Regaining a lucrative tourism market

According to China Trading Desk, Chinese outbound tourists are estimated to reach 155 million this year, a full resumption compared with pre-pandemic levels.

However, Chinese visitors to Thailand this year have declined sharply, mainly attributed to safety concerns following several incidents.

This situation has prompted both the public and private sectors to adopt new tactics to lure back Chinese tourists who are flocking to other destinations.

WHAT IS THE OUTLOOK FOR THE CHINESE MARKET?

Earlier this year, the Tourism Authority of Thailand (TAT) targeted 8-10 million Chinese tourists in 2025, but the goal was recently slashed to 6.7 million, the same level as last year.

During the first seven months of 2025, this market fell by 35% year-on-year to 2.68 million, though it was still the largest source market for arrivals, with Malaysia a close second.

Tour companies under the Association of Thai Travel Agents (Atta) served 398,168 Chinese tourists in the first seven months, a dip of nearly 60% year-on-year, highlighting the nosedive in tour groups.

Meanwhile, other Asian countries enjoyed steady visitor growth from the mainland. During the first half of the year, Japan welcomed more than 4.71 million Chinese visitors, up 53.5% year-on year, while Vietnam tallied 2.72 million, soaring 44.2%.

The Korea Tourism Organization (KTO) reported a 13.8% increase to 2.53 million, as Beijing in February announced a plan to lift the ban on Korean content for the first time since 2016.

Subramania Bhatt, founder and chief executive of China Trading Desk, said during the first half of this year, Chinese travellers made 66 million outbound trips, increasing 11% year-on-year.

Despite geopolitical and economic risks, the firm maintains its forecast of 155 million trips by Chinese this year.

Mr Bhatt said its data indicates the big dip in Chinese arrivals in Thailand was offset by trips to other destinations in Asia.

WHY HAS THAILAND LOST ITS APPEAL TO CHINESE TOURISTS?

Unlike other destinations, Thailand has been severely affected by travel safety concerns, driven by three events this year, said Adith Chairattananon, honorary secretary-general of Atta.

Chinese actor Wang Xing was kidnapped and taken to a scam centre near the border with Myanmar, an earthquake in March rocked Bangkok, and recent border skirmishes with Cambodia have concerned potential Chinese visitors, he said.

Even though travel agents retained their confidence about travel in Thailand, potential visitors sometimes take convincing as negative sentiment has gone viral on Chinese social media, said Mr Adith.

Many Chinese tour operators have adapted by selling packages to other destinations that are considered safer, as Thai tour packages failed to generate sales volume as expected.

He said Thailand also lacks new attractions and facilities, as well as attractive promotions to lure tourists similar to Chinese cities, Vietnam and Japan.

Japan offers convenient infrastructure and transport, and has strong plans to promote new cities and regions other than Tokyo, said Mr Adith.

Osaka, which is hosting the World Expo, expects a record high number of Chinese arrivals in the first half of 2025.

South Korea continues to attract Chinese travellers via its soft power, depending on well-known figures such as actor Park Bo-gum, the latest ambassador of the KTO.

Meanwhile, Vietnam is attractive because of its fresh tourism products and more affordable prices compared with Thailand, he said.

Dragon Trail International polled 280 Chinese travel agents between June 17-23 on outbound travel, with 61% responding outbound tourism this year improved from last year.

East Asia was the top region in the first half of the year, with 56% of travel agents selling tour packages to these destinations, while 36% reported their best sales were on these routes.

Western Europe overtook Southeast Asia as No.2 for tour packages, with 47% selling tour services to that region, compared with 44% for Southeast Asia.

Another Dragon Trail report about Chinese travel sentiment in April showed persistent safety concerns regarding visiting Southeast Asia, with the region dubbed the most affected by organised crime, particularly Thailand.

On a scale of 1 to 5, Southeast Asia scored 3.37 for travel safety and was the only region with a lower score than last year, down by 0.16 points. Northeast Asia and Europe earned the top two spots, scoring 3.87 and 3.82 respectively.

Around 51% of Chinese travellers viewed Thailand as unsafe, up from 38% in August 2024. Cambodia topped the rankings, as 58% of respondents viewed it as unsafe, while Vietnam was third at 48%.

Some 54% of respondents said travel safety assessments issued by Chinese authorities would make them feel safe, while 51% want to see safety improvement initiatives by the authorities of each country.

ARE THERE ANY RECOVERY SIGNS?

In another survey polling 16,569 Chinese travellers by China Trading Desk about outbound trips in the second quarter, Thailand rose to the No.5 preferred destination for travel, up from seventh in the first quarter.

To restore tourism confidence, last month Atta held a roadshow in three Chinese cities, and it cooperated with the Tourism and Sports Ministry and the TAT to host the “Sawasdee Nihao” event in June, inviting more than 400 travel agents to Thailand.

Following these two events, Atta expects a recovery for Chinese arrivals to gradually pick up over the next few months, including China’s Golden Week in October.

However, Mr Adith said it might take 1-2 years to fully restore travel confidence.

Edison Chen, vice-president of Trip.com Group, said Thailand is still among the top three destinations for Chinese tourists on its platform, following Japan and South Korea.

Mr Chen said this market on its platform is driven by the premium and independent segments. He said Thailand also attracts many repeat visitors.

As travel safety remains a top priority for all travellers, the Thai government has made an effort to restore tourism confidence and ensure travel safety, adding police personnel and eliminating illegal activities.

The border skirmishes with Cambodia have not affected independent tourist bookings on Trip.com, said Mr Chen.

However, with negative discussions about Thailand spreading quickly on Chinese social media, the authorities may need to work more on educating new visitors and repositioning Thailand in a more positive way, he said.

Regarding the fourth-quarter outlook, Trip.com remains optimistic about the growth of Chinese tourists in Thailand, said Mr Chen.

WHAT IS THAILAND DOING TO BOOST CHINESE ARRIVALS?

The government is increasing its efforts to increase foreign arrivals, including Chinese tourists, by offering 200,000 free roundtrip domestic flights via six Thai carriers, with a total budget of 700 million baht.

The scheme is expected to encourage those who haven’t planned to visit or have never visited Thailand.

However, the implementation of this gimmick scheduled for September to November might be delayed due to political reshuffling.

Encouraging tourists to visit second-tier destinations beyond Phuket and Bangkok, which is the goal of the scheme, is a smart idea, said Mr Chen.

“Some 70% of travellers are still very focused on Bangkok, Phuket and Chiang Mai. There are so many destinations that haven’t been well explored and developed for foreigners, especially Chinese travellers,” he said.

Another measure is the 750-million-baht “Summer Blast China & Overseas Market” promotion, which runs until July 2026. Focusing on Chinese and other Asian markets, it subsidises tour companies that plan to operate chartered flights, offering incentives for commercial flights and group travel that reaches a target level of customers.

The TAT is also preparing the Thailand Safe Travel Stamp to ensure safe travel standards and restore tourism confidence.

Source – Bangkok News