Tourism
Indian Tourists May Save Thailand’s Struggling Tourist Industry
BANGKOK -As Thailand’s Tourism industry continues to struggle with less tourists from China, Indian Tourist may be the saving grace to Thailand’s struggling tourist industry.
For years, Thailand’s tourism has been dominated by Chinese visitors, with 10.5 million in 2018 alone – accounting for about 28 per cent of total foreign arrivals.
But after a tour boat carrying mostly Chinese tourists sank off the southern resort island of Phuket in July last year, killing 47, the number of visitors from China have begun to tail off.
Luckily the number of tourists from India has now started to increase, with a record 180,000 visiting in June alone, according to the Thailand’s tourism ministry.
Indian Tourist Tours
More direct flights, a visa waiver and, most importantly, increasing wealth have spurred the number of Indian arrivals, which the Tourism Authority of Thailand says were up by more than 20 per cent year on year in the first five months of 2019.
Arrivals from China, meanwhile, were 4 per cent down over the same period – although that still equates to 4.8 million tourists, whereas just 787,195 came from India.
But the rapid expansion of its middle class has prompted Thai tourism officials to raise their estimates of how many visitors will come from India, with its population of 1.3 billion. At least 10 million are now expected to arrive in 2028, a more than five-fold increase on last year’s visits.
That sort of growth trajectory would mimic the rise of Chinese tourists, from 800,000 in 2008 to more than 10 million last year.
Indian Tourists Differed from Chinese
Mr Preecha Champi, a Thai Hotels Association board member, said Indian tourists differed from Chinese ones in that they rarely came as part of a tour group, because they can speak English.
“There were 1.6 million Indians who visited Thailand in 2018 and we expect it to be 1.8 million this year,” he said.
“The Indian market shares a lot of similarities with the Chinese. Visitors from both countries can fly here in 3 to 4 hours, they have about the same population and have experienced GDP growth, but there are 600 million Indians who are younger than 25 years old and we think this group of people will be the future of Thai tourism.”
Mr Parv Jain, an 18-year-old student from Punjab state, said he and a group of seven friends had flown direct to Phuket before travelling to the nearby resort town of Krabi and making a final stop in Bangkok.
“We stayed in Thailand for eight days and we each spent around 15,000 baht (S$660),” he said.
Mr Tuhin Mitra from Kolkata, meanwhile, said he had been to Pattaya and loved that he could drink alcohol on the beach, something the 27-year-old cannot do back home.
In addition to visiting Thailand’s tourism hotspots, Indians are increasingly choosing the country as the location of their weddings – with some 200 Indian couples tying the knot there each year, according to the Thai tourism authority.
“Couples and their families spend around 8 to 9 million baht per wedding package at Thailand’s five-star hotels in Bangkok, Hua Hin and Pattaya,” Mr Preecha, of the Thai Hotels Association, said.
Indian Weddings in Thailand
“There could be some 300 to 400 guests who fly in for three to four nights of celebrations and they consider Thailand a very cost-effective destination to host a wedding.”
When not splashing the cash on their nuptials, however, Indian visitors have gained a reputation as hard bargainers.
In the Indra market in Pratunam, for example, a stallholder was recently seen pleading for an extra 20 baht after a group of Indian men haggled hard to get the price of four plastic raincoats.
“I had to sell a bag at half the price,” said another stallholder, who did not want to be named. “But without the Indians there is no one else.”
Mr Ping, a souvenir seller in Pattaya, said Indian tourists “don’t have to spend a lot to enjoy shopping in Thailand”.
“While the Chinese who come with a tour group only spend money where the group make a stop, the Indians mostly shop at any market,” she said.
India’s Middle Class Growing
Nonetheless, Chinese shoppers still contribute more to Thailand’s economy than any other foreign nationality.
Last year, they spent some 120 billion baht, accounting for about 24 per cent of total tourist expenditure.
They are not expected to spend quite so much this year, however, with a strong baht likely to deter the more price-conscious Chinese tourists.
India is projected to overtake China as the world’s most populous nation in eight years, and its middle class is forecast to keep expanding. Many in Thailand’s tourism industry are now looking west for the fuel of future growth.
“Indians are now driving industry growth like the Chinese had previously done,” said Kongsak Khoopongsakorn, vice-president of the Thai Hotels Association.
“But it’s important to spread the risk and have a good nationality mix in the market. We can’t rely on any single market.”
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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