Why the Chinese are infinitely more important than Western tourists to Thailand

[Jonathan Fairfield]

Why the Chinese are infinitely more important than Western tourists to Thailand

By Dan Cheeseman

 

 

We need to wake up and smell the roses, us Westerners are no longer an important group for the Thailand tourism industry – in fact, we are what you would call ‘niche’ – and with good reason.

 

The Chinese are here in numbers and not only will this continue to grow but they also outspend Europeans per capita by 53% when in Thailand.

 

There are more Chinese…

 

The Chinese now account for 57.48% of all tourists in Thailand and what makes this even more staggering is only 8.7% currently have passports (120 million).

 

According to Jing Travel this could double by 2020 – that means 240 million Chinese able to travel (363% of the UK population (66 million)). They also go on to state that first time Chinese travellers are more likely to travel more close to home to begin with, so places like Vietnam and, you guessed it, Thailand. 

 

..And the Chinese share of the pie will only grow

No wonder Thailand are forecasting tourism to grow from the 38 million now to over 79 million by 2030.

 

 

The Chinese Spend More...

 

Quite often I hear the European retaliation that they would like to see the spend levels per capita of Chinese, suggesting it to be low. This could not be further from the truth as shopping is an important factor for when they go on holiday.

 

The Chinese expenditure into Thailand is US$15,342,000,000 each year, which is more than any other nation.

 

The average spend per day for a Chinese tourist in Thailand is US$192 – which is 53% more than the average Europeans US$125 daily spend.

 

 

Full story: https://danaboutthailand.com/2019/04/24/why-the-chinese-are-infinetely-more-important-than-the-european-tourist-to-thailand/

 

[seajae]

looks like this doesnt take in the zero dollar tours, all that money is spent in chinese shops/businesses

 

[Kasane]

Well, that's another nail in the coffin for low income, bar stool dwellers, old farangs whose days of faking income through false affidavits is coming to a close as Thailand understands that the Chinese are actually bringing in more wealth than the Western expats who have already been priced out of their countries.

[NotYourBusiness]

Another humbling graphic (only 20 years away):

 

[DrTuner]

And because Westeners don't want to come to a has-been with usurpers at the helm. Chinese first timers can be suckered in. Last hurrah.

[Bang Bang]

Yep, and time in any of the Bkk airports tells the story pretty graphically.

 

20 years ago when I started visiting, DM was all Europeans, chatter in English/German/ ... and the occasional Japanese.

 

Now, Suvarnabhumi I can sit at a coffee shop and there's a 5 min. gap between sightings of Westerners in a place milling with brown/yellow skin tone.

 

The Thais tolerate us but I am prepared for when there's a tap on my shoulder and I am told to either leave or pay x mil. baht for the privilege of not having to.

[otherstuff1957]

I've done some work for companies that cooperate with TAT and saw and interesting TAT report a couple of years ago. 

 

The Chinese do spend, on average, about 20% or more than Europeans/Americans/Aussies.  However, a breakdown of where they spend their money was very interesting.  It is traditional for Chinese tourists to return to China with expensive gifts for their friends and relatives.  This is a 'face' thing so they are often willing to spend a big chunk of their total expenditures on these gifts. 

 

So, what do they buy?  They go to the high-end stores on Suk and buy brand-name stuff.

 

Unlike Western tourists, they don't usually patronize small, local shops, smaller guesthouses or local restaurants.  Consequently, even though they spend more money, much, if not most of their money goes to foreign companies and their wealthy Thai partners.  A relatively small portion of their spending goes directly to local merchants and local SME businesses. 

 

The tourists that benefit Thai SMEs the most are actually the much-maligned backpackers!

[darksidedog]

More does not necessarily mean better of course. Not many businesses outside of those who cater purely to the Chinese will see much benefit mind.

And has been proven in Sihanoukville, when the Chinese move in, everyone else moves out.

[Wilsonandson]

Will this lead to Manadrin becoming the prefered 2nd language in Thailand?

Sent from my SM-A700FD using Thailand Forum - Thaivisa mobile app

[Bang Bang]

The smart move is to accept that it will be China's world soon that the rest of us will be living in. And prepare accordingly.

 

A few phrases like

How are you? Yes, master. No, master. As you desire.

in Mandarin should be good.

 

But, seriously, I walk by King Power on Soi Rangam, which is Chinese tourists ground 0, every day and some of their women are majorly bangable. Prying them loose from their tour group is another matter but that's where language skills would help.

[Bang Bang]

5 minutes ago, Wilsonandson said:

Will this lead to Manadrin becoming the prefered 2nd language in Thailand?

Sent from my SM-A700FD using Thailand Forum - Thaivisa mobile app
 

I believe it's nearly there. The place where I work used to bring in a French language tutor (don't ask why) twice weekly but now she's been replaced by a Chinese woman.

