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new frontiers Briefing on Tourism, Development and Environment Issues
Vol. 5, No. 2 March-April 1999
THE REGION
THE HIDDEN COSTS OF THE ‘NEW’ TOURISMS
[BP: 5.10.98; 29.10.98; 29.12.98; 4.1.99; TN: 19.11.98; 29.12.98; 18.1.99; 31.3.99; UK: Feb. 99] - GOVERNMENTS of many Asian countries consider tourism as the saviour of their battered economies and have identified several new forms of tourism – such as eco-tourism, agro-tourism, and health tourism – as lucrative niche markets. These ‘new’ tourisms, they argue, will generate jobs and income for the rural poor and help launch a new system to balance development and biodiversity conservation. Meanwhile, they ignore that through this kind of tourism promotion they are paving the way for other activities, which most likely result in economic losses that go far beyond any tourism benefits. Due to the unprecedented travel and tourism boom over the last decades, the smuggling and illicit trade in valuable flora and fauna has already become a multi-billion-business. So-called biopirates, often posing as innocent tourists, steal local plants and animals during their trips in foreign lands and conveniently pass through the nothing-to-declare green channels of cus-toms at airports to take them home or sell them abroad (see also new frontiers 4[2]). The World Customs Orga-nization in cooperation with the Convention of Inter-national Trade in Endangered Species of Wild Fauna and Flora (CITES) has published a brochure to raise awareness on this issue. At the 1998 World Travel Mart in London, officials warned that customs authorities and the travel and tourism industry need to be fully educated on how much damage the illicit movement of items and people across borders can do to societies, cultures and the environment. The business with stolen and smuggled flora and fauna generally requires little investment and yields enormous profits, while the risks in terms of discovery and penalty are very low. However, it costs global taxpayers huge amounts of money and plays a significant role in the depletion and extinction of many species around the world. The recent tremendous interest in Western societies about natural remedies has prompted transnational corporations (TNCs) to hunt for indigenous plants to produce drugs and cosmetics and to exploit related traditional knowledge in Asian countries. Studies have revealed that more than 40 per cent of Western pharmaceutical products contain Asian plant extracts, but these Asian countries have earned little, if anything, in return. Moreover, the biotechnology industry is sending scouts around the world to discover genes that may have commercial value for the drug and food industry. TNCs involved in genetic engineering are particularly interested in varieties of plants and seeds, as well as unusual genes and cell lines of indigenous peoples, and once acquired, they claim intellectual property rights (IPR) on them. The Neem tree, for example, has been used for thousand of years in India for its antiseptic and insecticidal properties, but western corporations have recently filed a number of patents on these attributes. Asian scientists and officials say that lack of control and loopholes in existing laws make biopiracy easy and as a result, their countries are being robbed of millions of dollars that is rightfully theirs. They also argue that if TNCs succeed in getting international regulations on patents and IPR amended in their favour under the World Trade Organization’s scheme, their countries will be even more disadvantaged. Recently, Princess Maha Chakri Sirindhorn of Thai-land expressed her concern over biotechnological re-search, including matters relating to biopiracy, patents and IPR. "We know all too well how our local wisdom can be used to develop innovative products. We must be careful of biopiracy and protect our resources," she was quoted as saying at a seminar organized by the National Science and Technology Development Agency in Bangkok. However, when it comes to tourism, all concerns over the increasing privatization of biodiversity and the far-reaching implications of biopiracy appear to be swept away or played down. Thailand’s Agriculture Ministry, for example, has embarked on a policy to actively sup-port eco-tourism and agro-tourism in the context of the current ‘Amazing Thailand’ campaign. Dismissing envi-ronmentalists’ longstanding criticisms regarding the de-velopment of new tourism products within the country’s national parks, Agriculture Minister Pongpol Adireksarn recently said: "…any development would focus on open areas of forests where the needs of the public could be accommodated without spoiling nature. Unfortunately, non-governmental organizations appear to have no intention of listening to the truth of my plan."
PUBLICATIONS FOCUS ON TOURISM, GLOBALIZATION AND SUSTAINABLE DEVELOPMENT
IN anticipation of the ‘tourism dialogue’ under the aegis of the United Nations’ Commission on Sustainable Development in April, the March issue of Third World Resurgence, published by Third World Network in Penang/Malaysia, focusses on Third World tourism issues. The cover story on ‘Tourism, globalization and sustainable development’ examines whether the global tourism industry can be really propelled towards sustainability under the current international political and economic regime that underpins the drive towards globalization. Another article entitled ‘Globalization and tourism: Deadly mix for indigenous peoples’ argues that tourism – and eco-tourism in particular – has already devastated the lives and lifestyles of ethnic minority peoples and that the process of globalization will only exacerbate their plight. In addition, there is an article that analyses Southeast Asian tourism as an integral part of modern (globalized) consumer culture. Finally, the magazine rounds up the theme with two case studies: The tourism-related controversy surrounding the shooting of the Hollywood movie ‘The Beach’ in Thailand and the destructive impact of tourism development on the Banaue Rice Terraces, a World Heritage site in the northern Philippines.
