China’s economic woes are becoming Thailand’s export and tourism woes

[webfact]

 

Concerns about a drop in exports to China, along with a drop in Chinese tourists heading to Thailand, is fuelling concerns, especially in tourist-dependent areas, like Phuket.

 

Many of the problems are happening because of an emerging economic downturn in China. China’s economy is slowing down, and this is affecting Thailand’s tourism and local exports headed to China.

 

Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office, says that China’s real estate business is in “big trouble’. After China stopped strict rules over Covid-19, the economic recovery has been hampered by the downturn in the property market. Lately that ‘downturn’ has become a collapse of some of the largest property developers in China.

 

By Peter Roche

 

Full story: https://phuket-go.com/phuket-news/national-news/chinas-economic-woes-are-becoming-thailands-export-and-tourism-woes/

 

-- PhuketGO 2023-08-24

 

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[ezzra]

It was said that “If you lie down with dogs, you will get up with fleas.” it was coined back in 1573: “He that goeth to bedde wyth Dogges, aryseth with fleas.” 

[BarraMarra]

This is what happens when you put all your eggs in the basket. No doubt in a few days TAT will roll out a spokesman and report that figures from Chinese Tour Groups are expected to be high when the high season starts.

[Joseph98765]

Greedy, Greedy and greedy...they don't care if chinese families have no money to eat....come here and spend all the money you have! when you finish, then you can go back home and sleep under the bridge if you want... 55555

[John Drake]

Xi is becoming Mao 2.0. The good times for Thai tourism from China are not coming back. Travel outside of China for Chinese is becoming much more difficult and will become even more difficult in the future.

[StayinThailand2much]

And yet, every other day we read that Thailand needs even stronger ties, and be more dependent on China in, basically, everything...

Edited August 24, 2023 by StayinThailand2much

[BarraMarra]

its because they have finally accepted the reality that China is not the golden goose they ignored the bread n butter westerners in favour of Chinese, indians , Saudis etc.

[kinyara]

1 hour ago, BarraMarra said:

This is what happens when you put all your eggs in the basket. No doubt in a few days TAT will roll out a spokesman and report that figures from Chinese Tour Groups are expected to be high when the high season starts.

I doubt it, they've already stated several times their target of 5 million Chinese this year is unlikely to be achieved given numbers to date. The numbers may increase when high season starts as per normal but that against a historically low current level

 

1 minute ago, BarraMarra said:

its because they have finally accepted the reality that China is not the golden goose they ignored the bread n butter westerners in favour of Chinese, indians , Saudis etc.

How did they ignore their bread n butter Western markets ?  When they reopened in advance of their first high season the first incentive they introduced was to increase the visa free stay from 30 to 45 days for those markets who have the ability to stay longer. Exact opposite of what you suggest

[WHansen]

3 hours ago, webfact said:

Many of the problems are happening because of an emerging economic downturn in China. China’s economy is slowing down

????

[SoilSpoil]

3 hours ago, BarraMarra said:

its because they have finally accepted the reality that China is not the golden goose they ignored the bread n butter westerners in favour of Chinese, indians , Saudis etc.

And you really believe that? How has Thailand ignored Westeners? 

[BarraMarra]

7 hours ago, kinyara said:

I doubt it, they've already stated several times their target of 5 million Chinese this year is unlikely to be achieved given numbers to date. The numbers may increase when high season starts as per normal but that against a historically low current level

 

How did they ignore their bread n butter Western markets ?  When they reopened in advance of their first high season the first incentive they introduced was to increase the visa free stay from 30 to 45 days for those markets who have the ability to stay longer. Exact opposite of what you suggest

Because for the last year, all we heard was chinese this Chinese that, Arabs, Indians , etc not once did i hear European visitors or any dispensation for western Tourists.

[hotchilli]

17 hours ago, webfact said:

Concerns about a drop in exports to China, along with a drop in Chinese tourists heading to Thailand, is fuelling concerns, especially in tourist-dependent areas, like Phuket.

Phuket learnt nothing during Covid..

Still dependent on tourism and cannot diversify into anything else.

[Walker88]

The situation in China is severe. Evergrande, and now Country Garden are going mammaries up. Xi even will have to address the issue

 

Millions of Chinese pre-paid for condos that now will never be built, nor will the buyers get their money back from the developers. Toss in youth unemployment of 20%%. While all that is likely to lead to social unrest, the traditional CCP answer is to fabricate a foreign bogey man. Often that bogetman has been Japan, but Xi has many choices. He could start a territorial dispute with other nations who claim parts of the South China Sea, or maybe take aggressive action on Taiwan. Then there's always the US. Maybe disputed lands with russia, too. Xi will choose whatever he thinks might rsonate the most internally.

