Thailand Urged to Tackle Foreign Influence in Tourism Business

[webfact]

 

The Thai Senate, alarmed at the increasing influence of foreign businesses masked by local proxies, is pressing the government for a resolute intervention in the tourism industry. This comes amidst growing concerns over the impact on local enterprises who find themselves struggling against this veiled foreign competition.

 

At a recent meeting, Senator Nantana Nantavaropas raised pressing questions about the support available for local businesses disadvantaged by these foreign influences. In response, Thailand's Tourism and Sports Minister Sorawong Thienthong confirmed that the ministry is engaging with impacted local operators to devise a customised response.

 

Minister Sorawong highlighted the urgency of the situation, noting that these foreign-dominated businesses could soon command a large chunk of the tourism industry, a critical source of the nation's foreign revenue. The initial plan of action involves removing foreign tour guides from popular tourist sites across Thailand.

According to Thai law, tourism businesses must be owned and operated by Thai nationals, with Thai shareholders holding at least 51% of any such company.

 

To ensure compliance, the ministry plans to collaborate with several government bodies, including the Department of Tourism, the Department of Business Development, the Department of Special Investigation, the Tourism Police Bureau, and the Immigration Bureau, to scrutinise businesses suspected of using local proxies.

 

Minister Sorawong also noted that many tourism businesses continue to face challenges due to ongoing capacity constraints post-Covid-19. The government is coordinating with airlines to reinstate routes that were cancelled during the pandemic, particularly targeting connections with India as the high tourism season approaches.

 

Additionally, efforts are underway to dismantle illegal "zero-dollar" tour operations, which essentially create isolated tourism ecosystems catering solely to foreign visitors. This year, more than 40 such businesses have been shut down by the authorities, a significant move towards preserving the integrity of Thailand’s tourism industry, reported Bangkok Post.

 

File photo courtesy: Wikipedia

 

-- 2024-10-22

 

 

[Zack61]

What’s the point of opening the floodgates to tourism and then allowing the money generated to flow back to the same country the tourists came from and being left with the burden of providing the required infrastructure for their enjoyment. A crackdown is essential if any substantive benefits are to be garnished. 

[Presnock]

3 minutes ago, Zack61 said:

What’s the point of opening the floodgates to tourism and then allowing the money generated to flow back to the same country the tourists came from and being left with the burden of providing the required infrastructure for their enjoyment. A crackdown is essential if any substantive benefits are to be garnished. 

AMEN to that!

[khunpin]

Thailand ... A decade will go by until it much stricter measurements AND checks will be implicated - and then it will be only a few that get caught, pulled to a press conference where Thai officials will celebrate themselves for the big success. 🤷🏼‍♂️ 🤦🏼‍♂️

Not much will change for the criminals exploiting Thailand. 

[Johno57]

Sounds like the usual tourist thailand areas phuket, pattaya,samui with the influx of russians & their  business practises do battle with the chinese for for the local tourist dollar..

[wensiensheng]

I suppose one could ask why locally owned and run businesses cannot compete with foreign run and proxy owned businesses? Could it be that the former are inefficient and expensive?

 

Equally, perhaps the emphasis to stop foreign influence should be to stop Thai people acting as proxies?

 

The reality is that so much Russian and Chinese money (black and otherwise) is flowing into Thailand that locals are only too willing to do the bidding of foreigners.

 

But it was Thailand that opened the floodgates to these people with visa free entry and/or multiple extensions, so it’s reap what you sow time.

[john smith]

I was in Bangkok last week in a quiet part of the city near a large hotel. Three very large buses of a type that I have not seen before were parked outside the hotel. Every bus had HAN TOURS  in large letters on its sides. This I suspect is an indication of which country is cornering the Chinese section of the market here. It was an incredibly blatant statement

[Robbkk]

3 hours ago, webfact said:

The initial plan of action involves removing foreign tour guides from popular tourist sites across Thailand.

 

Not smart. The problem is that Thais have terrible language skills and can't provide those services.

 

Foreign tour guides would likely attract wealthy tourists and not the cheap rabble that they currently attract.

 

 

[Mavideol]

it's mostly Chinese and Russians, they know it and it's their fault as they open the doors to them

[Sydebolle]

If you cannot beat them then join them. Tourism is about planning and creating products befitting the needs of the visitors. Over the last 40 years I could see the sheer downslide of tourism. The actual numbers of visitors might have gone up but the average spending and average stay per visitor when down the halligally. 

Study how quality tourism is created; starting with the completely ridiculous visa laws, rules and fees - ongoing changes on that front. Carry on by abolishing ideas like "landing fees" and the likes. Get experts in with a proven track of record, irrespective of race, religion or nationality. 

