cfgt@tamucc

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Thailand case:The preparation of ASEAN tourism and Tourism standards

Gumporn Suwannachim(Will)Head of International Business,RMUTP,Thailand

Fulbright Visiting Scholar from [email protected]

1Saturday, August 3, 13

mailto:[email protected]


Amazing Thailand Campaign•During midsummer 1997, it became clear that Thailand, a country described in the World Bank’s 1993 Miracle Report as a model for economic development, had entered its most serious economic crisis since WWII (Lauridsen, 1998).

•Thailand decided to position itself as major travel destination in the region and issue an effective tourism campaign in year of 1998-1999 as “Amazing Thailand,” which “at the same time is simple, vague, neutral, and subjective” (Hasan, 2009).

•This campaign aimed to promote Thailand tourism through destination marketing (Tourism Authority of Thailand,2013)

•It was designed to highlight the country's ethnic and regional diversity and boost Thailand's tourist industry amid the gloom of the Asian economic crisis (Lauridsen, 1998)

Source:http://www.tourismthailand.org2


http://www.tourismthailand.org



Thailand and ASEAN Tourism Hub•Nowadays the Thai tourism industry has gradually generated fruitful revenue for Thailand. The Tourism Authority of Thailand (TAT) reported that 22,353,903 international tourists visited Thailand in 2012, a 16.24 % increase (Marketing Database Group, 2013)

•The Tourism Council of Thailand (TCT) (2012) revealed that inbound tourists generated at least 900 billion baht (US$30 billion).

•TCT President Piyamarn Techapaibul mentioned in the Thai newspaper The Nation (2012) that 2012 was the “golden year” for Thailand's tourism industry, as circulating revenue from local tourists has also increased to 500 billion baht (US$17 billion).

• The Thai government implemented plans for its own country to be tourist hub, improve food service, and promote food industry exports in Southeast Asia region.

•The April report of the Thailand Department of Tourism (2013) shows that the number of international visitors was 2,013,012, a significant increase of 19.38% over April 2012.

• The expanding number of foreign tourists of Thailand in April 2013 consequently comes from East Asian and Western, particularly Chinese and Russian, visitors(Immigration Bureau, 2013).

Source:National Statistical Office National Information Center,Thailand and TAT3


Thailand and Tourist' spending

•TAT (2013) reported the average length of stay was approximately 10 days, and the average daily expenditure of international tourists was 4,392.81 baht (US$141.34) per person.

• This corresponds to most tourism statistics that show the average spending for tourists on accommodation and dining is 25 percent of that amount (Nield et al., 2000), which is 1,098.21 baht (US$35.34).

•The TCT has also targeted increasing their daily spending per person to $170 (approximately 5,000 baht) (The Nation, 2012).

•Ms.Vipawan Yongvikul, Director of Western Union Thailand, revealed that Thailand encourages international tourists, mostly from North America, France, and the United Kingdom, to overspend their initial budget estimates (Siam Business, 2013).

•Business Monitor International (BMI)’s industry report and forecasts series expects to see annual arrivals reaching over 25 million from key events in Thailand in 2013 and steady growth in the country's GDP between 2013 and 2017 of around 4% per year are presented in Table (BMI, 2013).

Source: Business Monitor International (BMI) 2013 TAT,National Statistical Office National Information Center,Thailand,the Nation media(2012) and Siam Business, 2013

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Thailand Tourism data and Forecast

Source:Department of Tourism Thailand, Immigration Bureau, Marketing Database Group ,World Bank and BMI (2013) and TAT

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Bangkok: Vibrant of Asia•The MasterCard Global Destination Cities Index report for the second quarter of 2013 shows that Bangkok is the top destination city by international visitor arrivals in 2013, highest international overnight visitor spend in Asia and the Pacific, and highest growth rates overall (MasterCard, 2013).

• In the city of Bangkok, there are broad varieties of tourism attractions including Bangkok's vibrant nightlife, modern shopping centers, Thai hospitality, and Thai Smile. Apart from the varieties of Bangkok attractions, four Thai foods are listed in CNN World's 50 best foods (2009): 1st, Massaman curry; 8th, Tom yum goong; 19th, Nam tok moo; and 46th, Som tam; which are always available and sold to locals and international visitors day and night within walking distance.

