Thai AirAsia to cut China flights by 15pc, shifts focus to India amid weak demand
The airline is also urging the Thai government to strengthen its tax refund incentives to help stimulate tourist spending, particularly during the low travel season.
According to the Bangkok Post, Thai AirAsia and Thai AirAsia X are reviewing their services to 10 Chinese cities, including Guangzhou, Shenzhen, Chengdu, and Shanghai, with a shift in focus towards high-growth markets such as India.
'Even though more Thai tourists are flocking to China after the permanent visa exemption started last year, the outbound flows cannot compensate for the absence of Chinese passengers,' said Tassapon Bijleveld, executive chairman of Asia Aviation, the largest shareholder of Thai AirAsia.
He said the slowdown comes as Beijing discourages domestic consumption of luxury goods, a policy that has hurt spending patterns since last year.
Tassapon said the Thai government should upgrade its tax refund programme to attract foreign tourists who still have spending power.
He noted that Thailand's 7 per cent VAT is lower than countries like Japan, which offers a 10 per cent refund, and China, which provides up to 13 per cent back to foreign shoppers.
'Our country might lose some revenue from tax collection if we provide higher refund values to tourists, but the amount of money they spend would bring greater benefits to the overall economy — not just for luxury retailers, but for businesses across all sectors,' he said.
He proposed a pilot programme for instant, on-the-spot tax refunds during the third-quarter low season to assess its impact before broader implementation.
Thai AirAsia believes such measures are vital to revive the sector and align with calls from other business groups.
Both the Association of Thai Travel Agents and the Thai Retailers Association have previously called for a more efficient tax refund system and increased incentives for international visitors.
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