Airlines target China tourist surge amid Japan tensions

Although the airline sector has been suffering from sluggish tourism and a declining number of Chinese arrivals since the beginning of the year, Thailand should still have a robust high season during the fourth quarter, as well as opportunities for more Chinese demand, following China's warning to its citizens to not visit Japan.

- MOLPASORN SHOOWONG

Tensions between China and Japan have escalated, fuelling a sharp drop in Japan's retail and tourism stock pricing, as China issued a travel warning over visits by its citizens to Japan, after the Japanese prime minister commented about the possible use of military force in any Taiwan conflict.

Santisuk Klongchaiya, chief executive of Thai AirAsia, said that while Thailand could benefit from this situation, as Chinese nationals could choose to travel to other destinations such as Thailand, it was still too early to forecast how much demand might grow.

Mr Santisuk said Thai AirAsia had reduced flight capacity from China to only 5% of total international flights, compared to a share of more than 20% before the pandemic, to align with today's tourism in Thailand, which has seen a 30% year-on-year decline in Chinese arrivals.

However, the airline has increased capacity for other potential markets, such as India and domestic routes, of which it still has the largest share.