Thai Bus Firms Under Siege by Cut-Rate Chinese Competitors

[webfact]

File:Chinese bus in China town, Bangkok. Courtesy: Wikipedia

 

The Thai bus industry is grappling with an influx of Chinese operators offering ultra-cheap services, disrupting the local market. The crisis has reached a critical point, prompting a call for immediate action from Thai authorities and industry stakeholders. 

 

Wasuchet Sophonsathien, President of the Thai Transportation Operators Association, has highlighted the deep-seated issues. Illegal foreign bus services are rife, usurping market share from licensed Thai operators still recovering from the economic downturn caused by COVID-19. 

 

The competition has intensified with a shift in strategy by these foreign entities. A growing number of Chinese luxury tour groups are abandoning larger buses in favour of smaller vans and minivans. Disturbingly, some long-term foreign residents are skirting the law, using personal and international driving licences to operate these vehicles commercially—a practice strictly reserved for Thai nationals.

 

The foreign operators have been exploiting legal loopholes by registering businesses through Thai nominees. This allows them to offer services at drastically reduced rates. For instance, where Thai companies would charge around 7,000 baht for a route from Suvarnabhumi Airport to Pattaya, their Chinese counterparts offer it for half the price.

 

These unauthorised operators have established a stronghold by collaborating with foreign agents, hotels, and restaurants to attract and serve tour groups. According to Wasuchet, tourists often use foreign payment apps, making it difficult for Thai authorities to monitor financial transactions and collect taxes properly, reported Bangkok Post. 

 

The problem is further complicated by Thailand's visa policy, which allows 60-day stays for nationals from 93 countries. This has led to an uptick in foreigners working illegally in the transport sector to make ends meet.

 

Currently, only 13,000 to 14,000 tour buses are operational, compared to 40,000 in 2019. Many Thai bus firms have struggled to secure funds needed to revive their fleets after the pandemic.

 

Wasuchet has urged the government to crack down on illegal nominees by working with the private sector to detect and eliminate these fraudulent businesses. He also suggested regulating diesel prices to ease operational costs and increasing public spending on events to boost demand for bus services.

 

The urgent calls for regulatory measures and financial support reflect the critical need to level the playing field for Thai bus operators facing unfair competition from illicit foreign entities.

 

-- 2024-08-26

 

 

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[CallumWK]

5 minutes ago, webfact said:

The foreign operators have been exploiting legal loopholes by registering businesses through Thai nominees. This allows them to offer services at drastically reduced rates. For instance, where Thai companies would charge around 7,000 baht for a route from Suvarnabhumi Airport to Pattaya, their Chinese counterparts offer it for half the price.

 

How would using loopholes to register a business lower their overheads?

Maybe Thai companies are simply overcharging.

[Emdog]

"....Illegal foreign bus services are rife, usurping market share from licensed Thai operators..."

If they are so "rife" should be easy to catch, if somehow Thai cops could be enticed to step out of the offices into the "real world". Not that easy to hide a bus, ya think? Or a van....

[Artisi]

1 hour ago, Emdog said:

"....Illegal foreign bus services are rife, usurping market share from licensed Thai operators..."

If they are so "rife" should be easy to catch, if somehow Thai cops could be enticed to step out of the offices into the "real world". Not that easy to hide a bus, ya think? Or a van....

Next on the agenda is illegal airline services, the authorities will never notice the extra planes flying in and out of the major airports. 

[nakhonandy]

How difficult can this be to monitor and get the police to enforce the law?

Just clamp down on the "chinese" companies, especially the Thai nominees.

Improving the existing bus services might not be a bad idea either.

[watchcat]

1 hour ago, webfact said:

The Thai bus industry is grappling with an influx of Chinese operators offering ultra-cheap services, disrupting the local market. The crisis has reached a critical point, prompting a call for immediate action from Thai authorities and industry stakeholders. 

 

Slowly but surely China is going to take over Thailand . Meanwhile Thailand is buying substandard subs for billions of baht, seems almost as they want it to happen.

[KhunLA]

Competition is a beautiful thing 😎

[lordgrinz]

A nation built on corruption, imbedded in every Thai at birth, and embraced by the government is bound to be exploited. It will take generations to fix the issues here, and nobody is even willing to start the healing process, especially under the most corrupt Thai government ever conceived. With Thaksin at its helm, good luck!

[newbee2022]

2 hours ago, webfact said:

File:Chinese bus in China town, Bangkok. Courtesy: Wikipedia

 

The Thai bus industry is grappling with an influx of Chinese operators offering ultra-cheap services, disrupting the local market. The crisis has reached a critical point, prompting a call for immediate action from Thai authorities and industry stakeholders. 

 

Wasuchet Sophonsathien, President of the Thai Transportation Operators Association, has highlighted the deep-seated issues. Illegal foreign bus services are rife, usurping market share from licensed Thai operators still recovering from the economic downturn caused by COVID-19. 

 

The competition has intensified with a shift in strategy by these foreign entities. A growing number of Chinese luxury tour groups are abandoning larger buses in favour of smaller vans and minivans. Disturbingly, some long-term foreign residents are skirting the law, using personal and international driving licences to operate these vehicles commercially—a practice strictly reserved for Thai nationals.

 

The foreign operators have been exploiting legal loopholes by registering businesses through Thai nominees. This allows them to offer services at drastically reduced rates. For instance, where Thai companies would charge around 7,000 baht for a route from Suvarnabhumi Airport to Pattaya, their Chinese counterparts offer it for half the price.

