Thailand's tourism numbers to see modest recovery, supported by Chinese and Indian tourists

Thailand's tourism sector may see a modest boost in the coming months as Chinese tourists start returning to the country.

Tourist arrivals from mainland China have been a key drag on Thailand's tourism sector, which has been struggling over the past year. Arrivals expanded just 2.3 per cent year-on-year between July 2018 and July 2019, much weaker than the average of almost 10 per cent seen over the past five years.

The Chinese have been keeping away in part due to negative publicity following a ferry tragedy in July 2018 as well as political uncertainty, air pollution, and a strong THB in more recent months.

That being said, the pace of recovery is likely to be modest as CHina's outbound tourism has slowed broadly in recent months said ANZ economists Krystal Tan and Sanjay Mathur in a report on Wednesday.

Meanwhile, Indian tourists are emerging as a new key driver of tourism growth. Indian tourist arrivals have accelerated sharply over the past year, helped by visa fee waivers and an increase in direct flights between the two countries, noted the report.