China’s Golden Week Tourism Outlook: Potential Challenges Ahead
As the Golden Week holiday approaches, there are concerns about the expected arrival of Chinese tourists. The combination of a strong baht and China’s sluggish economy may impact tourist spending during this period. While other foreign arrivals are starting to negotiate for lower prices on services, the outlook for Chinese tourists during Golden Week may be less robust than initially anticipated.
Potential Impact of Strong Baht and Sluggish Economy
Thanet Supornsahasrungsi, president of the Association of Chonburi Tourism Federation, expressed concerns about the potential impact of the strong baht on tourism. If the baht continues to appreciate against most currencies, it could deter Chinese tourists from spending as much while visiting Thailand. Some travel agents are already seeking discounts from Thai operators, attributing their requests to the stronger baht. Hotels charging in the local currency may also contribute to the challenges faced by Chinese tourists during Golden Week.
Diminished Booking Trend and Tour Group Numbers
In Pattaya, there has been no significant increase in forward bookings for the Chinese market during Golden Week. Tourists seem to prefer booking last minute, and the number of tour groups has dwindled, according to Mr. Thanet. Similarly, in Phuket, Golden Week is not as busy as Chinese New Year due to October being the low season for the island. Despite China being a top feeder market for Phuket, bookings for the upcoming holiday have not seen a significant surge, as mentioned by Suksit Suvunditkul, president of the southern chapter of the Thai Hotels Association.
Diverse Market Preferences and Booking Trends
While international accommodation searches by Chinese travelers have increased by 137% year-on-year for Golden Week, Bangkok has been overtaken by Bali in terms of popularity. A source from a large inbound tour operator highlighted that while there may be some improvement in the Chinese market during Golden Week compared to last year, the expectations for robust growth might not be met. The sluggish Chinese economy, including salary cuts for civil servants and troubles in the real estate sector, is impacting tourists’ travel budgets.
Anticipated Arrival Numbers and Spending Estimates
It is estimated that Thailand will welcome around 30,000 daily arrivals from China during the upcoming holiday, a decrease from the 40,000 daily arrivals in 2019. The overall Chinese market this year is expected to reach 7.5 million, but their expenditure is likely to remain flat. The appreciation of the baht against the dollar and other Asian currencies is another concern for operators, as it may affect Chinese tourists’ spending sentiment. The source mentioned that tourists might perceive Thailand as a less valuable destination due to the strong baht and opt for other destinations like Japan.
Government Intervention and Market Boosting
The source emphasized the need for the government to be more proactive in boosting Chinese and other foreign markets, especially considering the impact of the exchange rate and strong competition on the upcoming high season. With the potential challenges ahead, it is crucial for stakeholders to work together to ensure a positive tourism outlook during Golden Week.
In conclusion, the tourism outlook for China’s Golden Week presents some challenges, including the impact of a strong baht, China’s sluggish economy, and potential shifts in tourist spending behavior. By addressing these concerns and implementing strategic measures, Thailand can navigate through these challenges and continue to attract visitors during this important holiday period.