Thai PM visits Xi to shore up tourism rebound

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Chinese President Xi Jinping on Thursday commended Thai Prime Minister Paetongtarn Shinawatra for her government’s “strong measures” against scam centres targeting Chinese nationals, a growing issue fueling safety concerns among potential tourists.

Gangs at border threaten Thai tourism numbers

A multi-billion-dollar industry has grown along the Thai-Myanmar border, as Chinese-run scam centres, often led by criminal gangs, traffick foreign workers and force them to defraud their compatriots. This has raised fears that tourists could be endangered, possibly impacting Thailand’s post-pandemic tourism revival.

A dedicated Thailand-China task force will be established to coordinate further actions, Paetongtarn said at Don Mueang Military Airport, adding that Xi supports close bilateral cooperation in Thailand’s fight against criminal networks, and pledged to intensify its own crackdown on call-centre scams.

Thailand’s economic recovery remains tied to tourism. Before COVID-19, tourism contributed nearly 20% of Thailand’s GDP, bringing in over 40mn international visitors annually. The pandemic saw arrivals plunge by over 80% in 2020 and 2021.

In Q1 2024, Thai government data showed international arrivals surpassing pre-pandemic levels for the first time. According to the Thai Tourism and Sport Ministry, international arrivals hit 11.5mn in Q1 2024, a 35% annual increase, with Chinese tourists the largest group. This rebound has been aided by relaxed visa policies, expanded airline capacities, and targeted promotions to attract high-spending travellers, particularly from China and India.

Balancing growth, sustainability

According to Thai tourist board director Yuthasak Supasorn, the country’s “tourism sector is resilient, but we must ensure long-term sustainability”. To accelerate the recovery, the Thai government has introduced visa-free entry for Chinese and Indian tourists, subsidies for local businesses, as well as the increased international flight connectivity.

While rising visitor numbers boost the economy, concerns over sustainability, overcrowding and dependency remain. The Bangkok International Airport Authority reported a 40% increase in air traffic at the city’s two main airports, Suvarnabhumi and Don Mueang, leading to congestion issues.

The Thai Chamber of Commerce found that while tourism revenue is climbing, small businesses in destinations such as Phuket and Chiang Mai are struggling with inflation and labour shortages. Economist Supavud Saicheua told local media that “rapid tourism recovery is a double-edged sword: while it boosts GDP, it also exacerbates inflation and transport congestion.”

The success of eco-tourism initiatives, better crowd management policies, and transport investments will determine whether Thailand can sustain its tourism boom without economic or environmental fallout. Paetongtarn Shinawatra’s government’s challenge will be balancing short-term revenue generation with long-term sustainability, ensuring infrastructure keeps pace with rising demand.

Thailand’s tourism industry, traditionally nearly 20% of national GDP, is adopting innovative strategies to rebuild and future-proof the sector. The “Amazing Thailand, Amazing New Chapters” campaign saw the government focusing on higher-value, long-stay tourists. Thailand has also introduced eco-tourism in lesser-known regions such as Nan and Buriram to reduce strain on infrastructure and local resources on destinations including Bangkok, Phuket and Chiang Mai.

Green, AI, communal tourism for long-term growth

The Tourism Authority of Thailand (TAT) is investing in AI-driven visitor data analysis and smart monitoring of tourist density to manage footfall and minimise overcrowding, as well as revamping in public transportation and airport facilities.

The TAT has partnered with tour operators to implement green certifications. The Green Leaf Program incentivises businesses to adopt energy-efficiency, waste reduction and sustainable materials. This aligns with Thailand’s larger goal of reducing travel-related carbon footprints.

Thailand is highlighting community-based tourism that encourages tourists to engage with rural communities and create a sustainable tourism model that benefits the broader economy.

Diversifying tourism markets

Thailand is also expanding its tourism outreach beyond visitors from China and Europe with marketing campaigns targeting tourists from India, the Middle East, and ASEAN for tailored experiences like wellness and adventure tourism. This not only buffers Thailand from economic shocks but also fosters year-round tourism, reducing seasonal fluctuations.

Infrastructure upgrades and digitalisation require investment, and balancing tourism’s economic benefits with sustainability objectives remains complex, particularly as travel demand increases. However, Thailand could yet emerge as a regional leader in sustainable tourism.