Saha Pattana Inter Holding (SPI), an affiliate of Thailand’s leading consumer products distributor Saha Pathanapibul Plc, has set up a joint venture with Malaysia’s leading tourism agent MayFlower Travel Group to foray into the tourism sector.
The move marks the first joint venture for Mayflower outside Malaysia.
The JV, Mayflower Saha Thailand Co Ltd, will provide inbound and outbound tour operations as well as MICE (meetings, incentives, conferences and exhibitions) services.
SPI’s president Chantra Purnariksha said, SPI will hold 51 per cent and MayFlower 49 per cent in the JV firm with the registered capital of 10 million baht.
SPI has a large network and customer base with over 300,000 employees.
Prior to the tourism foray, the Thai company has been operating the businesses of investments, rentals and services and industrial parks.
“Mayflower’s experience in tourism sector plus our expertise in marketing will definitely help promote Thailand’s tourism and bring more tourists to the country,” she said.
She has set a revenue target for the JV at 66 million baht ($1.89 million) in the first year of the operation, starting from July 1, 2016 to June 30, 2017.
In the first phase, the JV would focus on providing booking services for air-tickets, hotels, apartments and other accommodations on the strength of Mayflower’s partners across the world.
In Thailand, she said, the sales team will visit local hotels and build up the network before penetrating in online market aggressively in the next two years.
Tourism Authority of Thailand has scaled up the tourism income target to 2.58 trillion baht, up from 2.4 trillion baht in 2015, on the back of economic recovery in the first six months.