 

Oh, then there's the long simmering issue of bloated and indebted SOE's.

 

External tourism will be the last thing on Xi's mind.

[RichardColeman]

18 hours ago, webfact said:

Concerns about a drop in exports to China, along with a drop in Chinese tourists heading to Thailand, is fuelling concerns, especially in tourist-dependent areas, like Phuket.

Sounds like the normal reasons for the baht to suddenly and unexpectedly gain on every currency on the planet yet again 

[morrobay]

15 hours ago, kinyara said:

 

 

How did they ignore their bread n butter Western markets ? 

Maybe by destruction of the native natural environment along the beach cities: For example the North end of Jomtien just past the police building : That area to the North was a nice shady sandy area with alot of  native Casuarina trees . Now it is a large parking lot with palm trees. And that parking lot  has very few cars at any time. The oblivious chinese don't care but for Westerners it's another bogus contract/kickback project at the expense of a nice natural environment. And there are plans to continue this same destruction Southward. Following the same playbook that turned the Pattaya beach promenade into a glorified Rd. As I've said a few times: July/August used to be a mini high season for Europeans along Pattaya beach. The city lost that crowd to endless construction with Chinese tour buss traffic where you could about walk the length of Beach Rd on top of tour busses. Now with the tour busses gone you have beach side pickup party parking. 

[daveAustin]

Bit of a blow. Their dodgy property scheming had to go belly up eventually—strange system with all those ghost cities. The world has had enough of China; a bit of downturn for them is not entirely a bad thing. Too much of any one group visiting anywhere (esp here) is not attractive. Perhaps they’ll get angry and rise up against their horrid government. Yeah right! 

[RanongCat]

Can some one please to show me which country has not economic woes? IMF predicted (planned?) what is real now. Tourism is for sucking in surplus. Where is the surplus?

[Cake Monster]

The downturn in Thai Exports and Tourism are maybe just the tip of a very large Iceberg.

Nobody knows yet what the exposure of Thai Banks and Hedge Funds Etc is to the Chinese meltdown.

For sure there will be some, and the fallout could be quite large

Money would have been placed into Chinese Property Markets for sure, and there is a completely toxic situation going on with that Market

[morrobay]

Indeed and this unknown exposure in Thailand may require shoring ups with the foreign currency reserves leaving less of those reserves that are currently proping up the baht. 

[soalbundy]

20 hours ago, StayinThailand2much said:

And yet, every other day we read that Thailand needs even stronger ties, and be more dependent on China in, basically, everything...

Build that railroad.

[LivingNThailand]

7 hours ago, hotchilli said:

Phuket learnt nothing during Covid..

Still dependent on tourism and cannot diversify into anything else.

Phuket did nothing to clean up the streets, beaches, sewers, power lines, dilapidated buildings,  roads during covid.  I could go on and on.  The place is a mess and now the property owners are building building building.  The infrastructure can't take it.  The street near our house is crumbling because of all the lorries and cement trucks going down the street to build 3 new mega houses.  Now the new PM says he wants to build a new airport.  Where?  The "new" international airport that opened a few years ago was a big disappointment when it opened.  Not enough seating, restaurants, bathrooms.  It was too small the day it opened.  The only way they could fix it is to tear both terminals down and start all over. Which isn't going to happen.  The new PM is here today in Phuket doing a PR junket.  Blah Blah Blah.   I like living here, but Phuket needs a strong government that will kick some butt.  And there are No Chinese here.  A few scattered about, but nothing like TAT says are here.  Maybe they are all staying up North, but here is Southern Phuket they are pretty sparse and this is the time of the year they used to come.   I'm sort of ranting here, but everyone kept saying that Phuket needed to diversify during covid, and nothing was done.  It's sort of sad really.  But they are growing pineapple now.  It's really good. ????

[hotchilli]

2 minutes ago, LivingNThailand said:

 I'm sort of ranting here, but everyone kept saying that Phuket needed to diversify during covid, and nothing was done.  It's sort of sad really. 

Not a rant, you are local and speak the truth about the place.

It seriously needs attention and infrastructure changes, all long term plans but that is what is needed.

[StayinThailand2much]

2 hours ago, soalbundy said:

Build that railroad.

Yes, because they want to help Thailand. And they probably build it for free...

[drgoon]

Kiss a snakes arse lol.

Evergreen going down the tubes going to take a lot of Chinese down too. 

Never mind, the new rapid rail link will bring the 10 baht tours back.