Thailand's tourism industry is fç*%"*%d and will not be recovering with this avalanche of Chinese zero-$ bus (and soon train loads) while the Southasian cake of the business shares a small bottle of Chang beer with straws on the staircase of 7/11. 

Allow foreign guides to help with group tours; they know their people MUCH better than Somchai with his "same same but different" language skills. Ensure better press on transport; exploding busses or other vehicles without breaks, the "scene-fleeing drivers", the drunk Yodsaks steamrollering pedestrians on a zebra intersection .......

But yeah, the dirty farang should shut up and buy what the semi-divine find appropriate. Result is, that the dirty farang go elsewhere, where the product befits his needs, the price-value ration is balanced, where some English is spoken without dual pricing ....... the list is endless. As long as the tourism authority climaxes each and every week over yet another printed lie on figures, facts and revenues which must have been dreamed up in a big smoke of seriously good week; there is no other way to assume this craziness. 

[Richardsamui]

4 hours ago, webfact said:

 

The Thai Senate, alarmed at the increasing influence of foreign businesses masked by local proxies, is pressing the government for a resolute intervention in the tourism industry. This comes amidst growing concerns over the impact on local enterprises who find themselves struggling against this veiled foreign competition.

 

At a recent meeting, Senator Nantana Nantavaropas raised pressing questions about the support available for local businesses disadvantaged by these foreign influences. In response, Thailand's Tourism and Sports Minister Sorawong Thienthong confirmed that the ministry is engaging with impacted local operators to devise a customised response.

 

Minister Sorawong highlighted the urgency of the situation, noting that these foreign-dominated businesses could soon command a large chunk of the tourism industry, a critical source of the nation's foreign revenue. The initial plan of action involves removing foreign tour guides from popular tourist sites across Thailand.

 

According to Thai law, tourism businesses must be owned and operated by Thai nationals, with Thai shareholders holding at least 51% of any such company.

 

To ensure compliance, the ministry plans to collaborate with several government bodies, including the Department of Tourism, the Department of Business Development, the Department of Special Investigation, the Tourism Police Bureau, and the Immigration Bureau, to scrutinise businesses suspected of using local proxies.

 

Minister Sorawong also noted that many tourism businesses continue to face challenges due to ongoing capacity constraints post-Covid-19. The government is coordinating with airlines to reinstate routes that were cancelled during the pandemic, particularly targeting connections with India as the high tourism season approaches.

 

Additionally, efforts are underway to dismantle illegal "zero-dollar" tour operations, which essentially create isolated tourism ecosystems catering solely to foreign visitors. This year, more than 40 such businesses have been shut down by the authorities, a significant move towards preserving the integrity of Thailand’s tourism industry, reported Bangkok Post.

 

File photo courtesy: Wikipedia

 

-- 2024-10-22

 

 

 

[AdrianUk]

Many of the bars owned by farang have Thai wives and will stay here forever, all the money goes back into staff and buying services and products in thailand. All of the properties end up in Thai families names also.

[harleyclarkey]

Idiots in charge. A frantic push for Chinese and Russians (also Indians) to come to Thailand like a Tsunami.  And heck what happens? They bring their vile culture of bribery with them. Its normal business where they come from and so to bribe in Thailand is second nature.

Thailand....you reap what you sow. Som nom na. 

[BangkokReady]

25 minutes ago, Sydebolle said:

If you cannot beat them then join them. Tourism is about planning and creating products befitting the needs of the visitors. Over the last 40 years I could see the sheer downslide of tourism. The actual numbers of visitors might have gone up but the average spending and average stay per visitor when down the halligally. 

Study how quality tourism is created; starting with the completely ridiculous visa laws, rules and fees - ongoing changes on that front. Carry on by abolishing ideas like "landing fees" and the likes. Get experts in with a proven track of record, irrespective of race, religion or nationality. 

Thailand's tourism industry is fç*%"*%d and will not be recovering with this avalanche of Chinese zero-$ bus (and soon train loads) while the Southasian cake of the business shares a small bottle of Chang beer with straws on the staircase of 7/11. 

Allow foreign guides to help with group tours; they know their people MUCH better than Somchai with his "same same but different" language skills. Ensure better press on transport; exploding busses or other vehicles without breaks, the "scene-fleeing drivers", the drunk Yodsaks steamrollering pedestrians on a zebra intersection .......

But yeah, the dirty farang should shut up and buy what the semi-divine find appropriate. Result is, that the dirty farang go elsewhere, where the product befits his needs, the price-value ration is balanced, where some English is spoken without dual pricing ....... the list is endless. As long as the tourism authority climaxes each and every week over yet another printed lie on figures, facts and revenues which must have been dreamed up in a big smoke of seriously good week; there is no other way to assume this craziness. 

