Chinese Tour Operators Enter 'Hibernation Mode' as Thailand's Tourism Market Awaits Recovery

Travel companies suspend operations as Malaysian tourists overtake China for first time in 13 years

 

Thailand's tourism industry is grappling with a significant downturn in Chinese visitors, with many tour operators entering what industry leaders describe as "hibernation mode" as they await a market recovery expected by 2026.

 

 

The Association of Thai Travel Agents (ATTA) has warned that Chinese tourist arrivals this year will reach only 5 million people, with the majority coming for business rather than leisure purposes.

 

True tourist groups are estimated to represent just 20 per cent of arrivals, or approximately 1 million visitors.

 

 

Malaysian Tourists Overtake China

The decline reached a symbolic milestone on 6 June when Malaysian tourists surpassed Chinese visitors to become Thailand's top source market for the first time in 13 years, since 2012.

 

Statistics from 1 January to 8 June show Chinese tourist arrivals totalling 2,029,481 people, whilst Malaysian visitors reached 2,041,002.

 

The shift follows ongoing safety perception issues that have plagued Thailand's image amongst Chinese travellers, particularly since the disappearance of Chinese actress Xing Xing near the Thai-Myanmar border in early January.

 

 



 

Industry in Crisis

Sisdivachr Cheewarattanapor, Honorary President and Senior Advisory Chairman of ATTA, which represents 1,554 members including tour operators and tourism businesses, described the severe impact on the industry.

 


"Since the Xing Xing incident, Chinese tourist confidence has been affected for over five months," he told Krungthep Turakij. "Some tour companies specialising in the Chinese market are in hibernation mode because there's no work, no tours coming in."
 
 

He explained that stronger companies are struggling to survive whilst hoping for recovery in the remaining months of this year and next year.

 

Weaker operators that relied exclusively on the Chinese market have been forced to suspend operations temporarily.

 


"Some companies have closed entirely," Sisdivachr noted. "They had reopened after COVID hoping the Chinese market would recover to pre-pandemic levels. Last year showed good travel momentum, but now with no customers, they've closed again to wait and see if the market recovers."


 

 



 

Major Developers Adjust Investment Timelines

The tourism downturn is also affecting major property developers' investment strategies.

 

Wallapa Traisorat, CEO and Managing Director of Asset World Corp Public Company Limited (AWC), revealed that while the company's 5-year investment plan worth 100 billion baht remains on track, adjustments may be necessary to align with global economic conditions.

 


"The economy may recover and improve in the next 2-3 years," Wallapa explained. "We're waiting for the right timing to continue investments and focusing on projects where we see market opportunities first."


 

AWC is concentrating its investments on destination model projects to strengthen the potential of both cities and the country by continuously attracting global partners.

 

Key projects include Wang Nakhon Kasem in Yaowarat, Aquatique Pattaya, Lanna Thique Chiang Mai, and The Ritz-Carlton Bangkok, The Riverside hotel project.

 

The company has notably adjusted the timeline for its ambitious Asiatique The Riverfront project, which originally planned to build Thailand's tallest 100-story building.

  



 

AWC had signed agreements with Marriott International to develop The Ritz-Carlton Reserve and JW Marriott Marquis hotels, aiming to add world-class MICE facilities along the Chao Phraya River.

 


"We originally looked at opening around 2029-2030, but now we want to wait for the right timing. We're not rushing," Wallapa confirmed. "This isn't about scrapping the high-rise building plan. We've already prepared the design, target customer analysis, and various permit procedures. We're just waiting for the market to clearly recover before proceeding."


 

Meanwhile, AWC has chosen to open the Jurassic World: The Experience project at Asiatique first to attract family tourists during this challenging period.

 

 

Business Travellers, Not Tourists

Of the projected 5 million Chinese arrivals in 2025, ATTA estimates that most are entering Thailand for business purposes rather than tourism, taking advantage of permanent visa-free policies that allow frequent entry and exit.

 

This represents a significant decline from 6.7 million Chinese visitors in 2024 and is less than half the pre-COVID golden era figure of over 11 million Chinese tourists in 2019.

 


"The majority are coming to work and do business in Thailand," Sisdivachr explained. "You can see tourist attractions are quite empty and quiet. There are hardly any people walking around."


 

He noted that whilst some independent Chinese travellers previously stayed in five-star hotels, their presence has become less visible, with some potentially choosing condominium accommodation instead.

 



 

Long-standing Safety Perception Issues

ATTA believes Thailand's safety perception problems have been festering for some time, requiring urgent government intervention to restore confidence.

 


"Some people think they can do anything in Thailand as long as they have money," Sisdivachr said. "Government agencies need to clarify this to build confidence."


 

He called for state-to-state cooperation at leadership level, particularly given the 50th anniversary of Thai-Chinese diplomatic relations this year.

 

 



 

Charter Flight Stimulus Urged

The association is pushing for government measures to promote charter flights from China, which it sees as crucial for market recovery.

 


"Charter flight promotion measures from China will be the catalyst to reignite the market," Sisdivachr emphasised. "China is a large market with many tourists. If we do nothing and let the Chinese tourism market recover naturally, it will be slow."


 

He warned that unlike those familiar with Thailand, Chinese people who have never visited are easily deterred by negative social media coverage, choosing alternative destinations instead.

 

 



 

Competition from Regional Rivals

Chinese tourists are currently favouring Japan, which offers numerous charter flights and maintains an excellent safety reputation.

 

Other popular destinations include South Korea, Vietnam, Malaysia, and Singapore.

 


"Tour companies in Thailand are eagerly awaiting government charter flight promotion measures," Sisdivachr said. "Even the Chinese side is waiting for these measures to give them confidence to invest in charter flights to bring Chinese tourists back to Thailand."


 

The industry warns that without immediate government intervention in the third and fourth quarters of this year, Thailand risks losing its position in the crucial Chinese tourism market permanently.

 

The cautious approach being taken by major developers like AWC reflects the broader uncertainty facing Thailand's tourism-dependent economy as it navigates this challenging period.

(2025/06/16-00:00)