Golden week: Chinese tourists to Thailand dip as baht bites

[snoop1130]

 

Chinese tourist numbers during the upcoming Golden Week holiday are anticipated to be lower than expected, influenced by a strong baht and China’s sluggish economy, which are limiting tourist spending. This trend is also prompting other international visitors to negotiate lower service prices.

 

Thanet Supornsahasrungsi, the Association of Chon Buri Tourism Federation President, highlighted concerns about the appreciating baht’s adverse effects on tourism. He noted that some travel agents are already seeking discounts from Thai operators, primarily because hotels charge in the local currency.

 

“In Pattaya, forward bookings for Chinese tourists during Golden Week, from October 1 to October 7, have not seen significant growth.”

 

Thanet observed that many tourists prefer last-minute bookings, and the number of tour groups has decreased.

 

Suksit Suvunditkul, president of the southern chapter of the Thai Hotels Association, mentioned that Golden Week in Phuket is not as busy as Chinese New Year, given that October is the island’s low season. Despite China being a major market for Phuket, bookings for the upcoming holiday have not surged significantly.

 

“Most hotels in Phuket cater to mixed markets, including domestic tourists, Asians, and long-haul travellers.”

 

 

 

 

Online travel platform Agoda reported a 137% year-on-year increase in international accommodation searches by Chinese travellers for Golden Week. However, despite Bangkok maintaining a top-five position, it was surpassed by Bali this year.

 

Chinese tourists

 

A source from a large inbound tour operator, who requested anonymity, noted that while the Chinese market during Golden Week is expected to improve from last year, it will not meet high expectations. The source cited China’s sluggish economy, including salary cuts for civil servants and a troubled real estate sector, as factors impacting travel budgets.

 

The source estimated that around 30,000 Chinese tourists would arrive daily in Thailand during the holiday, compared to 40,000 daily arrivals in 2019. Overall, the Chinese market this year is expected to bring in 7.5 million tourists, but their expenditure is predicted to remain flat.

 

The baht’s surge to a 19-month high against the US dollar and appreciation over other Asian currencies is another concern for operators. The strong baht may deter Chinese tourists, causing them to view Thailand as a less valuable destination and opt for alternatives like Japan, reported Bangkok Post.

 

“Tourists may see Thailand as a less valuable destination and opt for other destinations, such as Japan,” the source said.

 

The source urged the government to take proactive steps in boosting Chinese and other foreign markets, as the exchange rate and strong competition could impact the upcoming high season.

 

By Bright Choomanee

Picture courtesy of Wichan Charoenkiatpakul

 

Source: The Thaiger

-- 2024-09-26

 

[ozz1]

Probably more countries will follow most people come here for a lot of bang for your buck if it doesn't devalue exports and tourism will suffer a lot if tourists are choosing Vietnam over Thailand

[hotchilli]

13 hours ago, snoop1130 said:

Chinese tourist numbers during the upcoming Golden Week holiday are anticipated to be lower than expected, influenced by a strong baht and China’s sluggish economy, which are limiting tourist spending. This trend is also prompting other international visitors to negotiate lower service prices.

It's all surges and dips.. one day to the next.... 

[thesetat2013]

14 hours ago, snoop1130 said:

The strong baht may deter Chinese tourists, causing them to view Thailand as a less valuable destination and opt for alternatives like Japan, reported Bangkok Post.

Are they serious? Chinese people hate Japanese people. they are taught as children to hate them. Let a Japanese tourist go to China and they will find the Chinese trying to hurt them. 

[mdr224]

Makes thailand a more attractive place to visit during that time then

[Chelseafan]

The strong baht may have something to do with it but I also think it's a case of Thailand not being as much of a trendy destination these days. Bali seems to be their preferred destination and as we know the Chinese travel in groups...l

 

 

[Karma80]

13 minutes ago, Chelseafan said:

The strong baht may have something to do with it but I also think it's a case of Thailand not being as much of a trendy destination these days. Bali seems to be their preferred destination and as we know the Chinese travel in groups...l

 

Totally. Chinese tourists are now the number one nationality travelling to Japan. https://statistics.jnto.go.jp/en/graph/

[Srikcir]

Could it be as much a cause really by all the recent "bad press" about alleged misbehavior and violence by foreign tourists and/or by Thais in response to foreign tourists in areas like Phuket and Pattaya?

