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Chinese tour operators enter 'hibernation mode' as Malaysian tourists to Thailand overtake China for first time in 13 years
BANGKOK: Thailand's tourism industry is grappling with a significant downturn in Chinese visitors, with many tour operators entering what industry leaders describe as "hibernation mode" as they await a market recovery expected by 2026.
The Association of Thai Travel Agents (ATTA) has warned that Chinese tourist arrivals this year will reach only five million people, with the majority coming for business rather than leisure purposes.
True tourist groups are estimated to represent just 20 per cent of arrivals, or approximately one million visitors.
The decline reached a symbolic milestone on June 6 when Malaysian tourists surpassed Chinese visitors to become Thailand's top source market for the first time in 13 years, since 2012.
Statistics from Jan 1 to 8 June show Chinese tourist arrivals totalling 2,029,481 people, whilst Malaysian visitors reached 2,041,002.
The shift follows ongoing safety perception issues that have plagued Thailand's image amongst Chinese travellers, particularly since the disappearance of Chinese actress Xing Xing near the Thai-Myanmar border in early January.
Sisdivachr Cheewarattanapor, Honorary President and Senior Advisory Chairman of ATTA, which represents 1,554 members including tour operators and tourism businesses, described the severe impact on the industry.
"Since the Xing Xing incident, Chinese tourist confidence has been affected for over five months," he told Krungthep Turakij.
"Some tour companies specialising in the Chinese market are in hibernation mode because there's no work, no tours coming in."
He explained that stronger companies are struggling to survive whilst hoping for recovery in the remaining months of this year and next year.
Weaker operators that relied exclusively on the Chinese market have been forced to suspend operations temporarily.
"Some companies have closed entirely," Sisdivachr noted. "They had reopened after Covid hoping the Chinese market would recover to pre-pandemic levels. Last year showed good travel momentum, but now with no customers, they've closed again to wait and see if the market recovers."
The tourism downturn is also affecting major property developers' investment strategies.
Wallapa Traisorat, CEO and Managing Director of Asset World Corp Public Company Limited (AWC), revealed that while the company's five-year investment plan worth 100 billion baht remains on track, adjustments may be necessary to align with global economic conditions.
"The economy may recover and improve in the next 2-3 years," Wallapa explained. "We're waiting for the right timing to continue investments and focusing on projects where we see market opportunities first."
AWC is concentrating its investments on destination model projects to strengthen the potential of both cities and the country by continuously attracting global partners.
Key projects include Wang Nakhon Kasem in Yaowarat, Aquatique Pattaya, Lanna Thique Chiang Mai, and The Ritz-Carlton Bangkok, The Riverside hotel project.
The company has notably adjusted the timeline for its ambitious Asiatique The Riverfront project, which originally planned to build Thailand's tallest 100-story building. - The Nation/ANN
