BANGKOK: In a strategic move aimed at augmenting tourism revenue to a staggering $100 billion in the forthcoming year, Thailand is reportedly deliberating the prospect of easing visa regulations for travelers hailing from China and India. The new Prime Minister, Srettha Thavisin, is orchestrating potential changes to extend the duration of stays for visitors from diverse nations, while concurrently mitigating the onerous visa-application process that has curtailed Chinese visitor numbers this year.
The paramount significance of the Chinese demographic, which constituted the largest cohort of tourists prior to the pandemic, renders this deliberation a pivotal strategy in bolstering tourism-driven economic growth. Presently, the Chinese populace contends with an intricate and financially burdensome visa-application procedure, which has been a significant deterrent to travel this year. Simultaneously, travelers from India bear a 2,000 baht ($57) fee for a 15-day visa upon arrival.
Srettha is inclined towards broadening the scope of visa-exempt nations and extending the duration of stays for international travelers, with a limit of 15 to 30 days, contingent upon their nationality. These deliberations unfolded during consultations with Airports of Thailand Pcl executives and several airlines on Monday. The impetus behind these measures is to catalyze an influx of foreign visitors during the fourth quarter, typically marked as the peak tourism season.
Striving to augment revenue from foreign tourists to an impressive 3.3 trillion baht in the upcoming year, the new government perceives the travel industry as a potent short-term economic stimulus. This sector accounts for approximately 12% of the gross domestic product (GDP) and a significant fifth of the nation’s employment, as evidenced by Bank of Thailand data.
The proposition of abolishing visa application fees, espoused by the Phuket Tourism Association’s president, Thaneth Tantipiriyakij, resonates as an optimal strategy for invigorating tourism. Thaneth conveyed this sentiment to the Prime Minister during a recent conference with leaders from the travel sector. His assertion is that visa fee exemptions would yield swift dividends for tourism. The recovery rate of Chinese arrivals remains at a modest 30% in Phuket, reflecting the profound impact of the stringent e-visa prerequisites introduced in May.
Despite a forecasted upsurge in foreign tourist arrivals reaching approximately 30 million in 2023, almost tripling last year’s tally, the return of Chinese tourists has been notably sluggish. This phenomenon is partly attributed to stringent e-visa requirements and the nation’s reliance on tourists from economically sensitive lower-tier cities. These factors combined with China’s fluctuating economic climate have collectively contributed to the decline.
To offset these challenges, Thaneth suggests augmenting flight availability to Phuket and Krabi provinces and extending visa durations for tourists hailing from Belarus, Kazakhstan, and Russia, demographies known for higher expenditure patterns.
While Prime Minister Srettha’s endeavors are commendable, analysts opine that the efficacy of these supply-side responses hinges upon the demand-side conditions, particularly given the evolving economic outlook of China.
Source, Bloomberg