For further information, check out Third World Network’s website: www.twnside.org.sg
The ministry’s Department of Agriculture Extension has also begun to set up so-called agro-tourism centers, to enable tourists to visit forest and farming com-munities and to learn about local herbs in particular. This agro-tourism project is scheduled from 1998 to 2001 and especially targets foreign tourists who prefer to experience Thailand’s countryside. The first agro-tourism center officially opened last November at the Hua Mae Kham hilltribe community in Chiang Rai province, and accommodation, homestay and farmstay are expected to be introduced by the end of this year. In addition, the Public Health Ministry has teamed up with the Tourism Authority of Thailand (TAT) in a campaign that will focus on ‘amazing’ health package tours and the use of Thai herbs. Last January Health Minister Korn Dabaransri, announced the TAT would be asked to distribute pamphlets promoting tours called "Seven Days in Thailand For Your Health". This special tourism campaign is part of an ambitious plan by the minister to introduce and promote local herbal products on the world market. It would focus on attracting busi-ness executives and wealthy credit card users, Korn explained. "Westerners are health conscious. Herb research is done in the West and so is the marketing. But as the raw materials come from our side of the world, why can’t we create a market here?" he added. However, the Thai Traditional Medicine Institute (TTMI) under the ministry, which is now working on this health tour programme, which will include the offering of herbal foods and drinks and traditional Thai massage, has already come under attack because it organized similar trips, taking tourists into the forests to provide them with knowledge about indigenous plants. Such tours, concerned parties said, would instead give abusers the opportunity to exploit local wisdom for the sake of interested foreign corporations. TTMI director Pennapha Sapcharoen tried to play down the issue, insisting the new health package tours would be designed in a way to prevent any exploitation. But she did not elaborate on how to prevent abuses. Critics say, Thailand still does not have adequate laws to pro-tect local knowledge and rights, nor to prevent the unfair patenting of life forms. There is also growing awareness in other Asian countries that the tourism industry is set to exploit and debase traditional medical science. For instance T.G. Jacob writes in his book Tales of Tourism from Kovalam, South India, about the "touristic perversion of Ayur-veda": "The idiocy of the situation is very striking. Ayurveda is thousands of years old as a medical science, and it has a highly disciplined theory and practice. One can never take Ayurvedic treatment in a light-hearted man-ner or as a transitory tool for pleasure. In Kovalam its only function is as a tool for pleasure…. "Agasthyavanam, a tourist destination about 45 km from Kovalam, is facing devastation. The place is very significant in Keralam because it is a fascinating herbal garden where more than 300 rare species thrive in their natural habitat. Reports state that the tourists are marauding this jungle, though legal restrictions are formally in force regarding the entry of tourists. But the gods do not seem to be bothered about such superfluous regulations, and they are not only littering the place with shit and plastic, but also plundering exotic plants. Many of them are probably working for the multinational pharmaceutical companies, but it could also be a fad. Whichever way, it is a disaster for Keralam and Ayurveda." As it stands, there is an urgent need to foster informed public debate about the hidden costs of the new – ostensibly more benign – forms of tourism such as eco-tourism, biodiversity friendly tourism, agro-tourism, health tourism, etc.- and to mobilize capacities to effectively scrutinize and monitor related policies and projects. There is more information available now, which indicate that illicit and unethical activities in the context of these new tourisms lead to immense national losses, not only economically. The practice of biopiracy also clearly constitutes a violation of sovereignty and human rights because TNCs benefit from items stolen by visitors and from scientific research conducted without the knowledge or against the will of local people. There are good reasons to be skeptic. What does it mean, for example, when Thailand’s National Centre for Genetic Engineering and Biotechnology (Biotec), which is collaborating with giant biotechnology firms like Monsanto in promoting the use of genetic-modified organisms (GMO), gives financial support to eco-tourism research projects? Biotec is presently co-funding a project conducted by biologists of Chiang Mai University, called "The Exploration of the Different Species of the Birds in Mae Hong Son province and the Promotion of Eco-tourism". In any event, governments and other concerned parties should be alerted and seriously ponder the question whether it is wise to indiscriminately pro-mote tourism forms that facilitate the stealing and smuggling of local biological resources and tradi-tional knowledge, before necessary legal frameworks and administrative mechanisms are in place to effectively combat abuses and exploitation.
