When the tour boat Phoenix capsized and sank in rough seas off Phuket on July 5, the lives of hundreds of Chinese people changed forever as they dealt with the loss of 47 loved ones.
There was sorrow in the immediate aftermath of a tragedy that was completely avoidable, followed by anger over insensitive remarks by Deputy Prime Minister Prawit Wongsuwon. In the weeks that followed there has been soul-searching throughout the country's tourism industry.
The Phoenix disaster has had a severe short-term impact on Chinese arrivals. That is forcing the industry to take a hard look at itself and ask what needs to be done to win back the trust of Chinese visitors.
The stakes are high, given that China accounts for almost one-third of the 35 million foreign travellers who visit Thailand each year. It could be said that the industry was becoming complacent -- with 10 million-plus Chinese and their money descending on Thailand each year, prosperity was assured.
But these days it takes only one careless remark, compounding the already severe impact of a human tragedy, to set off a social media storm and tour cancellations by the thousands.
Gen Prawit, claiming that Chinese investors were using Thai nominees to operate tour businesses in Phuket, said something he would live to regret. "This accident was entirely Chinese harming Chinese," he told local reporters in Bangkok on July 9.
The state-run China Daily called his remarks "provocative and irresponsible", and Gen Prawit quickly became a whipping boy on WeChat and Weibo -- one poster called his comments "disgusting and chilling". He apologised but the damage was done.
Calls for a boycott of Thailand spread like wildfire on Chinese social media platforms. Bookings fell by 80-90% at famous Patong beach and by half across Phuket immediately after the incident. The knock-on effect was felt beyond the hotels by hundreds of related businesses from shuttle bus operators to restaurants and souvenir sellers. With each Chinese tourist spending some 20,000 baht visit, the financial damage adds up fast.
According to the Tourism and Sports Ministry, 600,000 Chinese tourists cancelled trips to the country last month, representing 37 billion baht in lost revenue. The number of Chinese arrivals is expected to drop by 5-8% to between 900,000 and 930,000 this month, with spending off 4% to about 53 billion baht. In July, Chinese arrivals plunged by 26% from a year earlier.
Chinese tourists pose for pictures at the Temple of the Emerald Buddha in Bangkok. Photo: Wichan Charoenkiatpakul
SAFETY ISSUES
The fact that 47 of their countrymen lost their lives in one of the worst sea tragedies in Thai history has underlined the growing concern Chinese travellers have about safety. According to the largest outbound service provider in China, Ctrip, safety and security has become their number one concern in recent years.
In a survey it conducted with the China Tourism Academy (CTA), Ctrip said that accidental injury, loss of personal belongings, document applications and language barriers were listed as the top four problems outbound travellers confronted.
The information emerged from the 2,191 requests for assistance Ctrip received on its Global Travel SOS platform in 2017, with 82% of them from people travelling abroad.
Travel from China is poised to keep growing at a staggering rate and that is compelling service providers to do a better job of learning how to serve this huge market. Currently, less than 10% of China's population travel overseas and only 10% hold a passport compared to 40% who hold passports in the United States.
A sign in Thai, Chinese and English warns tourists to avoid swimming on Sai Noi Beach in Hua Hin, where a tourist was bitten by a bull shark earlier this year. Photo: Thiti Wannamontha
Outbound visits by Chinese residents reached a record 129 million in 2017, an increase of 5.7% from 2016, generating revenue of US$116 billion, up 5%. Their spending per capita of 5,800 yuan ($850) per trip was up 7%, CTA revealed.
Surveys also show a new set of travellers emerging from new first-tier cities besides the four major exit ports of Shanghai, Beijing, Guangzhou and Shenzhen.
The number of outbound tourists from Chengdu increased by 75% last year, ranking it third overall. Shenzhen was fifth while Xi'an and Changsha were dark horses and also witnessed a surge.
Thailand remains the favourite destination in the world for Chinese travellers (see chart), but keeping that ranking will require a renewed commitment to safety and improvements in other services.
The Ctrip survey also showed that Chinese outbound tourists ask for help when they lose their passports, have a fever or diarrhoea, lose their mobile phones or have a cold. This suggests that something relatively inexpensive such as a Chinese-language telephone hotline or app for tourists could create a lot of goodwill.
Prime Minister Prayut Chan-ocha comforts a relative of one of the 47 Chinese visitors who died in the sinking of the tour boat Phoenix off Phuket last month. Photo: GOVERNMENT HOUSE
MISPERCEPTIONS
The World Tourism Organization (UNWTO) recommends that national tourism organisations and others in the industry evaluate whether their local services and infrastructure are really ready for Chinese tourists. That involves learning who they will be serving.
There is a common perception that most Chinese tourists, apart from millennials, only follow tour groups and only go to hotels, restaurants and souvenir shops that Chinese travel agencies take them to. This is true to a certain extent but things are changing rapidly.
