Visa-Free Travel Between Thailand and China to Bolster Tourism and Economy

In a significant development aimed at reviving the tourism economy, Thailand Prime Minister Srettha Thavisin announced that Thailand and China have mutually agreed to exempt visa requirements, heralding a new era of travel between the two nations. The permanent visa-free arrangement extends the temporary scheme concluding on February 29 and marks a pivotal move to accelerate Thailand's post-pandemic tourism industry recovery.

The Thai tourism sector, which is the second-largest in Southeast Asia, has undergone significant pressure due to the global Covid-19 pandemic. Visitors from China, the largest demographic of tourists to Thailand before the pandemic, plummeted from a remarkable 11 million out of 40 million in 2019 to a mere 3.5 million of 28 million last year.

Recognizing the urgency to bolster the tourism-dependent economy, Srettha’s government, since its incumbency in September, has actively introduced measures to catalyze a "quick win." These efforts include a temporary visa waiver for travelers from diverse nations such as Russia, Kazakhstan, India, and Taiwan, and potential plans to allow extended stays for tourists from select countries for increased spending.

Moreover, the latest bilateral agreement, to be officially inked by the end of February, extends the generosity of visa exemption to Thais traveling to China, a move Srettha believes will "elevate pride in Thai passports."

The practicalities of this accord will allow Chinese and Thai tourists to enjoy up to 30 days per entry, with the possibility of a cumulative 90 days over six months for multiple entries. According to Thai government spokesperson Chai Wacharonke, this initiative is anticipated to "further enhance people-to-people exchanges" and deepen the diplomatic rapport between the two countries as noted by China’s foreign ministry spokesman, Wang Wenbin.

This move is welcomed by the travel industry with fiscal enthusiasm as it comes with the potential to revitalize the aviation, hospitality, and service sectors. The optimism was reflected in the Thai stock market where shares of airlines, airport operators, and hotels experienced a surge, signaling investor confidence in the uptick of tourism activities and associated revenues.

To further incentivize tourist spending, the Thai cabinet approved a reduction in excise tax on alcoholic beverages which is expected to appeal to a broader range of international visitors and encourage higher spending in the hospitality sector.

The economic impact of tourism in Thailand is profound, accounting for about 12% of GDP, and nearly a fifth of employment opportunities. Last year's foreign tourist revenues amounted to 1.2 trillion baht ($35 billion), with expectations soaring to capture 35 million arrivals this year, which would include a substantial 8.2 million from China as projected by The Tourism Authority of Thailand.

The symbiotic relationship between these two economies through tourism is manifest, as both nations anticipate a resurgence of visitors and a return to pre-pandemic prosperity. This visa-free travel agreement is not just a boon for travelers but a strategic economic lever in the region's recovery and growth roadmap.