Thailand mulls easing visa rules to lure Indian, Chinese tourists

Prime Minister Srettha Thavisin discussed options with executives of Airports of Thailand Pcl and several airlines on August 28, with the near-term aim of attracting more foreigners in the fourth quarter, typically the peak season for tourism.

By Pathom Sangwongwanich

Thailand is likely to ease visa rules for Chinese and Indian travelers 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.

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, travelers 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 travelers, 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 per cent and find ways to speed up immigration clearances, Srettha said on X, the platform formerly known as Twitter.  

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 per cent 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.