Thai bus operators are grappling with fierce competition from Chinese counterparts who use nominees to offer cheaper prices, while an increasing number of foreigners are unlawfully working as van drivers for tourists, the Thai Transportation Operators Association reports.
According to Wasuchet Sophonsathien, president of the association, illegal foreign operators continue to challenge licensed bus companies, which are still struggling to recover from the impacts of the pandemic.
Wasuchet noted that with the influx of independent travelers and upscale tour groups, especially from China, these illegal entities have shifted from operating large buses to smaller vans and minivans to better serve these visitors.
He explained that some foreigners on extended stays obtain a personal driver’s license or utilize an international driver’s permit to illegally drive small groups of tourists. In Thailand, driving jobs are reserved for Thai nationals.
Foreign operators are also engaging in both van and bus services by registering their businesses under Thai nominees, he added.
These companies are slashing service prices to attract more customers and expand their market share, Wasuchet pointed out.
For example, while Thai operators typically charge 7,000 baht for a bus ride from Suvarnabhumi Airport to Pattaya, including fuel, Chinese operators using nominees undercut this price by half.
Wasuchet mentioned that many of these operators collaborate with foreign agents and networks, including hotels and restaurants, to organize tours.
He highlighted that the policy allowing 60-day visa-free entry for 93 nationalities has also increased the number of foreigners illegally working in the bus and van sector to generate income.
Tourists often use foreign payment apps to pay for these services, making it difficult for Thai authorities to monitor and tax these financial transactions.
Wasuchet stressed, “In these instances, the tourism revenue bypasses local businesses and goes directly to foreign operators.”
He noted that only 13,000 to 14,000 tour buses are operational, a sharp decline from the 40,000 buses running in 2019. Many bus companies are also facing financial difficulties in maintaining their fleets, which remained inactive during the pandemic.
Wasuchet urged the incoming cabinet to tackle the issue of illegal nominees by partnering with the private sector, which can help identify and report dubious businesses early on.
He also suggested that the government should stabilize diesel prices with a long-term strategy to reduce fuel costs, which account for 60-70% of operational expenses, and increase public investment in events that promote bus tourism.
