(Vietnam Insider) – Bangkok, Thailand – May 2025 – Thailand, once the undisputed tourism powerhouse of Southeast Asia, is now facing a steep decline in international visitor numbers, forcing the government and industry stakeholders to reassess and revise their expectations for 2025.
According to data released by the Tourism Authority of Thailand (TAT), international arrivals dropped by 0.2% in the first four months of the year compared to the same period in 2024. In response, TAT has scaled back its initial goal of attracting 40 million foreign tourists this year, despite maintaining ambitions for revenue growth.
China No Longer a Stronghold
China, historically Thailand’s largest source of international visitors—accounting for 25% pre-pandemic—has seen a drastic decline. Visitor numbers from China fell by 30% in the past four months. Air travel between the two countries dropped by 25%, while flights from China to Japan and South Korea surged by 43% and 28% respectively, highlighting a shift in Chinese travelers’ preferences.
Chai Iamsiri, CEO of Thai Airways, attributed the sluggish recovery to the Chinese government’s continued emphasis on domestic tourism. The airline now operates just 35 weekly flights to China, compared to 80 before COVID-19.
TAT offices in China have also noted a worsening perception of Thailand among Chinese tourists due to high-profile incidents including kidnappings, natural disasters, and negative media coverage. These concerns have been echoed by Indian travel agents, raising alarms about broader regional reputational risks.
Losing Ground in the Region
Thailand’s regional competitors are capitalizing on the situation. In 2024, Japan surpassed Thailand in attracting Chinese tourists, hosting 6.9 million compared to Thailand’s 6.7 million. In Q1 2025, Vietnam welcomed 1.5 million Chinese visitors—outpacing Thailand and strengthening its position as a rising tourism contender.
The Federation of Thai Industries (FTI) warns that a continued downturn in tourism could trigger broader economic impacts. The U.S. government’s threat of a 36% tariff on Thai exports adds further pressure.
Tourism Industry Sounds the Alarm
Industry leaders are urging the government to move beyond marketing campaigns and address core issues like safety, pricing, and service quality. “Tourism generates trillions of baht, but the sector’s budget allocation doesn’t reflect its importance,” said Tassapon Bijleveld, Executive Chairman of Asia Aviation.
Panit Kannasut, owner of a popular Bangkok restaurant, revealed that revenues have dropped 20% since mid-March. Domestic patrons now account for 70% of her customers, with fewer foreign tourists dining out—despite it being peak season.
“Thai tourists are also cutting back on spending,” she noted. “We should stop relying solely on Chinese tourists and explore opportunities in the Southeast Asian market. The key is attracting high-quality travelers willing to spend, rather than just aiming for high numbers.”
The Road Ahead: Challenges and Opportunities
While the government has introduced initiatives like digital immigration cards to combat cross-border crime and unlicensed accommodations, experts argue these are piecemeal solutions. Thanet Supornsahasrungsi, Chairman of the Chonburi Tourism Association, stressed the need for comprehensive safety measures and diversified marketing strategies, particularly targeting travelers from Malaysia and Southeast Asia.
Analysts from KGI Securities, Maybank, and BofA have all downgraded their forecasts for Thailand’s international tourist arrivals in 2025, estimating 35–37 million visitors—well below the 40 million target.
As the peak travel season approaches, Thailand’s tourism industry finds itself at a crossroads. Bold policy interventions, improved safety, and a focus on traveler experience—not just marketing—may be essential for Thailand to regain its footing in the increasingly competitive tourism landscape of Asia.
Reported by Vietnam Insider, based on information from VnExpress and Bangkok Post
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Source: Vietnam Insider