Golden weak: Chinese tourists to Thailand dip as baht bites
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.
