Thailand sets minimum price for Chinese tour

BANGKOK Thailand’s Ministry of Tourism and Sports’ Department of Tourism’s Bureau of Tourism Business and Guide Registration will set a minimum tour package price for Chinese tourists at THB1,000 per day, per person.

Speaking at a press conference , Wednesday, Tourism Council of Thailand president, Ittirit Kinglek, said the department discussed with tourism public and private sectors on Tuesday to reach agreement on a minimum standard price for tourism package sold to Chinese travellers by tour operators.

“We agreed that the minimum standard daily cost of a package should not be below THB1,000…the cost will include hotel, vehicle, tour guide, food, insurance and tax.”

However, the official announcement and details will still have to wait until the Bureau of Tourism Business and Guide Registration has gone over the proposals and conclusions.

The scheme is just one of many measures to help develop the Chinese market and crackdown on zero-dollar tour, he added.

The country’s travel industry is blighted by zero-dollar tourism and there have been many agreements signed and minimum prices set over the last decade that were touted as the final solution.

The council’s domestic marketing vice president, Yutthachai Soonthronrattanavate, said according to the initial agreement tourism operators have to sell a standard tourism package starting at THB1,000 per tourist per day.

“However, they can sell a higher price but not lower,” he said.

Prime Minister Prayut Chan-ocha had earlier called for a crackdown on zero-dollar tour operators and told officials concerned to strictly enforce the law to develop the country tourism industry.

However, the laws have been in place for years regarding travel agency standards and practices, but not enforced in a robust manner.  For example the Department of Tourism does not update the public (tax payers) on which travel agencies are currently registered and of a good standing. There are no announcements on suspensions, or delisting of travel agencies and the list of registered agents on the department’s website is out of date.

It is very difficult for a consumer to ascertain that they are buying services from travel companies that are in good standing, registered and in a position to reimburse for a failure of service. Often tour companies post an outdated registration number, or are registered under their Thai name, which is different from the English name identified in their website or marketing communications.

The PM also has ordered Tourist Police and other authorities to suppress zero-dollar tourism and the use of nominees in order to protect travellers and the economy.

The Ministry’s Department of Tourism is working with the Ministry of Finance’s Revenue Department, Ministry of Commerce’s Department of Business Development, Economic Crime Suppression Division, Tourist Police Division, Consumer Protection Police Division and Anti-Money Laundering Office.

For the first seven months of this year, Thailand welcomed 5.76 million Chinese travellers increasing 20.54% from 4.78 million visits during the same period last year.

The Number of Chinese tourists is expected to reach over 10 million visits this year.

Last year, Thailand attracted 7.9 million Chinese travellers increasing 71.14% from 4.6 million visits in 2014, according to Ministry of Tourism and Sports data.