Thailand lowers tourist target after 30% drop in Chinese visitors
Plunging arrivals from key market spark fears of slower recovery for Thailand’s travel-dependent economy
The Tourism Authority of Thailand (TAT) considers lowering its target for foreign tourists this year due to a 30% drop in Chinese visitors.
As a response, TAT plans to allocate 2 billion baht for the We Travel Together campaign, which will start next month.
Teerasak Thepensri, TAT’s Deputy Governor for Policy and Planning, addressed this at the third Capital Market Meets the Government event, organised by the Thai Capital Market Business Council (FETCO) yesterday, May 8. He acknowledged the likelihood of revising the 2025 target from the initially projected 37.46 million foreign tourists and 3.4 trillion baht in revenue to around 35.54 million tourists, similar to last year’s figures. Chinese visitors are expected to reach only 4 million this year.
During the first four months of the year (January to April), there was a 20% decline in tourists from Northeast Asia, with Chinese tourists decreasing by 30%. This resulted in an overall 0.2% drop in foreign tourist numbers compared to the same period last year.
Negative factors affecting tourism this year include Thailand’s perceived safety issues, such as the Xing Xing kidnapping, grey Chinese businesses, reports of organ theft, earthquakes, and building collapses. These have impacted the sentiment of Chinese, Taiwanese, Hong Kong, and South Korean tourists.
Additionally, intense tourism competition in Asia, with countries like Japan, China, Vietnam, and Laos offering free visas, has drawn tourists away from Thailand. Natural disasters, pollution, and PM2.5 haze have also deterred health-conscious tourists and families with young children.
The current Chinese tourists visiting Thailand are mostly Free Independent Travellers (FIT), with a notable absence of tour groups from smaller cities. However, long-haul markets from Europe have shown a 16% increase in the first four months, with tourists in this group spending more and staying 15-20 days. They predominantly spend on wellness activities rather than shopping. Revenue for this year is anticipated to increase from last year’s 2.97 trillion baht.
TAT’s strategy includes improving safety perceptions and restoring confidence, particularly through social media, and promoting charter flights and incentive groups from secondary cities. They also plan to boost FIT travel in partnership with Online Travel Agencies (OTAs) and travel companies, focusing on families and millennials. Additionally, TAT will support diplomatic celebrations marking 50 years of Thai-Chinese relations.
Other tourism markets
To compensate for the dip in Chinese tourists, TAT aims to increase visitors from nine nearby markets and 15 long-haul ones, focusing on quality leisure, family, and incentive travel. Emerging markets include Indonesia, the Philippines, Singapore, India, and Sri Lanka, along with European countries. They also target high-value segments, such as health and wellness, yacht, sport, and digital nomads, with visitors from the Middle East, India, and Europe.
TAT plans to use a 360-degree communication approach through online and offline channels, with events throughout the year to attract tourists.
Domestically, TAT will distribute income to secondary cities, promote weekday travel to reduce congestion, and highlight the image of “Instant Happiness in Thailand.” The We Travel Together project will run from June to September or October, coinciding with the rainy season and school holidays. TAT will manage the 2 billion baht budget, offering Thai tourists better weekday deals, subsidised by the government, reported KhaoSod.
There are plans for 600,000 entitlements, along with stricter regulations to prevent room price increases and fraud, addressing past project issues. Key issues to monitor this year include the US-China trade war, the India-Pakistan conflict, US tax measures, and efforts to restore safety confidence in Thailand, avoiding repeated incidents.
Latest Thailand News
Follow The Thaiger on Google News:
