Thai businesses prep for return of Chinese tourists with caution

Bloomberg

Chinese tourists accounted for nearly a third of Thailand’s visitors prior to Covid, so their pending return has local businesses hoping for a much needed boost. But a full recovery from the crisis remains a way off.
Thai government and industry estimates on Chinese visitor numbers for next year range from 3 million to 5 million — a wide spread that reflects some uncertainty over the eagerness and ability of people to travel after Beijing scraps quarantine on January 8.
Some places are also tightening rules on travellers from China as infections surge there, though Thailand has yet to do so.
Some 11.5 million Chinese visitors went to places like Bangkok, Phuket, Pattaya and Chiang Mai in 2019. While this year’s numbers are set to be much lower, it will still be difficult for Thailand’s hotels, travel firms and entertainment venues to cope. Most businesses aren’t financially able to hire or upgrade facilities quickly after a dry spell of more than two years, during which millions of people changed jobs or headed back to family-run farms.
A labour shortage will be a major issue in seaside provinces like Phuket because of a mismatch between rising demand and inadequate personnel, said Suksit Suvunditkul, president of the Thai Hotels Association Southern Chapter. “A full recovery hinges on arrivals from China, which are not expected to return en masse in the first half of 2023.”
Chinese tourists won’t bring a flood of cash to everyone either. Before the pandemic, many came on “zero-dollar” packages — pre-paid tours in which participants are shepherded through overpriced stores, restaurants, hotels and even massage parlors owned by Chinese nationals through Thai nominees.
Fewer than a quarter of Thailand’s 5,000 registered Mandarin-speaking local guides are working actively, added Wirote, who expects 300,000 Chinese travellers at most to come to the country in the first quarter.
The government has rolled out measures to develop skills and provide training for the unemployed in an attempt to address any shortage, while tourism authorities have proposed offering Covid booster shots to workers and tourists. Phuket’s private sector has also requested the Labor Ministry to allow more migrant workers to register for jobs in the hospitality industry, Kongsak said.
The Tourism Authority said it expects 25 million international visitors in 2023, which is slightly more than half the 2019 level.