[Nobbie49]

The smart move is to accept that it will be China's world soon that the rest of us will be living in. And prepare accordingly.
 
A few phrases like
How are you? Yes, master. No, master. As you desire.
in Mandarin should be good.
 
But, seriously, I walk by King Power on Soi Rangam, which is Chinese tourists ground 0, every day and some of their women are majorly bangable. Prying them loose from their tour group is another matter but that's where language skills would help.

Subtlety does not seem to be your main attribute but goooaaaahhhh do I agree!!!


Sent from my iPhone using Thailand Forum - Thaivisa mobile app

[marcusarelus]

17 minutes ago, Wilsonandson said:

Will this lead to Manadrin becoming the prefered 2nd language in Thailand?

Sent from my SM-A700FD using Thailand Forum - Thaivisa mobile app
 

Probably not as English is an important language in China.  English speakers in China is over 200 million and rising, with 50 million secondary school children now studying the language

[asanee]

18 hours ago, otherstuff1957 said:

I've done some work for companies that cooperate with TAT and saw and interesting TAT report a couple of years ago. 

 

The Chinese do spend, on average, about 20% or more than Europeans/Americans/Aussies.  However, a breakdown of where they spend their money was very interesting.  It is traditional for Chinese tourists to return to China with expensive gifts for their friends and relatives.  This is a 'face' thing so they are often willing to spend a big chunk of their total expenditures on these gifts. 

 

No-they SELL onward @ home-with often a sizeable profit. What else would you have thought of a proper Chinese anyway? The same applies to those mainland Chinese that visit EURope in their thousands-they plunder the Champs Elysees French brandstores and also the many outlet stores-if it has a name on it, its OK. Sadly for the brits, the UK does not have too much of that.

So this whole game will end in a giant spat as soon as China and its govmt which is very keen on making profits for itself (as all communists do) open their toll-customs-barriers and let in that profit making stuff. Mind you-as for now that made in China I-phone cost more there as it does in the US.

[Justgrazing]

1 hour ago, Jonathan Fairfield said:

The Chinese expenditure into Thailand is US$15,342,000,000 each year, which is more than any other nation.

Yea but how much of that went on fixing up sick Buffalo ..

[ratcatcher]

28 minutes ago, Bang Bang said:

The smart move is to accept that it will be China's world soon that the rest of us will be living in. And prepare accordingly.

 

A few phrases like

How are you? Yes, master. No, master. As you desire.

in Mandarin should be good.

 

But, seriously, I walk by King Power on Soi Rangam, which is Chinese tourists ground 0, every day and some of their women are majorly bangable. Prying them loose from their tour group is another matter but that's where language skills would help.

some of their women are majorly bang-bangable.

[madmitch]

These articles always fail to mention that the average stay of a Chinese visitor is significantly shorter tha the average stay of Western tourists and, in particular, Russians, who generally tend to stay in one place for their entire two to three week stay.

[Bang Bang]

14 minutes ago, Benroon said:

I was shocked at the outspending figure - I fear the bar stoolers convinced if they withhold their Leo money for a fortnight Thailand would go bust, will be closing ranks tonight to discuss the best way forward ...

 

The vest industry could be in trouble ?

Ah, making fun are we?

 

When the bar stoolers waddle home who, pray tell, will support the Isaan women, those that not like Thai man because too much butterfly, I only give money my bluther, him good heart take care me when you not here?

 

And their family, the village lao khao industry, the friendly neighborhood layabouts, ...

[Pravda]

The article is from January 2018. Did the number of Chinese passport holders go up to 15% at least?

 

 

[Bang Bang]

3 minutes ago, Benroon said:

I would estimate the chances of your average western expat exchanging bodily fluids with a hiso Chinese are somewhere south of zero !

 

Me on the other hand …..

The Chinese here are as far I see not hiso. Those folk go to Paris and London and the like.

 

In any case, the battle's on Ben. I shall lure them with durian, sweet talk them in Mandarin and show them 5 inches more than they ever thought possible. What you got?

[KittenKong]

As mentioned, tourist arrival figures are largely meaningless as a retired expat who lives here permanently and supports a house and car and family counts for exactly the same as a Chinaman who is just here for a weekend on a zero-dollar tour.

 

What is really important is the total spend per tourist, and what they spend it on. But I wonder how many Thais understand that?

[Bang Bang]

5 minutes ago, KittenKong said:

As mentioned, tourist arrival figures are largely meaningless as a retired expat who lives here permanently and supports a house and car and family counts for exactly the same as a Chinaman who is just here for a weekend on a zero-dollar tour.

 

What is really important is the total spend per tourist, and what they spend it on. But I wonder how many Thais understand that?

You are not serious are you?

 

10 million 7-day $150/day tourists vs. a couple of hundred thousand English teachers/pensioners their butt bones clanging as they run to catch the bus to their next assignment or the IMO?

