"Zero-dong" tours are a form of tourism in which tourists are exempted from paying for airfare, hotels, food, sightseeing, etc. However, they are forced to buy products at exorbitant prices at designated stores. "Zero-dong" tours are applied in the following way: Companies in China, India or Russia sell very low package prices to tourists and send them to companies based in Thailand. But when they arrive in this Southeast Asian country, tourists are forced to buy expensive food, accommodation and gifts.
This seemingly free form of tourism causes tourists to spend less than usual, leading to a loss of revenue for the Thai tourism industry. Surveys show that, on average, each tourist participating in this tour spends 50% less than a normal tourist.
Concentrating tourists on certain locations on “zero-dollar” tours can lead to overcrowding, which can damage the environment and natural landscapes. Furthermore, the Thai government says low-budget trips have tarnished Thailand’s image, and police regularly take enforcement action to clamp down on zero-dollar tours.
Although the Thai government has taken many measures to prevent "zero-dollar" tours, these efforts seem to be facing challenges. According to the Thai Travel Agents Association, more and more foreigners are participating in "zero-dollar" tours. They use locals as agents for their illegal business, making it difficult to manage and punish. Foreigners can take advantage of legal loopholes and a lack of law enforcement resources to circumvent the law.
Known as the number 1 tourism hub in Southeast Asia, Thailand is being affected by "zero-cost" tours.
“Zero-dong” tours attract tourists with surprisingly low prices, putting pressure on local travel companies. To compete, travel companies are forced to lower tour prices, leading to low profits and unsustainable business operations.
Thailand, a “big” country in Southeast Asia’s tourism industry, has lost about 305 billion baht (nearly 9 billion USD) each year due to the damage from “zero-dollar tours”. However, the biggest consequence is the image of the country’s tourism industry in the eyes of foreign tourists. Therefore, Thailand has taken strong measures to tighten this tourism model.
Thailand's Tourism and Sports Minister Phiphat Ratchakitprakarn confirmed on April 20 that the country will implement a 300-baht tourist fee from next September, and the ministry also plans to ask provincial police to assist the tourism police in operations to eliminate "zero-dollar tours" and illegal tourism.
According to Mr. Phiphat, Thailand will still collect the above fee even though the method of adding travel fees to air tickets has been criticized by airlines as being selective and violating the International Air Transport Association's Chicago Convention on equal priority.
The Ministry of Tourism and Sports is considering outsourcing the collection of fees for all three modes of entry – air, land and sea – to external organisations via online apps, websites or kiosks. Foreigners arriving by air will have to pay 300 baht, while those arriving by land and sea will have to pay 150 baht.
After Thailand, Vietnam is now the center of “zero-dollar tours” from Chinese tourists. This business model not only causes loss of revenue but also entails many consequences, especially the image of Vietnam in the eyes of international tourists.