‘HASSLE-FREE’ REGIONAL TRAVEL DIFFICULT TO ACHIEVE, SAY EXPERTS.
[BP: 25.2.99] – THE Tourism Authority of Thailand (TAT) has been an active promoter of tourism and investment in the Mekong subregion for years. But its strong lea-dership has not paid off in terms of cooperation from neighbouring countries. The TAT has tried to create practical ways to facilitate travel in the region. Experimental caravans have been organized to open up and promote new overland routes. However, ordinary independent tourists are still unable to go ahead with their own road journeys. Accessibility, safety and immigration regulations are commonly cited obstacles. Mekong tourism planners say more political will and cooperation is needed to make travelling easier, on land or via the river. The latest talk has been of a new international airline that would concentrate on regional travel. Mekong Airlines is the name being considered. Pitak Inthra-withiyanunt, Thailand’s prime minister’s office minister in charge of the TAT, insists that the airline will take off within a year. But this would also require multilateral cooperation. The structure calls for each of the six Mekong countries - Burma, Cambodia, China, Laos, Thailand and Vietnam - to hold 10 per cent of the carrier, with private investors eligible to take the remaining 40 per cent. Mekong Airlines would fly from all six countries, focussing on destinations underserved by other carriers: Mandalay in Burma, Luang Prabang in Laos, Sipsongbanna in Yunnan/China, Danang in Vietnam and Siem Reap in Cambodia. The Asian Development Bank (ADB) is presently studying how the airline can be financed, given the recession and the precarious financial position of countries such as Burma, Cambodia and Laos. The venture would cost about one billion baht (US$28 m) initially, and it would have to lease its planes.
BURMA
MORE GOLD FOR RANGOON’S SHWEDAGON PAGODA
[TN: 23.3.99] – THE Shwedagon Pagoda, the most sacred site for Buddhist Burmese and a breathtaking tourist attraction, is getting a facelift that will pile another ton of gold onto its glittering central stupa. The 2500-year-old pagoda in Rangoon is already decorated with 2.3 tonnes of gold and encrusted with over 5,000 diamonds, 2,000 rubies as well as sapphires and other precious stones. Now, as part of the first major renovation work in more than a century, another 9,000 gold plates weighing nearly a ton are being added to the central stupa and repairs made to the sacred umbrella, or htidaw, that crowns it. Over the ages, not only the rich and powerful but people of all walks of life have donated to the pagoda to improve their chances of attaining the highest goal of the Buddhist faith – the state of Nirvana. Burma’s military rulers are following the tradition. The commit-tee responsible for the renovation was formed under the patronage of the head of military intelligence, Lt Gen Khin Nyunt, and thousands of people, from the very wealthy to the poor, have made donations ranging from one-kyat notes to gold bars weighing a kilogramme.
OPINION NO SENSE FOR HUMANITY
On 25 March, two days before Aung San Suu Kyi’s husband Michael Aris passed away in London, the Bangkok Post published the following commentary by tourism industry analyst Don Ross:
Indirectly, Burma’s reluctance to do the right thing for Michael Aris and Aung San Suu Kyi could spell even further ruin for its struggling tourism industry. Rangoon’s hotels can muster at best a 20 to 30 per cent occupancy from tourist arrivals, far below break-even. It doesn’t help when potential travellers gain a negative insight into the harshness of a regime that appears to have lost touch with even the basics of human kindness. The plea by the cancer-stricken husband to be reunited with his wife touches the heartstrings of the global community. The reluctance to demonstrate human kindness in the case of Mr. Aris’s request, or common sense to provide Aung San Suu Kyi with the means to visit the UK and return safely, again illustrates how governments often tamper with the right of humans to travel without hindrance. But it goes much further to illustrate the precarious nature of human rights in Burma itself. We may complain about visa regulations and the requirement to change US$300 into monopoly money when we visit the country, but we can choose to go elsewhere. What of its citizens who are denied the right to travel, and in the case of Mrs. Suu Kyi, probably the right to return to the land of her birth if she ventures offshore even to visit her dying husband? If the Burmese government is perceived to have stood in the way of a family being reunited, possibly for the last time, it will be remembered by travellers for a long time to come.
