Thai tourist numbers set to soar with anticipated visa exemption for China

The Thai tourism industry is poised for a major increase, as an anticipated visa exemption for Chinese travellers may trigger a surge in foreign vacationers, based on Chinese government-owned Thai brokerage, CGS-CIMB Securities (Thailand). However, the agency predicts that the arrival figures for vacationers from China will still lag behind the 2019 statistics as a end result of economic challenges confronted by the mainland.
The slow visa application process has been recognized as a main barrier to Thailand’s tourism restoration this 12 months by the brokerage, which is 75% owned by China Galaxy International Financial Holdings.
The agency suggests that eliminating the visa requirement could immediate a large inflow of international tourists, significantly group travellers. The brokerage said in a research notice that now is the time for action.
“As regional competitors intensifies, it’s an opportune time for the brand new government to introduce measures to maintain Thailand’s economic restoration.”

China lifted its restrictions on outbound tour groups to several international locations, together with South Korea and Japan, final month. Meanwhile, next month, the Indian government will hike the outbound remittance tax from 5% to 20% for overseas excursions, encompassing funds for air tickets and motels, reported Bangkok Post.
The brokerage foresees a swift enhance in tourist arrivals from China and India if a visa exemption scheme is introduced by the model new government. In 2019, the mixed markets of both nations comprised nearly a third of Thailand’s complete overseas guests.
Based on the Tourism and Sports Ministry’s data, Thailand has welcomed 15.four million overseas vacationers in the first seven months of 2023. The securities firm forecasts tourist numbers this year will greater than double last year’s totals.
“We’re projecting international arrivals in Thailand to achieve 28 million this year, a big rise from 11 million in 2022.”

For 2024, the firm envisions 35 million arrivals, which might account for 85% of pre-Covid ranges.
However, the brokerage predicts only 6 million Chinese arrivals this 12 months, a pointy drop from the 11 million in 2019 said Patcharamon Cheevakrianggrai, CEO of CGS-CIMB Securities.
“Given the financial deceleration in China, primarily due to the property sector’s turbulence, Chinese vacationers may have a decreased budget for abroad journey,”

Nevertheless, the brokerage anticipates Chinese vacationer arrivals to rebound to 80% of pre-Covid ranges by early next 12 months. At the top of July, vacationer arrivals from China had been at 40% of the corresponding period in 2019.
List determine is anticipated to recuperate to 50 to 60% by the end of the third quarter and reach 60% in the final quarter as group travellers return and the visa course of is simplified.
The securities firm means that companies with vital business publicity to overseas tourism in Thailand, corresponding to Erawan Group, Central Plaza Hotel, Airports of Thailand and Minor International, are prone to benefit probably the most from this improvement..

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