New benchmark price for Chinese tourists

New benchmark price for Chinese tourists

Members of the Tourism Council of Thailand (TCT), which includes the Association of Thai Travel Agents (ATTA) and the Thai-Chinese Tourism Alliance Association (TCTA), have agreed that the minimum price per person for Chinese tour packages should be 1,000 baht per day.

The Tourism and Sports Ministry will discuss the implementation of this benchmark price in talks with the China National Tourism Administration (CNTA) today.

"We hope the minimum price will help tour agents thrive and stop depending on attracting Chinese tourists with zero-dollar tour packages," said TCT president Ittirit Kinglek.

The minimum price is expected to cover tour agents' expenses as well.

According to the Tourism Department, Chinese tourists stay in Thailand for an average of five days, and spend about 1,000 baht per day on accommodation, food and transportation.

Previously, a zero-dollar tour package was sold for 999 baht, and tour operators would attempt to lure Chinese tourists towards purchasing optional tours and expensive souvenirs. Some tourists who refused to acquiesce were abandoned along roadsides, and many lodged complaints with the Thai tourist police.

"If both sides can finalise talks and impose measures to resolve the problems of zero-dollar tours before the end of this month, we can expect more Chinese tourists to visit Thailand again during National Day week in early October," Mr Ittirit said.

Early this month, the Anti-Money Laundering Office confiscated more than 2,000 coaches and over 4.7 billion baht in cash from OA Transport Co in Lat Krabang district. It was reportedly the country's largest zero-dollar tour network.

The crackdown has since had an adverse impact on Thai tourism, with September seeing a dip in the number of Chinese tourists.

TCT had predicted Thailand would host 10.2 million Chinese tourists in 2016, of which 6 million would arrive on zero-dollar tour packages.

TCT expects the Tourism Confidence Index will increase to 102 points in the fourth quarter, from 98 points in the third quarter, due to political stability and higher consumer spending.

They also called on the government to increase the minimum annual vacation leave for private companies from 6 days to 8 days. Two more vacation days a year will allow office workers to travel domestically, and increase domestic tourism by 6-7%.

Apart from local factors, international factors such as falling oil prices, the weak baht, and the possibility that the US Federal Reserve will raise interest rates, have contributed towards improving Thai tourism.

TCT expects foreign tourist arrivals in the fourth quarter will increase by 17.8% to 9.15 million.

The total number of arrivals by the end of the year is projected to reach 33.9 million, up 13.6% from last year's 29.8 million, and generate 1.74 trillion baht in revenue.

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