THAILAND - Bangkok new airport boosts tourism in Thailand

TAT, 2nd October, 2006

Thailand’s visitor arrivals target of 15 million in 2007 is expected to get a major fillip with the successful opening of Bangkok’s brand new Suvarnabhumi airport. The new world-class facility, which now boasts the world’s largest passenger terminal, puts Bangkok ahead of other regional airports that have opened in Asia in recent years. By all indications, apart from a few glitches involving baggage deliveries, the new airport is operating smoothly.

Tourism Authority of Thailand Acting Governor Pensuda Priaram said: “The long-awaited opening of Suvarnabhumi is one of the most important landmarks in the history of Thai travel & tourism. We have no doubt that it will attract more visitors to Thailand, be it as inbound tourists or transit passengers who will become future tourists.”

Being positioned as the new “Gateway to Asia,” the new airport cost 155 billion baht (roughly US$ 4.07 billion), and will handle just under 100 domestic and foreign airlines, both cargo and passengers. The fastest growing are low-cost airline passengers.

Designed for annual passenger movements of 45 million a year, airport officials say it is already close to that figure and, at current growth rates, will hit 60 million passenger within three years.

As 80% of all visitor arrivals to Thailand enter through Bangkok, it will give a new impetus to travel & tourism throughout the region. It is superbly connected by expressway to all the inner Bangkok city hotels as well as to the beach resort of Pattaya. The surrounding area, today largely a greenfield, is also set to fill up with housing estates and commercial areas to support the thousands of people who will work at or near the airport. Built with the help of loans from the Japanese government, Suvarnabhumi is owned and operated by Airports of Thailand (AOT), a publicly traded company listed on the stock market but owned largely by the Thai government.

The airport Passenger Service Charge (airport tax) will rise as of February 1, 2007 to 700 baht for international flights and 100 baht for domestic flights. The landing and parking fees will rise by 15% as of April 1, 2007. The airport tax generates roughly 40% of AOT pcl’s total revenues, and landing/parking charges about 21%.

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