Thailand: Businesses worried by high airfares

Tourism operators in Phuket are urging the government to intervene<br/>following complaints about surging airfares which they fear could prompt travellers to choose cheaper alternatives. Governor Narong Woonciew said the tourism sector is making a recovery, but its momentum could be disrupted by skyrocketing airfare prices which<br/>is a problem that local authorities and operators are unable to handle by themselves. "Expensive air tickets may cause tourists to turn away from Phuket and choose other destinations like Vietnam or Bali. We have to report this to the agencies concerned," Narong told a gathering of business operators who met to discuss the issue. Thanusak Phungdet, president of the Phuket Chamber of Commerce, said<br/>hotels in Phuket, many of which are still not fully open, will bear the brunt if high airfares, coupled with the insufficient capacity of airlines, are not addressed. He said the government should consider intervening in air travel pricing as most visitors to Phuket arrive by air and are facing high prices and low ticket availability. According to Thanusak, a trip to Phuket costs around 7,000-10,000 baht per person, while it costs no more than 8,000 baht for a trip to Singapore. The rate is likely to have an impact on potential visitors. "We'd like the government to increase flights or ask Thai Airways International [THAI] to use a bigger aircraft. It is expensive and difficult to get to Phuket. If this persists, people won't come," he said. The private sector will submit a letter to the government and all airlines next week asking them to take action, he added.<br/>