Early return of Chinese tour groups could lead to pre-Covid tourism levels by 2024

[webfact]

Flickr/shankar s.

 

By Peter Roche

The Association of Thai Travel Agents has welcomed the early return of Chinese tour groups, which it believes will help the country reach pre-Covid tourist arrival levels by next year.

 

Wichit Prakobkosol, an adviser to ATTA, explains that the demand from Chinese tourists is bouncing back more rapidly than expected, as many of Thailand’s “competitors” are not on the list of 20 nations that China is allowing its citizens to travel to. Currently excluded from the list are Japan, South Korea, and Vietnam, so most Chinese tour groups opt for Thailand.

 

However, Wichit says the lack of sufficient flights is still hindering the return of Chinese tourists, as the number of flights from China to Thailand is only at 10% of pre-Covid levels and operated mostly by Chinese carriers.

 

The number of flights is expected to increase by 20% next month and rise to 40-50% of pre-Covid levels in the second quarter of 2023.

 

Meanwhile an unnamed source at a large tour agency in Thailand says Covid-19 has reset the Chinese tour agency business. Prior to the pandemic, he says tour agencies in China offered “zero-dollar” packages, where the Chinese agents gave little or nothing to their Thai counterparts.

 

These “zero-dollar” tour operators ran their businesses at a loss, but opened shops in Thailand and sent Chinese tourists to buy goods at the shops to recoup the losses. They would subsidise the travel and accommodation, all pre-paid in China, and then recoup the costs with commissions and expensive tours whilst their guests are in Thailand.

 

However, due to high operational costs during the pandemic, the “zero-dollar” packages are no longer sustainable.

 

The governor of the Tourism Authority of Thailand, Yuthasak Supasorn, highlights the significant role Chinese tourists play in the country’s economic recovery.

 

He says that from January 1 to February 2, 99,429 Chinese tourists visited Thailand, and the number is expected to reach 300,000 by the end of March. The TAT has revised its initial prediction of 5 million Chinese tourists this year to 7 or 8 million, with tourism expected to generate between 1.25 trillion to 2.38 trillion-baht revenue for the country.

 

In related news, Yol Phokasub, chairman of the Thai Retailers Association and CEO of Central Retail Corporation, suggests the government test a tax-free zone for foreign tourists in a sandbox format, which could be carried out in Phuket to encourage foreign tourists to spend more in the country.

 

Source: https://phuket-go.com/phuket-news/national-news/early-return-of-chinese-tour-groups-could-lead-to-pre-covid-tourism-levels-by-2024/

 

-- © Copyright Phuket GO 2023-02-16

 

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[ThailandRyan]

Will help? Or Could help...totally different by definition.

2 minutes ago, webfact said:

Thai Retailers Association and CEO of Central Retail Corporation, suggests the government test a tax-free zone for foreign tourists in a sandbox format, which could be carried out in Phuket to encourage foreign tourists to spend more in the country.

How will tax free help people spend more, and who will pay the VAT on the items purchased before they are sold to the tourists...seems the businesses will get the short end and thus prices will need to be raised...the Thai way of covering any loss to their pockets.

[ezzra]

Two nights ago, left overseas from BKK main airport at 10 PM and the gate i was departing from was chock of block Chinese and Korean, many hundreds of them flying back ang back and that's from one gate only, so not sure about those published numbers but Thailand is swarming with tourist right now.

[ChrisY1]

These groups may be good for traders, but they're a living nightmare for Thais....

 

[ukrules]

2 hours ago, webfact said:

many of Thailand’s “competitors” are not on the list of 20 nations that China is allowing its citizens to travel to. Currently excluded from the list are Japan, South Korea, and Vietnam, so most Chinese tour groups opt for Thailand.

There they go wielding their tousirm weapon again.

 

All that boot licking pays off I guess.

 

 

[In Full Agreement]

2 hours ago, ChrisY1 said:

These groups may be good for traders, but they're a living nightmare for Thais....

