Breaking down the borders

The decision by the Thai and Chinese governments last Friday to discuss the waiving of visas for visitors from each country has come as no surprise to Thai and Chinese tourist operators. 

“Waiving visas is inevitable because the number of Chinese tourists to Thailand is really big,” says Vichit Prakobgosol, honorary director for the Thai-Chinese Tourism Alliance Association and chairman of travel service consultancy CCT Group.

Lower costs and greater convenience will encourage more Chinese tourists and investors to visit Thailand, adds Vichit, whose company estimates it will receive 300,000 Chinese tourists this year.

Vichit believes about 5 million Chinese will visit Thailand next year if the waiver policy comes into effect in 2014.

China is now the biggest source of tourists to Thailand, with about 3.22 million Chinese visiting in the first eight months of 2013, up 88.42 percent over the same period of 2012, according to the Tourism Authority of Thailand.

If 2 million Chinese tourists come to Thailand per year on a 15-day visa that costs US$25, Thailand could earn more than Bt1 billion a year in visa fees alone, according to the Bangkok-based TTR Weekly.

Wang Dong, a Chinese businessman in Bangkok, says that saving time is more important than saving money, and offers better scope for business.

“The Thai visa is not as difficult or expensive to get but as a frequent visitor who lives in a small city, I have to hire a travel agency to help me mail my documents to the consulate in Shanghai. It’s a nuisance,” he says

Currently, only the Thai embassy in Beijing and consulates in seven other big cities including Shanghai and Guangzhou can process visa applications in China. With today’s young generation enjoying spontaneous and independent trips, a visa exemption will give them the perfect excuse to come to Bangkok for a long weekend, notes Zhang Guangrui, director of the tourism research centre with the Chinese Academy of Social Sciences.

Song Meidan, the manager of a Beijing-based travel agency, echoes Zhang’s views but adds that the package tour business will benefit less from the policy because Thailand already offers visas on arrival and China’s newly released tourism law has dampened the booming trend.

China’s first tourism law, which came into effect on October 1, bans travel agencies from offering rock bottom prices but adding hidden costs such as mandatory shopping outings.

In response, the travel agencies raised tour package prices and lost many potential clients. “One reason for Thailand’s popularity among the Chinese is its low cost. If it was as expensive as a trip to Europe, which do you think people would choose?” Song asks.

However, Vichit notes that most Chinese still prefer group tours when they travel to a country for the first time.

“Only 20 million Chinese tourists visited Thailand over the past two decades, while 400 million Chinese can afford to travel overseas now. For Chinese in second- and third-tier cities, package tours are still the top choice,” he says.

Kanjana Boonsopa, who works with a Bangkok hotel, says she would like to see more Chinese visitors. “It’s good for business,” she says.

Chutinunta Agukrikul, marketing director of the Central Department Store agrees. “We would certainly welcome even more Chinese shoppers to our store.”

Pu Yue, production manager of Ctrip's tourism department, predicts more than 20,000 Chinese travellers will visit Thailand using its services this year. The agency does not feel pressure regarding supply because the tourism industry is optimistic that Thailand's tourism resources, such as flights and accommodation, will continue to grow.

Vichit says that Thailand has to better prepare itself to welcome more tourists through such methods as developing high-speed trains and strengthening security and sanitary works.

“Waiving visas is not just a technical procedure but shows a high-level of trust and friendliness between two countries, which will make the two peoples feel comfortable in each other’s countries,” he says.