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(Bloomberg) – Thailand is in talks with China to establish a quarantine-free travel corridor in January to rescue its ailing tourism industry.
The agreement with Beijing will be subject to the success of a limited reopening of the Thai tourism industry to foreign travelers this month, according to Tourism Minister Phiphat Ratchakitprakarn. China, which accounted for more than a quarter of Thailand’s tourist arrivals before the pandemic, will be the first low-risk country that the Southeast Asian nation will sign up for without quarantine, he said.
The current mandatory quarantine will be replaced by coronavirus testing and a mobile tracking app for Chinese visitors if the return of foreign tourists does not lead to new Covid-19 outbreaks, Phiphat said. About 11 million Chinese tourists visited Thailand in 2019, bringing the country about $ 17 billion, official data shows.
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Thailand has struggled in its efforts to reopen its borders to tourists due to opposition from a section of local industry and public concern that the government is not prepared to deal with a second wave of infections. But a pact with China may open the door to similar travel deals with countries like Japan, South Korea, Singapore and Taiwan, Phiphat said.
“It can be a very happy new year, as Thailand’s peak travel season is the perfect time to allow people to enter the country,” Phiphat said in an interview in Bangkok on Thursday. “Most Chinese visitors come to Thailand for a week, so for many it would not be worth the trip.”
The minister expects tourist arrivals to total between 5 million and 10 million next year, compared to an estimated 7 million this year. While Thailand has weathered the virus outbreak better than most other Southeast Asian nations, the pandemic has devastated its tourism industry, which generated more than $ 60 billion in revenue from roughly 40 million visitors in 2019.
“China has about 800 million people in 22 provinces who have been infection-free,” Phiphat said. “If we could attract 1% of those people to travel here, that would be enough.”
The first batch of visitors from China under a previously announced long-term tourist visa program will arrive in Bangkok on Tuesday, the minister said. The government expects to issue around 1,200 visas a month under the program to help the industry that is recovering from the influx of foreign tourists for five months in a row.
“The Thais don’t have enough money to power the industry, so we have to find a way to attract foreign tourists either way,” Phiphat said. “If we do not receive foreign tourists, our economy will suffer a sharp contraction.”
Thailand is also grappling with mounting anti-government protests, prompting authorities to impose a state of emergency in Bangkok on Thursday. Protesters are now planning more demonstrations in the capital and abroad in the coming days, scaring off potential foreign tourists. But that won’t stop the government from easing visa restrictions, Phiphat said.
“I am concerned, but I am confident that an understanding can be reached and it will not turn violent,” Phiphat said.
Contact editor Yang Ge ([email protected])
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