PUBLISHED: 26 Sep 2024 at 05:48
As Golden Week approaches on Oct 1-7, reports indicate a potential reduction in Chinese tourist arrivals. The stronger baht and economic slowdowns may restrain spending, forcing travelers to seek lower service prices.
Thanet Supornsahasrungsi, president of the Association of Chonburi Tourism Federation, warned that continued appreciation of the baht could negatively impact tourism. Some local travel agents are already negotiating discounts with Thai operators due to this situation.
In Pattaya, forward bookings from the Chinese market for Golden Week remain stagnant, as many tourists are favoring last-minute arrangements, contributing to a decrease in tour groups.
Suksit Suvunditkul, president of the southern chapter of the Thai Hotels Association, noted that the Golden Week in Phuket typically does not match the volume seen during the Chinese New Year, as October generally marks the low season for the island. Despite being a top market for Phuket, bookings for the upcoming holiday have not increased significantly.
Agoda’s travel data indicated a 137% year-on-year increase in international accommodation searches by Chinese travelers for Golden Week. However, Bangkok has lost its top five position, overtaken by Bali.
Insider reports suggest improvements in the Chinese market compared to last year, though expectations remain tempered. Economic uncertainties in China, including reduced salaries for civil servants and ongoing real estate issues, are impacting travel budgets.
Thailand is projected to receive around 30,000 daily arrivals from China during this holiday, a decline from the 40,000 daily arrivals recorded in 2019. Overall, the Chinese market is expected to reach 7.5 million this year, though spending levels are likely to remain stable.
The baht’s rise to a 19-month high against the dollar and its appreciation against other Asian currencies pose concerns for industry operators. A strong baht may shift perceptions of Thailand as a less appealing destination while travelers explore options like Japan.
To combat these challenges, the government should actively seek to enhance engagement with Chinese and other foreign markets, as fluctuating exchange rates and competition could adversely affect the upcoming high season.
