Chinese airlines hit turbulence: Air China, China Eastern, Shanghai Airlines pump the brakes on December and January flights
Major Chinese airlines such as Air China, China Eastern, and Shanghai Airlines, slam the brakes on flights for December and January.
Several Chinese airlines, notably Air China, China Eastern, and Shanghai Airlines, sent shockwaves through the travel industry by cancelling flights to Thailand for December and January. The root cause? A plunge in bookings mirrors China’s economic downturn and a strategic pivot towards domestic tourism.
Surprisingly, even the allure of free visas for Chinese nationals failed to ignite a tourism boom. This suggests that economic challenges within China play a pivotal role in the decline of Chinese tourists flocking to Thailand. Currently, Chinese arrivals in the Land of Smiles are hovering at a meagre 40% compared to pre-Covid times.
As the spectre of China’s economic slowdown looms large, Thai authorities are anxiously eyeing the upcoming Chinese New Year bookings. The cancellations are a stark reminder that initiatives like free visas aren’t enough to counterbalance the impact of China’s internal economic challenges.
The ripple effect of these flight cancellations extends to Thailand’s tourism sector, with the projected target of four million Chinese arrivals hanging in the balance. The Tourism Authority of Thailand (TAT) now anticipates a reduced influx, estimating 3.4 to 3.5 million tourists from mainland China this year. Despite the setback, this still amounts to a significant injection of 190 to 196 billion baht into the Thai economy, reported Thailand Business News.
The list of airlines pulling the plug includes Air China, China Eastern, Shanghai Airlines, Spring Airlines, China Southern, Shenzhen Airlines, Juneyao Airlines, Okay Airways, Hainan Airlines, and Beijing Capital. The fallout from these cancellations is not just felt in the skies, it reverberates through Thailand’s tourism industry, which constitutes approximately 20% of the country’s GDP and provides employment for millions.
The Thai government’s initial optimism projected 3.4 million Chinese visitors for the year, constituting 31% of the total number of visitors in 2019. However, despite implementing a visa exemption program to lure more tourists, arrivals have fallen short. The recent surge in social media chatter about travel safety concerns, fueled by the popularity of the Chinese action film No More Bets, has become an unexpected hurdle in reaching the optimistic targets.
