Thai tourism sector optimistic about Chinese arrivals despite economic concerns
Despite the Thai tourism sector experiencing a drop in Chinese visitors last year, the government remains optimistic about an increase in arrivals this year, targeting eight million visitors from the mainland. This optimism is fuelled by the prospect of the visa-free policy becoming permanent in March.
The Chinese government has been advocating for its citizens to travel domestically during the pandemic, a trend that is expected to persist even as borders reopen. The Chinese economy experienced a growth of 5.2% in 2023, surpassing the state target of 5%. However, there are concerns due to the negative turn of foreign investment and the property sector crisis.
Sompop Manarungsan, Panyapiwat Institute of Management president, suggests that China’s economic slowdown will impact Thailand’s tourism and exports. However, he also points to the potential for foreign direct investment from China as it looks to move its production base to Southeast Asia due to geopolitical tension and higher domestic production costs.
Kriengkrai Thiennukul, Federation of Thai Industries (FTI) Chairman, also believes that despite the economic downturn, Chinese companies will continue to invest in the Association of Southeast Asian Nations (ASEAN), particularly in the electric vehicle (EV) sector. He explains that many Chinese firms are exploring new markets in Southeast Asia due to the region’s growth potential and to avoid US trade sanctions.
Thailand remains a popular destination for Chinese tourists. The Tourism Authority of Thailand (TAT) expects China to return as the top source market for tourists this year, with eight million arrivals and 320 billion baht in revenue. Despite China’s focus on domestic tourism and a sluggish economy that may impact spending sentiments, Thailand’s visa-free programme has been driving robust bookings from China for the Chinese New Year festivities.
The Association of Thai Travel Agents suggests that the Chinese market will not reach the state goal of eight million arrivals without additional stimulus schemes. The decline in spending due to China’s economic downturn may continue to impact tourism revenue.
Despite these challenges, there are opportunities for Thailand to expand its export channels to the global market, particularly with the high-speed rail project that will connect Thailand with China via Laos. China remains an important market for Thailand’s long-term export growth, despite the global economic challenges, reported Bangkok Post.