BURMA’S JUNTA PROMOTES OVERLAND TOURISM FROM THAILAND
[BP: 25.2.99; 10.3.99] – ONLY a few weeks after a so-called Friendship Caravan from Bangkok to Rangoon to promote overland tourism in the Mekong sub-region had to be cancelled due to security problems and red tape (see new frontiers 5[1]), Burma has launched a new tourist route from Mae Sot in Thailand’s Tak province to Rangoon. The Burmese government is now offering package tours that allow Thai tourists to enter Burma by border pass instead of applying for a visa, ex-plained Paniti Tungphati, president of the Tak Chamber of Commerce. The programme starts in Mae Sot, crossing the Thai-Burmese Frindship Bridge reopened last year to Myawaddy to begin the journey on the Asian Highway in Burma. Key attractions on the six-day trip include Pegu, the ancient Burmese capital; Moulmein, the capital of Mon State, and Rangoon. Shorter program-mes are being planned from Mae Sot to Pa-an and Moulmein, including activities such as river cruising and rafting. Burma is renovating the highway and constructing bridges across the Gyaing River due for completion this year. The improved road will halve the trip from Mae Sot to the Burmese capital to less than 10 hours. The Burmese junta is also expected to approve a road project linking Ban Bongti in Thailand’s Kanchanaburi province with Burma’s port city Tavoy, according to Somphop Thirasant, the secretary-general of the In-dustrial Council of Kanchanaburi. The Thai company, Kanchanaburi-Tavoy Development Co., of which Som-phop is the vice-chairman, has won a 30-year con-cession from the Burmese government to build and operate the 110-km Bongti-Tavoy road worth US$40 million. It is expected that Kanchanaburi will be transformed into a thriving tourism hub after the com-pletion of the road, which will lead tourists to Burma’s Andaman coast in just a few hours.
CAMBODIA THENG BOONMA’S PHNOM PENH CASINO SHUT
[TN: 2.3.99; BP: 28.2.99] – A Phnom Penh casino owned by Cambodian tycoon Theng Boonma, who is blacklisted by the United States for alleged links to drug smuggling, was recently closed down following an order from Prime Minister Hun Sen. The casino, located in the five-star Hotel Intercontinental, was run without a licence. Theng Boonma has been described by opposition leader Sam Rainsy as a "mafia" member and is known as a supporter of Hun Sen in the latter’s bloody 1997 coup that ousted co-premier Prince Norodom Rana-riddh. According to a source, "Hun Sen was warned by some countries to cut his relations with Theng Boonma as much as possible because the tycoon was named on a US blacklist." Meanwhile, the gambling business along the Thai-Cambodian border is still thriving despite the economic crisis in Thailand and other Asian countries. The lucrative business has drawn many operators to open new casinos to serve the rising number of Thai and foreign gamblers. At least five casinos have been operating on the Cambodian side of the border and several more are to be opened soon, said a border source. The mushrooming of casinos is the result of an agree-ment on border trade cooperation between Cambodia and Thailand. So far, 16 border checkpoints have opened and cross-border activities picked up rapidly, particularly during weekends when Thais and other foreigners flock into Cambodia. Koh Kong has become a particularly popular gambling site with a well-equipped casino complex, including a resort, a hotel, a cruise ship service and a duty-free shop. Phat Supapa, a major shareholder of the Koh Kong International Resort Co. said about 200 to 300 tourists visit his casino daily, and the number rises to 500 or more during weekends. Given the handsome profits from casino and gambling den operations, it is not surprising that more and more Cambodian and Thai entrepreneurs invest heavily in these businesses. The booming of casinos has raised concerns it would lead to an upsurge of social problems, particularly crime and prostitution. But Phat, who operates the Koh Kong casino, claimed there were more advantages than disadvantages because the gambling business would stimulate the tourist industry and help create jobs for the rural poor.
GOVERNMENT WANTS TO PROTECT INDIGENOUS PEOPLES’ RIGHTS
[TN: 27.2.99] – THE Cambodian government announced in February it will introduce legislation for its ethnic minorities in mountainous areas. The proposed laws will protect indigenous peoples’ rights to live in their original areas, mostly forests, said Rural Development Ministry Secretary of State Ly Thuch. Most of the ethnic groups in Cambodia live in the northeastern provinces, including Ratanakhiri, Mondul Khiri and Kratie. These areas are still covered by biodiversity-rich forests, and many of them are ear-marked for the development of eco-tourism. "Under the proposed laws, the rights of the minorities, including land ownership, will be recognized," said Ly Thuch. "They will be given the right to decide whether they want to stay or move out of their compounds. In the past, they were forced to leave against their will because logging companies wanted their land." Ly Thuch was speaking at a wrap up seminar of the Highland Peoples Programme (HPP), Phase I, funded by the UN Development Programme. Started in 1995, the HPP is aims at improving community development in ethnic areas of the Mekong subregion.
