Thai Tourism Sector Shaken by US Tariffs and Market Uncertainty

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FILE photo courtesy; TTG Asia

 

The Thai tourism industry is currently navigating choppy waters as it faces potential disruptions from US President Donald Trump's trade tariffs and shifting global markets. Airlines and hoteliers are on high alert, with fuel prices and an unpredictable Chinese tourism influx being pivotal concerns in a landscape marked by economic challenges.

 

Recently imposed tariffs by President Trump are anticipated to affect global oil prices, a critical element for the travel sector, especially airlines. Tassapon Bijleveld, executive chairman of Asia Aviation, which holds the majority stake in Thai AirAsia, stressed that while low fuel prices currently advantage airlines, fluctuations tied to trade policies could upend this benefit.

 

The industry is especially wary of geopolitical developments, including the ongoing conflict in Ukraine, as Trump's energy policies favour fossil fuels over green alternatives. Should the situation resolve, it could release more Russian energy supplies into the market.

 

Despite this, the International Air Transport Association reports a promising 10.4% expansion in global air travel for 2024. However, Tassapon warns that if confidence in the economy wanes due to tariffs increasing costs, domestic purchasing power might plummet, making for a volatile near-term outlook.

The combination of a fragile domestic economy and dwindling foreign investment enthusiasm in the Thai stock market further compounds the stress. With profitability issues and governance concerns haunting some listed Thai companies, the market's appeal to investors remains bleak.

 

On the hospitality front, unpredictability reigns. The Thai Hotels Association's president, Thienprasit Chaiyapatranun, notes that visa-free travel, especially from China, alongside the rise of spontaneous online bookings, has disrupted traditional forecasting methods. While the high season shows promise, the offseason will test resilience, absent the pull of large festivals like Chinese New Year.

 

China's role is critical: fluctuations in this market heavily influence Thailand's tourism revenue, a factor amplified by recent fraudulent scandals that have cast a shadow over confidence.

 

Yet, the Chinese continue demonstrating purchasing power, opting for destinations like Japan, which recently surpassed Thailand in Chinese visitor numbers.

 

The appeal of a weakened yen and upcoming global events like Japan's World Expo 2025 have contributed to this shift and present a growing challenge for Thai tourism.

 

As the Songkran holiday approaches, key indications of the year’s trajectory will emerge. For now, Thai tourism faces a dual threat of domestic economic haze and fierce international competition, with much riding on diplomatic and market resolutions in the months ahead, reported Bangkok Post.

 

-- 2025-02-20

 

 

[Jingthing]

"President" Trump -- the "gift" (grift) of chaos and flooding the zone with disruption that keeps on giving. 

[Ben Zioner]

Lower interest effing rates.

 

And I am sure the way the tax on foreigners has been introduced hasn't improved Thailand's reputation. Neither does the reality that MPs who consider changes to the constitution may go to jail. 

 

A bit like having a holiday in Iran in 1980...

[Jingthing]

So Thailand will pivot even more than before to CHINA (and permanently). 

[ozz1]

It hasn't even started yet and they're in a panic how about looking at the baht value

[smedly]

3 hours ago, Jingthing said:

"President" Trump -- the "gift" (grift) of chaos and flooding the zone with disruption that keeps on giving. 

 

you think Thailand trades fairly?

 

see how much tax you will pay for an imported motorbike or anything really 

[sharot724]

1 hour ago, smedly said:

 

you think Thailand trades fairly?

 

see how much tax you will pay for an imported motorbike or anything really 

Pray tell me the motorcycle manufactuers in the US you believe that will increase thier sales here then?

[John Drake]

No mention of the one word in Trump's message about tariffs and how they will be applied. That word is "reciprocity." And it should scare Thailand to death. Because there is no reciprocity. Thailand has been given almost free access to the American market because it was considered a friendly nation. That's in the past. It has now aligned with China, BRICS, and regional dedollarization agreements. So, get ready to say bye-bye to that $10 billion trade surplus with the US. Might have helped had Thailand bought the F-16s, but they botched that, too.

[sscc]

9 minutes ago, John Drake said:

No mention of the one word in Trump's message about tariffs and how they will be applied. That word is "reciprocity." And it should scare Thailand to death. Because there is no reciprocity. Thailand has been given almost free access to the American market because it was considered a friendly nation. That's in the past. It has now aligned with China, BRICS, and regional dedollarization agreements. So, get ready to say bye-bye to that $10 billion trade surplus with the US. Might have helped had Thailand bought the F-16s, but they botched that, too.

 

The title and this thread is about Thai tourism.

Your comments about trade, export etc are not relevant to the topic.

You picked wrong thread posting such comment.    

 

[sscc]

5 hours ago, Ben Zioner said:

Lower interest effing rates.

 

And I am sure the way the tax on foreigners has been introduced hasn't improved Thailand's reputation. Neither does the reality that MPs who consider changes to the constitution may go to jail. 

 

A bit like having a holiday in Iran in 1980...

   

Tourists staying 2 days to 2 weeks weeks  do not bother to think of taxation matter for  a second. 

Long-stay foreigners are a small sector of Thai tourism industry after all. 

 

[John Drake]

10 minutes ago, sscc said:

 

The title and this thread is about Thai tourism.

Your comments about trade, export etc are not relevant to the topic.