 

That sounds an awful lot like competition, and that's a dirty word in Thailand.

[GammaGlobulin]

1 hour ago, Zack61 said:

What’s the point of opening the floodgates to tourism and then allowing the money generated to flow back to the same country the tourists came from and being left with the burden of providing the required infrastructure for their enjoyment. A crackdown is essential if any substantive benefits are to be garnished. 

 

We should be most concerned about the ongoing destruction and degradation of the local environment.

 

Many tourists come from countries where the environment is completely trashed, and where the environment may never recover.

 

[GammaGlobulin]

59 minutes ago, Robbkk said:

The problem is that Thais have terrible language skills and can't provide those services.

 

Not ALL Thai.

Just those in the retailing sector.

And others.

 

Also, in the customer service sector, most assuredly, such as hotline services, etc.

 

Maybe they do not understand that English is the de facto Lingua Franca of the business world, and the travel industry, the retailing industry, and the export industry, and some other industries.

 

I would be OK if the lingua franca were Chinese, but it's really not, and even in China it is not, when the Chinese want to sell their products abroad, or provide good service at hotels, for example.

 

[Sig]

1 hour ago, khunpin said:

Thailand ... A decade will go by until it much stricter measurements AND checks will be implicated - and then it will be only a few that get caught, pulled to a press conference where Thai officials will celebrate themselves for the big success. 🤷🏼‍♂️ 🤦🏼‍♂️

Not much will change for the criminals exploiting Thailand. 

It has already been over a decade since the Chinese started flooding Thailand with massive numbers of tourists and their companies VERY quickly came in snapping up that business. Now it's gone beyond the Chinese because "officials" did nothing but line their drawers with brown envelopes instead of dealing with the problem when it arose.

[GammaGlobulin]

13 minutes ago, Sig said:

It has already been over a decade since the Chinese started flooding Thailand with massive numbers of tourists and their companies VERY quickly came in snapping up that business. Now it's gone beyond the Chinese because "officials" did nothing but line their drawers with brown envelopes instead of dealing with the problem when it arose.

 

The year was 2013, sometime around June/July, that the inundation began.

Why are the Chinese coming here?

 

They come here to buy a house, educate their children, and live here, making places like Chiang Mai their home.

Many of these have a final goal in mind, though, which is to educate their children in an international school in Thailand, and then leave as soon as possible for places like....The USA, maybe Japan, and possibly the UK.

Most of the Chinese have much more money than is needed to live in Thailand.

And they want to buy the best environment for their family and children, most likely somewhere OTHER than Thailand.

Thailand is just a steppingstone to better lives elsewhere.

 

[Cabradelmar]

Nah... There is too much money in it for Thais and it feeds the corruption that keeps so many Thai authorities happy. If they wanted it to stop they would have already.

[Andycoops]

Coming from a unelected person that is a joke.

 

The reason for the proliferation of foreigners working here has been caused by government policy.

 

Free entry visas being just 1 example.

 

The other examples are of course fees being paid to officials to turn a blind eye to their criminal activity.

 

In the meantime the pursuit of numbers entering the country is of prime importance despite the flood of mafia and associated undesirable persons...

 

As usual no joined up thinking in Thailand, everyone has their own agenda 

[NaaKap]

Those pesky Russians again no doubt. I often wonder how they all depart Russia, land in Thailand yet always seem to have enough to live permenently. Or do they. Surely the retirement age of your average Russian cannot be 30....

[tomacht8]

The zero dollar tours bring almost no tax revenue for the Thai state nor any relevant sales for the domestic Thai tourism businesses. The trips are booked in China and fully paid there. Hotel rooms, restaurant visits, bus transfers and shopping stops are only booked in Chinese-controlled companies. From an accounting perspective, it is now possible for the service invoices from Chinese-controlled companies to only be issued in the amount of the actual costs, so that no taxable profits arise within Thailand. The profits then remain entirely in China. With this type of mass tourism, Thailand only loses because the infrastructure has to be paid for and a lot of nature get destroyed. 

 

The Thai Tourism Authority must learn that simply increasing the number of visitors does not necessarily lead to higher revenues if all the direct and indirect costs to the Thai ecosystem are taken into account.