LAOS
FINAL PREPARATIONS FOR ‘VISIT LAOS YEAR’
[VT: 19-22.2.99; TN: 20.3.99] – ‘VISIT Laos Year’ has officially started and the tourism authority committee has been busy to ‘put the icing on the cake’ around the streets in Vientiane in an effort to create a lasting impression on international tourists visiting the country over the next year. The committee has also urged all concerned sectors to assist in making this event a memorable one. Banners bearing slogans such as "Welcome to Visit Laos Year 1999-2000" and "Have a good trip" are being erected at Wattay Airport, the Thai-Lao Friendship Bridge crossing the Mekong River, and other places in and around the Lao capital. In addition, street signs and street lights will be installed and flowers planted along the roads. Vientiane residents have also been called upon to take part in the beautification efforts and have been encouraged to repaint and decorate their houses. A one-day meeting on 17 February reviewed the activities carried out by the committee for the event, such as organizing meetings and workshops for the tourism service sector, the hospitality industry, and for taxi drivers. In addition, the committee inspected hotels, restaurants and guest houses in Vientiane to issue certificates of service standards. "The committee received a budget of about 51.5 million kip for the Visit Laos Year campaign (in Vientiane), which was spent on surveying and improving the main tourist attractions, and repairing the tourist information centre, but it was not enough because there is still more work to be done," said Khampadith Khemmanith, deputy director of the Vientiane municipal tourism bureau. During the meeting an added 600 million kip was requested to complete the impending work. Moreover, the committee encouraged the private sector to improve the roads to facilitate access to tourist sites and to upgrade the bus station and the telecommunications system. Apart from exterior decorations, equipment and mate-rials have hastily been organized to use for the many traditional ceremonies, sport competitions and trade fairs that will take place throughout the year. In order to boost the number of visitors during Visit Laos Year, the government has also eased travel regulations for citizens of neighbouring countries – Thailand, Burma, China, Vietnam and Cambodia -, and other international tourists can now apply for a visa on arrival at Vientiane and Luang Prabang airports and at the Thai-Lao Friendship Bridge. The fees for visa have also been reduced considerably.
TOURIST INVASION IN LUANG PRABANG
[TN: 14.3.99; BP: 18.3.99] – THE high street bakery is doing a roaring trade in pizzas, backpackers have trouble in finding a room after 4 pm, and the evening soccer match on the banks of the Mekong River has become an international affair. This is the ancient town of Luang Prabang, the former royal capital of Laos and a star attraction of Visit Laos Year, which is presently experiencing an unprecedented tourist boom. As part of the tourism campaign designed to pull in US$211 million foreign currency, Laos aims to draw 60,000 foreign visitors to Luang Prabang this year, compared with 45,000 last year. A drive to improve infrastructure has pushed room numbers to 600 from just 280 in 1995. Officials of two of the top hotels said the increase in arrivals and the Visit Laos campaign should improve average occupancy rates to 60 per cent from 40 per cent in 1998. Authorities have been quick to counter criticisms that Luang Prabang may be about to sell its soul to tourism. The town is a World Heritage site which can be properly preserved, they argue. France and the United Nations are backing a US$2-million project to restore historic buildings, and a master plan for city development should be ready for implementation next year, said Kamphouy Pommavong, one of the directors of the UN-sponsored project. But there are still problems that need to be resolved. For example, Luang Prabang’s little airport is busy with traffic but maintainance, safety and financial difficulties plague the Laotian airline. Foreign embassies have warned that only one ATR-72 in Lao Aviation’s small fleet is safe to fly. Tourism officials said that even without this warning, the number of aircraft available was inadequate to meet the high demand.
UPSURGE OF ‘DRUG TOURISM’
[TN: 25.2.99] – THE top United Nations drug official in Laos recently expressed concern over reports of increasing numbers of backpacking foreign tourists coming to Laos to smoke opium. Halvor Kolshus, representative of the UN Drug Control Programme said at a press conference that there was increasing evidence of foreigners coming to Laos to consume drugs. They are an unintended consequence of the tourists the country hopes to attract under the current ‘Visit Laos Year’ campaign, aimed at bringing in much-wanted hard currency. "In a meeting with officials of the Lao National Tourism Authority, I asked them if this was the kind of image they wanted for the rest of the year," Kolshus said. He added that "to nip this development in the bud", Laotian authorities should begin applying existing laws against possession and solicitation of illicit nar-cotics to foreigners. Reports from travellers indicate that foreign nationals are being sold opium to smoke in the northern town of Muang Sing, at Vang Vieng near Vientiane, and in the most-visited attraction, the former capital of Luang Prabang. Laos is one of the world’s largest producers of opium, and most of it is refined into heroin and exported. Kolshus said that although the quantity of opium changing hand with backpackers – mostly Westerners in their 20s and 30s - was not large yet, he was worried it may have a demonstration effect on Laotian youth. Laotian police in Muang Sing have appeared concerned about the arrival of foreign opium smokers, but are not known to have arrested any, probably afraid of derailing the Visit Laos Year. Kolshus noted the government was keen to present Laos positively during the tourism campaign, but said the outcome could be negative if opium abuse persists.
