Thailand likely to ease visa rules to lure tourists from China and India

Thailand considers scrapping the visa application fee would be ideal than giving visa exemptions to tourists from China and India.

Thailand is likely to ease visa rules for Chinese and Indian travellers and allow longer stays for visitors from all nations as new Prime Minister Srettha Thavisin looks for ways to boost tourism revenue to nearly $100 billion next year.

Participants ride on elephants during a parade welcoming the Islamic New Year and celebrating the culture and traditions of Thailand's southern province of Narathiwat, in Narathiwat. Thailand likely to ease visa rules to lure tourists from China and India (Photo by Madaree TOHLALA / AFP)

Chinese — the largest group of visitors before the pandemic — face a costly and cumbersome visa-application process, which has has been a drag on the tally this year, according to the premier. Meanwhile, travellers from India must pay 2,000 baht ($57) for a 15-day visa on arrival. Srettha said he wants the list of visa-exempt countries expanded as well as increased stay limits for most international travellers, with caps of 15 days or 30 days for many nationalities.

Srettha discussed options with executives of Airports of Thailand Pcl and several airlines on Monday, with the near-term aim of attracting more foreigners in the fourth quarter, typically the peak season for tourism. The airport operator agreed to reduce bottlenecks to augment flights capacity by 20% and find ways to speed up immigration clearances, Srettha said on X, the platform formerly known as Twitter.

Nationwide, foreign-tourist arrivals will be about 30 million in 2023, almost triple last year’s 11.2 million, according to Nomura Holdings Inc. The tally has already topped 17.5 million, the Ministry of Tourism and Sports said Tuesday.

But the return of Chinese have been slower-than-expected even though China was the largest source of travelers last month at nearly 420,000. In 2019 before the pandemic, about 28% of the record 40 million foreign arrivals to Thailand were from China, generating about 1.9 trillion baht in revenue in the process.

The lag in Chinese arrivals stems partly from stringent e-visa requirements introduced in May, especially for group travelers, Nomura analysts including Euben Paracuelles said in a report Monday. Another hampering factor is Thailand’s reliance on tourists from lower-tier cities, which may be more sensitive to China’s worsening economic woes, they said.

To compensate, Thaneth said that his association recommended the addition of flights to Phuket and Krabi provinces, and the lengthening of visas for tourists from Belarus, Kazakhstan and Russia — who typically spend more than peers from China and Malaysia, he said.

While Srettha’s plans might be helpful at the margins, the bigger question is really about demand-side conditions. “If China’s economic outlook for instance deteriorates further and consumer sentiment weakens, the risk is these supply-side responses to attract tourists will be less effective,” Paracuelles said in a separate email.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.