Thailand and China are preparing to implement a visa-free entry policy for each other's citizens, as announced by Thai Prime Minister Srettha Thavisin on Tuesday.
Starting on March 1, Chinese nationals will be granted permanent visa-free entry to Thailand. Previously, Chinese visitors were allowed visa-free entry until February 29, but due to negotiations between Bangkok and Beijing, this privilege has been extended indefinitely.
Thailand Permanently Waives Visas for Chinese Tourists
Thai Prime Minister Srettha Thavisin addresses the Asia-Pacific Economic Cooperation (APEC) Leaders' Week in San Francisco, California, on November 15, 2023. The APEC Summit takes place through November 17.
The visa-exemption policy aims to revitalize Thailand's tourism industry, which has been severely impacted by the COVID-19 pandemic. In 2019, the country welcomed around 40 million visitors, who contributed 1.9 trillion baht ($53.2 billion). However, these numbers drastically plummeted by more than 99% in 2020. China has been a major source of tourists for Thailand, accounting for almost 11 million visitors in 2019, making up 27.6% of total arrivals that year.
The decision to grant permanent visa-free privileges to Chinese citizens comes after negotiations between the two countries. The Thai government agreed to extend visa-free entry to Chinese visitors, while China reciprocated by allowing permanent visa exemption for Thai nationals. The move has been welcomed by both countries, with the Chinese Foreign Ministry expressing their satisfaction and anticipation for the arrangements to take effect soon.
To solidify the agreement, Thai Foreign Minister Parnpree Bahiddha-Nukara will travel to China in early February to sign the mutual visa-free entry agreement. This development is expected to strengthen the relationship between Thailand and China and provide a significant boost to the tourism industry in both countries.
In 2023, Thailand welcomed 28 million foreign tourists, generating revenues of 1.2 trillion baht ($34.93 billion). Chinese tourists accounted for 3.5 million of these arrivals, placing China as the second-largest source market after neighboring Malaysia. Prior to the pandemic, Thailand aimed to attract 5 million Chinese tourists in 2023. However, concerns over China's slowing economy have affected tourism spending, leading to revised expectations, as per to ABS News.
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Thailand Welcomes 8 New Airlines Amid Industry Recovery
In addition to visa-free entry, the Thai aviation industry is also gearing up for a sustained recovery in leisure travel. Eight new Thai airlines have received approval from Transport Minister Suriya Jungrungreangkit to commence operations. One of these airlines, Really Cool Airlines, plans to offer scheduled services on medium-to-long-haul international routes. Other carriers, including Thai Airways International and Asia Aviation, will also compete to cater to the projected 130 million passengers expected at Thailand's main airports this year.
To further support the tourism sector, Thailand's cabinet has approved a tax cut on alcoholic beverages and entertainment venues. Taxes on wine will be reduced from 10% to 5%, and taxes on spirits will be reduced from 10% to zero.
Additionally, the excise tax on entertainment venues will be halved from 10% to 5%. These tax measures are set to expire at the end of the year. In November, Thailand extended the opening hours of entertainment venues by two hours until 4 a.m. to accommodate nighttime revelers and tourists.
Overall, Thailand's move to grant visa-free entry to Chinese citizens, along with the implementation of tax cuts, is expected to invigorate the country's tourism industry and foster closer ties between Thailand and China, South China Morning Post reported.
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