Economic hurdles hamper Thailand’s tourist market recovery despite visa exemptions

Tourism operators have indicated that economic challenges are hindering the recovery of tourist markets from China, Taiwan, and India, despite Thailand’s recent introduction of visa exemptions.

These exemptions, implemented for Chinese visitors since September 25, have had limited effect due to perceptions of Thailand as unsafe and China’s sluggish economic growth, according to Thanet Supornsahasrungsi, ex-president of the Chon Buri Tourism Council and group executive director of Sunshine Hotels and Resorts. Furthermore, the slow restoration of flight services has negatively impacted outbound travel to Thailand.

Thanet also pointed out that high-spending tourists generally prefer European destinations over Thailand during the peak season. The Tourism Authority of Thailand (TAT) reported that the country received 283,179 and 290,911 Chinese tourists in September and October, respectively. By November 7, yearly arrivals from China, Taiwan, and India were 2.84 million, 595,899, and 1.31 million respectively.

However, Thanet suggested it is unlikely the Chinese market will reach 4 million arrivals this year. The addition of visa exemptions for Taiwanese tourists from November 10 is expected to boost arrivals from Taiwan, a market that has seen growth post-pandemic. The Taiwanese government had been advocating for visa exemptions, with approximately 2,000 Taiwanese tourists applying for visas to Thailand daily, reported Bangkok Post.

Despite this, Prachoom Tantiprasertsuk, chairperson for marketing at the Thai Hotels Association, warns that the visa exemption may have a minimal impact on the Indian market due to limited seat availability and the traditionally off-peak period of the fourth and first quarters.

Although Thailand is a popular destination for Indian incentive and wedding groups, these trips typically take place at the end of the year and require at least six months of advanced booking. A 20% outbound tax on Indian tourists also remains a significant challenge to market growth.

Prachoom believes the effects of the visa exemptions will be more apparent during next year’s second quarter, as more corporations and tourists may choose Thailand due to these entry privileges.

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