•Rand and Heath (2006) mention that tourists seeking culture are also interested in tasting destination foods, and this food consumption importantly provides a memorable sensory experience as part of the travel experience.

• Howteerakul (2004), Pongsirirushakun (2003), and Naewmalee (2003) shows that the different types of foodservice in the city of Bangkok are categorized in different types of foodservice establishments; they were identified as international franchised restaurants (IFRs), locally owned restaurants, foodservice establishments at accommodation facilities, and street vendors.

•Importantly, as required by Act and B.E., the Bangkok Metropolitan Administration(BMA) has monitored and mainly cooperated with the Ministry of Public Health, TAT, and responsible government agencies through a food chain for Bangkokians (Maisuporn,2008) and tourists in Bangkok to assure safe and clean foods.

Source: Bangkok Metropolitan Administration (BMA) and The MasterCard Global Destination Cities Index,2013, CNN Travel,ISTOCK Photo, and www.maangchi.com/receipe.som-tam

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http://www.maangchi.com/receipe.som-tam




Source: pictures from www.shutterstock.com, International Culinary Tourism Association, 2013

The Government initiatives the Food safety program•The Thai government began to monitor street food vending in 1941; later, specific regulations were enacted in Bangkok to monitor fixed and mobile vending since the number of such vendors increased (Nirathron, 2006).

•Quan and Wang (2004) stated that local food is the basic requirement to satisfy the physiological needs of tourists, since it represents country’s culture and way of life as destination product (Rand and Heath, 2006; Quan and Wang, 2004).

•These foodservices provide authentic local foods for tourists who are interested in tasting culture (Rand&Heath, 2006).

•Recent study of Burusnukul, Binkley&Sukalakamala (2011) found out that tourists are desirable to select authentic Thai foods, and the Thai culture and cuisine experience would be marketing tools for Thai tourism. These strategies make significant change in trend of Tourism when tourists may explore different culture through foods at traveling destination (International Culinary Tourism Association, 2013)

•The BMA has the City Law Enforcement Department randomly inspect foods from different types of foodservice establishments, particularly street venders, with coliform bacteria kit (BMA, 2013)

•If foods from street venders do not meet sanitation standards, according to Cleanliness and Tidiness Act, B.E., street venders will be fined from 500-2,000 baht ($15-$65).

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http://www.shutterstock.com

http://www.shutterstock.com

Source: Ministry of Public Heath,Thailand and BMA

The GFGT program(Clean Food Good Taste)•Street foodservices lack of effective marketing program to convey the message about “Street foods in Thailand are safe, you can eat it,” and it is always a misconception to consumers’ perspectives in decisions about food consumption.

•Crucially, Thailand needs to understand tourists’ food consumption behavior and how they make decisions about their consumption while they are in Thailand during traveling periods.

•The food safety program CFGT was created by Thai Ministry of Health in 1989 to change food consumption’s bias and draw the attention of international tourists to understand the clean foods and the safe food practices of street vendors(Ministry of Public Heath,2013).

•This food safety program is not only to protect consumers against foodborne illnesses, but also to promote a positive image of Thailand tourism (Burusnukul, et al., 2011).Since food safety is an important issue for Thailand, it may cause lower daily expenditure for tourist, fewer incoming tourists in following years, misconceptions of Thai food, and poor images of Thai tourism.

•The objectives of the CFGT program are aimed to reduce the risk of foodborne diseases in restaurants, cafeterias, and vendors; promote clean and good sanitary food service in tourist areas; and support and encourage local authorities in managing safe food for consumers and tourists in their areas of jurisdiction.

• The CFGT program’s certificate and logo will be issued to restaurants and street venders for meeting Thai sanitation standards to support locals and international visitors’ decisions in their food consumption. Those qualified street venders would be granted the CFGT logo to be displayed at their business.

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Source: BMA and Ministry of Public Health

The GFGT program(Clean Food Good Taste)(Cont)

•This inspection will be randomly assessed twice a year. If their practices are found unqualified, the award and logo will be revoked from the stalls (Ministry of Public Health, 2013).

•These strategies are communicated through Regional, Local, and Central areas. Bangkok city is excluded from Central area by its establishment in 1972 (BMA, 1982), and BMA is responsible for the success of the program.

