. "ASEAN-BAC encourages continued efforts toward a more predictable, open and mutually beneficial trade environment for Malaysia and other ASEAN nations," he said. On the semiconductor front, Wong Siew Hai, president of Malaysia Semiconductor Industry Association commended that the government has put in a tremendous amount of effort to get it down as low as possible, in a "more level playing ground" relative to all the other countries in ASEAN. "From our perspective, the way I see it is that currently business will be as normal. Meanwhile, everybody has to find a way to compete as aggressively as possible, by working on productivity, getting on into technology and so on, until everything settles. Nothing is said about the sectoral tariff that is currently exempted," Wong said. 11:30 a.m. Australia's Minister for Trade Don Farrell said the country's engagement with the U.S. had paid off after the U.S. ally's tariff rate remained at 10%, and added that the government would move to take advantage of having a more competitive rate than some peers. "This is a vindication for the Albanese government, and particularly the prime minister, in the cool and calm way that we have conducted diplomacy with the United States," Farrell told reporters in Adelaide on Friday. He said Australian products like beef -- its top export to the U.S. -- as well as lamb, wine and wheat would be more competitive in the U.S. "As a government, we will assist all of our exporters in ensuring that we take advantage of this situation and increase the volume of exports, not just to the United States, but to all of those other countries that we have diversified with," he said, adding the government would continue pushing its U.S. counterparts to eliminate tariffs and had invited U.S. Secretary of Commerce Howard Lutnick to Australia for discussions. 11:05 a.m. Here are the U.S. "reciprocal" rates on key Asian countries: For further charts on the latest tariffs, check out our tracker. 11:05 a.m. The latest U.S. tariff adjustments reflect a more nuanced approach to "friendshoring," targeting countries closely tied to Chinese value chains while easing pressure on those like Malaysia that retain strategic flexibility, said Khoo Ying Hooi of the University of Malaya. "It signals that the U.S. is not shutting out ASEAN but curating trade ties based on geopolitical behavior," she told Nikkei Asia, adding it boosts investor confidence in Southeast Asia as a viable alternative for supply chain diversification. Former diplomat Ilango Karuppannan agreed, calling it a dual message of discipline and openness. While higher tariffs may raise cost concerns, he said the move also reaffirms Southeast Asia's strategic role in U.S. supply chain realignment. Countries like Malaysia, Thailand, and Indonesia may benefit as "second-best" but geopolitically favorable options. Mohd Faiz Abdullah of the Institute of Strategic and International Studies noted that Malaysia's role in the Thai-Cambodia truce and Prime Minister Anwar Ibrahim's diplomatic engagement influenced the outcome. "This deal was reached without compromising our sovereignty -- our Bumiputera policy, procurement rules, and domestic space remain intact," he said, referring to affirmative action policies to help native Malays. 11 a.m. Taiwan's President Lai Ching-te posted on Facebook that his negotiators in Washington were informed by the U.S. that the 20% rate is "provisional." "The main reason is that, due to procedural arrangements, the U.S. and Taiwan have not yet completed the final wrap-up meeting," Lai wrote. "If an agreement is reached later, the rate is expected to be reduced." He added that the two sides will continue negotiations on supply chain cooperation and other matters. 10:55 a.m. Thai Deputy Prime Minister and Finance Minister Pichai Chunhavajira, who led the government's negotiation team, said in a social media post: "It helps maintain Thailand's competitiveness on the global stage, boosts investor confidence, and opens the door to economic growth, increased income, and new opportunities for the country. "The outcome of this negotiation signals that Thailand must accelerate its adaptation and move forward in building a stable and resilient economy, ready to face global challenges ahead." 10:50 a.m. Wendy Cutler, senior vice president of the Asia Society Policy Institute and a former deputy U.S. Trade Representative, flagged some of the key things in, and missing from, Trump's executive order (EO): "What seems to be absent from the EO is whether existing or new rules of origin will be issued and/or negotiated. This is of key importance in light of the 40 percent transshipment tariff now applicable beyond Vietnam. "U.S. companies will also face challenges as they navigate this new tariff landscape. Of particular concern is the continued uncertainties they will face with new sectoral tariffs coming and possibilities of additional tariffs if the Administration believes countries are not operating in good faith in their implementation efforts. "No doubt about it -- the EO and related agreements concluded over the past few months tears up the trade rule book that has governed international trade since WW2. Whether our partners can preserve it without the United states is an open question." 10:45 a.m. U.S. President Donald Trump announced the new tariff rates in an executive order early evening Washington time, early morning in East Asia.
