Thomas Cook China Launches New Strategy Amid Huge Chinese Tourist Declines in Thailand


Skift Take

Japan turned out to be the lifeboat for Thomas Cook China when Thailand turned disastrous, as the tour operator appears to be sailing away blithely with four new initiatives to scale up its China market.

A steep decline in Chinese arrivals to Thailand has roiled Thomas Cook China’s aim of taking 200,000 clients on holiday by the second year of operation in the mainland. But what it loses in Thailand is made up for by gains in Japan that are more than just about the number of tourists.

The tour operator is also sticking to its end goal of having a China market that’s as big as Europe, marching on with four new initiatives that include launching its own integrated technology system and developing own brand hotels throughout the mainland. Thomas Cook China is a joint venture between the Thomas Cook Group and the Chinese conglomerate Fosun.

Thomas Cook China, of course, isn’t alone in suffering losses to Thailand due to a backlash from Chinese tourists over the Phuket boat tragedy in July and a cooling China economy. Chinese arrivals in Thailand dropped 20 percent in October, the fourth consecutive drop since July, according to the latest data from the Thailand Ministry of Tourism & Sports. For a market that accounts for nearly 30 percent of all arrivals, the declines are disastrous, prompting the Thai government to waive fees for visas on arrival for visitors from 21 countries, including China, for the upcoming peak season in December and January.

The disaster mirrors back to Thomas Cook China, for whom Thailand was a number one destination accounting for 30 percent of business. The majority of its clients are sun-seekers going to Phuket. This is now down to “10 to 20 percent," Alessandro Dassi, managing director of Thomas Cook China, told Skift. And while sales have picked up this month, they aren’t back to the same level as before, he said.

[caption id="attachment_314371" align="alignright" width="300"] Thomas Cook China's managing director Alessandro Dassi still gung-ho despite Thailand upset[/caption]

Had it not been for Thailand, along with a weaker su