Thailand's Tourism Faces 'Zero-Dollar' Tour Crisis

[webfact]

 

Thailand is grappling with a surge in so-called “zero-dollar” tours that are wreaking havoc on the tourism sector. These tours, notorious for their rock-bottom prices or free offers, primarily target tourists from China, Russia, and India, leaving local Thai operators struggling to compete.

 

Sisdivachr Cheewarattanaporn, President of the Association of Thai Travel Agents (ATTA), voiced grave concerns, stating these tours not only offer substandard services but also exploit unsuspecting tourists.

 

These shady operations are run by foreign entities disguised as local businesses, dramatically undercutting prices to attract tourists.

 

Sisdivachr revealed that tourists on zero-dollar tours are often pressured into buying overpriced products and services they don’t need, in order to recoup costs.

 

“This tarnishes Thailand’s image, making the country appear cheap and unsafe,” he lamented. He recently raised these concerns with Prime Minister Srettha Thavisin, describing it as the worst climate he has seen in his career.

 

Driving Out Legitimate Businesses

 

These predatory practices aim to dominate market share by eliminating legitimate competition. Once they achieve market dominance, these operators plan to raise prices arbitrarily. Sisdivachr warned, “This is different from legitimate promotions; it’s a strategy to monopolise the market.”

 

Zero-dollar tours not only damage Thailand's tourism reputation but also contribute less to the local economy. These illegal operators often evade taxes and avoid using local services, diverting substantial revenue away from local businesses.

 

To combat this, Sisdivachr calls for a collaborative effort between the private sector, Thai authorities, and Chinese officials. He urges swift action, cautioning that the longer these tours persist, the deeper the harm to Thailand’s tourism industry.

 

Many licensed operators are now shifting their focus to more specialised services, away from high-volume, low-margin business models. However, Sisdivachr insists that dismantling these illegal networks requires more than sporadic arrests. “Authorities need to break up the entire network, as each illegal operator often runs multiple illicit businesses.”

 

ATTA and the Federation of Thai Tourism Associations plan to meet with Tourism and Sports Minister Sermsak Pongpanit soon to address these pressing issues.

 

TOP Picture: Xinhua/Wang Teng

 

-- 2024-06-19

 

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[Gottfrid]

But, didn´t they make zero-dollar tours illegal many years ago. Tell the police to do their work!

[daveAustin]

Ban mass market Chinese and Indians. No more zero dollar tours. 👍

[brianthainess]

2 hours ago, webfact said:

These illegal operators often evade taxes and avoid using local services, diverting substantial revenue away from local businesses.

They are taken to Legally run Chinese businesses. So what about Thais taking foreigners to their 'Family' businesses' that's all OK then.

[madmitch]

Don't just whinge about it, do something about it! 

[youngster30uk]

14 minutes ago, brianthainess said:

They are taken to Legally run Chinese businesses. So what about Thais taking foreigners to their 'Family' businesses' that's all OK then.

A lot of the money from these zero dollar tours does not enter Thailand and does not benefit Thailand in any way. A chinese person would pay a chinese tour company, all the money stays in China, then they are taken to chinese businesses in Thailand all the money goes back to china

Thais taking foreigner to their 'Family' business is bringing money to the Thai economy, they are completely different situations

[hotchilli]

3 hours ago, webfact said:

Sisdivachr Cheewarattanaporn, President of the Association of Thai Travel Agents (ATTA), voiced grave concerns, stating these tours not only offer substandard services but also exploit unsuspecting tourists.

Unlike the Thais of course.

[spidermike007]

This is not necessarily a problem that just began to plague Thailand recently, this has been going on for a decade or longer. The quality of tourists attracted to Thailand have been dropping significantly, and now Thailand only seems to be able to attract relatively low end tourists from Malaysia, China, India, the Arab world, and Russia. 

 

There are many reasons for this but the authorities are unwilling to discuss any of them, nor address any of the problems that affected the nation long before covid. 

[bdenner]

Does this mean the TAT are going to have to revise their tourism revenue algorithm Again - Again - Again. Maybe I should lend em me abacus!!

[Cabradelmar]

When you target certain markets you get certain (not unexpected) results. Nothing really new here. What's more surprising is Thailand authorities (claim) to be continually surprised by things that the casual observer sees so very clearly. If Thailand it not careful they are going to eventually kill the goose that laid the golden egg (tourism) by making this the preferred destination for refugees, and the shiftless. It's already happening (or should I say accelerating).