 

These unauthorised operators have established a stronghold by collaborating with foreign agents, hotels, and restaurants to attract and serve tour groups. According to Wasuchet, tourists often use foreign payment apps, making it difficult for Thai authorities to monitor financial transactions and collect taxes properly, reported Bangkok Poast. 

 

The problem is further complicated by Thailand's visa policy, which allows 60-day stays for nationals from 93 countries. This has led to an uptick in foreigners working illegally in the transport sector to make ends meet.

 

Currently, only 13,000 to 14,000 tour buses are operational, compared to 40,000 in 2019. Many Thai bus firms have struggled to secure funds needed to revive their fleets after the pandemic.

 

Wasuchet has urged the government to crack down on illegal nominees by working with the private sector to detect and eliminate these fraudulent businesses. He also suggested regulating diesel prices to ease operational costs and increasing public spending on events to boost demand for bus services.

 

The urgent calls for regulatory measures and financial support reflect the critical need to level the playing field for Thai bus operators facing unfair competition from illicit foreign entities.

 

-- 2024-08-26

 

 

Get the ASEAN NOW daily NEWSLETTER - Click HERE to subscribe

Always these pesty farangs (incl Chinese). 

Heartbreaking report😂🤣🤗😱

[hotchilli]

How are they illegal, are not checks done to scrutinise the business/operating plan, who the owners or nominees are before licenses are awarded to start operations?

Or do they only become illegal when they undercut Thai prices?

[bendejo]

Are these what are called in some places "gypsy buses"?

 

[Sir Dude]

Stop saying "foreign"... it's the Chinese in all these sectors regarding hospitality and tourism. Face it Thailand, the Chinese are pulling their usual slow but sure grey-zone tactics to take over economically... come on Thailand, even Stevie Wonder can see it.

[khunjeff]

3 hours ago, webfact said:

The problem is further complicated by Thailand's visa policy, which allows 60-day stays for nationals from 93 countries. This has led to an uptick in foreigners working illegally in the transport sector to make ends meet.

 

This makes very little sense. People who want to work illegally will find a way to do so without much problem, and real tourists will have a holiday and go home. Most countries allow foreigners to stay 90 days or more, and yet don't have a plague of tourists driving buses.

[AustinRacing]

2 hours ago, Artisi said:

Next on the agenda is illegal airline services, the authorities will never notice the extra planes flying in and out of the major airports. 

Yeah I see a lot of foreign owned airlines landing/taking off at airports. This must stop. Protect local industry I say. 

[Artisi]

3 minutes ago, AustinRacing said:

Yeah I see a lot of foreign owned airlines landing/taking off at airports. This must stop. Protect local industry I say. 

???, did you notice illegal? 

[Artisi]

2 hours ago, lordgrinz said:

A nation built on corruption, imbedded in every Thai at birth, and embraced by the government is bound to be exploited. It will take generations to fix the issues here, and nobody is even willing to start the healing process, especially under the most corrupt Thai government ever conceived. With Thaksin at its helm, good luck!

Someone was willing to start, but guess what happened to them? 

[ross163103]

4 hours ago, webfact said:

The problem is further complicated by Thailand's visa policy, which allows 60-day stays for nationals from 93 countries. This has led to an uptick in foreigners working illegally in the transport sector to make ends meet.

 

Couldn't see this coming, could we?!

[RichardColeman]

Wouldn't worry too much, if the bus was made in china and shipped here, it will fall apart within a week

[PETERTHEEATER]

.........where Thai companies would charge around 7,000 baht for a route from Suvarnabhumi Airport to Pattaya, ......

 

What?

 

I can get a regular taxi from Suwanabhumi to Hua Hin for 2000 baht.

[Irish star]

Not one Politician worried about this beyond belief 

[treetops]

4 hours ago, PETERTHEEATER said:

.........where Thai companies would charge around 7,000 baht for a route from Suvarnabhumi Airport to Pattaya, ......

 

What?

 

I can get a regular taxi from Suwanabhumi to Hua Hin for 2000 baht.

 

Yes, but you can't get 30 people in like you can with a bus. 🙄

[BusyB]

10 hours ago, khunjeff said:

 

This makes very little sense. People who want to work illegally will find a way to do so without much problem, and real tourists will have a holiday and go home. Most countries allow foreigners to stay 90 days or more, and yet don't have a plague of tourists driving buses.

 

Most countries are more impervious to brown envelope culture.

 

This could not happen without collusion by the authorities.

[WHansen]

An under trained, sleep deprived, drunk, or high Thai driver is not an appealing prospect for anyone coming to Thailand, everyone knows how bad Thai drivers are and how dangerous the roads are because of their zero competence behind the wheel.

 

The chins are no doubt aware of this and choose to put one of their countrymen in the drivers seat.

 

If i had the option of a western driver to take me somewhere rather than a Thai, i would jump at it. Being in a vehicle with a Thai driving terrifies me.

[john donson]

still, my local EV bus, announced to ride every 20 minutes is never to be seen

 

once waited 75 min on suck bus before taking different songtaews

 

then you see 2 EMPTY busses speed behind each other...

[PETERTHEEATER]

15 hours ago, treetops said:

 

Yes, but you can't get 30 people in like you can with a bus. 🙄

Ah....Thanks. I thought the price quoted was per passenger, But, only 30 on the bus? A few decades ago I caught a bus from Surin to Bangkok making a number of stops en route. When the bus was full, the attendant put a row of 12 small plastic stools down the central isle and extra passengers were added and carried to Bangkok. 😀