The granting of visa-free entry to Chinese nationals has not resulted in a significant increase in tourist traffic, and Chinese airlines have started cancelling scheduled flights to Thailand.
Thai PSB reported that several Chinese airlines, including Air China and China Eastern and Shanghai Airlines, have cancelled scheduled flights to Thailand for December and January due to lower-than-expected bookings.
The cancellations of scheduled flights are attributed to slowing economic growth in China and efforts to boost domestic tourism. Initiatives such as providing free visas to Chinese nationals have not resulted in an influx of tourists. Currently, the share of Chinese tourists in Thailand is around 40 per cent compared to pre-China times.
Thailand’s tourism sector is not expected to reach the target of 4 million Chinese tourists. The Tourism Authority of Thailand predicts about 3.4-3.5 million tourists will arrive from mainland China this year, generating about 190-196 billion baht for the economy.
The ten airlines that cancelled flights include:
- Air China
- China Eastern
- Shanghai Airlines
- Spring Airlines
- China Southern
- Shenzhen Airlines
- Juneyao Airlines
- Okay Airways
- Hainan Airlines
- Beijing Capital
There is ‘nothing unusual’ in the cancellation of flight slots.
The Civil Aviation Authority of Thailand has said it is not unusual for airlines to cancel flights during periods of low demand for air tickets.
Suttipong Kongpul, head of the directorate, made the statement after a report found that more than 40% of cancelled flight slots at Thai airports were booked by Chinese airlines. Airlines regularly do this to ensure profitability, and so far, the requests have been made in accordance with existing regulations, Suttipong explained.
According to International Air Transport Association rules, airlines wishing to reclaim their allocated slot at an airport must notify relevant authorities at least seven days before the scheduled date. Airlines that occupy a slot without operating a flight are fined or forfeit their right to fly to the destination airport.
Airlines are reclaiming their rights to take off and land at Thai airports because demand in Thailand’s main tourist markets has yet to recover. China, one of the biggest suppliers of foreign tourists to Thailand, is also experiencing sluggish economic growth, Suttipong noted.
According to the Civil Aviation Authority, 21,923 flight slots are available between December and January 2024, of which 1,278 have already been taken up by airlines. Unused slots are being transferred to airlines from other regions, such as Western Europe and Scandinavia, that have expressed interest in obtaining landing rights in Thailand, Suttipong said.
Chinese tourists accounted for only 12.9 per cent of total arrivals this year. The share is expected to rise to 15-16 per cent next year.
Chinese tourists: a crucial source of revenue
The recovery of the Chinese market is crucial for Thailand’s tourism industry, contributing about 20 per cent of the country’s GDP and employing millions of people.
Thailand has already welcomed 23 million international tourists this year, and the number of international tourists is projected to reach 27.6 million by the end of 2023, according to research centre K-Research.
The Thai government initially predicted that 3.4 million Chinese would visit the country for the entire year, accounting for about 31 per cent of the total number of visitors in 2019. Implementing the visa waiver programme is expected to boost these numbers further and support the country’s economy.
However, despite efforts to attract Chinese tourists, arrivals have fallen short of the government’s target numbers due to safety concerns: the recent popularity of the Chinese action film “No More Betting” has led to rumours spreading on social media about the dangers of travelling to Thailand.
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