Thailand plans to hold travel bubble talks with China and Malaysia this month, days after resuming a quarantine-free visa program to boost tourist arrivals seen as key to sustaining a nascent economic recovery.
Thai Prime Minister Prayuth Chan-ocha’s government is soon to discuss with the Chinese Ministry for Culture and Tourism details of a possible bilateral travel deal, government spokesman Thanakorn Wangboonkongchana said in a statement yesterday.
Thai officials are also preparing to hold talks with neighboring Malaysia later this month for a similar agreement, he said.
Photo: AP
Thailand is chasing bilateral deals to spark a broader recovery in its pandemic-battered tourism industry after the waiver of quarantine for vaccinated visitors and the so-called tourism sandbox experiments in recent months failed to draw a large number of holidaymakers.
The return of Chinese and Malaysian tourists, the largest groups of visitors to the Southeast Asian nation before the pandemic, is seen by the industry as key to a sustainable rebound.
“We think a travel bubble will be more positive for Thailand’s tourism sector than the currently implemented ‘Test & Go’ quarantine-free scheme, as the latter alone is not enough to attract tourists who will have to quarantine on their return,” Tim Leelahaphan, a Bangkok-based economist at Standard Chartered PLC, said in a note. “While the plan is a good starting point, we think a clear and strong recovery path is unlikely anytime soon and is more likely in the second half or late this year.”
Chinese and Malaysian tourists accounted for more than one-third of the 40 million visitors to Thailand in 2019, contributing more than US$20 billion in tourism revenue, official data showed. Chinese tourists have shunned Thailand since the outbreak, with Beijing imposing curbs on outbound travel.
Under the travel bubble, tourists will not be subjected to quarantine, and can enjoy special visa and accommodation arrangements, Thanakorn said.
The countries will also agree on a quota for travelers and identify specific zones for their movements to prevent fresh COVID outbreaks, he said.
“The prime minister believes Thailand remains an attractive tourist destination for foreign travelers even during the pandemic,” Thanakorn said.
“The government has supported the restoration of tourism in a new normal” that seeks a balance between safety of travelers and the public, which may become the model for tourism in the future, he said.
TARIFF TRADE-OFF: Machinery exports to China dropped after Beijing ended its tariff reductions in June, while potential new tariffs fueled ‘front-loaded’ orders to the US The nation’s machinery exports to the US amounted to US$7.19 billion last year, surpassing the US$6.86 billion to China to become the largest export destination for the local machinery industry, the Taiwan Association of Machinery Industry (TAMI, 台灣機械公會) said in a report on Jan. 10. It came as some manufacturers brought forward or “front-loaded” US-bound shipments as required by customers ahead of potential tariffs imposed by the new US administration, the association said. During his campaign, US president-elect Donald Trump threatened tariffs of as high as 60 percent on Chinese goods and 10 percent to 20 percent on imports from other countries.
Taiwanese manufacturers have a chance to play a key role in the humanoid robot supply chain, Tongtai Machine and Tool Co (東台精機) chairman Yen Jui-hsiung (嚴瑞雄) said yesterday. That is because Taiwanese companies are capable of making key parts needed for humanoid robots to move, such as harmonic drives and planetary gearboxes, Yen said. This ability to produce these key elements could help Taiwanese manufacturers “become part of the US supply chain,” he added. Yen made the remarks a day after Nvidia Corp cofounder and chief executive officer Jensen Huang (黃仁勳) said his company and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) are jointly
United Microelectronics Corp (UMC, 聯電) expects its addressable market to grow by a low single-digit percentage this year, lower than the overall foundry industry’s 15 percent expansion and the global semiconductor industry’s 10 percent growth, the contract chipmaker said yesterday after reporting the worst profit in four-and-a-half years in the fourth quarter of last year. Growth would be fueled by demand for artificial intelligence (AI) servers, a moderate recovery in consumer electronics and an increase in semiconductor content, UMC said. “UMC’s goal is to outgrow our addressable market while maintaining our structural profitability,” UMC copresident Jason Wang (王石) told an online earnings
MARKET SHIFTS: Exports to the US soared more than 120 percent to almost one quarter, while ASEAN has steadily increased to 18.5 percent on rising tech sales The proportion of Taiwan’s exports directed to China, including Hong Kong, declined by more than 12 percentage points last year compared with its peak in 2020, the Ministry of Finance said on Thursday last week. The decrease reflects the ongoing restructuring of global supply chains, driven by escalating trade tensions between Beijing and Washington. Data compiled by the ministry showed China and Hong Kong accounted for 31.7 percent of Taiwan’s total outbound sales last year, a drop of 12.2 percentage points from a high of 43.9 percent in 2020. In addition to increasing trade conflicts between China and the US, the ministry said