[GammaGlobulin]

6 minutes ago, tomacht8 said:

The zero dollar tours bring almost no tax revenue for the Thai state nor any relevant sales for the domestic Thai tourism businesses. The trips are booked in China and fully paid there. Hotel rooms, restaurant visits, bus transfers and shopping stops are only booked in Chinese-controlled companies. From an accounting perspective, it is now possible for the service invoices from Chinese-controlled companies to only be issued in the amount of the actual costs, so that no taxable profits arise within Thailand. The profits then remain entirely in China. With this type of mass tourism, Thailand only loses because the infrastructure has to be paid for and a lot of nature get destroyed. 

 

The Thai Tourism Authority must learn that simply increasing the number of visitors does not necessarily lead to higher revenues if all the direct and indirect costs to the Thai ecosystem are taken into account.

 

Selling a widget for less than the cost of manufacture is probably not a winning long-term strategy, even, as you say, if sales volume continues to increase.

 

[sambum]

They want the tourists, but they don't want tourists to become investors!

 

" Thailand's Tourism and Sports Minister Sorawong Thienthong confirmed that the ministry is engaging with impacted local operators to devise a customised response."

 

What could possibly go wrong when TAT are involved?

[newnative]

44 minutes ago, tomacht8 said:

The zero dollar tours bring almost no tax revenue for the Thai state nor any relevant sales for the domestic Thai tourism businesses. The trips are booked in China and fully paid there. Hotel rooms, restaurant visits, bus transfers and shopping stops are only booked in Chinese-controlled companies. From an accounting perspective, it is now possible for the service invoices from Chinese-controlled companies to only be issued in the amount of the actual costs, so that no taxable profits arise within Thailand. The profits then remain entirely in China. With this type of mass tourism, Thailand only loses because the infrastructure has to be paid for and a lot of nature get destroyed. 

 

The Thai Tourism Authority must learn that simply increasing the number of visitors does not necessarily lead to higher revenues if all the direct and indirect costs to the Thai ecosystem are taken into account.

The majority of Chinese tourists to Thailand are independent travelers, not in tour groups.

[Xonax]

9 hours ago, webfact said:

The Thai Senate, alarmed at the increasing influence of foreign businesses masked by local proxies, is pressing the government for a resolute intervention in the tourism industry. This comes amidst growing concerns over the impact on local enterprises who find themselves struggling against this veiled foreign competition.

Thai businesses are all quick to raise their prices, as soon as TAT predicts that more tourists will be coming to Thailand. Perhaps this is the wrong way, to compete against foreign influence in the tourism business.

[Pdavies99]

Fat chance, its a World wide issue. Lets face it, you cannot even stop porn!

[Bday Prang]

5 hours ago, AdrianUk said:

Many of the bars owned by farang have Thai wives and will stay here forever, all the money goes back into staff and buying services and products in thailand. All of the properties end up in Thai families names also.

I seriously cannot accept that bars owned by foreigners and their wives are a threat to Thai tourism. The only threat they pose is to the bank balance of the foreigner involved

[newbee2022]

6 hours ago, Sydebolle said:

If you cannot beat them then join them. Tourism is about planning and creating products befitting the needs of the visitors. Over the last 40 years I could see the sheer downslide of tourism. The actual numbers of visitors might have gone up but the average spending and average stay per visitor when down the halligally. 

Study how quality tourism is created; starting with the completely ridiculous visa laws, rules and fees - ongoing changes on that front. Carry on by abolishing ideas like "landing fees" and the likes. Get experts in with a proven track of record, irrespective of race, religion or nationality. 

Thailand's tourism industry is fç*%"*%d and will not be recovering with this avalanche of Chinese zero-$ bus (and soon train loads) while the Southasian cake of the business shares a small bottle of Chang beer with straws on the staircase of 7/11. 

Allow foreign guides to help with group tours; they know their people MUCH better than Somchai with his "same same but different" language skills. Ensure better press on transport; exploding busses or other vehicles without breaks, the "scene-fleeing drivers", the drunk Yodsaks steamrollering pedestrians on a zebra intersection .......

But yeah, the dirty farang should shut up and buy what the semi-divine find appropriate. Result is, that the dirty farang go elsewhere, where the product befits his needs, the price-value ration is balanced, where some English is spoken without dual pricing ....... the list is endless. As long as the tourism authority climaxes each and every week over yet another printed lie on figures, facts and revenues which must have been dreamed up in a big smoke of seriously good week; there is no other way to assume this craziness. 

I got the same in mind to write. You did it perfect. Can't add anything. Thank you🤗

[hotchilli]

20 hours ago, webfact said:

The Thai Senate, alarmed at the increasing influence of foreign businesses masked by local proxies, is pressing the government for a resolute intervention in the tourism industry. This comes amidst growing concerns over the impact on local enterprises who find themselves struggling against this veiled foreign competition.

If foreign businesses covered by Thai proxies are approved by the authorities then they are not veiled... they are just competition.