Tourism
Thailand Still Anticipating a Rebound of Chinese Tourists in 2023
China used to be the world’s most abundant supplier of international Chinese tourists, Thailand and Southeast Asia was one of their most popular destinations. The accumulation happened swiftly. Tourism became available to China’s rapidly rising middle class as wealth, a growing surplus of leisure time, and a loosening of official travel regulations. The number of travellers increased from 47.7 million to 154.63 million between 2009 and 2019.
These newcomers spent lavishly. In 2019, Chinese tourists contributed for one-fifth of foreign tourism spending, or US$255 billion. The impact on Southeast Asia was enormous. In 2019, tourism receipts contributed for 5.7% of Malaysia’s GDP, with Chinese tourists accounting for 17.8% of the money. Similarly, tourism contributed 11.4% of Thailand’s GDP, with Chinese spending accounting for 28.1%.
Covid halted the trend, but many governments and businesses expected it to be just temporary. That turned out to be incorrect. Chinese tourists plummeted below 2000 levels in 2021, totaling 8.5 million worldwide; arrivals in Southeast Asia were minimal.
For example, Chinese arrivals in Malaysia fell to 7,701 for the entire year 2021, down from 3.1 million in 2019. In 2021, there were 13,043 Chinese arrivals in Thailand, a precipitous reduction from the 11 million who visited in 2019. So far, the rebound has been dismal. Chinese bookings for summer tours in Malaysia are 30% lower than they were before the outbreak, and 10% lower in Thailand.
Will the Chinese tourists come back?
There are various issues. Flight capacity has not returned to 2019 levels, particularly between China and Southeast Asia, and China’s economic slowdown has made consumers wary. Both issues will be resolved eventually, but the Southeast Asian tourist industry should not expect a return to the roaring 2010s.
Long-term structural problems occur. For starters, younger Chinese are less interested in the group travel experiences that have long characterised Chinese vacations, which their parents have taken overseas.
According to a recent survey of 2,000 likely Chinese visitors, 76% want “fewer people” and fewer itineraries influenced by online posts. Today’s Chinese travellers, on the other hand, are looking for “niche” experiences that provide access to distinctive cultural sites. Phuket’s busy beaches and restaurant chains such as Din Tai Fung do not qualify.
Second, Chinese consumers are spending more money at home, particularly on luxury items. Despite accounting for 35% of the global luxury market in 2019, Chinese buyers made only 11% of their purchases in China due to high domestic taxes. The luxury boutiques and duty-free shops in Bangkok, Phuket, and Kuala Lumpur benefited. However, thanks to a government initiative to open duty-free stores at home, luxury sales in China are rapidly expanding and might account for roughly 90% of Asia-Pacific duty-free sales within a few years.
Finally, there is always the possibility of politically driven disruptions. For example, in 2017, China prohibited Chinese tour groups from visiting South Korea in retaliation for the deployment of a US-built missile defence system, costing South Korean businesses billions of dollars. Southeast Asia has yet to see a tourist trade retaliation, but as tensions in the South China Sea rise, tourism-dependent countries must brace themselves for pressure. Southeast Asia has to put out a bigger welcome mat.
Thailand’s Tourism Authority Targets Indian Tourists
Destinations throughout the region fostered growth by tailoring hotels and other travel experiences for Chinese tourists, extending air lines, simplifying visa requirements, and creating marketing relationships in China.
In the short run, Southeast Asian countries will be unable to compensate for China’s missing tourists. However, governments should boost tourism marketing and outreach to other countries with expanding middle classes in the long run. India is an excellent place to begin. It has a booming airline sector and an increasingly affluent populace, similar to China in the 1990s.
The Asian Development Bank (ADB) stated earlier this year that India may become “the next China” in terms of outbound tourism. It makes a valid point. In May, Indian tourists exceeded Chinese tourists in Singapore, and the trend is continuing in other parts of the region.
To cultivate the Indian tourist market, Thailand and other nations will need to take many of the same steps that they have long taken with China: relax visa regulations, develop air connectivity, and aid hotels, restaurants, and attractions in customising their offerings for Indian guests. India will take a long time to make up for the drop in Chinese tourists.
Southeast Asia, on the other hand, positions itself for a more sustainable tourism business by diversifying its tourist marketing. For years, the region has rolled out the red carpet for China. India and other countries should also be invited.
People from more nations will be now able to enter Thailand without a visa beginning Monday. This is part of an effort to increase tourism and encourage visitors to stay longer, Interior Ministry spokeswoman Traisuree Taisaranakul said on Friday.
According to Ms. Traisuree, Interior Minister Anutin Charnvirakul has signed four documents that will make it easier for foreigners to travel. These modifications will all take effect on Monday, provided they are published in the Royal Gazette.
The instructions include 93 more nations on the list of individuals who can visit Thailand without a visa, up from 57 previously. People from these countries can stay for a maximum of 60 days. Additionally, from 19 to 31, nearly twice as many nations will be able to obtain visas on arrival in Thailand.
To attract digital nomads, artists, and tourists interested in learning or practicing skills such as cooking and Muay Thai, the country will also introduce the Destination Thailand Visa service.
The new form of visa, which is valid for five years, allows travelers to stay for up to 180 days.
According to Ms. Traisuree, students holding visas for master’s degrees or higher will not be required to leave Thailand immediately upon graduation. They will be able to stay for an additional year to hunt for work or vacation.
