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

Picture courtesy of Varuth Hirunyatheb

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.

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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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Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.

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