[The Theory]

What do they expect that type of tourists bring to Thailand ?!!! 🤔🤪

[supersomchai]

So in the end of the day all you get

is endless tour bus traffic jams.

Amazing Thailand ☹️

[Megasin1]

You reap what you sew...simple 😁

[bob smith]

...Why don't they offer these kinds of tours to people from the UK?

 

bob.

[WHansen]

TAT has made its bed but doesn't want to sleep in it

[Ombra]

Isn't this just capitalism? And aren't the Thais making a fuss because the Chinese are better at it than they are?

[Captain Flack]

A post offering only spelling advice removed, please lets comment on the topic.

[DPKANKAN]

3 hours ago, Gottfrid said:

But, didn´t they make zero-dollar tours illegal many years ago. Tell the police to do their work!

And also one of the Chinese Coach tour companies was closed down and I seem to remember that one of the high up Army chaps was a major shareholder. Surprise Surprise!!!!1😏😏😏😏

[khunjeff]

27 minutes ago, youngster30uk said:

A lot of the money from these zero dollar tours does not enter Thailand and does not benefit Thailand in any way. A chinese person would pay a chinese tour company, all the money stays in China, then they are taken to chinese businesses in Thailand all the money goes back to china

Thais taking foreigner to their 'Family' business is bringing money to the Thai economy, they are completely different situations

 

That's the constant claim by the Thai travel industry, and is obviously untrue. These tour groups are not shipping in their own food or bringing their own beds and hotels from China, they are buying goods and services in Thailand from  local companies. If the businesses here happen to be illegally owned by foreigners through nominees, that's a separate matter from the zero dollar tours issue. 

 

[smew]

Now, finally, people recognize the real value of Chinese and Indian visitors !!!!!!!!!!!!!!!!

[khunjeff]

3 hours ago, webfact said:

These predatory practices aim to dominate market share by eliminating legitimate competition. Once they achieve market dominance, these operators plan to raise prices arbitrarily. Sisdivachr warned, “This is different from legitimate promotions; it’s a strategy to monopolise the market.”

 

He's incorrectly conflating zero dollar tours with the economic concept of "dumping". In a dumping situation, an entity sells below cost and takes losses now with the intent to drive competitors out of business, so that the seller can enjoy monopoly profits later.

 

Zero dollar tours may sell the airfare/hotel package below the actual cost, but they do so knowing that they will make back the loss through kickbacks from the stores where the suckers are forced to buy expensive garbage. Overall, they make money on every tour - that's the point. They have no need or desire to push legitimate travel companies into bankruptcy.

 

[Dukeleto]

Ahhh that old chestnut! The brown envelop conveyer belt must be in need of repair.

[NorthernRyland]

56 minutes ago, youngster30uk said:

A lot of the money from these zero dollar tours does not enter Thailand and does not benefit Thailand in any way. A chinese person would pay a chinese tour company, all the money stays in China, then they are taken to chinese businesses in Thailand all the money goes back to china

This is just a Chinese problem wherever they go. Chinese have been in America for over a hundred years yet they still only marry other Chinese, do business with other Chinese, rent to other Chinese and have "China town" in every city so they don't have to integrate and interact with the locals. Obviously this is how they're going to be as tourists too.

[NobbyClarke]

The Chinese seems to be free to do whatever they want.

The Thais suffer, crime rises and the Chinese just return the money to China laughing all the way to the bank.

Imagine what would happen if it was USA, British, Australia etc....

[Gottfrid]

8 minutes ago, Sticky Rice Balls said:

Why dont you go storm into the office and demand it..or just being a keyboard commando?..Im sure they will obey you!

Why so agressive? Why should I be keyword commando just because I post my opinion?

Maybe you should try do that as well, instead of going on attack on other posts. Let´s read what you have to contribute with instead.

[Peabody]

[khunPer]

Similar to the European holiday trend "All Inclusive" – many people likes that kind of no financial worries vacation...👍

[john donson]

the tours, have a guide, that must be thai, or working illegal as thai only job...

 

I wonder how much zero dollar tourists pay at national parks?

[Nickcage49]

Interesting that they mention China, Russia and India at the top, but only plan to address this with Chinese officials. And good luck with that, lol

[ChipButty]

1 hour ago, bob smith said:

...Why don't they offer these kinds of tours to people from the UK?

 

bob.

Do you mean European OTA's? or the Chinese ones? My daughter booked through TUI last year, doesn't seem much demand for package tours here, people seem to make their own way here, thinking the can get cheap accommodation when they get here,