•The Ministry of Public Health aims to have 80% of the street venders in Thailand meet the CFGT food safety standards. The success of the CFGT program depends on meeting the four strategies. They are categorized and applied to four levels: partnership and co-ownership, quality assurance, sustainability, and public awareness and involvement.

• BMA (2012) reported in 2012 that the registered number of street venders in Bangkok is 21,084; however, there are many street venders who have not registered themselves with BMA. however, there are many street venders who have not registered themselves with BMA.

•The Bureau of Food and Water Sanitation is authorized by the Ministry of Public Health to monitor and coordinate the CFGT program (2012). The Bureau conducted 12 practice inspections in Bangkok area resulting in inspections of 9,270 street venders; of those, 91.40 %, or 8,473 street venders, passed the criteria.

•This success of CFGT program would lead to assurance that the food safety standards are being met for local consumers and international tourists, and even increase daily expenditure of International tourists to reach TCT increasing tourists daily spending plan (Bangkok post, 2013).

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Source: BMA and Ministry of Public health and Bureau of Sanitary and food safety, Thailand


•Due to street venders not being properly trained in personal hygiene and food handling, the Bureau of Food and Water Sanitation created a food safety practice program for street venders to be trained for their food processing. After training, street venders will receive an Identification Card and certificate for food safety practices (Ministry of Public Health, 2011).

•Kivela and Crotts (2009) suggested that Western tourists traveling in Asian countries might experience a psychological risk called Food-Neophobia when confronted with unfamiliar local foods.

•For tourist’s food consumption, in particular food safety program, CFGT program is created to assure the physical and psychological comforts of tourists in food consumption decision (Ministry of Public Health, 2011).

•The CFGT program is an education program for street venders to understand the food safety practices and the sanitation standards. It is used by the Ministry of Public Health to communicate with street venders to develop and improve their professionals to better serve the customers.

•According to word-of mouth, street venders who lack the sanitation standards and the CFGT certificates at their stalls will consider being trained and participating in the CFGT program.

•This program is not directly beneficial to the tourism industry, but it is directly beneficial to street venders’ income generation, and locals’ and tourists’ food consumption decisions.

•However, Burusnukul, Binkley & Sukalakamala (2011) found tourists have low awareness of the CFGT food safety program in Bangkok.

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Source:BMA Street food report in 201211



http://travel.nytimes.com/2008/01/06/travel/06bangkok.html?pagewanted=all&_r=0


Source:http://travel.nytimes.com/2008/01/06/travel/06bangkok.html?pagewanted=all&_r=0 and http://www.youtube.com/watch?v=X6hmnR6Xqb8

•The lifestyle and culture in urban areas like Bangkok means food consumption from street venders is an essential part of the social structure as daily life.

•Asp (1999) mentions that the best way to understand culture and way of life is to experience and consume the local foods. Street foods in Bangkok are processed and served along the roads and pathways.

•Street vending is not only an urban culture and lifestyle of Bangkokians, but it also boosts the economy.

•Kusakabe (2006) stated that there were two roles of street venders in urban cities; street vending is a job creator for the urban poor, and street venders provide market access for urban populations with an affordable price.

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Thai Street foods in Bangkok






http://www.youtube.com/watch?v=X6hmnR6Xqb8








Cases of Food safety in other countries

•Not only Thailand has a concern about food safety issues. Others countries also are aware of food safety issues as crucial topics for the nation and public policy makers to pay attention to.

•Each country similarly begins its concerns about numbers of tourist who were affected by foodborne and waterborne diseases, which are theoretically right for raising problems. Mostly, the Ministry of Public Health or Center for Disease Control (which may be named differently in each country) monitor the cause and effect in this issue.

•CountryWatch (2010) reveals that the country of Niger, together with air travel company British Airways, informs the passengers who travel to Niger about the health information. It also provides travel safety and risk information from reliable sources to educate the traveller and requests its passengers to be vigilant for those risks while living in Niger.

•The Food Safety Authority of Ireland (FSAI) (2006) internationally complies with the legislation of the European Union in the sanitation standards called Regulation (EC) 852/2004 (Hygiene of Foodstuffs) and European Communities (Hygiene of Foodstuffs) Regulations, 2006. These regulations are to monitor food stalls and food business operators in food business in Ireland. FSAI sets the training program called “Guide to Food Safety Training” for food business operators to have sufficient knowledge of food safety and hazard control.