THAILAND TOURISM LIBERALIZATION OPPOSED
[TN: 12.2.99; 15.2.99; 23.2.99; 3.3.99; BP: 29.3.99] – LAST February, the Thailand Tourism Society (TTS), which represents tourism and related businesses, threatened to launch a campaign to seek support from its members to delay a progressive liberalization programme for the hotel, restaurant and travel agency sectors. Under the foreign business amendment bill, which is presently discussed in parliament, the tourism industry is to be opened up to foreign operators on a wide scale. TTS president Wichit Na Ranong suggested that the li-beralization plan be delayed to avoid negative impact on Thai ownership and business competitiveness. Accor-ding to the foreign business bill, foreign investors will be allowed to acquire a 100-per-cent stake in hotel, restaurant and tour businesses instead of a maximum 49 per cent. Wichit said small and medium-sized operators would suffer if they were not prepared to compete. Chanin Donavanik, president of the Thai Hotel Asso-ciation (THA), said there had been a mixed response from THA members on full liberalization. Some hotels, which shoulder a huge debt burden, are keen to seek foreign capital while hotels with no financial problems disagree to the opening up to foreign transnational corporations (TNCs). But Chanin admitted that the adverse effect of the planned liberalization was that local hotel-property owners risked losing their busi-nesses to foreign investors. According to the THA vice-president, Charnchai Satyaprasert, only about two per cent of hotels in the country would benefit from libera-lization as they could repay debts by selling out their assets to foreigners. And the foreigners, who buy into Thai hotels cheaply, would have an advantage over Thai operators. The Tourism Authority of Thailand (TAT), which has very much favoured tourism liberalization, privatization and globalization, acknowledged in a recently published report that the outcome of hotel liberalization will be "mergers and acquisitions". "Since the oversupply is the major problem of the Thai hotel industry at present, liberalization will not bring in investment in new hotel construction but in the form of takeovers and acquisitions. The number of pro-perty exchanges is expected to be high during the first three to five years of the liberalization," stated the TAT report. It further said that Thai hoteliers, who have no financial problems are expected to "adjust" their busi-ness strategies, for example by entering a larger hotel chain network. Sensing the strong drive against liberalization in the local tourism industry, Piraphan Saliratapak, vice-chairman of the parliamentary commission appointed to consider the foreign investment law, indicated the government might consider not fully liberalizing the tourism sector if Thai hoteliers come up with substantial documents to support their opposition to the reforms. As a first step, the concerned commission added a paragraph in the draft law that categorizes tourism as one of the industries, which "are not well-prepared for outside competition". Takeover battles for control of Thailand’s five-star hotels are already looming. American Goldman Sachs, for example, an influential Wall Street financial insti-tution, already bought a 30 per cent share in the Dusit Thani Hotel Group and has in recent weeks made an aggressive move to takeover the five-star Regent Hotel in Bangkok, which belongs to the Rajdamri Hotel Group. It also controls Starwood Hotels and Resorts, and is the owner and operator of the Westin and Sheraton Group of hotels, Westmont Hospitality, a leading owner and operator of hotels in Canada and Europe, and Strategic Hotel Capital, a major investor in the US hotel industry. Notably, Goldman Sachs is one of the major global capital speculators that have caused the financial collapse in several countries. Ironically, it is also a pro-minent player in assisting the International Monetary Fund (IMF) to push through structural adjustment programmes (SAPs), which involve forcing developing economies to liberalize and to make the tourism indus-try a top priority. In Thailand, it has also been actively participating in the auction of the assets of the 56 finance companies, which were closed down in the context of IMF’s bail-out package for the country. Financial sources have indicated that Goldman Sachs is now throwing capital into the Thai hotel industry for speculative purposes, thus creating a new bubble which is likely to burst again in a few years. In relation to the attempted takeover of the Bangkok Regent hotel, one of the sources said: "I think they have a good game plan for the hotel, which will be shaken up and get a new dress before being sold out five years from now." However, there is not only increasing nervousness within Thai tourism industry circles. Resistance against globalization, liberalization and the related national sell-off is on the rise in general. Under the headline "Anti-colonization mood can’t be ignored", Imtiaz Muqbil wrote in his Bangkok Post ‘Travel Monitor’ column: "With the fire-sale of regional hotels, airlines and tour operators about to start under the onslaught of globalization, a warning light has been sounded on the long-term implications of such move." Referring to a recent international conference on globalization in Bangkok organized by the NGO Focus on the Global South, he said the "message was that every hotel or other such asset that is sold, especially when non-Thais take a controlling interest, will contribute bit by bit to the death of economic and political sovereignty in Asia." He further stated: "As the side-effects of IMF chemo-therapy become more acute, there is a greater reali-zation that globalization is not a panacea." Muqbil warned the tourism industry to beware for many reasons:
Muqbil suggested that in view of this "process of colonization", the tourism industry should play a major role in "trying to maintain the independence of Thailand and balancing the interests of global and local players".
