Dimmer prospects for China arrivals during Golden Week

The flow of Chinese tourists during the Golden Week holiday next week might be weaker than expected as a strong baht and the mainland’s sluggish economy limit tourist expenditure, while other foreign arrivals start to bargain for lower services prices.
Thanet Supornsahasrungsi, president of the Association of Chonburi Tourism Federation, said if the baht continues to appreciate against most currencies, it will be bad for tourism.
Mr Thanet said some travel agents are already asking for discounts from Thai operators, mostly attributed to the stronger baht, as hotels charge them in the local currency.
He said for Pattaya hotels, there’s been no large uptick in forward bookings for the Chinese market during Golden Week, running from Oct 1-7.
More tourists prefer to book at the last minute, while the number of tour groups has dwindled, said Mr Thanet.
Suksit Suvunditkul, president of the southern chapter of the Thai Hotels Association, said Golden Week in Phuket is typically not as busy as Chinese New Year because October is the low season for the island.
Although China has been a top feeder market for Phuket, bookings for the upcoming holiday have not significantly surged, said Mr Suksit.
He said most hotels welcome mixed markets, including domestic tourists, Asian and long-haul travellers.
According to online travel platform Agoda, international accommodation searches by Chinese travellers increased by 137% year-on-year for the Golden Week.
Even though Bangkok maintained its position in the top five, the capital was overtaken by Bali this year.
A source from a large inbound tour operator who requested anonymity said the Chinese market during Golden Week should improve from last year, but will not be as robust as expected.
China’s sluggish economy is impacting tourists’ travel budgets, said the source. Beijing cut civil servants’ salaries, while the troubled real estate segment is still denting the economy.
The source estimated Thailand will welcome around 30,000 daily arrivals from China during the upcoming holiday, lower than the 40,000 daily arrivals in 2019.
The source said the overall Chinese market this year is expected at 7.5 million, but their expenditure would remain flat.
The baht surging to a 19-month high against the dollar and appreciation over other Asian currencies worries operators.
The strong baht will be another factor affecting Chinese spending sentiment, said the source.
“Tourists may see Thailand as a less valuable destination and opt for other destinations, such as Japan,” the source said.
The government should be more active in boosting Chinese and other foreign markets as the exchange rate and strong competition could impact the upcoming high season, said the source.