Kidnapping prompts Thai tourism fallout amid safety concerns
The kidnapping of Chinese actor Wang Xing in Thailand has triggered a wave of trip cancellations among Chinese tourists planning to visit the country during the Chinese New Year.
Chinese tourists are massively canceling trips to Thailand amid growing safety concerns following the kidnapping of well-known actor Wang Xing. According to CNBC, the number of trip bookings to Thailand fell by 15.6% from January 13 to January 20.
Chinese tourists are choosing destinations other than Southeast Asia
Interest in Thailand is declining, and this is impacting other Southeast Asian countries, such as Vietnam, Indonesia, and Malaysia.
- The biggest drop was recorded in Thailand. The other countries are somewhat indirect victims – said Subramania Bhatt, CEO of the analytics firm VariFlight.
At the same time, Chinese tourists are increasing bookings to other destinations. In the same week in January, trips to Australia increased by 4.8%, the United Arab Emirates by 4.7%, and South Korea by 3.9%.
Thai authorities are attempting to ease the situation
In response to the situation, the Thai government released an artificial intelligence-generated video on its Facebook page in which the Prime Minister of Thailand reassures Chinese tourists about travel safety. Chinese authorities also announced cooperation with Southeast Asian countries to combat international crime groups.
Yang Lei, an analyst at China Galaxy International, believes that Chinese tourists' reluctance to visit Thailand could benefit other destinations.
She said on CNBC's "Squawk Box Asia" program that Chinese tourists are currently cautious about traveling to Thailand and other Southeast Asian countries. Japan and South Korea remain popular destinations. During the Chinese New Year, people gladly visit Australia, New Zealand, and the United States.
The kidnapping of Wang Xing lured to Bangkok under the pretense of a job offer, has rekindled Chinese tourists' fears of traveling to Thailand and other parts of Southeast Asia. Thai authorities have previously tried to regain the trust of tourists from China after the release of the 2023 Chinese film hit "No More Bets," which depicted a couple lured into a human trafficking trap in Southeast Asia.
The number of reservations by Chinese tourists to other Asian countries is growing
Despite the cancellations, some countries in the region expect more Chinese tourists than in 2019. Flight bookings to Singapore increased by 14.2% and to Malaysia by 6.2% compared to pre-pandemic levels. South Korea also anticipates a full return of Chinese tourists during the holiday period.
However, Japan, one of the most popular destinations for Chinese tourists, does not expect a full return of guests from China during this period. A 10% decline in arrivals is projected compared to 2019.
According to Bhatt, outbound tourism from China is currently "uneven." Safety, geopolitics, and costs influence Chinese travelers' preferences. He explained that traveling to Europe is becoming more expensive due to airspace closure over Russia, which raises flight costs.
Despite weak consumer confidence in the slowing economy, Chinese people are willing to spend money on travel-related experiences. - For the upcoming Chinese New Year, we expect to maintain strong growth momentum in both inbound and outbound travel – said Yang Lei.
Chinese authorities predict a record nine billion trips during the 40-day holiday period for the Chinese New Year, which began on January 14.
