Thai airports cannot cope with Chinese mass tourism

Thailand, the land of golden temples, white sand beaches, smiling hosts. Or from overcrowded airports and epic traffic jams?

Facing a tidal wave of Chinese tourists forcing its airports to handle passengers beyond their capacity, the Southeast Asian state is spending billions to improve its infrastructure, open new islands and cities to travelers and its image of cheap shopping, hotels and sex improve for the next 50 years. But the change will take years, and even then may not keep pace with the rising visitor numbers that have given the Land of Smiles a reputation for delays, overcrowding and government crackdowns.

Strategy

“Our strategy was more for less, not less for more, so we invited a lot of tourists from China,” said Suvit Maesincee in an interview last month, when he was a minister attached to the prime minister's office. “I think we need to move from volume to value in the near future.”

The military-backed government relies on tourism, which accounts for 18 percent of the economy. Foreign inflows have made the baht one of the strongest currencies in Asia this year, a bright spot amid weak domestic consumer demand and private investment. While it plans to spend more than $5 billion doubling capacity at its international airports, it plans to increase the number of foreign tourists at the same rate to reach 68 million visitors in the next decade.

Bangkok airports

At the heart of the upgrade, and the congestion, are Bangkok's two international airports, Suvarnabhumi and Don Mueang, which handle 40 percent more passengers than designed capacity. New terminals, facilities and an additional runway will bring capacity to 130 million passengers per year.

But the work won't be completed until 2022, which means the first thing travelers will experience of Thailand right now is the long queues at passport control by the Immigration Police.

A spokesman for the Association of Thai Travel Agents says: “In three to five years, we will not achieve planned tourism growth due to a lack of airport capacity. The problem with the Thai government is that they want to increase the number of visitors, but they forget to check first if we can handle and accommodate them.”

Tourism

Thailand's ability to attract tourists has defied the effects of a military coup, a tsunami, floods, political protests, airport blockades and the global financial crisis. Over the past 15 years, more visitors have arrived from Europe, North America, Japan and Southeast Asia. But it's the explosion in Chinese visitors since the 2012 Chinese road movie "Lost in Thailand" that has changed the industry.

Chinese tourists

The number of Chinese visitors to Thailand has tripled in the past five years to 8,8 million in 2016. They represent more than a quarter of all foreign tourists and 28 percent of sales, according to official data.

The sudden influx, fueled by organized tours organized in China, led to accusations of so-called zero-dollar tourism, guiding groups through shopping and sightseeing routes that provided little benefit to the host country.

Last year, the Thai government intervened on those zero-dollar tours, prosecuting 29 operators, causing a temporary dip in Chinese arrivals, but tourist numbers from China quickly recovered.

Future plans

One plan includes a $15 billion Japanese-backed double-rail link from the capital to Chiang Mai in the north that would open up towns and cities along the route. Another is to build a new regional airport in the south in Betong, an area prone to unrest from Islamist separatists. Phuket opened a new international terminal last year, looking to become a gateway for surrounding areas such as Phang Nga and Krabi.

In addition, the government is renovating the old U-Tapao air base near Pattaya, from where American B-52s bombed Vietnam in the 150s. A China-funded high-speed train connects the beach resort to the airports of Bangkok, XNUMX kilometers to the north.

More-of-less

There are some signs that the more-of-less strategy may be having an effect. Tourism revenue in the first 10 months of this year rose by about 9 percent, outpacing visitor numbers by 6,4 percent, according to data from Thailand's tourism ministry. But extracting more profit from visitors will not be easy. Thailand is already one of the world's top medical tourism destinations, and high-end resorts have nestled in secluded coves and scenic forests for decades

Competition

Thailand's success is not lost on neighboring countries. Indonesia and Malaysia in particular are also trying to attract some of the Chinese mass tourism. Indonesian President Joko Widodo plans to create "10 new Balis" to try to replicate the success of the Island of the Gods, which hosts more than 40 percent of the country's 11,6 million visitors. Malaysia is investing billions in opening up the east coast, including building a railway to the capital.

Source: abbreviated translation of an article on Bloomberg by Natnicha Chuwiruch