Hotels, tour agents fix gaze on China

Hotels, tour agents fix gaze on China

Strategies to cover all market segments

A group of Chinese tourists are greeted upon arrival at Suvarnabhumi airport. (Photo: Varuth Hirunyatheb)
A group of Chinese tourists are greeted upon arrival at Suvarnabhumi airport. (Photo: Varuth Hirunyatheb)

Spending among Chinese tourists has not been affected by the global economic slowdown as there is huge pent-up demand following a three-year hiatus, helping to stimulate the market, says a travel agent group.

Sisdivachr Cheewarattanaporn, president of the Association of Thai Travel Agents (Atta), said Chinese tourists coming to Thailand during this quarter were mostly individual travellers who haven't been affected by the sluggish economy.

However, Chinese tour groups, which were allowed to travel to Thailand since Feb 6, are only expected to account for 10% of the Chinese market in the first quarter, with the Tourism Authority of Thailand (TAT) estimating 300,000 arrivals from the mainland during that period.

Mr Sisdivachr said Thailand needs all segments of the Chinese market to help the bruised industry recover quickly and the Thai government should not hesitate to promote tour groups.

As of Feb 21, Chinese arrivals tallied 198,906 out of 3.6 million total foreign visitors this year.

He said tour groups might pick up in the third quarter this year as both Thailand and China are ramping up flights, as it takes time to increase seat capacity, leading to more affordable prices for tour groups.

Mr Sisdivachr said many Chinese agents have frozen operations as they could not recruit staff.

A similar problem persists in Thailand as tour operators struggle to find Chinese-speaking tour guides. The training process may also take time to build up sufficient manpower, he said.

With recent scandals such as the VIP police escorts and an assault on a Chinese tourist, Mr Sisdivachr said Chinese agents expressed concerns and urged the government to enforce the law to solve these problems.

Atta and the TAT kicked off their first China roadshow in three years this week. Some 61 tourism operators, including hotels, tour agents, airlines and destination management companies, joined the trips to Shanghai, Chengdu and Guangzhou.

Marisa Sukosol Nunbhakdi, president of the Thai Hotels Association, said Chinese tourists didn't spend on overseas trips for a long time and Thailand has an advantage because it is a preferred destination for them.

She said tourism strategies to lure high spenders, those unfazed by the economic impact and long-stay guests should be the priority for Thailand, including the Mice (meetings, incentives, conventions and exhibitions) segment, medical and wellness visitors, and millennials.

Chinese are also looking for new experiences, said Mrs Marisa, which could be an opportunity for Thailand to introduce secondary cities to this market, which will also help avoid congestion.

She said with more tourists visiting Thailand, the hotel industry faces a labour shortage, including therapists for spa services, which are popular among Chinese travellers.

Chinese guests are an important market for every hotel segment and a revival of that market will help push the occupancy rate back to pre-Covid levels, said Mrs Marisa.

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