Thai Bus Operators Challenge Illegal Competition
PUBLISHED: 26 Aug 2024 at 09:03
Thai bus operators are facing escalating competition from unauthorized foreign players, particularly from China, who are offering lower prices and utilizing nominees to operate illegally, according to the Thai Transportation Operators Association.
The association president highlighted that licensed bus companies are struggling to regain their market position after the pandemic, while illegal foreign operators are rapidly expanding their services to meet the growing demand from independent and high-end tourist groups, especially from China.
It was noted that some foreign nationals attempt to work as drivers by acquiring personal driver’s licenses or using international permits, even though driving remains a restricted job for Thai nationals.
Moreover, some foreign businesses use Thai nominees to register and operate their bus and van services, significantly undercutting prices to attract more customers. For instance, the typical fare for travel from Suvarnabhumi Airport to Pattaya is 7,000 baht, but unscrupulous operators have been reported to charge as little as half that amount.
These foreign operators often collaborate with hotels and restaurants, facilitating organized tour groups while evading local tax regulations through foreign payment applications.
The association’s president expressed concern that such practices divert tourist income away from local operators and into the hands of foreign entities.
Currently, only 13,000 to 14,000 tour buses are operational, a significant decrease from 40,000 in 2019, as many companies still struggle financially after the pandemic.
With the formation of a new cabinet on the horizon, the association is calling for stricter enforcement against illegal operations and for the government to regulate fuel prices in order to support local bus operators, who face high operational costs due to rising diesel prices.
