Loading stock data...
Media c92c3cd8 4734 40dc a09b 49d4b4566dad 133807079768766350

Chinese flock to Vietnam due to Thailand safety fears

Summary

Vietnam has recently surpassed Thailand as the preferred destination for Chinese tourists, but this milestone should not be taken lightly. While it’s true that more Chinese visitors have chosen Vietnam over Thailand between January and June of this year, the numbers reflect a trend towards low-spending group tours rather than high-end individual travel. In fact, Japan remains the top choice for Chinese tourists, with its reputation for safety, cleanliness, orderliness, convenient transportation, and proximity to China making it an attractive destination.

The Impact of Low-Spending Tours on Thailand’s Tourism Industry

Reports indicate that between January and June, Vietnam received more Chinese tourists than Thailand. However, this growth is largely attributed to Vietnam’s visa-free policy for Chinese tour groups and lower travel costs compared to Thailand. These factors have attracted first-time outbound tourists who typically have limited spending power. Ms Aksornsri Phanishsarn, an associate professor of economics at Thammasat University, notes that while numbers are important, they don’t tell the whole story. The real issue facing Thailand’s tourism industry is safety concerns.

Safety Concerns and Scam Networks

Ms Aksornsri points out that Thailand’s sharp decline in Chinese tourists stems primarily from concerns about safety. The recent case of Chinese actor Wang Xing, who was tricked by a call-centre gang into entering Thailand only to be trafficked onward to Myanmar before being rescued, highlights the severity of this issue. She emphasizes that Thailand’s new government must urgently improve safety standards and work to crack down on scam networks in neighbouring countries.

"If safety concerns remain unresolved, year-end marketing campaigns to attract Chinese tourists back may not be effective," Ms Aksornsri warns. "As long as Chinese visitors feel unsafe, they won’t return." The impact of this trend is evident in the reported 7% drop in overall foreign tourist arrivals up to last month.

The Role of the Strong Baht in Thailand’s Decline

Ms Aksornsri also highlights the impact of the strong baht on Thailand’s tourism industry. With a strong baht, Thailand appears more expensive to foreign visitors, making it less attractive compared to other destinations. This is particularly noticeable when contrasted with Japan, which consistently ranks as the most popular destination for Chinese tourists despite not offering visa-free access.

Lessons from Japan: Safety and Premium Tourism

Ms Aksornsri notes that Japan’s strengths lie in its safety, cleanliness, orderliness, convenient transportation, proximity to China, plentiful flight options, and a weak yen. These factors make it a shopping haven for Chinese tourists who are willing to spend, even though the cost of living is higher than in Thailand or Vietnam. Thailand should follow Japan’s model by positioning itself as a safe and premium destination for tourists.

Building Trust and Raising Quality: A Solution for Thailand

Thailand must address its safety concerns and improve the quality of tourism to compete with Vietnam and other destinations. "The goal should be to become a destination with near-Japan standards at a lower price," Ms Aksornsri suggests. This is how Thailand can differentiate itself in the market and attract high-end tourists who are willing to spend.

Conclusion

In conclusion, while Vietnam’s recent leapfrogging of Thailand in Chinese tourist arrivals may seem like cause for concern, it highlights deeper issues within Thailand’s tourism industry. Safety concerns and scam networks have led to a decline in Chinese visitors, making it essential for Thailand to address these problems and improve the quality of its tourism. By following Japan’s model of positioning itself as a safe and premium destination, Thailand can recapture the market and become a competitive player in the tourism industry.