DEFENDANTS FAIL TO SHOW UP FOR ‘THE BEACH’ HEARING
[TN: 27.3.99] – THE Civil Court postponed the first hearing on ‘The Beach’ case, scheduled to start on 26 March, until 1 and 2 June, because the defence lawyers claimed they were not able to attend. The Provincial Administration Organization of Krabi province, the Tambon (Sub-district) Administration Organization of Krabi’s Ao Nang and 17 local residents are suing Agri-culture Minister Pongpol Adireksarn, the Royal Forestry Department (RFD) and Hollywood film studio 20th Cen-tury Fox. The other defendants are RFD director general Plodprasop Suraswadi and Santi International Film Products, Fox’s local representative (see also new frontiers 4[6], 5[1]). The defendants were accused of violating the 1961 National Park Act and the 1992 Environmental Protec-tion Act by changing the landscape of Phi Phi Ley Island’s Maya Beach in Krabi, where the film, starring Leonardo diCaprio, was shot from 15 January to 2 Feb-ruary 1999. The beach is located in a marine national park. Anek Saihet, a public prosecutor who is acting as the defence lawyer, informed in writing that he could not be present at the court session on 26 March because he had to attend another case hearing. Meanwhile, the plainiffs’ lawyer, Varin Tiamjamras, renewed the petition for the court to order Fox to deposit Bt100 million (US$2.8 m) for any damage that may have been caused to Maya Beach in relation to the filming, and for the court to inspect the site. Parinya Tevanarumit, a law lecturer at the Bangkok Thammasat University, present at the hearing in ‘The Beach’ case, bemoaned the postponement would delay the case, and the delay would mean that potential evidence at the site might be destroyed.
ANALYSIS
BOOM AND BUST OF PHUKET TOURISM
Phuket is one of the few Southeast Asian destinations registering significant growth in tourism in these difficult times, mostly due to the political turmoil in Indonesia and Malaysia. But an editorial in The Nation [4.3.1999] argues that the plunge of Phuket tourism is programmed unless the government takes decisive action to control the industry.
PHUKET has witnessed an unprecedented tourism boom for a goodly number of reasons. The island has a natural beauty which instantly captivates holidaymakers. Coupled with that are prolonged promotions over many years, the world-renowned Kings Cup regatta, its reputation as a playground for the rich and famous and the sparkling Andaman Sea itself. In recent times, it has also benefitted from the decline of comparable destinations in this area like Bali. But the island now faces a major challenge. Many hotels have been extravagantly raising their room rates, although it must be said that costly accommodation will not be the major deterrence to tourists, but other economic, social and environmental consequences that are looming ominously on Phuket’s horizon. Phuket is basically showing signs of a bubble from the boom in tourism. This boom is leading not only to difficulties for the residents, as the cost of living rises, but resulting in inefficient use of resources, threatening a repetition of Bangkok’s crippling boom-and-bust. Just like the capital, money is haphazardly invested in projects as investors rush to catch the tail of the tiger. While business is booming, and the investment outlook remains promising, more and more beaches will come under development, and unless there is strict environmental enforcement, they will soon look no different to Patong Beach and Karun/Kata beaches where unchecked construction of high-rises has completely destroyed the skyline. Similarly, there will be pressure from unscrupulous investors on government officials to approve resort-style hotels – on grounds of better environmental protection. But these kind of proposals usually end up with beaches being closed off to the public, not to mention encroachment on national parks. To prevent this from happening on Phuket requires a well-defined and executed set of policies because the danger signals are everywhere. The government will have to walk a fine line in keeping to the rules and regulations and not fall into the trap of avaricious and ambitious investors. Greed is very much the order of the day in Phuket, and it is no exaggeration to say that its future is at stake. Prime Minister’s Office Minister Pitak Intrawityanunt, who is in charge of tourism, has sensed some of the dangers. He has warned hoteliers not to raise room rates again this year after three recent hikes. If the increases continue, Pitak said the Tourism Authority of Thailand will punish the operators by excluding the island from the list of destinations it is promoting. Pitak is right to see the situation in Phuket as a part of the national agenda. The Thai economy needs a healthy Phuket, but not just for the short term. The minister might well take stock of related problems that have come Phuket’s way. He should seek help from other government departments to deal with the other impacts from this boom cycle if the lesson of Bangkok is to be learned at all. Issues that need close attention are the cost of living for local residents, possible mismatch of investments, the environment and public rights.