Asahi Shimbun
21 hours ago
- Asahi Shimbun
Royal Holdings in tie-up to open 21 luxury hotels in Japan by 2035
An architectural rendering of a high-end hotel and resort facility under Minor Hotels' Anantara brand, slated to open in 2030 in Karuizawa, Nagano Prefecture. The facility overlooking Mount Asamayama will boast a 100-meter-long roof. (Provided by Royal Holdings Co.) Restaurant operator Royal Holdings Co. is teaming up with Minor Hotels, the largest hotel group in Southeast Asia, to develop luxury hotel accommodation in the Japanese market. The company plans to open 21 hotels across Japan by 2035, targeting wealthy foreign tourists from the more than 36 million people who visit each year. Based in Thailand, Minor Hotels operates more than 560 luxury hotels and resort facilities in 57 countries. It is also a member of the Global Hotel Alliance, the world's largest alliance of independent hotel brands, serving 30 million members. It will be Minor Hotels' first foray into Japan. Royal Holdings and Minor Hotels established a joint venture earlier this year. On July 10, they unveiled plans to open Anantara Karuizawa Retreat, a hotel and resort facility, in Karuizawa, Nagano Prefecture, in 2030, partnering with general real estate firm List Group. Anantara is Minor Hotels' flagship brand. Situated on a 42,000-square-meter plot overlooking Mount Asamayama, the facility will have 51 guest rooms, of which 23 are suites, It will also boast a spa, swimming pool and restaurants. The companies are preparing to apply for confirmation for construction. Accommodation fees and other details have yet to be determined. William Heinecke, founder and chairman of Minor International, which operates Minor Hotels under its umbrella, told a news conference in Tokyo that Japan is the first choice of overseas destination for Thai people. He expressed gratitude that the globally recognized hotel brand of Anantara had been accepted in the Japanese market. Royal Holdings started in-flight catering services and operating a cafe at Fukuoka Airport in 1951. The company has operated the Royal Host family restaurant chain as well as the Shakey's pizza chain since the 1970s. In addition, it operates restaurants at airports, expressway facilities and hospitals, and runs Tenya, a restaurant chain specializing in tempura rice bowls. As for its hotel business, the company opened its first Roynet Hotel (present-day Richmond Hotel) in 1995. It currently manages 43 Richmond Hotels, which target business travelers. 'We want to operate hotels aimed at wealthy visitors from abroad in tourism destinations and cities around the country as a way to expand the scope of our business,' said Royal Holdings President Masataka Abe.
The Mainichi
a day ago
- The Mainichi
N. Korea's Kim orders freight station construction near China border
TOKYO (Kyodo) -- North Korean leader Kim Jong Un has ordered the construction of a freight station near the Chinese border to support a large-scale greenhouse farm project in the northwest, state-run media reported Saturday. Coming at a time when North Korea has been bolstering military and economic ties with Russia, particularly since Moscow's invasion of Ukraine in February 2022, observers are watching whether the move could lead to an uptick in trade with its traditional ally China, which has recently been sluggish. Kim visited the region around Sinuiju on Friday, where severe flooding occurred in July 2024 after the Yalu River, which runs along the border with China, overflowed, according to the Korean Central News Agency. While inspecting embankment and farm construction, Kim called for the creation of a "comprehensive transport center" with a new vegetable storehouse and processing facilities built around it, the official news agency said. The area around the Yalu River has long been prone to flooding during heavy rains, with widespread damage reported last year. But with residential buildings reportedly swiftly rebuilt, Kim was quoted as saying such flood damage, once seen as inevitable, has "became a past story." Beijing is viewed as Pyongyang's closest and most influential ally in economic terms. But China's trade with North Korea in 2024 fell 5 percent from the previous year to about $2 billion, official data showed earlier this year, as bilateral trade lost momentum despite Beijing and Pyongyang marking the 75th anniversary of diplomatic relations.
