Asian tourism biz ready for China rebound as border reopens

In this file photo taken on July 18, 2022, tourists gather and take pictures in the grounds of the Grand Palace in Bangkok. (JACK TAYLOR / AFP)

SEOUL/TOKYO/BANGKOK – Japanese shop owners and Thai tour bus operators are among those celebrating China's border reopening as businesses around Asia rekindle ties with the region's largest economy.

China was the world's largest outbound tourism market before the pandemic, and the absence of its once $255 billion of annual spending since borders were shut three years ago has led to financial trouble for many tourism-dependent businesses and employees.

"We had such a hard time, and I would rather have more Chinese people come than the government restricting their entry so I can do business," said Choi Dae-sung, 49, who has sold clothes and other products in Seoul's busy Myeongdong shopping district for about 30 years but rode a motor bike delivering food to make ends meet during the pandemic.

In Thailand, the deputy prime minister personally welcomed Chinese tourists at Bangkok's Suvarnabhumi Airport on Monday, a day after China's border reopening, and the country now hopes Chinese visitors can double this year to 10 million people, nearing the pre-pandemic level of 11 million in 2019

Hikeshi Spirit, a clothing store in Tokyo's Asakusa district that was hugely popular with Chinese tourists before the pandemic, is also hoping this key customer segment will join other nationalities in returning soon, sales manager Masaki Nagayama said.

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"About 90 percent of our staff can speak English, so with the timing for Chinese customers, we would like to think about hiring staff who can speak Chinese," he said.

In Thailand, the deputy prime minister personally welcomed Chinese tourists at Bangkok's Suvarnabhumi Airport on Monday, a day after China's border reopening, and the country now hopes Chinese visitors can double this year to 10 million people, nearing the pre-pandemic level of 11 million in 2019.

"Tour bus operators who have had their vehicles idly parked for over three years are now gearing up for (bus) inspections," said Thai Tour Bus Association President Wasuchet Sophonsatien.

Kitsanan Bulalom, 53, a Bangkok tour bus driver for 14 years, said he and colleagues were eager to get back to work and earn more cash, adding that he worked six days a week before the pandemic but that was cut to only about one day a week when tourism slumped.

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Underscoring the improving travel demand outlook, data from travel website operator Trip.com Group Ltd showed an 83 percent jump in outbound searches from Dec 26 to Jan 5 versus the previous two week period. Thailand, Japan, the United States, South Korea, Australia, Macao Special Administrative Region, Singapore, Hong Kong SAR and Taiwan region were the most-searched destinations.

Travelers from a Xiamen Airlines flight are greeted by Thai health and government officials as they arrive at Suvarnabhumi Airport in Bangkok on Jan 9, 2023, as China removed COVID-19 travel restrictions. (JACK TAYLOR / AFP)

Share prices in China-exposed companies as varied as Airports of Thailand PCL and South Korean cosmetic makers LG H&H Ltd and AmorePacific Corp have performed strongly in anticipation of a rebound in business since the border reopening was announced on Dec 26.