VIETNAM PR EFFORTS TO HELP IMPROVE COUNTRY’S IMAGE
[TN: 23.2.99] – VIETNAM’S foreign minister’s office announced in February it had appointed a national tourism steering committee headed by deputy prime minister and foreign minister Nguyen Manh Cam to revitalize the country’s flagging tourism industry. Cam will help spearhead a PR campaign to boost tourist arrivals, which have slackened due to the regional cri-sis, poor infrastructure and a loss of competitiveness with other regional destinations. Representatives of the ministry of defence, public security, foreign affairs, communications and transportation and the Civil Avia-tion Authority of Vietnam will also participate in the effort. International hoteliers welcomed the move, saying Cam’s appointment shows the government is eventually making tourism a top priority. Another sign that Viet-nam was taking the tourism challenge seriously now was the government’s decision to hire an international public relations company to promote the country as an attractive destination abroad. The Hong Kong-based PR firm Grebstad Hicks Com-munications was expected to begin its work at the international tourism fair in Berlin (ITB) in March. "Vietnam has to convince international travellers it has an infrastructure that’s developed, that they aren’t flying those old Tupolevs anymore," said Lynn Greb-stad. "It has de luxe hotels in all major cities, nice resorts and is an emerging destination with tremendous fascination."
HOTEL PLANNED AT MACAU TYCOON’S CASINO
[BP: 25.3.99] – BILLIONAIRE Stanley Ho, who has built his fortune on a string of casinos and property deve-lopments in Macau, was expected to travel to Vietnam to attend ground-breaking ceremony for a new hotel at his casino complex in Don Son near Haiphong. Gambling is officially illegal for Vietnamese, and Ho lobbied for three before getting approval for the country’s only casino in 1992. Casino manager Tom Diep said the new four-star hotel costing US$7 million was part of the US$25-million investment licence granted to Ho and his local partners in 1994. The first phase of the development included revamping a villa built in 1930s into a casino with baccarat, roulette and slot machines. Its deve-lopers expected to cater exclusively to international gambling tourists. However, the so-called soft opening" lasted five years, during which the venture lost money. "In the beginning taxation system was very hard for us," said Diep. "We kept losing money in those first few years, but in 1998, changes in the taxation system allowed us to make a profit. Now is the time to continue (with the) second step to build a 100-room hotel." Ho’s decision to go ahead with the resort investment comes at a time when Vietnam is experiencing its worst slump in tourism since the country opened to foreigners a decade ago (see also new frontiers 5[1]). Inter-nationally-managed hotels in Hanoi and Ho Chi Minh City have become virtual ghost towns, and some foreign investors have mothballed their projects until tourist arrivals improve.
SINGAPOREANS SHELVE US$706-MILLION RESORT PROJECT
[BP: 12.3.99] – VIETNAM’S largest tourism project, a US$706-million Singaporean-invested joint venture in the mountain resort of Dalat, has been put on hold. "We don’t know if it’s the right time to start, we will wait until we see some things open up in Vietnam," said an executive from LKN Management Services Pte, one of the Singapore partners, adding "with such a huge project, nobody wants to lend money for it." The decision to put the Dalat-Dankia resort on hold will come as a serious blow to Vietnam, which is trying hard to improve its image among foreign investors and tourists. The project, including a massive hotel, recreational and residential complex, was licenced with much fanfare in February 1998, but never broke ground. Some people close to the venture said it was pushed through to help inflate investment figures as a show of confidence in Vietnam. "It’s just a statistic," said the LKN executive. LKN and two other Singaporean companies – Natsteel Ltd and Singapore Leisure Industries – hold a 70 per cent stake in the project while local partner Lam Dong Tourist Company has a 30 per cent stake. Dalat, which was developed by the French as a cool hilly retreat from the heat of Saigon, already has two luxurious resorts, the Dalat Palace, which was refurbished by the late US billionaire and founder of DHL, Larry Hilblom, and the Novotel, owned by the French group Accor. SOURCES USED IN THIS ISSUES:
BP=Bangkok Post; TI=The Irrawaddy; TN=The Nation; UK=Utusan Konsumer; VT=Vientiane Times
new frontiers is designed to foster informed discussion and action on tourism, development and environment issues in the Mekong subregion. The information can be reproduced freely, although acknowledgement to the publisher would be appreciated as well as the sending of cuttings of articles based on this document.
Published by: Tourism Investigation & Monitoring Team (t.i.m.-team), with support from the Third World Network (TWN), Penang/Malaysia Contact address: t.i.m.-team, P.O. Box 51 Chorakhebua, Bangkok 10230, Thailand, Fax: 66-2-519.2821
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