You picked wrong thread posting such comment.    

 

 

Idiot comment. The title is: Thai Tourism Sector Shaken by US Tariffs and Market Uncertainty

 

Tariffs! Tariffs! It is your comment that is a waste and off topic.

[kingstonkid]

1 hour ago, sharot724 said:

Pray tell me the motorcycle manufactuers in the US you believe that will increase thier sales here then?

It is not just the motorcycles  . Try buying a bottle of good French wine, Rhine wine, or wine from Oz. The markup is huge.

 

As to tourism the only thing that TRUMP may affect is the number of Americans that stay home and really it is not that huge.

The number of people coming from European and North American countries is lower.  

 

The days of hundreds of huge Farang with wallets, guts, and desire for young lasses on warm beaches during the winter are lowering.

 

Justr like Vegas went from being Sin City to now having a family atmosphere the same can be said for Thailand

 

Yes, we still have the young guys that come for the honey. 

 

[digger70]

Thai Tourism Sector Shaken by US Tariffs and Market Uncertainty.

 

Serves Thailand right  ,Thailand has been Stupid overcharging  imports with Astronomical high Tarifs and import Tax   .

Greed that 's all it is with Thailand .

Maybe It's going to hurt Thailand  if DT put a Tax hike  on Thailands Exports  Maybe not time will tell .

[John Drake]

3 minutes ago, digger70 said:

Thai Tourism Sector Shaken by US Tariffs and Market Uncertainty.

 

Serves Thailand right  ,Thailand has been Stupid overcharging  imports with Astronomical high Tarifs and import Tax   .

Greed that 's all it is with Thailand .

Maybe It's going to hurt Thailand  if DT put a Tax hike  on Thailands Exports  Maybe not time will tell .

 

For some reason, DJT is also on the warpath about VAT. Thailand loads up on that through domestic and foreign tourists.

[realfunster]

3 hours ago, John Drake said:

No mention of the one word in Trump's message about tariffs and how they will be applied. That word is "reciprocity." And it should scare Thailand to death. Because there is no reciprocity. Thailand has been given almost free access to the American market because it was considered a friendly nation. That's in the past. It has now aligned with China, BRICS, and regional dedollarization agreements. So, get ready to say bye-bye to that $10 billion trade surplus with the US. Might have helped had Thailand bought the F-16s, but they botched that, too.

These numbers are a couple of years old but you get the picture.

 

Whatever your political stance, one must admit there is something to be evaluated further for the US in terms of their trade/diplomatic strategy with Thailand going forward. 

 

I wonder if the average Thai is aware we are running a huge trade deficit with our friends in China. What advantages does that bring to Thailand ? High quality submarines by the year 2050 ?

 

[smedly]

3 hours ago, sharot724 said:

Pray tell me the motorcycle manufactuers in the US you believe that will increase thier sales here then?

unless "stuff" is made here import tax is up to 300% i.e. tarrifs, Thailand has no brands they can call their own, literally everything is foreign designed and produced produced here, try importing a Toyota from Japan, this is a highly protectionist country which is IMO why they have nothing of their own - this approach stumps growth and development which is why Thailand is so retarded 

[smedly]

29 minutes ago, realfunster said:

These numbers are a couple of years old but you get the picture.

 

Whatever your political stance, one must admit there is something to be evaluated further for the US in terms of their trade/diplomatic strategy with Thailand going forward. 

 

I wonder if the average Thai is aware we are running a huge trade deficit with our friends in China. What advantages does that bring to Thailand ? High quality submarines by the year 2050 ?

 

this is skewed and not a true reflection e.g. - none of the Toyotas bought in Thailand are imported from Japan

[StayinThailand2much]

49 minutes ago, realfunster said:

 

 

Very interesting statistics; most exports go to ASEAN... (Rice, noodles, food??) Exports to 'Europe' (EU, UK, ...) and Japan are surprisingly low, relative to potential speaking, as are imports from Western countries. Seems, the reliance on neighbouring countries and, of course, China is very high, not only in tourism.

[DonniePeverley]

It's going to have no effect on tourism. 

 

 

[factual monk]

One day - Tourism market leading up...

Next Day - Shaken up tourism sector...

Next day - tourism booming... and so on...

 

 

To be honest... I been traveling intensively past 4 years to Thailand and Vietnam... but I have noticed one big change... I see more Koreans,  Taiwanese and Chinese tourists in Vietnam than in Thailand. The tourism sector is seeing a change as Vietnam offers much cheaper properties than Thailand... 

[hotsun]

Give em hell donald

[sharot724]

16 hours ago, kingstonkid said:

It is not just the motorcycles  . Try buying a bottle of good French wine, Rhine wine, or wine from Oz. The markup is huge.

 

As to tourism the only thing that TRUMP may affect is the number of Americans that stay home and really it is not that huge.

The number of people coming from European and North American countries is lower.  

 

The days of hundreds of huge Farang with wallets, guts, and desire for young lasses on warm beaches during the winter are lowering.

 

Justr like Vegas went from being Sin City to now having a family atmosphere the same can be said for Thailand

 

Yes, we still have the young guys that come for the honey. 

 

You should really be feelng exposed and therefore ill. No response to the question then you divert to world wide wine pricing. 

Thanks for destroying the bs about how well trumps taffifs help anyone. LOL