[Traubert]

42 minutes ago, marcusarelus said:

Probably not as English is an important language in China.  English speakers in China is over 200 million and rising, with 50 million secondary school children now studying the language

A slight correction if you will permit.

 

There are 200 million undergrad English students in China, and a similar number of secondary school kids studying English.

 

However they are only taught to pass exams and the oral element is only worth 5%. Most of them can read and write beautifully but they can't string a comprehensive sentence together and their listening skills are awful.

[ThomasThBKK]

8 minutes ago, Benroon said:

I'm struggling to understand the significance of that ? Whether they stay here a month or a day, whether they tour extensively or stay in their room, they are outspending westerners on a presumably pro rata basis ?

 

It's just confirmation that western sex pests with less money than the wealthier and less sex pesty Chinese are going to be asked to jump through a few more hoops or go home.

No they don't, obviously.

 

Chinas GDP per capita is still super low with 10 000 USD, compared to sth like germany with 48 000 USD. It's basically like Thailands GDP per capita.

https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capita

 

 

If you want sustainable tourism, China doesn't help you much lol.

 

At least the SCB thinks so too: https://www.scbeic.com/en/detail/file/product/2953/ekn1rppsq7/EIC_Insight_ENG_Tourism_2016.pdf 

 

Quote

Thailand is facing structural changes in tourists, led Thai tourism is more risky toward relying on one source of tourist. Thailand’s tourism has recently become heavily dependent upon arrivals from China, which account for 30% of the total. Ten years ago, when Japanese and Malaysian tourists were the largest groups, they accounted for just 12% and 10% of all arrivals, respectively. Thailand’s industry is nowadays vulnerable to any downturn in Chinese visitors. Moreover, tourists from China, especially tour groups, have gained strong bargaining power, putting pressure on Thai businesses. Thai tour organizers, for example, cannot raise prices when costs, especially wages, go up. Depending heavily on groups of Chinese tourists has other costs, such as a negative spillover on European visitors, who generally prefer to vacation in destinations that are relatively quiet and uncrowded.

 

 

But yeah everything changed in the 2 years this report is old ... not.

 

Also i can't find any original source of the numbers used in that fake news article? 

 

 

 

According to TAT and Mastercard: Russia, USA, UK, AUSTRALIA, GERMANY account for 29% of spendings in there alone, and that excludes Switzerland, Italy, Netherlands, Sweden, Canada, France and co

 

Source: https://www.tatnews.org/2018/11/thailand-leads-asia-in-international-visitors-spending-unwto-report/ and https://en.wikipedia.org/wiki/Tourism_in_Thailand

 

 

 lies, damned lies, and statistics.

 

 

Who's this Dan guy from the news source and why does he like to spread rubbish?

 

[Bang Bang]

3 minutes ago, Benroon said:

It would need to get to below zero here for your 5 inches to come close to winning - I also have a humungous waving one armed Faberge designer cat !!

 

I would bring out their cheeky side by reminding them if they were my big toe I would bang them on every piece of furniture !!

 

 

Watch it, them's fighting words, Ben.

 

I meant 5 inches more than the 3 they are used to.

[mokwit]

1 hour ago, Bang Bang said:

Now, Suvarnabhumi I can sit at a coffee shop and there's a 5 min. gap between sightings of Westerners in a place milling with brown/yellow skin tone.

I got that impression at CW the other day.

[Destiny1990]

That’s true Look around at the 7/11 or at the big c..

White guys with only  2 Leo beer cans and some deodorant. Chinese usually with  2 or 3 baskets totally full with stuff.

However i do think Chinese like visiting Thailand because they can see many farangs here but if we are all getting forced out of Thailand then Thailand looses its farang feature thus dissatisfied Chinese????

[Sir Dude]

I agree that the Chinese factor is growing a lot and will continue to do so, but I also agree with those who have questioned as to who benefits really from it all as it isn't your average Thai small business people. It's the Chinese businesses that benefit as these tour groups are led around like cattle and closely monitored and told where to buy plus I guess the money probably ends up out of Thailand somewhere. We'll just have to see how far this all flies with the normal Thais and if they ever wake from their brainwashed slumber. As for Thailand regarding western expats, then the writing has been on the wall for a while and I reckon the next 5-10 years will be OK and can be ridden out by most that wish to stay ... after that, then we'll have to see who replaces the military fascists that currently hold sway now (once they move on from this moral coil) and how the next lot of Thais think that are about 50 now. We'll see.

[Bang Bang]

1 minute ago, Destiny1990 said:

However i do think Chinese like visiting Thailand because they can see many farangs here but if we are all getting forced out of Thailand then Thailand looses its farang feature thus dissatisfied Chinese

Now there's a spin that would Sarah Huckabee proud.

[mokwit]

It may be the sheer numbers allow what are currently SME mom n pop businesses to scale up to a size whereby they are attractive to big business.