Thailand's proposed visa waiver for Chinese, Indian tourists sparks economic revival hopes, over-tourism fears
Thailand expects to welcome up to 30 million international tourists this year, nearly thrice the numbers last year though still lower than the 40 million received in pre-COVID 2019.
Tourists arrive for an hour-long visit to Maya Bay beach through a new pier constructed over a reef in Loh Samah Bay beach at the Phi Phi Island National Park, on Phi Phi Leh Island, Krabi province, Thailand, February 23, 2023. On any given day in Maya Bay, up to 40 blacktip reef sharks cruise in the cyan shallows while about 4,000 tourists visit its white-sand beach flanked by towering cliffs. After a tourism ban and the COVID-19 pandemic between 2018 and 2022 halted all visitors to the bay, authorities allowed limited tourism to resume in 2022. Now conservationists say shark numbers are thinning out again, leaving Maya Bay struggling to strike a balance between preserving a pristine ecosystem and sustaining livelihoods dependent on tourism. REUTERS/Jorge Silva
BANGKOK: Plans by Thailand’s new prime minister Srettha Thavisin to waive visa requirements for tourists from China and India have sparked hopes of reviving the country’s sluggish economy as well as fears of over-tourism and environmental damage among some.
Tourism operators and analysts are confident the visa waiver will accelerate the industry’s recovery and help Thailand achieve its targets for tourist arrivals, as they cite the lengthy visa application process as one of the bottlenecks in tourism export.
In the first half of this year, the average waiting time for a Chinese visitor to obtain a tourist visa to Thailand was nearly 15 days, according to market analysts at Kasikorn Securities.
The visa allows them to stay in Thailand for up to 60 days and the application must be done individually.
Both Chinese and Indian tourists can also apply for a visa on arrival – that costs THB2,000 (US$57) and allows them a 15-day stay – but there are several requirements to meet.
There is talk – or hope – that the new government under Mr Srettha could successfully implement the plan before Thailand’s peak season begins in November, which will see Chinese and Indian holidayers avoiding the hassle of getting a tourist visa.
“By facilitating the visa process, we don’t have to invest anything but get to solve a key pain point,” Tourism Council of Thailand president Chamnan Srisawat told CNA.
“This can increase the number of tourists quickly,” he added.
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A CHEAP FIX FOR SLUGGISH ECONOMY
Thailand expects to welcome up to 30 million international tourists this year, nearly thrice the numbers last year though still lower than the 40 million received in pre-COVID 2019.
Its tourism sector is slowly recovering from the COVID-19 pandemic, which has seriously damaged the economy and almost paralysed global travel.
The Thai prime minister, who had first revealed the proposed plans on Aug 25, emphasised five days later how tourism can play a key role in the country's short-term economic re vival, as he disclosed that talks had been held with related sectors.
Mr Srettha said he had discussed development plans, support and security in regard to tourism during his recent visit to southern holiday destinations Phuket and Phang Nga, adding he hopes for “a positive response” from all sectors.
He added that the proposed visa scheme has received support from Chinese diplomats in Thailand.
While China has lifted pandemic-induced restrictions on overseas group tours since January, its economic slump in recent months has reportedly caused hesitation for Chinese consumers looking to travel abroad.
Although the situation does not bode well for tourism-dependent Thailand, analysts believe the country is still in a good position to tap on the Chinese market – especially if the new Pheu Thai-led government implements the visa exemption scheme promptly.
Economist Ratasak Piriyanont from Kasikorn Securities expects the initiative would be rolled out in time for the week-long national holiday in China beginning on Oct 1, when many Chinese are likely to travel overseas.
“The Pheu Thai Party and Mr Srettha want to boost the economy but they are limited by the draft budget bill, which was initially approved by the previous government. The new administration may revise it but they wouldn’t finish it in time,” Mr Ratasak said.
“So, which method can they use to stimulate the economy while using the least amount of money? This one.”
THE MOST POPULAR FOREIGN TOURISM DESTINATION FOR CHINESE
Thailand was the most popular foreign tourism destination for Chinese travellers in the first half of 2023, according to the China Tourism Academy.
Between January and July, the country welcomed 15.4 million international tourists and about 1.9 million of them came from China.
Although the numbers are no match for how they were before the pandemic, tourism operators see a bright outlook for the industry which injects billions of dollars into Thailand’s economy each year.
“Chinese people haven’t been able to travel overseas comfortably for many years already and there are pent-up demands for visits to Thailand,” said Mr Chamnan.
In pre-pandemic 2019, tourism generated USD86.3 billion for Thailand and made up about 18 per cent of its GDP. This included USD55.5 billion from almost 40 million international tourists, and nearly 30 per cent of them were Chinese.
Indians made up about 5 per cent of the total foreign tourists in the same year and contributed USD2.3 billion to the economy. Despite being smaller in size, the Indian market remains significant for Thailand’s tourism.
Noting that there were nearly two million Indian tourists in 2019, Mr Ratasak from Kasikorn Securities said the group only made up 0.1 per cent of India’s 1.4 billion population.
“This means there is a strong chance that more of them would travel here,” he added.
STAY COMPETITIVE WITH SUSTAINABILITY EFFORTS
Last year, Thailand managed to record 11.15 million foreign visitors, exceeding its target despite the lingering impact of COVID-19.
With its number-one priority being economic revival, industry players are optimistic that the new government under Mr Srettha will place significant focus on tourism, and that the visa waiver will help increase the number of foreign visitors.
“Seamless travel makes a more attractive destination,” said Paul Pruangkarn from the Pacific Asia Travel Association (PATA).
Still, he does not foresee a sudden influx of Chinese tourists due to the current economic challenges facing China as well as high airfares and hotel rates.
The visa waiver could help increase arrivals to a certain extent, he added, but the real factor that would generate a sharp rise is the Chinese domestic economic situation.
According to Mr Pruangkarn, China is a source market for countries in the region and they too want to attract more Chinese tourists.
To stay competitive, he said Thailand should market its sustainability efforts and develop medium to long-term plans to make sure it remains an attractive destination for travellers, who are becoming more socially conscious when making travel decisions.
“If they see a crowded destination, they’re going to most likely say ‘You know what, I’m going to avoid Bangkok. I’m avoiding Phuket.’. Environmentally, if it just looks horrible, they’re going to avoid it,” he explained.
Currently, tourists from 57 countries and territories can enter Thailand and stay up to 30 days without a visa. There are currently no countries in the Southeast Asian region with visa exemption for Chinese tourists.
PROCEED WITH CAUTION
According to Mr Srettha, a former property tycoon, talks about immigration and capacity of terminals and runways had also been held with Airports of Thailand Plc in preparation for increased arrivals.
“We strongly hope that tourism will be the quickest way to open doors for great income for Thailand during the high season, which is approaching,” the Thai prime minister wrote on Facebook on Monday.
Nevertheless, the visa waiver plan has rekindled concerns among market observers. They caution that the incentive could bring back over-tourism and further damage the environment – problems that already existed before the pandemic.
“Industry stakeholders should be aware of that – the environmental damage that would come with over-tourism, the congestion that would happen, the traffic. Does Thailand have the capacity to handle that?” said Mr Pruangkarn.
Still, he acknowledged the country’s urgent need to recoup the massive losses caused by the pandemic, urging stakeholders to think strategically how tourism can stimulate the economy and benefit the local communities and the environment at the same time.
“There is no one solution that fits all,” he said.
