Operators sceptical of VOA fee waiver
For some Chinese tourists, the new visa privileges may be less attractive than assurances of comprehensive safety and security in Thailand, say local tourism operators.
In an effort to boost tourism from the flagging China market, the government waived visa-on-arrival (VOA) fees for 21 nations, including China, from Nov 15 to Jan 13.
Tourists from China are a huge slice of the total at about 10 million last year, accounting for more than 30% of Thailand’s international arrivals.
But the industry started to feel the pinch after the July boat accident off Phuket that killed 47 Chinese tourists.
Kini Yang, president of White Horse Hotel Management Group, operator of Peace Land Hotel Bangkok, said the VOA incentive may not reclaim tourists in the short term, especially those from mainland China, because VOA is not the main concern for Chinese people.
In fact, they will consider safety and security paramount if they travel to Thailand. Chinese tourists have demanded that the government assure them of comprehensive, preventive safety measures.
“I think the VOA package will not attract many tourists from China this year,” Mr Yang said. “But they may return to Thailand next year or when they feel confident in safety.”
He said many Chinese tourists and operators in China are confused about the period of the VOA fee waiver. The cabinet earlier announced the incentive between Dec 1 and Jan 31, but the Royal Gazette later put the effective dates for the measure at Nov 15 to Jan 13.
Changing the implementation dates caused difficulties for tour operators in managing their tour packages.
HOTELS SUFFER
Dome Binsolem, manager of the Emerald Hotel Bangkok, said the number of Chinese guests at his hotel dropped after the tourist boat sank in July. Some tourists, however, have begun to return to the hotel since mid-November.
Average occupancy rate at the hotel fell from 70% before July to 50% in September and October. Occupancy has bounced back to 65% this month but is still lower than the expected high-season rate of 88%.
Besides the boat disaster, the economic slowdown in China is a key factor impeding travel of Chinese overseas. Meeting and conference business at the Emerald Hotel from Chinese companies is down 7% in the past several months.
“China is our biggest portion with 80% of all guests, and the rest is from the domestic market and other countries,” Mr Dome said. “From this high ratio of China, we are suffering from the decline.”
He said most hotels in the Ratchadaphisek area are facing the same difficulty after focusing on the China market for years.
To cope, the Emerald Hotel is shifting focus to other markets such as Malaysia and Indonesia. The hotel is working with overseas partners to offer more attractive room rates and promotional packages for rooms, food and drinks.
SHOPPERS DROP
Phirapath Fuknikron, manager of travel and tour services at Platinum Fashion Mall, said the number of shoppers fell by 10% in September and October compared with the same time last year.
Speculation is that the decline in Chinese tourists to Thailand is a major factor in the drop, but shoppers have returned this week, Mr Phirapath said.
Novotel Platinum, located atop the fashion mall, is reporting a full occupancy rate. Due to its prime location, the hotel rarely lacks for guests.
Mr Phirapath said the main inbound tourist markets for Novotel Platinum are Indonesia, Singapore and Malaysia.
Yuthasak Supasorn, governor of the Tourism Authority of Thailand (TAT), said that after discussions with insurers, many companies agreed to increase insurance coverage by up to 3 million baht per accident. Tourists can buy coverage on a voluntary basis.
“The increase in insurance coverage is another stimulus option,” Mr Yuthasak said. “Tourists can buy it if they consider the existing insurance plan too low.”
The new insurance charge is 950 baht per tourist and covers seven days of travel in the country.
Besides insurance provided by travel companies, all tourists visiting Thailand automatically will get travel insurance valued at 1 million baht from the Tourist Assistance Fund.
The TAT expects 10.5 million Chinese tourists to visit Thailand this year despite the precipitous decline in the second half.
“The wrecked Phoenix boat is now recovered and further investigation is under way,” Mr Yuthasak said. “This is expected to soften tourism sentiment in the future.”
MANDARIN MESSAGE
The government has actively promoted a campaign to bring back Chinese tourists in recent weeks.
Deputy Prime Minister Somkid Jatusripitak posted a video clip of himself speaking Mandarin to invite Chinese to visit Thailand.
The government also asked leading Chinese businessman and Alibaba cofounder Jack Ma to help promote attractions in Thailand to Chinese through social media outlets.