In order to enhance the economy and tourism, the cabinet took a general decision on these additional measures in May. The statement was meant to be released in June, but it was pushed back.
Ms. Traisuree believes that this is the greatest sort of visa for persons who want to work from home in the Land of Smiles and explore the nation without the various restrictions and complications that come with conventional tourist visas.
Getting a DTV will give you a 5-year multiple-entry visa that lets you stay in Thailand for a total of 180 days a year, with the opportunity to stay for another 180 days.
Ms. Traisuree said that the Destination Thailand Visa is great if you want to work from home in the Land of Smiles and see the sights without the many restrictions and problems that come with a regular tourist visa. The Destination Thailand Visa will cost 10,000 THB.
Qualifications for the Thailand Destination Visa (DTV)
According to Thai Embassy, to be eligible for the visa, you must fulfill the following conditions (which could change):
- You have to be 20 years of age or older
- You have to be able to afford the cost of the visa
- To sustain your stay in the nation, you must demonstrate that you have at least 500,000 THB in your bank account
- Proof of your employment with a recognized company is required.
For digital nomads or remote workers who want to make the most of their travels and yet have the opportunity to work while they’re there, the Destination Thailand Visa is designed just for you. Additionally, it is ideal if you are traveling to Thailand in order to partake in any of the following activities:
- Thai food prepared with Muay Thai
- Instruction and conferences
- Sports medicine therapy
- International talent International music and art events
Thailand DTV Visa Benefits
Additionally, there is uncertainty about these details and they could change:
- In comparison to other Southeast Asian nations that provide comparable visas, Thailand has less stringent income requirements and charges for the visa. For another 10,000 THB, you can extend the visa once, for a maximum of 180 days.
- There are ninety-three foreign nations that qualify for the Thailand DTV Visa.
- With this visa, you can lawfully operate remotely for foreign clients and companies while in Thailand.
- Your spouse and any children under the age of twenty may accompany you.
- You are exempt from paying taxes on your foreign income because the visa allows you to stay in Thailand for up to 180 days.
Drawbacks of a Thailand DTV Visa
You are unable to work for a Thai company that needs a Thai work visa, even though you are still able to engage in some activities and make money. Your DTV will end if you decide to change the kind of visa you are currently on.
Additional information on the visa’s release date and application process will be available in late June or early July of 2024. You will most likely be able to apply for it via the Thai immigration office, a Thai embassy, or a Royal Thai Consulate.
Thailand’s Hotels Association (THA) reports that another German tour operator has gone bankrupt, but that this will have a far less effect than the recent bankruptcy of FTI Touristik.
Following notification from the Tourism Authority of Thailand (TAT), the Thai Hotels Association has now confirmed that the Cologne-based luxury tour operator Itravel Group has formally filed for bankruptcy.
Southern Thailand is home to numerous high-end resorts, which Itravel aims to attract, according to Thai Hotels Association president Thienprasit Chaiyapatranun.
As a result of Itravel’s bankruptcy, he said, the hotels association is currently collecting data from its members.
On Monday, the organization wrote to the TAT and the Foreign Ministry, requesting that they assist hotel operators in keeping up with legal developments surrounding the bankruptcy of the German tour operator FTI, which resulted in a loss of almost 111 million baht for hotels around the country.
Hotels having issues with Itravel
On Monday, during the THA monthly meeting, Mr. Thienprasit noted that they also emphasized the case’s urgency to Minister Sermsak Pongpanit of Tourism and Sports.
In response to allegations that hotel operators with business partnerships with Itravel were experiencing issues with financial transactions, the agency issued an alert to the industry, according to Siripakorn Cheawsamoot, TAT deputy governor for Europe, Africa, the Middle East and the Americas.
He speculated that the losses might be lower with Itravel, an online travel agency that focuses on the niche luxury market, than with FTI, the third operator.
According to the Bangkok Post, at Monday’s THA meeting, Mr. Sermsak stated that the ministry will look into measures to assist hotels, especially since the goal of 3.5 trillion baht in tourism earnings for this year is still very ambitious.
According to Mr. Thienprasit, the organization is opposed to the government’s plans to increase the legal foreign ownership of condominiums from 49% to 75%. This, he added, might lead to an increase in unlawful accommodations and make other condo residents feel uneasy about having more guests around the clock.
Unscrupulous investors
He said that some international investors are already breaking the law by renting out their rooms to day guests, even though the Hotel Act only permits rentals of at least 30 days.
An increase in the foreign ownership quota for condos, according to Mr. Thienprasit, could entice unscrupulous investors and lead to the construction of even more unlawful rooms, which now exceed the number of registered hotel rooms by a factor of two.
The success of Thailand’s hotel industry is highly dependent on the business of tour operators. These collaborations bring in a constant flow of visitors, particularly during busy seasons.
It is more convenient for passengers to book comprehensive packages offered by tour operators, which include hotel accommodations and activities. Because of this arrangement, hotels may anticipate a specific amount of bookings without having to spend a lot on advertising.
Additionally, hotels are able to provide more affordable rates, which appeals to guests who are mindful of their budget. But if tour operators go through slumps or start focusing on other places, this dependence might be disastrous.
Source: Bangkok Post, Thai PBS
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SEE ALSO: Thailand Named Top Spot for Most Popular Tourist Destination
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