Thailand's Tourism Surge Threatened by Zero-Dollar Chinese Tours

[snoop1130]

 

Thailand's tourism industry, currently experiencing rapid growth due to a new visa-free policy, is catering to a large influx of international visitors. However, even though Chinese tourists make up the majority, issues are emerging regarding Chinese zero-dollar tours. These tours are potentially decreasing Thailand's potential revenue.

 

From the start of the year to August 18, Thailand has received 22,474,172 international tourists who have contributed 1.05 trillion baht to the nation's economy. Major contributors were Chinese tourists, who accounted for 4,555,262 arrivals. They were followed by travellers from Malaysia, India, South Korea, and Russia. However, despite these large numbers, there are concerns that the local businesses may not benefit.

 

The main concern is the comeback of the so-called zero-dollar tours. Overseas tour operators use loopholes in Thai laws to outperform the market. They utilize Thai nominees to offer services at a lower fee, often making a loss to overtake Thai competitors. Thailand's Minister of Tourism and Sports, Sermsak Pongpanich, spoke about the government's commitment to resolving this issue.

 

He advised Thai people to watch out for and report incidents of foreigners registering businesses they aren't legally permitted to run through Thai nominees. He added that this alertness is important to keep tourists' money within Thailand and to profit Thai traders.

 

Moreover, Pongpanich mentioned continuous talks with the Chinese government to tackle the issue. He conveyed that both countries are eager to avoid issues which could detrimentally affect their mutual relationship.

 

Meanwhile, local tourism seems hopeful according to the Tourism Authority of Thailand (TAT). It anticipates reaching a target of 200 million domestic trips by 2024, expecting to add 1.08 trillion baht to the economy. Several initiatives like the FLASH DEAL campaign and the Super Deal, in collaboration with airlines, are anticipated to escalate this figure to 210 million trips and 1.2 trillion baht in revenue.

 

Somrudi Jitjong, TAT’s Deputy Governor for Domestic Marketing, said domestic tourism is set to exceed the levels seen in 2019. He added that their goal is to boost tourist numbers, encourage more spending, and reach the government's high set targets.

 

File photo for reference only

 

-- 2024-08-22

 

 

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[John Drake]

1 hour ago, snoop1130 said:

The main concern is the comeback of the so-called zero-dollar tours. Overseas tour operators use loopholes in Thai laws to outperform the market. They utilize Thai nominees to offer services at a lower fee, often making a loss to overtake Thai competitors.

 

How many times have I seen this headline and this story? And we always end up back here, at ground zero dollar.

[nakhonandy]

The zero dollar tours are all run by the chinese through Companies with Thai nominees. 

So go after these companies and the nominees.

[Gsxrnz]

Hands up anybody who ever saw a non-Rolex wearing Chinese tourist in a restaurant other than at the 2-Star hotel their tour company booked them into.

 

I didn't think so. 

[harada]

The quality tourists are back.  

[NorthernRyland]

Nice try with your new visa scheme but 4,555,262 x 0 = 0. Better luck next time.

[Skeptic7]

[neeray]

Same old, same old. Nothing new here.

[Luuk Chaai]

9 hours ago, John Drake said:

 

How many times have I seen this headline and this story? And we always end up back here, at ground zero dollar.

 

Thailand...   the HUB of repeat  

 

[hotchilli]

11 hours ago, snoop1130 said:

The main concern is the comeback of the so-called zero-dollar tours. Overseas tour operators use loopholes in Thai laws to outperform the market. They utilize Thai nominees to offer services at a lower fee, often making a loss to overtake Thai competitors.

Thais screwing Thais for business opportunities.

[itsari]

Investigate where the Chinese are staying and where they are taken to shop .

Look into the bank accounts of the hotels and shops they are using .

It seems as though the local Thai businesses understand what is happening but the authorities prefer not to know.

 

 

[Zack61]

Please correct me if my math is wrong but doesn’t 4,555,262 x 0 = 0 ? 
 

Not a huge benefit to the Thai economy whilst it exacts quite a bit of pressure on the infrastructure. 
 

Go figure. 

[stupidfarang]

Not just the travel, this happens in many other areas, now in the south the Chinese are building large warehouses from which they buy direct from the durian growers, then on to Chinese containers on Chinese trucking companies for transport. Cut out the middleman, all profit back to China, same is happening in logistics like couriers.

[ikke1959]

As Einstein said doing the same thing over and over again without any change and expect a different result is called stupidity. Thailand is constantly doing so.. The zero dollar tours, focus on numbers of tourists instead of benefits, focus on rich expats and millionaires, and than being surprised that things are not doing what they hoped for.. 

 

But the Chinese are being protected and stimulated, and now the result is that they are a burden and it is almost impossible to stop it now

[malt25]

9 hours ago, nakhonandy said:

The zero dollar tours are all run by the chinese through Companies with Thai nominees. 

So go after these companies and the nominees.

Why would you bring logic or common sense into the issue ? Oh, brown envelopes.

[2baht]

12 hours ago, snoop1130 said:

issues are emerging regarding Chinese zero-dollar tours.

Be careful what you ask for, you just might get it Thailand! Nihao Ma!!!

[eastlight]

41 minutes ago, Zack61 said:

Please correct me if my math is wrong but doesn’t 4,555,262 x 0 = 0 ? 
 

Not a huge benefit to the Thai economy whilst it exacts quite a bit of pressure on the infrastructure. 
 

Go figure. 

Go figure?

[USNret]

Do these tourism numbers sound even remotely plausible? If I did the math right, that’s about 93,000 international arrivals each & every day. Seriously? 

