Sansern: PM wants crackdown on zero-dollar tour operations

Prime Minister Prayut Chan-ocha has ordered a crackdown on zero-dollar tour operators and told officials concerned to strictly enforce the law without fear of dark influence to get to the bottom of the network of these illegal operations, government spokesman Maj-Gen Sansern Kaewkamnerd disclosed on Friday.

The prime minister, said the spokesman, feels strongly that the zero-dollar tour operations have rendered huge losses to the country and have tainted the image of Thai tourism industry.

He further said that the prime minister wished the Thai media to expose these illegal activities so that they would not recur.

Regarding the concern that the crackdown on the illegal tour operations will discourage Chinese tourists from visiting Thailand, Maj-Gen Sansern said that it was too soon to jump into a quick conclusion that the crackdown would backfire on tourism business.

He suggested the society to distinguish between the legal tour operations and the illegal operations, noting that Thailand has never gained anything from zero-dollar tour operations for the past several years as all the revenues from the operations were sent back to China through brokers and, worse yet, their nominee companies have never paid any income taxes.

“The government is doing the right thing to build up confidence among the honest tour operators,” said the spokesman, adding that the Tourism and Sports Ministry will invite representatives of Chinese embassy and the Chinese Tourism Promotion Organization for a briefing of the Thai government’s policy toward zero-dollar tour operations.

Sansern: PM wants crackdown on zero-dollar tour operations - Thai PBS English News

So we here in Phuket can look forward to the clearing away of the pestilence that is the Chinese tour groups? Will they cancel their planned extra three hundred Chinese tour busses for this island and what passes for infrastructure then? Took a while for the 'authorities' to latch on to the zero baht tourism contributing, er, zero bloody baht, didn't it.

Govt: Illegal tour packages have no effect on Thai tourism

BANGKOK, 12 September 2016 (NNT) - Minister of Tourism and Sports Kobkarn Wattanavrangkul has announced that the suppression of illegal “zero dollar” tour operations has only had a limited affect on tourism. The crackdown has affected tourism numbers in some areas in the short term but the overall number of tourist arrivals has not decreased.

The minister on Monday confirmed that the number of tourists in Thailand has actually continuously increased. During 1-11 September, there was a 33.7% more tourists compared to the same period last year and from 1 January through 11 September this year, the number of tourists rose by 19.34% compared to last year's total, according to the minister.

Permanent Secretary for Tourism and Sports Pongpanu Svetarundra said travel agencies met to discuss improvement to a commission system, as well as product discounting and transparency between travel agencies and tour bus operators. The official added that the travel agencies confirmed no counterfeit or illegal product would be sold to tourists.

A representative of the China National Tourism Administration in Thailand said China is taking the problem of illegal tour operations in Thailand seriously and supported the Thai government in fighting against “zero dollar” tour packages.

National News Bureau Of Thailand | Govt: Illegal tour packages have no effect on Thai tourism

Thailand is likely to miss 10 million Chinese tourist arrival projection this year

Thailand’s earlier projection of ten million Chinese tourist arrivals this year is likely to fall short of target due to a sharp drop of tourists from China as a result of the government’s crackdown on zero-dollar package tours from China, said Mr Sinchai Wattanasartsathorn, president of Pattaya Tourism Association, on Sunday.

He pointed out that air ticket bookings to Thailand in China saw 70-80 percent cancellations just as advance bookings of hotels in Bangkok and Pattaya substantially dropped since the crackdown.

Although high season has already arrived in Pattaya since October which will last until next April, the number of Chinese tourists visiting the resort city of Pattaya which is most popular among the Chinese has visibly dropped with two- and three-star hotels most affected, said Mr Sinchai.

European tourists have increased but their numbers are still small, he added.

Zero-dollar package tours are tourism services provided by unscrupulous Chinese tour companies in collusion with their Thai partners. They usually sell package tours to Chinese tourists below costs. But upon arrival in Thailand, the tourists will be taken to souvenir or jewelry shops which overcharge them heavily to recoup the below-cost packages.

Thailand is likely to miss 10 million Chinese tourist arrival projection this year |

The imminent fall in the Yuan and tighter exchange controls affecting transfers of funds outside China is going to bite deeper.

Thailand might have to find another market to gouge.

Tourism revenue up as expected | Bangkok Post: business

No! No! No! Revenue is up, tourist number are up. Government officials know the truth.

^555 according to TAT both revenue and numbers are up between 10 and 15% from last year...maybe be next term figures will be affected, but with TAT fancy accounts who knows?

This zero-$ package tour haven't brought much money to Thailand anyway, excepting large hotel/resort bookings ... even if they don't earn a good living by renting rooms to theses group, it help to amortize their costs, but there are high risk of deterring other customers who pay higher price ...

