Chinese tourists are greeted by Thai dancers at the arrivals gate at Suvarnabhumi International Airport in Bangkok on September 25, 2023. Chinese tourists arrived to Thailand with visa-free entry from September 25 onwards under a temporary scheme announced recently by the kingdom's newly formed cabinet. (Photo by Lillian SUWANRUMPHA / AFP)

Chinese Tourist Arrivals Fall Short of 4 Million Target by 500,000, Signals Adjustments for Thailand’s Tourism Sector

In the midst of the changing global tourism industry, Thailand’s tourism sector is adjusting its expectations, specifically on the number of Chinese tourists visiting the country. The travel Authority of Thailand (TAT) had aimed to attract 5-7 million Chinese tourists this year. However, due to China’s slow economic growth and a noticeable increase in domestic travel, TAT now expects a more conservative estimate of 3.4-3.5 million Chinese tourists.

Chattan Kunjara Na Ayudhya, the Deputy Governor for International Marketing in Asia and South Pacific at the TAT, emphasized that the updated prediction is a result of the economic trends in China. Despite having a more limited budget, middle-class tourists from China are still actively exploring. The TAT projects a revenue of 190-196 billion baht from Chinese tourists this year.

Although the economic conditions are difficult, there is potential to increase the average spending per trip by targeting segments with strong purchasing power. Mr. Chattan anticipates a rise in the amount from the documented 50,052 baht in 2019 to a range of 56,000-58,000 baht. Alipay’s data shows a significant increase in Chinese travelers’ expenditure, reaching 20,000 baht per trip, excluding lodging and airfare. This marks a rise from 11,000 baht in 2019, supporting the prevailing confidence.

The changing dynamics of Chinese tourism in Thailand are underscored by a substantial rise in independent travelers, accounting for 86% during the initial six months of 2023, as opposed to 61% in 2019. In addition, there has been a slight increase in the average duration of visits to 7.9 days, highlighting a subtle change in travel trends.

Thailand emerged as the most favored choice for Chinese travelers within the same time frame, attracting 3.3% of outbound visitors. Nevertheless, this dataset does not include Hong Kong and Macau, which together represented 78% of the total number of visitors from mainland China. Japan and Singapore each held a market share of 2.5% and 1.8%, respectively.

Chuwit Sirivejkul, the TAT Regional Director of Marketing for East Asia, admitted that recent news stories, including incidents with Chinese beggars on the streets and a shooting at Siam Paragon, have influenced the attitudes of Chinese people who have not yet traveled to Thailand. This is especially true for those living in less prominent cities.

In the future, the Tourism Authority of Thailand (TAT) is certain that there will be a positive recovery in the number of Chinese tourists visiting the country. They have set a goal of attracting 8.2 million Chinese visitors in the next year, which is expected to generate an economic impact of 452 billion baht. This positive outlook is driven by expected growth in flying capacity and a more favorable economic environment.

With the government aiming for international tourism earnings of 2.5 trillion baht next year, Mr. Chattan highlights the TAT’s dedication to stimulating demand by relaxing travel restrictions, targeting high-spending tourists, and prolonging visitor stays across all markets. Airlines, notably Spring Airlines, are preparing for a rise in flight operations, anticipating an increase to 74 flights per week between Thailand and China starting in December, compared to the existing 52 flights per week.

The TAT intends to organize a media familiarization trip next month with the aim of improving the country’s attractiveness. Over 100 influential Chinese opinion leaders will be invited to participate in this trip, where they will have the opportunity to discover new activities and sites. Additionally, they will thoroughly evaluate the safety measures in place for tourists. These projects highlight Thailand’s ability to adapt to the constantly evolving dynamics of global tourism, demonstrating its resilience.