The kidnapping of actor Wang Xing has led to a decline in tourism to Thailand, with many Chinese travelers canceling their Lunar New Year trips. According to China Trading Desk, Thailand’s net bookings fell 15.6% YoY from January 13 to 20.
The incident of Wang being held at a scamming compound along the Thai – Myanmar border also affects other countries in Southeast Asia. The aviation analytics company VariFlight’s data show that Vietnam, Singapore, Indonesia, and Malaysia have lost several Chinese tourists this holiday, but less than Thailand.
Yang Lei, an analyst at China Galaxy International, noted that the incident benefited other countries as Chinese tourist bookings increased. During the same period, Australia saw a 4.8% rise, the United Arab Emirates had a 4.7% increase, and South Korea experienced a 3.9% growth in Chinese travelers.
To regain confidence among Chinese tourists, Thailand posted an AI-generated video featuring its prime minister assuring Chinese tourists of their safety. Meanwhile, China announced its preparation to collaborate with Southeast Asian nations to crack down on cross-border scamming compounds.
Thailand has been trying to regain Chinese tourists’ confidence since the release of the 2023 Chinese blockbuster film “No More Bets.” The movie depicts a Chinese couple falling victim to a human trafficking scheme in Southeast Asia, a scenario that the United Nations estimates has really happened to thousands of people.
Many of these compounds are located in the border areas of Thailand, Cambodia, Laos, and Myanmar, which the UN considers lawless. In addition to scamming, these areas are also rife with drugs, wildlife trafficking, and other illegal activities.
Nevertheless, VariFlight’s CEO, Subramania Bhatt, still anticipates that many Chinese tourists will visit Southeast Asia during this Lunar New Year, surpassing 2019 levels. According to data from China Trading Desk, flight bookings to Singapore and Malaysia increased by 14.2% and 6.2%, respectively, compared to 2019.
While South Korea is expected to see Chinese tourist arrivals fully rebound during the festive period, Japan is not expected to fully recover, with arrivals still down 10% compared to 2019. Bhatt noted that outbound travel from China remains uneven.
Besides safety, geopolitics and costs also influence Chinese travel trends. Singapore and Malaysia, seen as “politically neutral,” are seeing faster tourism recovery, while travel to Europe has become more expensive due to Russian airspace closures, making it costlier for Chinese tourists.
Yang also stated that Chinese people are still willing to spend on experiences, particularly travel, despite weak consumer confidence in a slowing economy. Chinese officials even predict a record nine billion trips during the 40-day Lunar New Year travel rush, which started on January 14.