Official Optimism on Tourism Tempered by the Numbers

Central bank admits crackdown on zero-dollar package tours has greater impacts than earlier projected

The government’s crackdown on zero-dollar package tours from China may have greater impacts on tourism business than earlier projected but whether the impacts will affect the GDP or not is yet to be assessed together with the overall economic performance, said Mr Don Nakornthap, senior director of Macro-economic Policy Office of the Bank of Thailand, on Wednesday.

Tourism sector accounts for 11-12 percent of the GDP and the number of tourist arrivals for the month of October has dropped to 2.26 million compared to 2.41 million in September representing 10.1 percent drop, said Mr Don, adding that this has weakened the consumption of tourism-related private sector.

Coupled with the weak purchasing power of the farming sector due to lower prices of farm products, the consumption growth of the private sector for the month of October contracted 1.9 percent against the figure in September.

Don said it was initially projected that the crackdown on zero-dollar package tours from China and the increase of fees for visa upon arrival would cut down the number of tourist arrivals by 200,000 for this year, but it appeared that the real impacts might be far greater than the earlier projection. The actual impacts, he added, will be further assessed.

Meanwhile, exports for October contracted 4.3 percent compared to September’s 3 percent growth, but exports of certain goods and for certain markets remain positive indicating that there is potential for expansion of medium-grade goods.

Private sector’s investments for October contracted 1.5 percent resulting from continuing contraction in construction sector and investments in machinery.

Central bank admits crackdown on zero-dollar package tours has greater impacts than earlier projected |

A rather unwelcome shot of reality after all the bullish numbers coming out of the TAT.

I do hope Khun Don has another job lined up.

It is a scourge that brings no good to the host resort, just the Chinese organiser / racketeer.

You would think a cheap package would be good but they control the "marks" all the way from airport to hotel to shop to hotel to shop etc. As they rarely speak anything but Chinese, they find themselves unable to travel independently around their destination.

The zero dollar tour guides use high pressure tactics to force tourists to spend money at specific stores, often using verbal and physical intimidation.

The goods they buy are often imported from China, which always causes me a giggle watching them.

When they are drained off all cash they take them back to China.

Hard to find sympathy.

Meanwhile the hotels are beaten down on discounts to near the marginal cost of cleaning and laundry on the room. No profits there, in fact it is hard to find a local business making any real money from these tours.

Better to get rid of them and right-size the industry to profitable sectors.

Can anyone see the difference between 'zero dollar tours' for Chinese and the typical package tours that were, and probably still are common, for Europeans travelling to Spain, Greece and Turkey?

Quote:

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Originally Posted by BKKBanger

Better to get rid of them and right-size the industry to profitable sectors.

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Such as targetting the inhabitants of Bhutan perhaps; a country with a population of about 750,000 and an average wage of a 1USD per day.

Government has big plans for Bhutan tourism | Bangkok Post: news

Quote:

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Originally Posted by Warwick

Can anyone see the difference between 'zero dollar tours' for Chinese and the typical package tours that were, and probably still are common, for Europeans travelling to Spain, Greece and Turkey?

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Probably quite similar.
Yet, in this case we could guess that this suspended activity by the Thai authorities has little to do with wrong doing and much to do with being beneficial, in some manner, towards the Junta circle and extended associations.

As it might be with most every enactment that they propose - profit and control of an advantageous motive. The base modus operandi of a military oligarchy.

Quote:

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Originally Posted by Warwick

Can anyone see the difference between 'zero dollar tours' for Chinese and the typical package tours that were, and probably still are common, for Europeans travelling to Spain, Greece and Turkey?

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Westerners actually pay the packaged tour, and thus are not compelled to buy stuff at thoses shopping stops ...otherwise they would lodge a complaint back home.

I'm convinced that shop owners give kickbacks to tour guides to make them stop at their shops instead of the others but I think theses arrangements are "local", and don't imply funelling all the money out of the country ...

Just my opinion as I've never (ever) travelled on packaged tours.

in Bali the kickbacks to guides and tour operators are a well established business practice. 15% is common but if you organise large tours and regularly stop, you can probably get more.

Recently, Thailand and Bhutan signed a Memorandum of Understanding (MoU) on tourism including tax exemptions for Thai tourists but no progress has been made, exactly the kind of tourism initiative the Thais would also be quite good at if they just focused on making money out of their well heeled foreign guests.

Quote:

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Originally Posted by BKKBanger

Recently, Thailand and Bhutan signed a Memorandum of Understanding (MoU) on tourism including tax exemptions for Thai tourists but no progress has been made, exactly the kind of tourism initiative the Thais would also be quite good at if they just focused on making money out of their well heeled foreign guests.

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Oh sure - that's what a once lovely and traditional culture as Bhutan needs is an influx of incursion from the less than developed West.

They should've kept the entries/arrivals very limited, years ago, when the opportunity arose.

Many still don't get it nor ever will.