Tour Operators in China Adopt a 'Lie-Low' Strategy as Thailand's Tourism Sector Holds Its Breath for Revival
Troubles in Thailand: The Plunge of Chinese Tourists and Struggling Tourism Sector
Thailand's tourism industry is facing a severe crisis as the number of Chinese visitors plummets, causing dozens of tour operators to enter a survival mode.
The Association of Thai Travel Agents (ATTA) has forecasted that Chinese tourist arrivals in 2025 will reach 5 million, with only a fifth consisting of genuine vacationers, amounting to 1 million visitors.
In a shocking turn of events, Malaysia has overtaken China as Thailand's top source market for the first time in 13 years, since 2012. From January to early June, Malaysian visitors totaled 2,041,002, compared to 2,029,481 Chinese tourists.
This shift is due to lingering safety perception issues that have gripped the minds of Chinese travelers, particularly since the mysterious disappearance of Chinese actress Xing Xing near the Thai-Myanmar border in January.
Industry in Turmoil
Sisdivachr Cheewarattanapor, the Honorary President of ATTA, disclosed the intense blow to the industry, stating, "Since the Xing Xing incident, Chinese tourist confidence has remained low for over five months. Many tour companies specializing in the Chinese market are in hibernation mode because there's no work, no tours coming in."
He added that even the more robust operators are fighting to survive, while their weaker counterparts have had to temporarily shut down their operations. "Some companies have closed entirely," Sisdivachr admitted. "They reopened after COVID-19, expecting the Chinese market to recover to pre-pandemic levels, but now, with no customers, they've shut down again, waiting to see if the market recovers."
Tourism Downturn Impacting Major Developers
The tourism downturn has also affected major property developers' investment plans. Wallapa Traisorat, CEO and Managing Director of Asset World Corp Public Company Limited (AWC), revealed that while the company's 5-year investment plan, worth 100 billion baht, remains on track, adjustments may be necessary due to global economic conditions.
She explained, "The economy might recover and improve in the next 2-3 years. We're waiting for the ideal timing to continue investments and focusing on projects where we see market opportunities first."
Renewal Strategy for AWC
AWC is focusing its investments on destination model projects to strengthen the potential of both cities and the country by 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.
However, AWC has delayed the timeline for its ambitious Asiatique The Riverfront project, which initially aimed to build Thailand's tallest 100-story building. "We originally looked at opening around 2029-2030, but now we want to wait for the right timing," Wallapa confirmed. "We're not rushing this."
Meanwhile, AWC intends to open the Jurassic World: The Experience project at Asiatique first to entice family tourists during this challenging period.
Shifting Tourist Traffic
As Chinese tourists reduce their visits to Thailand, they are instead opting for destinations like Japan, South Korea, Vietnam, Malaysia, and Singapore.
ATTA believes Thailand's safety perception problems have persisted for a prolonged period and demand urgent government intervention to restore travelers' trust. "Some people think they can get away with anything in Thailand as long as they have money," Sisdivachr pointed out. "Government agencies need to clear this up to build confidence."
He advocated for diplomatic cooperation between nations, given the 50th anniversary of Thai-Chinese diplomatic relations in 2025.
Complete Recovery Dependent on Charter Flights
The association is urging the government to support charter flights from China as they believe it is crucial for market recovery. "Charter flight promotional measures from China will serve as the catalyst to reinvigorate the market," Sisdivachr emphasized. "China is a vast market with numerous tourists. If we do nothing and allow the Chinese tourism market to recover naturally, it will occur slowly."
He emphasized that Chinese travelers, who are unfamiliar with Thailand, may be easily deterred by negative Facebook rumors, choosing alternative destinations instead.
Thailand faces an immediate threat of permanently losing its crucial Chinese tourism market if no immediate action is taken during the third and fourth quarters of 2025. The cautious approach being taken by major developers like AWC reflects the broader uncertainty facing Thailand's tourism-dependent economy as it navigates this precarious period.
- TAGS:
- Thailand
- Tourists
- Chinese tourists
- tourism
- Association of Thai Travel Agents (ATTA)
- AWC
- The plunge of Chinese tourists has led to a struggle for survival among many tour operators in Thailand, as investigated by the Association of Thai Travel Agents (ATTA).
- The tourism crisis in Thailand has also impacted major developers, such as Asset World Corp Public Company Limited (AWC), which may need to adjust their 5-year investment plans due to global economic conditions.
- As a result of safety perception issues, Chinese tourists are increasingly opting for destinations like Japan, South Korea, Vietnam, Malaysia, and Singapore, effectively shifting the flow of international travel.
- The Association of Thai Travel Agents (ATTA) advocates for diplomatic cooperation and charter flights from China to reinvigorate the market and restore traveler trust, as the complete recovery of the Thai tourism industry may depend on their success in the third and fourth quarters of 2025.
