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Enter the Dragon: Just in time, China comes to Phuket's rescue

Phuket New Year Travel Boost: China Lifts Warning

Wednesday, January 21, 2009
CHINA HAS lifted its travel advisory warning to tourists about Thailand, opening the doors to world's biggest market again for Phuket and the Andaman, Phuketwan has learned.

The change in policy, confirmed today by the Chinese Embassy in Bangkok, comes as Cabinet yesterday approved four measures designed to boost tourism.

Foreign Minister Kasit Pirom on his visit to Phuket on December 27 hinted to Phuketwan the change in policy would come before Chinese New Year.

Khun Kasit said that he had sent letters to both the Chinese Government and Communist Party asking that they lift the advisory, which had been issued during the anti-government protests that shut down Bangkok's two airports in late November.

He urged China to act swiftly so that Thailand could welcome Chinese visitors in time for the New Year celebrations.

Tourist visa fees will be waived for all nationalities for three months, not six months as proposed in a 13-point plan submitted to Cabinet earlier this month.

Entrance fees to all national parks will be waived for two years.

In a measure to boost the meetings, incentives, conferences and exhibitions (MICE) market and hotels, a tax scheme has been enacted where corporations using hotel and conference facilities within Thailand can claim expenditures as double their actual expenses.

A company spending 500,000 baht on a conference, for example, can claim expenses of 1 million baht in its tax reporting.

The measure applies only to hotel room and conference facility costs, not food, beverage or other expenses.

Methee Tanmanatragul, President of the Thai Hotels Association Southern Chapter, says that Tourism and Sports Minister Chumpol Silpa-acha told him yesterday during his visit to Phuket that as well as pushing for more corporate use of Thailand's MICE facilities, all Thai government agencies have been instructed to hold their meetings and events within Thailand.

In a bid to convince airlines to reduce fares, airline landing and departure fees will be cut by 20 percent and 50 percent, respectively, and landing fees for chartered flights will be reduced by half.

The tourism measures are part of a sweeping economic stimulus plan approved yesterday that includes tax cuts and exemptions for property and businesses.

Update Thai Airways is not slashing its fares by 50 percent contrary to some news reports, an executive with the airline confirmed with Phuketwan. Current prices are based on standard structures set three years ago, he said.

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