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Business booms for budget carriers

Passengers board a Siem Reap Air plane for a flight to Cambodia from Suvarnabhumi International Airport in Bangkok on June 7. Low-cost carriers are dramatically expanding their network of flights across the Mekong region, encouraging record numbers of Southeast Asian tourists to explore neighboring countries. PHOTO: AFP

Low-cost carriers are dramatically expanding their network of flights across the Mekong region, encouraging record numbers of Southeast Asian tourists to explore neighboring countries.

Thailand's top budget airline, Thai AirAsia, plans to double its flights from Bangkok to Hanoi and Phnom Penh next month, while adding Shenzhen as its third destination in China.

Air Bagan, Myanmar's largest private carrier, launched its first international flight last month linking Bangkok with Yangon.

Deals are also in the works for direct flights between Cambodia's Angkor temple town of Siem Reap and Myanmar's top tourist spots Bagan and Mandalay.

"Low-cost carriers bring ever more city-pairs into the equation," aided by relaxed aviation rules among major Southeast Asian capitals, said John Koldowski, spokesman for the Pacific Asia Travel Association (PATA) in Bangkok.

As people in the region see their disposable incomes grow steadily, many are proving willing to splash out on travel, especially for affordable destinations within the region, Koldowski said.

Thai visitors to Cambodia soared 38 percent in the first four months of the year, while the number of Vietnamese travellers jumped 70 percent, according to Cambodia's tourism ministry.

Cambodian Tourism minister Thong Khon said travellers from the two countries are helping to boost the nation's tourism industry.

Overall arrivals to Cambodia had grown by 20 percent year-on-year to more than 710,000 as of April. PATA expects the trend to continue in the coming years.

The number of Thai tourists to Cambodia is expected to jump 34 percent over the next two years to 85,400, while visitors to Myanmar are seen rising by 13 percent to 48,400 over that period, PATA says.

Vietnam is also more popular, with arrivals from Thailand expected to jump 17 percent to 126,000 in two years.

In Myanmar, Thais are the top foreign visitors, but many use land crossings as well as flights.

"We hope more tourists will be coming this year as we extend flight connections to international destinations," an official from Myanmar's tourism official said.

For Thais, the increased desire to travel is all the more remarkable because of the economic slowdown at home.

Soraya Srimit, 31, from Bangkok is heading to Hanoi next month on holiday despite her concerns about the economy.

"I thought I should keep that money for a rainy day, because the economy is unlikely to recover until early next year," Soraya said.

"But I found an attractive package from AirAsia, and I really wanted to taste authentic Vietnamese cuisine in Hanoi," she said.

Political turmoil in Thailand has led to almost monthly downgrades in the nation's economic forecasts. The downturn has hurt Jakara Samarnthae's construction business, but he still plans to visit Hanoi later this year.

"A low-cost air fare will make my first overseas trip possible," the 63-year-old said.

The number of Thais travelling overseas rose 20 percent last year to 3.3 million, and their favorite destinations were Vietnam, Laos and China, according to the Tourism Authority of Thailand (TAT).

"With airlines, especially budget carriers, expanding their route networks, countries in the region ... have become more accessible to each other," said Juthaporn Rern-gronasa, TAT's deputy governor for international marketing.
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