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.