• InTaiwan, they advised that street venders should obtain food preparation certificates and attend food-related hygiene seminars to better understand the sanitation standards in order to decrease foodborne disease and they need to wear proper working clothes to ensure food service safety.

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Source:Fighting Poverty from the Street A Survey of Street Food Vendors in Bangkok Narumol Nirathron, PhD

•Nirathron(2006) found the following socio-economic characteristics of street food buyers that more than half of the buyers (57 percent) were females, almost half (47 percent) of the buyers were under 30 years of age, a quarter (25 percent) was between 31 and 40 years of age, almost half (43 percent) of the respondents had bachelor’s degree of education,more than half of the buyers (58 percent) were monthly wage workers,civil servants, and public enterprise workers.Two thirds (60 percent) of buyers earned less than 10,000 baht(approx. $330) per month and one third (36 percent) earned more than 10,000 baht and half of the buyers lived in their own house.

•Their purchasing behaviours are as follows most than 70 percent of the food bought were those that are consumable at the point of purchase, dinner meals were the most frequently purchased, over half of the buyers bought street food at least once daily, around 75 percent of buyers spent not more than 60 baht per purchase,around 50 percent spent not more than 60 baht per day, almost half (48 percent) of buyers spent 60 to over 100 baht daily for street food.

•The above data have many implications.•First, they confirm the importance of ready-to-eat food.•Second, the high percentage (30 percent) of buyers who purchase street food more than once a day confirms the earning opportunities of street food vending.•Third, the economic value of street food contributes to the country’s economy.

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Street food consumption


Source:STREET STALLS/KIOSKS IN THAILAND,Euromonitor International December 2012

•Most street stalls/kiosks sell traditional Thai dishes, desserts, fresh fruit juices and traditional teas/coffee at affordable prices to mass consumers.

•Street stalls/kiosks remains the largest consumer foodservice channel in Thailand, accounting for a third of total value sales in consumer foodservice in Thailand.

•Independent street stalls/kiosks accounted for an 86% value share in overall street stalls/kiosks in 2011, with the remaining share held by chained street stalls/kiosks.

•Street stalls/kiosks are traditional outlets for consumer foodservice, and the channel is fragmented, with large numbers of small independent operators.

•84% of street stalls/kiosks are located in stand-alone locations, particularly in residential and business areas.

•However, there are growing numbers of modern-style kiosks in shopping malls, which cover several types of products and beverages, such as ice cream, coffee, fruit juice, cakes, bakery, sushi or pizza.

•This is to respond to the increasing on-the-go lifestyles of consumers.

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Street stall/Kiosk in Thailand






Source:Country Watch: On-the-go eating drives consumer foodservice in Thailand, Euromonitor International April 2009

•Street vendors and regular snacking are defining features of the Thai market, with the US$7 billion street stalls kiosks sector (the world's fifth-largest) accounting for more than a third of sales.

•It also presents a major challenge to international operators with low-priced traditional favorites from one of the world's great cuisines available on every street corner, new entrants face a daunting task in breaking through, though global brands such as McDonald's, KFC, and above all 7-Eleven have all made inroads in recent years, particularly among younger, more affluent urban consumers.

•A recent study by the Kasikorn Research Centre, for instance, showed that Thais eat out 13 times a week, on average. Many of these meals are not formal, sit-down occasions, but rather quick snacks from one of the country's ubiquitous street vendors.

•Thailand boasts the second-highest level of transactions per capita in the world through street stalls/kiosks, trailing only Singapore. Particularly for urban workers, street vendors are a cheap (most items retail for US$1 or less), convenient way to grab a nourishing meal on the go, while allowing one to sample dishes from across the spectrum of traditional Thai cuisine.

•More than 40% of consumer foodservice sales in Thailand come from fast food and street stalls/kiosks, a percentage expected to approach 50% by 2013.

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On-the-go eating drives consumer foodservice in Thailand




Source:Country Watch: On-the-go eating drives consumer foodservice in Thailand, Euromonitor International April 2009 and Consumer food service thailand 2012 Euromonitor International ,2012

•Due to increasingly hectic lifestyles, consumers tend to look for something quick and convenient to eat.

