Tourism
Thailand’s Airports Strained Beyond Capacity as Tourism from China Explodes
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BANGKOK – Thailand is facing a deluge of Chinese tourists that has strained its airports beyond capacity, but new expansions will take years to ease congestion, meanwhile visitor numbers are projected to almost double.
Thailand’s airports are strained beyond capacity, while spending billions to upgrade its infrastructure, open up new islands and cities to travelers, and tone down its image of cheap shopping, hotels and sex that underpinned the industry for half a century.
But the change will take years and even then may fail to keep up with soaring visitor numbers that have given the Land of Smiles a reputation for delays, overcrowding and government crackdowns.
Bangkok’s two international airports: Suvarnabhumi and Don Mueang, which are running at 40 percent beyond designed capacity.–
“Our strategy was more for less, not less for more, so we invited a lot of tourists from China,” said Suvit Maesincee, in an interview last month, when he was the minister attached to the Prime Minister’s office. “I think in the near future we need to change from volume to value.”
The military-backed government relies on tourism for 18 percent of the economy and foreign inflows have made the baht one of the strongest performers in Asia this year, a bright spot amid weak domestic consumer demand and private investment. While it plans to spend more than $5 billion to double capacity at its international airports, it’s planning to increase foreign tourist numbers at a similar pace, reaching 68 million in the next decade.
Weerasak Kowsurat, who returned to the post of tourism minister in November in a cabinet reshuffle by the military government, is frank about the challenge: “Today we’re not even ready,” he said after a press briefing in Bangkok on Dec. 1. “To get us prepared within a year is not even possible.”
At the heart of the upgrade, and the congestion, are Bangkok’s two international airports: Suvarnabhumi and Don Mueang, which are running at 40 percent beyond designed capacity. New terminals, facilities and another runway would allow them to handle 130 million passengers a year, including inbound and outbound trips.
But work won’t be completed until 2022 at the earliest, and the first taste most travelers get of the Thai capital is a long queue at immigration.
“In three to five years time we might not reach our targeted tourist growth due to a lack of airport capacity,” said Thongyoo Suphavittayakorn, a spokesman for the Association of Thai Travel Agents. “The problem with the Thai government is they want to increase the number of visitors but they don’t stop to check first if we’re able to accommodate” them.
Once out of the terminal building, visitors must contend with the Bangkok traffic, the world’s most congested after Mexico City, according to TomTom NV’s traffic index.
Commuting from Bangkok airport to hotels in downtown hotels can take up to five hours.“We took five hours to go to the hotel just because of the traffic,” said Diogo Matos, a 28-year-old first-time visitor from Portugal. “It was a horrible start to our trip.”
Thailand’s ability to attract tourists has defied the effects of a military coup, floods, political protests, a tsunami, airport blockades and the global financial crisis. In the past 15 years, more visitors have arrived from Europe, North America, Japan and Southeast Asia. But it is the explosion in Chinese visitors since the 2012 Chinese road movie “Lost in Thailand” that has changed the industry.
The number of Chinese visitors to Thailand has tripled in the past five years, to 8.8 million in 2016. They account for more than a quarter of all foreign tourists and 28 percent of revenue, according to official data.
The sudden influx, boosted by packaged tours arranged in China, led to accusations of so-called zero-dollar tourism, where groups were shepherded through shopping and sightseeing itineraries that provided little benefit to the host country.
A clampdown last year on those tours — 29 operators were prosecuted — caused a temporary dip in Chinese arrivals, but the tour numbers soon rebounded, and the number of independent travelers from China, making their way around the country with the help of their smartphones and Google Translate, continues to rise.
Pattaya police carried out a raid in several different locations across the city aiming to crack down on illegal immigrants. – Photo Pattaya One–
Meanwhile, the government is making efforts to clean up the country’s image. Former Tourism Minister Kobkarn Wattanavrangkul, who was replaced in the cabinet reshuffle, began a crackdown on sex tourism last year, with police and army officials raiding bars and hostels in Pattaya’s red-light district.
On the island of Phuket, attempts have been made to clear away the beach touts and reduce littering. In October, the government extended a ban on trips to the nearby Koh Khai islands, because of damage to the coral reef from speedboats that brought thousands of day-trippers. Last month, 21 beaches in popular spots like Pattaya and Krabi instituted a smoking ban.
“They want to shift the emphasis away from quantity and towards the quality of tourists coming,” said Patrick Cooke, an editor in Manila for Oxford Business Group Ltd. “To do that, obviously more investment is required in the luxury segment and the wellness segment.”
One plan includes a Japanese-backed $15 billion double-rail link from the capital to Chiang Mai in the north that would open up cities and towns along its route. Another is to build a new regional airport in the south at Betong, an area prone to unrest from Muslim separatists. Phuket opened a new international terminal last year, looking to become a gateway for surrounding regions like Phang Nga and Krabi.
U-tapao will be the cornerstone of the drive towards establishing an aviation hub in the Eastern region.–
In addition, the government is revamping the old U-Tapao navy airbase near Pattaya, from which U.S. B-52s flew to bomb Vietnam in the 1960s. A Chinese-funded high-speed rail link would connect the beach resort with Bangkok’s airports, 150 kilometers to the north.
“What they’re doing is adding more spots to see, while not taking care to preserve the old spots that are becoming worn out,” said Puttachard Lunkam, a tourism analyst at Krungsri Research in Bangkok. “You see islands being closed or national reservations being barred to tourists as a way to fix things when it’s gone too far, but not enough is being done to maintain the sites before it gets to that point.”
Chinese tourist (C) posing for pictures as she visits the White Temple in Chiang Rai, northern Thailand. – Photo Christophe Archambault–
There are some signs that the more-from-less strategy may be having an effect. Revenue from tourism in the first 10 months of this year increased by about 9 percent, outpacing a 6.4 percent growth in visitor numbers, according to data from the Thailand Department of Tourism.
But extracting more profit from visitors won’t be easy. Thailand is already one of the world’s top destinations for medical tourism, and high-end resorts have nestled in its secluded bays and picturesque forests for decades. Ultra-luxury chain Aman Resorts International began life in Phuket in 1988 and Four Seasons Holdings Inc. opened its first-ever boutique resort in Chiang Rai in 2005.
By Karlis Salna, Yudith Ho, and Samuel Dodge – Bloomberg
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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