I also thought that Thailand as a recent supporter of BRIC currency (Brazil, Russia, India, China) was expecting little currency volatility as compared to the USD used as international currency.

If indeed Chinese tourism is affected directly by the value of the baht, then Thailand being associated with BRIC would seem a mistake. I expect China will disagree with the idea that baht volatility is the cause for lower Chinese tourism in Thailand.

[newnative]

1 hour ago, Chelseafan said:

The strong baht may have something to do with it but I also think it's a case of Thailand not being as much of a trendy destination these days. Bali seems to be their preferred destination and as we know the Chinese travel in groups...l

 

 

    Actually, more than 60% of Chinese visitors to Thailand are traveling independently, and not in groups.  

[Dcheech]

18 hours ago, snoop1130 said:

The source estimated that around 30,000 Chinese tourists would arrive daily in Thailand during the holiday, compared to 40,000 daily arrivals in 2019.

No matter how they spin it & what window dressing used, numbers have never made it back to pre flu from Wuhan province, days. Given continued economic problems in China no real expectation that it will this year or next. 

[Captor]

15 hours ago, ozz1 said:

Probably more countries will follow most people come here for a lot of bang for your buck if it doesn't devalue exports and tourism will suffer a lot if tourists are choosing Vietnam over Thailand

And then fewer long stay expats comes due to the new tax in addition.

[Will B Good]

 

 

 

Now who was it that came on a thread a few days ago saying no one in their right minds would consider changing their holiday plans because of the baht exchange rate......any takers???

 

 

 

[MarkBR]

35 minutes ago, newnative said:

    Actually, more than 60% of Chinese visitors to Thailand are traveling independently, and not in groups.  

Agree, any of my ex-students who have travelled to Thailand have travelled as independent travellers, none have come in organised groups.

[Rolo89]

I brought a suitcase back from Vietnam just full of groceries. I have easily paid for the flight alone several times in savings for stables for a few months. Thailand has now missed out on taxing this income that was never bought into Thailand and the revenue from spending locally. Everytime someone from Europe visits there's a handful of things they bring with them that are far cheaper over there (even things made in Thailand and Asia). I imagine the increased cost of Thailand thesedays is putting off a lot of tourists from returning as there's so many other options with more value.

[bkk6060]

A Golden shower for Thailand. 

[Patong2021]

13 hours ago, Will B Good said:

 

Now who was it that came on a thread a few days ago saying no one in their right minds would consider changing their holiday plans because of the baht exchange rate......any takers???

 

I'll bite. The are far more powerful factors than the exchange rate on a baht. The total financial impact is one small factor. If  the typical  Chinese visitor spends at least 25,000 yuan, the impact of the FX change is that the cost of the week in  Thailand has increased less than 14,000 baht.

 

The  article interviews someone from Chanburi and he is describing the "trend" seen for Pattaya. It is  not necessarily a  national trend. The annual number of Chinese visitors numbers was increasing year on year, so at the very worse, the visitor numbers are holding steady.

 

There are significant  concerns with Chinese domestic real estate investments and it is spooking the Chinese who travel internationally. International airfares have increased 10-20% on average and while not a deal breaker it acts as a negative incentive. Domestic Chinese airfares offer a better value since they are indirectly subsidized in large part by the national government. Chinese consumers are being cautious. 

 

Another disincentive  that is not being considered is that  Pattaya is crowded and really not as alluring or attractive as a holiday destination for Chinese families and elderly couples as are other Thailand destinations. Popular Thai destinations such as Samui and Phuket are also over crowded, and over developed. The beaches are dirty with polluted water. The traffic congestion is frustrating and the air pollution that can envelope some places is choking. 

