Monday, August 26, 2024 Thailand’s tourism industry is experiencing a significant boost, thanks to the introduction of a new visa-free policy that has drawn millions of international tourists. This policy has particularly resonated with Chinese visitors, who now make up the largest group of arrivals. However, beneath this surge in tourism lies a growing concern: the revival of Chinese zero-dollar tours, which could potentially siphon off much-needed revenue from the Thai economy.
Between January 1 and August 18, Thailand saw an impressive influx of 22,474,172 international tourists, contributing a remarkable 1.05 trillion baht to the nation’s economy. Among these tourists, Chinese visitors led the charge, with 4,555,262 arrivals, closely followed by tourists from Malaysia, India, South Korea, and Russia.
Despite these impressive numbers, there are fears that the economic benefits may not be as widespread as they appear, particularly for local Thai businesses. The crux of the issue lies in the resurgence of zero-dollar tours, a practice where foreign tour operators manipulate Thai laws to gain market dominance. These operators, often through Thai nominees, undercut local businesses by offering tours at unsustainably low prices, sometimes even at a loss.
This aggressive strategy not only undermines Thai competitors but also threatens the broader economic gains from tourism. Minister of Tourism and Sports, Sermsak Pongpanich, has emphasized the government’s awareness of this problem and its commitment to addressing it. The government is taking steps to curb the impact of zero-dollar tours, recognizing that while the influx of tourists is beneficial, it is equally important to ensure that the economic benefits are distributed fairly and support local enterprises.
The challenge for Thailand now is to balance the benefits of its booming tourism sector with the need to protect its economy from practices that could undermine long-term growth. While the visa-free policy has been a significant draw for tourists, it also highlights the importance of regulatory vigilance to prevent exploitation by foreign operators. As Thailand navigates this complex landscape, the government’s actions will be crucial in ensuring that the country reaps the full benefits of its tourism boom, not just in terms of visitor numbers, but also in the economic prosperity it brings to local businesses and communities.
Sermsak also disclosed that there are ongoing talks with the Chinese government aimed at resolving the concerns surrounding this issue. These discussions are part of a broader effort to ensure that the benefits of Thailand’s booming tourism sector are not undermined by practices that could harm the local economy. By engaging directly with Chinese authorities, Thailand hopes to find a collaborative solution that curbs the negative impact of zero-dollar tours while still welcoming Chinese tourists.
This diplomatic approach underscores the importance of international cooperation in maintaining the integrity of Thailand’s tourism industry. On the domestic side, the Tourism Authority of Thailand (TAT) remains confident in reaching its ambitious goal of 200 million domestic trips by 2024, with the potential to inject 1.08 trillion baht into the economy.
To achieve this, TAT has launched initiatives like the FLASH DEAL campaign and the Super Deal, which involve collaborations with airlines to stimulate travel. These efforts aim not only to meet but exceed targets, with projections of reaching 210 million trips and generating 1.2 trillion baht in revenue, according to a report by KhaoSod English.
Somrudi Jitjong, TAT’s Deputy Governor for Domestic Marketing, expressed optimism that domestic tourism is well on its way to surpassing the levels seen in 2019. This confidence is bolstered by the success of ongoing campaigns and the steady recovery of the travel sector across the country. The momentum behind these domestic tourism initiatives reflects a broader strategy to fortify Thailand’s economy by encouraging local travel.
With continued efforts and strategic partnerships, TAT is not only looking to meet its targets but also to set new benchmarks for the future of domestic tourism in Thailand..
