Thailand’s tourism boom tainted by zero-dollar tours

Thailand’s booming tourism sector is thriving under a new visa-free policy, attracting millions of foreign tourists. Yet, while Chinese visitors top the list, concerns are mounting over the resurgence of Chinese zero-dollar tours, which could be draining potential revenue from the Thai economy.

From January 1 to August 18, Thailand welcomed a staggering 22,474,172 international tourists, who pumped 1.05 trillion baht into the economy. Leading the pack were Chinese tourists, with 4,555,262 arrivals, followed by visitors from Malaysia, India, South Korea, and Russia. Despite the influx, there’s a growing fear that these impressive figures might not translate into tangible benefits for local businesses.

The problem lies in the return of the so-called zero-dollar tours, where foreign tour operators exploit Thai laws to dominate the market. By using Thai nominees, they underbid local companies, often operating at a loss to push Thai competitors out of business. Minister of Tourism and Sports Sermsak Pongpanich highlighted the government’s vigilance in tackling this issue.

“I urge Thai citizens to monitor and report cases where foreigners use Thai nominees to register businesses they cannot legally operate. This vigilance is crucial in ensuring that the money spent by tourists stays within our borders and benefits Thai traders.”

Sermsak also revealed ongoing discussions with the Chinese government to address the issue.

“We’ve had positive cooperation with China, as both nations are keen to prevent any incidents that could harm our bilateral relations.”

On the domestic front, the Tourism Authority of Thailand (TAT) is optimistic about hitting its 2024 target of 200 million domestic trips, aiming to boost the economy by 1.08 trillion baht. Initiatives like the FLASH DEAL campaign and the Super Deal in collaboration with airlines are set to drive this surge, with hopes to push the figure to 210 million trips and 1.2 trillion baht in revenue, reported KhaoSod English.

Somrudi Jitjong, TAT’s Deputy Governor for Domestic Marketing stated that domestic tourism is on track to surpass 2019 levels.

“We’re focusing on increasing tourist numbers to stimulate spending and achieve the government’s ambitious targets.”