ASEAN countries face tourism woes due to low Chinese tourist arrival

Travel programs for Chinese tourists have not lived up to expectations in Southeast Asia, which has caused several countries to reevaluate their development plans and raise worries for these economies that rely heavily on tourism.

The number of Chinese visitors to Thailand has drastically decreased from 2019 to 2023. Approximately 11 million Chinese tourists visited the country in 2019, making up 27% of all international visitors. However, from January to August of 2023, their percentage fell to just 12 percent.

The Thai government responded to this decrease by granting Chinese visitors a visa exemption, which became operative on September 25. In comparison to the previous week, there was a 72.49 percent rise in the number of Chinese visitors visiting Thailand during the first week of this effort. Unfortunately, a fatal shooting at a well-known mall in Bangkok put a dampener on the nation’s tourism revival and claimed the life of a Chinese visitor who was there as part of the visa-free program.

Comparably, the percentage of Chinese tourists in Vietnam fell from 32% to 12%, while in Cambodia, the percentage fell from 36% to barely 10%.

When comparing the January to August periods of 2019 and 2023, the overall backdrop shows a notable fall in foreign visitor visits in Thailand—down 32%. Around the same period, Vietnam had a 31% decline in the number of visitors.

There are a number of reasons for the slow recovery of Chinese outbound travel. Up until February, China’s zero-COVID policy had imposed severe limitations on the foreign travel of its people. The perception of Southeast Asian countries as hubs for fraud and human trafficking has also been impacted by national efforts against gaming and cross-border fraud.

In addition, a sluggish real estate market and a worsening job situation in China have tempered consumer desire for international travel, which has resulted in a drop in reservations for international travel. Consequently, businesses are reassessing their business plans.

For instance, NagaCorp, a gaming operator in Cambodia, is having difficulties and may have to reduce the size of its third casino complex in Phnom Penh, which was initially intended to need an investment of $3.5 billion. At their current resorts, hotel occupancy rates have also fallen to around 40%.

The future of the theme park project in Hanoi, which is being developed by the Vietnamese real estate business BRG Group in collaboration with the Japanese entertainment giant Sanrio, is questionable due to delays in the agreement.

Original story by: Asia Gaming Brief