Chinese tourism law an opportunity for Thailand

The law introduced on October 1 bans Chinese travel agencies from offering unreasonably low-priced package tours, collecting commissions from tourists’ shopping expeditions and designating particular places to shop.

While locals and other tourists who have grown tired of Chinese tour groups spilling out of buses to block views and access routes may welcome the change, you can understand the concern of shops and hotels that make a lot of money off such groups, given the millions of Chinese tourists who come to Thailand each year. 

The Tourism Authority of Thailand (TAT) has already reported a drop in Chinese arrivals in October as the average price of Chinese tours to Thailand doubled.

However, on balance I see the new law as a great opportunity for the Thai tourism industry to attract a more affluent type of Chinese, who will pay more for accommodation, travel, food and shopping. 

Chinese tourists to Thailand last year spent an average of 

just Bt4,826 a day, reflecting 

the low-cost package options most of them choose for coming here.

The likely increase in average daily spending could well offset the fall in actual numbers, as the quality of Chinese tourists – particularly what the industry calls “foreign individual travellers” – rises. Overall spending may well increase.

The issue is certainly deserving of great focus, since China is now our biggest source of tourists. 

TAT expects four million Chinese tourists this year, up from 2.7 million last year, when they spent Bt105.94 billion. A lot of this year’s upsurge – particularly in the North – has been caused by the popularity in China of the movie “Lost in Thailand”, but underlying the growth are fundamental attractions such as short flights from China, easily obtainable visas and beautiful beaches. The new law won’t affect these.

And of course, the new law affects every one of Thailand’s competitors for the Chinese tourist dollar, so we won’t be disadvantaged against our rivals. Hong Kong’s South China Morning Post, for example, reported a few weeks after the law was introduced that sales for several shops specialising in Chinese tourists had fallen by as much as 70 per cent from a year ago. Reports from South Korea also suggest significant downturns.

My fervent hope – and that 

of many local industry leaders – is that the enforced shift away from visits focused on shopping will allow Chinese tourists to better appreciate the many attractions Thailand has to 

offer, encourage them to 

prolong their stay, and prompt return visits.

Vacationers from other countries, and Thais taking a domestic holiday, may also appreciate having a bit more elbow room at our most popular tourist spots.