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Thai cosmetics, food firms tap into Chinese tourism boom

Reuters, Bangkok
The label on the pink and white box of face cream sold in a Bangkok hypermarket proudly declares that it is based on a "snail seaetion filtrate moisture system". The Snail White branding - plus some positive internet reviews - is enough to have Chinese tourists recently lining up to buy the slime-infused produa.
Alice Chen, 21, a Chinese college student, says she saw the face cream reviewed online and wanted to try it out because she couldn't get it back home. And a 22-year-old Chinese tourist also at the Big C Ratchadamri store, who only gave her name as Yvonne, said she bought some - it retails at about $40 a box - because "a blogger said it was good and inexpensive."
Meanwhile, at a dessert cafe just up the road in Bangkok's upscale Siam Paragon shopping centre, another group of Chinese tourists take pictures on their phones of whimsical treats made
from durian - the yellow fruit known for its sul-ftiry smell that is mainly grown in southeast Asia. About 11 million Chinese tourists are expeaed to come to Thailand this year, up from just over 1 million in 2010, making China by far the biggest source of tourism here. And they are spending more per head than previously, according to Thai government figures.
And it isn't only the hotels, tour operators and airlines that are benefiting. A big slice of this spending is with retailers, restaurants, and food and cosmetics makers that target the Chinese audience Investors have taken note drivingup the share prices of many of the companies concerned to high price-to-earnings ratios. So far, in some cases, that securities analysts say they are wary of valuations, especially as tourists' tastes can change rapidly. Do Day Dream Pd, the company behind the skin-whitening Snail White aeam, is one
Boxes of the firm's signature aeam, which the firm says it makes from snail slime extraaed using a
process done in South Korea, are stacked high at Thailand's airports and malls as it has become a must-buy item for many Chinese visitors who covet paler skin. Sales of the Snail White products have been skyrocketing since 2014 as beauty bloggers in Hong Kong and Singapore gave them rave reviews, according to Do Day Dream Chief Financial Officer Piyawat Ratchapolsitte.
In 2017, the company's revenue ballooned 35 percent to 1.7 billion baht ($52 million) as the company also built a strong Thai domestic market and grew online sales direa to Chinese consumers. It also sells other snail seaetion-based products, including shower gel and lotions.
The sales to visitors are at risk, he said, if for any reason there is a sudden drop off in Chinese tourists. That happened briefly in 2015 and 2016 when the Thai government made it much more difficult for the tour operators offering really cheap packages to the Chinese - known as "zerodollartours".