 

 

 

You would feel differently if you were a Thai business owner.

 

 

[IAMHERE]

1 hour ago, In Full Agreement said:

 

 

You would feel differently if you were a Thai business owner.

 

 

I thought the masses of Chinese were on zero spend tours. Thai business owner isn't going to make much off the Chinese tourist trade I'd think.  More numbers don't add up to more spending as most of us would assume. However you can bet that extra 300 baht tax is gonna be collected.

[zzaa09]

1 hour ago, In Full Agreement said:

 

 

You would feel differently if you were a Thai business owner.

 

 

Most of which aren't dependent on foreign tourism. 

[hotchilli]

5 hours ago, webfact said:

However, Wichit says the lack of sufficient flights is still hindering the return of Chinese tourists, as the number of flights from China to Thailand is only at 10% of pre-Covid levels and operated mostly by Chinese carriers.

 

The number of flights is expected to increase by 20% next month and rise to 40-50% of pre-Covid levels in the second quarter of 2023.

Such reliance on tourism shows the desperation for help with the GDP as everything else stagnates under this regime.

[ChrisY1]

3 hours ago, In Full Agreement said:

 

 

You would feel differently if you were a Thai business owner.

 

 

I did say the Chinese tourists are good for traders....

[Mavideol]

6 minutes ago, ChrisY1 said:

I did say the Chinese tourists are good for traders....

mostly for fast noodles traders...   555

[spidermike007]

Total speculation, without much to back it up. It will likely be years until they reach that mythic number of 39 million again, if ever. And many of us hope it will never happen. 

[newnative]

4 hours ago, IAMHERE said:

I thought the masses of Chinese were on zero spend tours. Thai business owner isn't going to make much off the Chinese tourist trade I'd think.  More numbers don't add up to more spending as most of us would assume. However you can bet that extra 300 baht tax is gonna be collected.

61% of the Chinese tourists in 2019 were independent travelers, not in tour groups.  That's over 6.5 million.  More numbers actually do add up to more spending. 

[ozimoron]

Tonight up near terminal 21 there is a ladyboy show and there were dozens of buses and hundreds of Chinese in tour groups. 

[daveAustin]

Might be alright news if you are one of the rare ones that is directly getting coin from these people, but a shower of sh*t for pretty much everyone else. Why don’t they invade another safe space and leave Thailand well alone… better still, stay home. No issue with sustainable numbers of independent travellers that directly benefit the people, but these huge waves of tour groups is just white noise that spoils it for everyone else. Blame Phrayut 100%

[fusion58]

10 hours ago, ChrisY1 said:

These groups may be good for traders, but they're a living nightmare for Thais....

 

And for expats who cross paths with them.

[BayArea]

8 hours ago, hotchilli said:

Such reliance on tourism shows the desperation for help with the GDP as everything else stagnates under this regime.

but we were told by Thai apologists on this forum over and over again that LOS doesn't depend on tourism, or it only accounts for a small fraction of the overall GDP. with the number of articles, we get weekly on this site regrading tourism and ways to lure back the Chinese and others, you would think tourism makes up a significant amount for the Thai economy. 

[ozimoron]

9 hours ago, hotchilli said:

Such reliance on tourism shows the desperation for help with the GDP as everything else stagnates under this regime.

Thailand's GDP was only ever higher in 2019 before covid and is now higher than any year before or since that year. 

 

https://tradingeconomics.com/thailand/gdp#:~:text=GDP in Thailand is expected to reach 521.16,Billion in 2024, according to our econometric models.

[Stargeezr]

I know that there are some Chinese owned and ran hotels in some parts of Thailand, and I guess they are

happy to get some Chinese tourists back in Thailand. I do hope that the tour buses are Thai owned and ran

for these tourists.. I just wonder how many of the Russian tourists, bought long term visas for their extended stays in

Thailand.