PATTAYA, Thailand – Thailand’s tourism sector is facing fresh uncertainty as Chinese group tours—once a powerful economic driver—remain conspicuously absent. While Thai travelers continue to frequent landmarks like Khao Phra Tamnak in Pattaya during holidays, the steady stream of Chinese tourists that used to fill buses and local attractions has all but disappeared. The void is striking and worrisome, especially for cities like Pattaya that rely heavily on international arrivals.
In contrast, China has rolled out an aggressive set of tourism incentives to both retain domestic tourists and attract foreign visitors. A key initiative includes a 13% VAT refund for international travelers, designed to encourage shopping, dining, and increased spending across the country. The policy, which is being implemented with streamlined, tourist-friendly systems, has sent ripples across Asia—prompting warnings that Thailand could lose competitiveness if it fails to respond quickly.
“This is no longer just about missing Chinese tourists—it’s about Thailand falling behind in the regional tourism race,” said Natthriya Thaveewong, Permanent Secretary of the Ministry of Tourism and Sports. She noted that the Chinese government’s proactive policies—ranging from tax incentives to visa-free stays for up to 240 hours for citizens of 54 countries—are drawing global interest, including from travelers who might once have chosen Thailand.
Thai private sector leaders are now urging the government to take swift and decisive action. Adith Chairattananon, Secretary-General of the Association of Thai Travel Agents (ATTA), emphasized that Thailand must not only rebuild tourist confidence—especially around safety—but also introduce competitive spending incentives like instant VAT refunds at tourist destinations.
Pattaya Mayor Poramet Ngampichet recently acknowledged the impact of the Chinese tourist decline on local businesses, confirming that the city is collaborating with tourism and police authorities to bolster safety measures, including MOU talks with the Royal Thai Police and expansion of CCTV networks. “Safety is the heart of tourism,” he said, emphasizing that regaining China’s trust must be a top priority.
Meanwhile, TAT Governor Thapanee Kiatphaibool confirmed that VAT refund discussions have been ongoing since 2024. But with Japan and China already executing such strategies—Japan’s duty-free shopping surge grew 219% in March 2025, driven by Chinese tourists—Thailand’s delayed response risks further economic stagnation.
As China repositions itself as both a tourism magnet and a global competitor, Thailand’s once-dominant tourism engine is now under pressure to innovate—or risk being left behind.