 

Pointing at the FX as the reason some tourists are losing interest in Thailand is a convenient excuse to avoid the real issue: A poor tourism strategy and a refusal to plan ahead and to protect the assets that once made Thailand worth visiting. No one wants to walk through trash, or risk slashing open their feet at a beach because of the broken glass and discarded metal containers. Sitting in  traffic choking on car fumes is not a holiday.  The traffic on  Hua Hin's main road from 5 pm until 7 PM in high season is one long tailback, in large part because of poor traffic management and  out of synch traffic lights. A tuktuk  or sangthaew ride from Market Village or Bluport to the main market takes 10 minutes at night in off season. In high season, it can take 30 minutes+. So many of Thailand's beaches are covered with trash. Condos and restaurants encroach some of Thailand's best beaches etc.   

 

Yes, the FX is not helpful to tourism, but it is not the reason why tourism is slowing,  Multiple factors are involved and the fact is that the value proposition isn't there. 

[NoDisplayName]

On 9/26/2024 at 4:41 PM, snoop1130 said:

 some travel agents are already seeking discounts from Thai operators, primarily because hotels charge in the local currency.

 

 

That can't be it.  I've been reliably informed that most Chinese arrive on zero-dollar tours, paying all expenses in China in RMB, and no money ever reaches Thailand.

[Woke to Sounds]

My God who gives a damn about this piece of news. Everyone knows Chinese are traveling to Canada in record numbers. Thailand was yesterday's travel thing.

[Will B Good]

8 hours ago, Patong2021 said:

I'll bite. The are far more powerful factors than the exchange rate on a baht. The total financial impact is one small factor. If  the typical  Chinese visitor spends at least 25,000 yuan, the impact of the FX change is that the cost of the week in  Thailand has increased less than 14,000 baht.

 

The  article interviews someone from Chanburi and he is describing the "trend" seen for Pattaya. It is  not necessarily a  national trend. The annual number of Chinese visitors numbers was increasing year on year, so at the very worse, the visitor numbers are holding steady.

 

There are significant  concerns with Chinese domestic real estate investments and it is spooking the Chinese who travel internationally. International airfares have increased 10-20% on average and while not a deal breaker it acts as a negative incentive. Domestic Chinese airfares offer a better value since they are indirectly subsidized in large part by the national government. Chinese consumers are being cautious. 

 

Another disincentive  that is not being considered is that  Pattaya is crowded and really not as alluring or attractive as a holiday destination for Chinese families and elderly couples as are other Thailand destinations. Popular Thai destinations such as Samui and Phuket are also over crowded, and over developed. The beaches are dirty with polluted water. The traffic congestion is frustrating and the air pollution that can envelope some places is choking. 

 

Pointing at the FX as the reason some tourists are losing interest in Thailand is a convenient excuse to avoid the real issue: A poor tourism strategy and a refusal to plan ahead and to protect the assets that once made Thailand worth visiting. No one wants to walk through trash, or risk slashing open their feet at a beach because of the broken glass and discarded metal containers. Sitting in  traffic choking on car fumes is not a holiday.  The traffic on  Hua Hin's main road from 5 pm until 7 PM in high season is one long tailback, in large part because of poor traffic management and  out of synch traffic lights. A tuktuk  or sangthaew ride from Market Village or Bluport to the main market takes 10 minutes at night in off season. In high season, it can take 30 minutes+. So many of Thailand's beaches are covered with trash. Condos and restaurants encroach some of Thailand's best beaches etc.   

 

Yes, the FX is not helpful to tourism, but it is not the reason why tourism is slowing,  Multiple factors are involved and the fact is that the value proposition isn't there. 

 

 

That's not a bite.....it is a huge, esophageal blocking, choke till you die chunk.

[Patong2021]

3 hours ago, Will B Good said:

 

 

That's not a bite.....it is a huge, esophageal blocking, choke till you die chunk.

 

And your words bring to mind the dining experience of the gristle platter ala Sizzler.