[mfd101]

Um, so the 'zero-dollar' tourists don't stay in hotels in Thailand? And they don't eat any food while in Thailand?

 

To me it just sounds like competition, the basis of capitalist enterprise. I should have thought the Thai oligarchs would be familiar with the concept.

[Classic Ray]

47 minutes ago, stupidfarang said:

Not just the travel, this happens in many other areas, now in the south the Chinese are building large warehouses from which they buy direct from the durian growers, then on to Chinese containers on Chinese trucking companies for transport. Cut out the middleman, all profit back to China, same is happening in logistics like couriers.

The profit goes to the growers, who set the price they sell to the Chinese. If the Thai middlemen cannot match the price the Chinese offer, this is just supply and demand economics.

[thesetat2013]

19 minutes ago, mfd101 said:

Um, so the 'zero-dollar' tourists don't stay in hotels in Thailand? And they don't eat any food while in Thailand?

 

To me it just sounds like competition, the basis of capitalist enterprise. I should have thought the Thai oligarchs would be familiar with the concept.

They eat.. at specific places only with reduced pricing. They stay at hotels that gives free buffet to them for breakfast so they do not need to spend money on local shops. They take them to specific shops when going anywhere so local shops suffer this also. They walk around in groups that never allow time to go venture off and spend money on local shops as well. just take picture and keep walking. The tour groups get extra money to bring them to each place. Basically, you do exactly what your tour guide tells you. You do not walk around shopping or trying the local cuisine nor do you visit small shops run locally. I have met and talked to a few of these chinese before using tour groups. They say the y spend more time in duty-free shops and suit shops and gold shops than having fun. They are harassed while inside those shops to make a purchase by both the establishment and the tour guide. I was able to chat with them because they snuck out to go to a club late at night. They are controlled so much that they had to sneak out of their hotel. 

[chmeatloaf]

12 hours ago, snoop1130 said:

 

Thailand's tourism industry, currently experiencing rapid growth due to a new visa-free policy, is catering to a large influx of international visitors. However, even though Chinese tourists make up the majority, issues are emerging regarding Chinese zero-dollar tours. These tours are potentially decreasing Thailand's potential revenue.

 

From the start of the year to August 18, Thailand has received 22,474,172 international tourists who have contributed 1.05 trillion baht to the nation's economy. Major contributors were Chinese tourists, who accounted for 4,555,262 arrivals. They were followed by travellers from Malaysia, India, South Korea, and Russia. However, despite these large numbers, there are concerns that the local businesses may not benefit.

 

The main concern is the comeback of the so-called zero-dollar tours. Overseas tour operators use loopholes in Thai laws to outperform the market. They utilize Thai nominees to offer services at a lower fee, often making a loss to overtake Thai competitors. Thailand's Minister of Tourism and Sports, Sermsak Pongpanich, spoke about the government's commitment to resolving this issue.

 

He advised Thai people to watch out for and report incidents of foreigners registering businesses they aren't legally permitted to run through Thai nominees. He added that this alertness is important to keep tourists' money within Thailand and to profit Thai traders.

 

Moreover, Pongpanich mentioned continuous talks with the Chinese government to tackle the issue. He conveyed that both countries are eager to avoid issues which could detrimentally affect their mutual relationship.

 

Meanwhile, local tourism seems hopeful according to the Tourism Authority of Thailand (TAT). It anticipates reaching a target of 200 million domestic trips by 2024, expecting to add 1.08 trillion baht to the economy. Several initiatives like the FLASH DEAL campaign and the Super Deal, in collaboration with airlines, are anticipated to escalate this figure to 210 million trips and 1.2 trillion baht in revenue.

 

Somrudi Jitjong, TAT’s Deputy Governor for Domestic Marketing, said domestic tourism is set to exceed the levels seen in 2019. He added that their goal is to boost tourist numbers, encourage more spending, and reach the government's high set targets.

 

File photo for reference only

 

-- 2024-08-22

 

 

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Thailand has just simply shot it's self in the foot. The idea of self enriching schemes are just too tempting for Thais to resist.

[Aussie999]

42 minutes ago, USNret said:

Do these tourism numbers sound even remotely plausible? If I did the math right, that’s about 93,000 international arrivals each & every day. Seriously? 

First, you need to understand, Thailand counts tourist twice, on arrival and on departure, but they also count Thais travelling internationaly, again they also get counted twice.

[Gknrd]

Fly in on Thai airlines. Then stay in Chinese hotels, eat at Chinese resturants,  have a Chinese tour guide. No way you will ever stop it.

[RichardColeman]

With respects , I am pretty sure my fellow UK compatriots fly to Benidorm on UK planes, stay in UK owned hotels, eat all day at UK restaurants and drink in UK owned bars. I doubt many UK benidorm travellers give a hoot about local Spanish owned establishments 

[crazykopite]

Maybe one day we will get honest reporting instead of the ever increasing BS that’s spewed out on a daily basis 

[Irish star]

How many years have they known this , China Tours China Businesses. Only thing that trickles down is pollution from these damn busses everywhere and ruining Environment, open door policy for them 

[TheFishman1]

You asked for these type of Tourist to come and now you have them quit complaining about it. You’re the one that makes it easy for them to come. TIT.

[john donson]

the wanted numbers...

[spidermike007]

The disgraced Srettha and the authorities have done this to themselves with their very liberal visa policies. In an absolutely desperation bid to attract tourists they've lowered the standard to the point where this is what they're getting. In addition to the Chinese Triads and the Russian Bratva. Congratulations on lowering the quality of life for everybody. Thailand is likely attracting more than 90% low budget tourists now.