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Opportunities for Thailand in the New Chinese Tourism Market
As the number of Chinese tourists visiting Thailand steadily increases, the scale of this resurgence is keenly observed by Thai tourism authorities, especially after the slight recovery observed in 2023, the first year since the country's reopening.
The revival of Chinese tourism continues to be a central concern for Thailand’s tourism sector. As the number of Chinese tourists visiting Thailand steadily increases, the scale of this resurgence is keenly observed by Thai tourism authorities, especially after the slight recovery observed in 2023, the first year since the country’s reopening.
In 2024, Chinese outbound tourism saw positive signs of recovery, with Thailand remaining the primary destination for Chinese tourists. Chinese tourists reclaimed the top position in terms of numbers visiting Thailand. However, the recovery trend for Chinese tourists traveling to Thailand still faces risks from various factors such as China’s economy, real estate, geopolitics, and competition from other countries like Japan, South Korea, and Vietnam.
Chinese tourists’ overseas travel behavior…same or different from before?
There are 5 interesting aspects of the new era of Chinese people’s outbound travel behavior, which will help you understand and learn more about Chinese people.
1) Chinese tourists have diverse travel behaviors , depending on their economic growth, population income, transportation system readiness, and exposure to foreign cultures .
2) There are 4 main periods of outbound travel for Chinese people : the Chinese New Year, Labor Day, summer vacation, and National Day .
3) China’s entry into the digital society has an influence on the travel behavior of Chinese people of all ages, from searching for travel information via social media, booking travel services via travel platforms, and making digital payments .
4) Relaxation, creating new experiences, and value for money are the 3 aspects that Chinese people nowadays value. After enduring prolonged strict COVID-19 measures and the demands of continuous study or work, Chinese citizens are seeking travel as a means to unwind in new surroundings and rejuvenate their physical and mental well-being. Nonetheless, with the economic rebound in China, it is crucial that their spending reflects the best value for money.
5) Chinese people want more freedom in traveling. Today, travel information is easily available from online media. In addition, different personal preferences have made self-guided travel and semi-tourism more popular.
Chinese tourists will continue to recover to at least 7 million in 2024
SCB EIC expects that Chinese tourists will continue to recover by at least 7 million in 2024, with the independent travel group recovering faster than the group tour group. One reason for the slow recovery of Chinese tourists is the gradual recovery of the group tour group.
In the past, the majority of Chinese tourists traveling to Thailand were independent travel (FIT) tourists, up to 86%, while the group tour group accounted for only 14%, down from the proportion of 60% to 40% in 2019. The number of FIT tourists is expected to return to levels close to 2019 levels in 2025, while the number of group tour groups is a group that still needs to be closely monitored. It is expected that this group of tourists will continue to recover, but will return to levels close to 2019 levels after 2025. Currently, group tour groups tend to choose tours that allow them to adjust their travel plans according to their interests (tailor-made), which is a group of tourists with relatively good incomes and will help accelerate the recovery of the group tour group.
While the recovery of the traditional large tour groups will continue to gradually recover, the Chinese tourists who traveled to Thailand in early 2024 were mostly aged 25-44 from Shanghai, Beijing, Guangzhou and Chengdu. The popular travel plan was Bangkok + 1 province such as Pattaya, Phuket, Chiang Mai, and spent an average of 7-8 days in Thailand, similar to 2019, but spent more on accommodation and focused more on experiential travel from entertainment activities and food tasting instead of shopping.
Opportunities for Thailand in the New Chinese Tourism Market
6 tourism market trends that Chinese people are interested in and will be opportunities for the Thai tourism sector. SCB EIC analyzed 6 trends that the Chinese tourism market is interested in: 1. Content tourism, 2. Set-jetting tourism and Event tourism, 3. Gastronomy tourism, 4. Medical and Wellness tourism, 5. Summer camp, and 6. Mutelu tourism. The Thai tourism sector must urgently develop products or services that stand out and meet the needs of Chinese tourists in each category, along with promoting through Chinese social media to reach a wide range of Chinese people.
Thai tourism businesses must prepare to adapt to meet the needs of Chinese tourists
The changing patterns and behaviors of Chinese tourists have caused the Thai tourism sector to urgently adapt before missing out on opportunities and opening the way for new players to enter the market. Only a partial adjustment of the tourism sector and the expectation that the old Chinese tourist group will return may cause opportunities in new markets and open the way for new players who offer services that better meet the needs of modern tourists to enter the market.
Therefore, every business in the value chain of welcoming Chinese tourists to Thailand must adapt, from hotels, airlines, tour companies in Thailand, to businesses related to tourism, such as hotels, which should offer services beyond simple accommodation and show their unique identity; Thai airlines should focus on expanding flights and offering premium services to support FIT tourists and tailor-made tours; tourist attractions should offer special experiences to attract tourists to return; Thai tour companies must adapt from traditional tours to tours that are more diverse and meet specific needs; bus or car rental companies must add services specifically for FIT tourists and small group tours; restaurants must prepare to support Chinese payment systems and target more Chinese food delivery customers; and shops should develop creative products that incorporate Thainess and increase value.
The return of Chinese tourists comes with challenges for businesses and governments
The return of Chinese tourists also poses challenges for Thai businesses and the government sector, in terms of competition, infrastructure upgrade, building confidence in terms of image, and fairness in terms of pricing.
1. The arrival of Chinese tourism businesses that have squeezed Thai small businesses from groups of Chinese investors who have started to invest in Thailand instead of using Thai tour companies, both in the form of joint ventures with Thai tour companies and setting up tour companies in Thailand.
2. Competition to attract Chinese tourists, which is likely to increase, as they are an important target group of tourists from many countries. The government and business sectors must cooperate to promote Thai tourism in all channels to continuously make Thai tourism a trend in China .
3. The sensitivity to negative news from the Chinese affects Thailand’s image. Establishing a central working group consisting of government sectors from various sectors to support and resolve viral online incidents quickly, correctly, and systematically will help build confidence and promote Thai tourism very well .
4. Improving infrastructure will be able to distribute tourists to secondary cities, both in terms of transportation that connects major cities to secondary cities and preparing local tourism businesses, along with promoting secondary city tourism to Chinese tourists through Chinese OTAs platforms.
5. Setting standard prices, ensuring that there is no exploitation, and strictly enforcing the law. This will create comfort, safety and ease concerns for tourists traveling to Thailand. It can also create a good image for Thai tourism.
In focus / China in focus : รู้เขา รู้เรา ชนะใจนักท่องเที่ยวจีน | SCBEIC
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