Chinese travelers' slow return hits Southeast Asian economies

Chinese visitors remain slow to return to Southeast Asian nations despite such efforts as visa-free travel to lure them back, threatening their tourism-dependent economies and forcing some companies to reassess expansion plans. The Wat Arun temple in Bangkok was filled with foreign tourists Tuesday, many of whom snapped photos in front of the landmark. But an on-site employee says the tourist traffic is only around 70% of pre-COVID levels, citing the smaller-than-expected number of Chinese visitors. The Chinese tourists who do arrive are thriftier now. A gift shop operator notes that they haggle for bigger discounts than before COVID-19. "If I refuse the price the customer asks for, they leave quickly," the 60-year-old shopkeeper said. Approximately 11m Chinese visited Thailand in 2019, accounting for 27% of all foreign visitors. The share has since shrunk to 12% for the January-August period of 2023. In Cambodia, the share of Chinese travelers plunged from 36% to 10%. Vietnam saw a drop from 32% to 12%. Overall, international visitors in Thailand sank 32% between the January-August periods of 2019 and 2023. Vietnam's tally fell 31%. The arrested recovery in Chinese outbound tourism is to blame. China had strictly limited its citizens' cross-border travel under its zero-COVID policy and lifted a ban on overseas group travel just this February. But the slumping real estate market and the worsening job market have dampened Chinese people's appetite for spending, and many are choosing not to travel abroad.<br/>