•This is driving demand for ready-to-drink(RTD) and ready-to-eat(RTE) products.

•Products in RTE and RTD formats are likely to grow over the forecast period, as these formats respond well to the changing demands and lifestyles of consumers. Consumers tend to have less time to cook, and spend more time doing activities out of home; thus, RTE and RTD formats offer greater convenience.

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Consumer foodservice in Thailand,2012




Source:Country Watch: On-the-go eating drives consumer foodservice in Thailand, Euromonitor International April 2009 and Consumer food service thailand 2012 Euromonitor International ,2012

•Charoen Pokphand Foods(CPF) continued to lead chained street stalls/kiosks in 2011 with the 5 Star Grilled Chicken. The company announced it had 2,400 outlets of 5 Star Grilled Chicken, 1,300 outlets of 5 Star Fried Chicken, and other 5 Star chicken brands reached 890 outlets.

•In 2012, the company expanded its franchise to international markets such as Cambodia, Laos, Burma and Vietnam. In the domestic market, the company continues to expand its outlets.

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Consumer foodservice in Thailand,2012 (cont)




Source:Country Watch: On-the-go eating drives consumer foodservice in Thailand, Euromonitor International April 2009 , STREET STALLS/KIOSKS IN THAILAND, Consumer food service thailand 2012 Euromonitor International ,2012 ,and ,http://www.youtube.com/watch?v=gkUd8WNWZt4

•Chay Si Ba Mee Kaew from various franchisees ranked second amongst chained street stalls/kiosks in Thailand. The key factors for the success of Chay Si Ba Mee Kaew are its large number of outlets throughout the country and strong branding amongst Thais. The company is also expanding its business to neighbouring countries, such as Laos and Cambodia.

•Despite the fact that the number of outlets is still growing, street stalls/kiosks is likely to see negative growth in constant value terms over the forecast period. More people are intending to open street stalls/kiosks as additional income; therefore the number of outlets is likely to increase.

•Chained operators are expected to continue to expand their businesses in kiosk format, as this format is more appealing to franchisees, as it requires lower investment and has a faster payback period than the store-based format. Besides, the on-the-go lifestyles of consumers are likely to continue over the forecast period.

•Charoen Pokphand Foods(CPF) is expected to remain the most active operator, as the company will continue to carry out aggressive outlet expansion, as well as strong marketing campaigns and price promotions for all of its 5 Star brands.

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Consumer foodservice in Thailand,2012 (cont)




http://www.youtube.com/watch?v=gkUd8WNWZt4





•Strategically, the BMA and TAT are advised to cooperate with airlines to educate and communicate with the tourists on board, particularly with Chinese and Russian airlines based on the number of foreign tourists in April 2013 (Department of Thai Tourism, 2013). When flight attendants hand over an immigration form, they should also hand the documents about the food safety standards and practices or the CFGT program documents along with the immigration form in order to raise the program awareness. •When tourists enter luggage pick-up areas and access the trolleys, the CFGT signs and logos should be in sight to remind them. Before exiting from Suwannaphumi airport, a pamphlet or small bag containing heath precautions should be available for the visitor. They might not read it right after they receive it, but they will probably read it when they arrive at the hotel or before going to bed.

•On the road to their hotel or attractions, the CFGT signs should be displayed on billboards or small advertising in vehicles that they take to reach their destinations. TV and sales calls are not effective since tourists have less opportunity and a language barrier to contend with in order to access these, comparing to other medias. Moreover, the tourists who are satisfied with the heath precautions and authentic foods in Thailand will tell their friends who have plans to go to Thailand to look for the CFGT signs so they make better decisions in street food consumption.

•The trained street venders with the CFGT program will generate more income and access more customers due to the sanitation standards obtained from the food safety practices and CFGT program. According to word-of mouth, street venders who lack the sanitation standards and the CFGT certificates at their stalls will consider being trained and participating in the CFGT program.20

Recommendation for the Food safety program for Street foods in Thailand


Thai people• Please ask me about Thai people,please.

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ขอบคุณครับ (Kon khun Kab)Thank you

[email protected]

References Available Upon Request

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http://www.jobweb.org/studentarticles.aspx?id=1451

http://www.jobweb.org/studentarticles.aspx?id=1451

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