Airlines urge new PM to consider waiving visa fees for large markets like India, China

The meeting on Monday discussed the air traffic situation in Thailand and schemes to promote tourism during high season later this year.

The airlines present in the meeting were Thai Airways, Thai VietJet Air, Thai AirAsia, Thai AirAsia X, Thai Smile Airways, Bangkok Airways, Thai Lion Air and Nok Air.

The proposals presented to the premier and his economic team by the airlines, AOT and CAAT, were:

• Boosting flights by at least 20%

• Enhancing aircraft capacity to accommodate a higher number of passengers

• Expanding efforts to attract tourists from large markets like China and India

• Adjusting aircraft fleet to match tourism promotion.

The government’s aim is to launch more travel campaigns next year, and the first step will be getting the airlines ready. Each airline said it would improve flights and routes if the government can boost domestic demand. The airlines are also willing to make tickets more reasonable.

Tassapon Bijleveld, executive chairman of Asia Aviation Plc (holding company of Thai AirAsia), advised the government to waive visa fees for travellers from China and India. He also wants the authorities to assess the readiness of each airline to fly to different destinations, especially Phuket and Krabi in the South.

The airlines, meanwhile, want the excise tax on aviation fuel to be reduced. This proposal was made after the tax reverted to its original rate of 4.73 baht per litre from July 1. The airlines are proposing that the rate be reduced to 0.20 baht per litre with incremental increases, like the measures implemented during the Covid pandemic. This reduced rate came to an end on June 30.

Santisuk Klongchaiya, CEO of Thai AirAsia, reckoned that easier visa measures would encourage tourists from targeted countries to travel to Thailand.

Puttipong Prasarttong-Osoth, president of Bangkok Airways and the Airline Association of Thailand, said the association would collaborate with the new government to help with the recovery of tourism. He added that the aim is to boost travellers’ confidence and encourage more trips.

Currently, some 80-90% of Chinese arrivals opt for a visa on arrival, which costs them 2,000 baht per person.

In the first eight months of this year, only some 2 million Chinese tourists have landed on Thai soil. Though the main reason for this low number is a slowdown in the Chinese economy, waiving visa fees will encourage more to travel and help Thailand meet its target of 5 million Chinese tourists.

Thai AirAsia, meanwhile, is pushing to increase flights to six key Indian cities in a bid to achieve an “open skies” status and bring more Indians to Thailand.

The airlines are also eyeing campaigns to promote domestic travel by reducing travel costs and stimulating secondary cities.

Suksit Suvunditkul, president of the southern chapter of the Thai Hotels Association (THA), said there are many issues that need to be solved in top destinations like Phuket. The issues he highlighted are transportation, environmental concerns, urban planning, budget allocation, water reservoir development, urgent public utilities, and special projects.

He said definite efforts must be made to manage airport congestion and traffic problems, as well as ensure tourists’ safety by installing CCTV systems in more places. He also said that car rental companies should ensure tourists renting cars have a valid driver’s licence.

Kerati Kijmanawat, AOT president, said airports under AOT’s jurisdiction were ready for the high season, which kicks off in October. He too acknowledged that waiving visa fees will encourage more people from big markets like China and India to visit Thailand.

Suttipong Kongpool, CAAT’s director-general, said airlines and airports are collaborating to prepare for the upcoming high season. He said despite the fallout of the Covid-19 pandemic, Thai tourism stakeholders are optimistic about the recovery of the industry, especially with the potential positive impact of visa measures and increased flight frequencies.