The Ctrip-CTA report shows that quality of accommodation and services, rather than shopping and sightseeing, were given more weight by Chinese tourists last year. Islands with clean air are becoming even more popular, given the pollution in major cities back home. Now 30% of Chinese outbound tourists chose islands as their destination.
Tailor-made and thematic tours are also becoming popular, with tourism websites and mobile apps an important channel for queries and bookings. While the Ctrip-CTA report says group tours are still popular, especially from smaller cities, independent outbound travel is becoming a strong trend. Among the millions who book trips through Ctrip, half select group tours and half go it alone.
More and more Chinese tourists of all ages are also selecting tailor-made and private group tours over large tour groups, booking online and finding their own trip planners and local guides. Ctrip said its own tailor-made travel and local guide platform witnessed an annual increase of 220% in visits last year.
Among all Chinese outbound travellers last year, 44% were group travellers, 42% individual travellers, and 14% used guides or joined private groups.
While Thailand and Japan remain the two hottest destinations for Chinese tourists, Singapore is not far behind, recording a 50% increase last year, while the number of Chinese arrivals to Vietnam increased by 127%.
Chinese tourists walk past a sign indicating a safe swimming area on a beach in Phuket. Photo: Walailak Keeratipipa tpong
Other fast-rising destinations include Turkey, Germany, Spain, the UAE, Italy, the Philippines, Australia, France and Egypt
Chinese tourists are becoming more sophisticated, with increasingly diverse and individualised demands, according to a 2017 UNWTO report titled "Penetrating the Chinese Outbound Tourism Market". Millennials, who make up the bulk of the independent traveller market, have demonstrated some unique characteristics. Notably, they perceive travel as more for enjoyment and gaining an authentic life experience than as a quest for products to be purchased.
The report reveals that Chinese tourists born in the 1980s enjoy showing off among friends the local food and beverages they have tasted, while the 1990s generation mainly enjoys posting selfies through social media. Chinese millennials also want products and services that are "smaller, faster and more flexible", and the internet is indispensable while they are on the road.
The UNWTO says this independent traveller market "has expanded greatly in the past decade" and is reaching increasingly distant destinations across Southeast Asia, Africa, North and South America and even the Polar regions.
Outbound self-driving tours are growing rapidly, so making an appearance on Google Maps is now a must for tourism businesses seeking Chinese customers.
Independent Chinese travellers also have a higher demand for convenience. Simplified visa applications and direct air connections make a destination more attractive.
Tassapon Bijleveld, executive chairman of the budget carrier Thai AirAsia, said direct flights from Thailand to China have surged "tremendously" in the past five years. Last November the company introduced two new routes, Don Mueang-Chengdu and Phuket-Kunming, bringing its total Thailand-China network to 22 routes across 14 cities.
"There is no doubt that they are our main customer," he told Asia Focus. "Last year we had around 1.2 million Chinese customers using our airline when compared to the total of 9 million Chinese tourists that visited Thailand. That means we hauled around 15% of all Chinese tourists to Thailand last year."
In the past five years, the airline has introduced Chinese-speaking staff for all its China flights.
"Some might think that Chinese tourists don't know what they're doing and seem awkward when they are travelling outside their country, but we know that if we can communicate with them correctly and clearly so that they understand, then such behaviour will not happen," Mr Tassapon said.
At first, the carrier had only Chinese staff available and faced difficulties moving them to Thailand. Consequently, it decided to recruit Thai people who can speak Chinese and train some of its own staff instead.
Other promotions for Chinese flyers include the use of boarding passes to get discounts at Bangkok department stores and duty-free shops.
Apart from direct flights, portable WiFi, portable power sources and selfie sticks have made it into the top 10 of Chinese independent travellers' must-pack lists, according to the UNWTO. This shows how much Chinese millennials care about sharing their experiences online. Thus, having an exhibit or a corner for them to take pictures is recommended for hotels or restaurants.
In Bangkok, Tawandang German Brewery with its huge brewing vats in front of the restaurant has emerged as a favourite with Chinese travellers, said owner Supoj Teerawattanachai.
"Chinese tourists are now a big part of our customer base. There are tour groups of various sizes that come to our restaurant here in Ram Intra and they like to come at the beginning of the night. They like to come because of the Thai foods mixed with the German beer that we serve. The show also provides them with a new experience," he told Asia Focus.
"We have adjusted the taste of some of the food to better suit the Chinese palate as well because food is culture. No matter if it's food or beverages, it has to fit the palate before somebody wants to eat it, right?"
This practice of creating targeted and differentiated products fits in with the recommendations from the UNWTO, which include studying and appreciating the characteristics of various sub-markets among Chinese travellers.
For destinations that are relatively new to Chinese tourists, the UNWTO recommends that they work closely with Chinese partners to develop tailored packages that feature quality services. Chinese outbound tour operators and travel agencies will continue to play an important role and they are good intermediaries.