Chinese Tourism in Thailand: Prospects for Growth

28.06.2023
Chinese Tourism in Thailand: Prospects for Growth

Thai tourism aims to attract 5 million Chinese tourists this year

The Tourism Authority of Thailand (TAT) has set an ambitious goal to attract 5.3 million Chinese tourists and generate 446 billion baht in revenue this year. However, to achieve these goals, a number of problems need to be solved.

One of the biggest hurdles is competition from other countries popular with Chinese travellers, as well as the recovery of the aviation industry.

The availability of flights to and from Thailand is still insufficient to meet market demand, which has caused some Chinese tour groups to change direction and explore other countries. After the opening of China's borders on January 8, Thailand felt the impact on the tourism industry.

Thai Travel Agents Association (ATTA) President Sisdivachr Chivarattanaporn said the target should be the third quarter (July-September) as it coincides with China's summer holidays. However, he expressed concern about whether Thailand could actually accommodate 2 million Chinese tourists at that time. In the first half of the year, just over a million Chinese tourists visited Thailand.

He also noted that selling trips to Chinese tour groups is not as easy as it was before the Covid-19 pandemic. This is due to the fact that Chinese tourists now prefer to travel on their own. Currently, up to 90% of Chinese tourists arriving in Thailand are Independent Travelers (FITs), while the Chinese tourist group market is only 10%.

TAT Governor Yuthasak Supasorn believes that the number of Chinese visitors will soon increase due to the many improvements and amenities that the authorities are about to implement. Among them is the "VPSS" or Visa Pre-Screening System, which aims to speed up and provide a more efficient visa approval process. This system is expected to be introduced in July.

He added that despite the many challenges, TAT is confident that Thailand will see more than 5 million Chinese visitors. TAT is also confident that Chinese tourists will spend 10-15% more compared to pre-Covid-19, averaging around 50,000 baht per person. This is because Chinese tourists are spending more time in the country, according to the governor.

Overall, the Thai tourism sector is aiming for a total tourism revenue of 2.38 trillion baht in 2023, with a target of around 25 million international tourists and 135 million domestic trips.

So far, according to data from June 25, Thailand has already received 12.46 million tourists this year, generating revenue of 514.24 billion baht. The top five countries from which tourists arrived this year are Malaysia (1.98 million), China (1.38 million), Russia (784,428), South Korea (741,909) and India (732,523).

Chinese travelers make up 10% of all visitors to Thailand

New data from SiteMinder, Meituan and the Tourism Authority of Thailand (TAT) shows that more than 1.3 million of the more than 11 million international tourists visiting Thailand this year came from China. These figures suggest that Chinese travelers could make up one-fifth of all international tourists arriving in Thailand by the end of the year.

The TAT projection assumes that the number of international visitors to Thailand will reach 25 million this year, twice as many as in 2022.

The TAT complements data from SiteMinder, the world's leading hotel commerce platform, which shows that weekly bookings made by Chinese travelers at SiteMinder customer hotels in Thailand are up 79% year-to-date.

Entry into Thailand for Chinese tourists remains easy despite rumors of visa limit

The government has been criticized by tour operators, who say complicated visa rules are deterring Chinese citizens from visiting Thailand and could result in a loss of 250 billion baht in revenue for the economy. Tourism industry officials spoke to the Tai Sang Tai Party on Saturday, complaining that visa regulations imposed to prevent the arrival of Chinese criminals are having the same effect on legitimate tourists from China.

Responding to complaints, ministry spokeswoman Kanchana Patarachok said Wednesday that the government is seeking a balance between security and tourism.

Kanchana said that Chinese citizens can easily apply for a visa on arrival or an e-visa. She also confirmed that tourists can go through the Visa Pre-Screening (VPSS) process to reduce waiting times and make it easier to obtain a visa.

She noted that information about the limit on issuing visas is not official policy, and suggested that tour operators not spread rumors that could damage the tourism business and the image of the country.

Author of the article: Ekaterina Antonova