Tourism Thailand Tourism: Falling Behind or Ready to Evolve?

[snoop1130]

Picture courtesy of Andamanda Phuket

 

Thailand faces an uphill battle to restore its tourism industry to its pre-pandemic heights. Despite a 26% increase in visitors, reaching 35.5 million in 2024, the nation remains unable to surpass its 2019 peak of nearly 40 million tourists. For the first half of 2025, only 16.6 million arrivals have been recorded, suggesting that previous records may remain unbroken for some time.

 

Today, the Tourism Authority of Thailand (TAT) unveiled a new campaign, "Healing is a New Luxury," aiming for 36 million visitors and 1.63 trillion baht in revenue by 2026. Yet, this figure still falls short of the 1.9 trillion baht generated in 2019. An ambitious 2.8 trillion baht target for next year looms large, but reaching the 3 trillion baht milestone of the past remains elusive.

 

Although tourism saw a rebound in 2023 with the reopening of China's borders, enthusiasm has waned. The once-robust Chinese market, which comprised a quarter of Thailand’s foreign tourists, has dwindled significantly. A significant rise in Chinese visitors in January 2024 was followed by steep declines, with first-half arrivals in 2025 down 34% year-on-year.

 

Former TAT governor Yuthasak Supasorn warns that only 4-5 million Chinese tourists may visit this year, marking a 12-year low, excluding the COVID-19 period. The issue isn't solely China's slowing economy, as Vietnam and Japan have seen substantial increases in Chinese visitors, while Thailand grapples with safety concerns stemming from high-profile incidents like the kidnapping of Chinese actor Wang Xing and the collapse of a Bangkok building.

 

Thailand's safety ranking has tumbled to 102nd out of 117 countries in the World Economic Forum's Travel & Tourism Index. Concerns over policing and personal safety at night have grown, with Chinese travellers' confidence in Thai safety plummeting from 26% in 2024 to 19% in 2025.

 

The challenge extends beyond numbers. Malaysian tourists have surged to become Thailand’s top market in 2025, but they spend significantly less compared to Chinese visitors. A Chinese tourist spends an average of 42,428 baht over 7.35 days, whereas a Malaysian spends just 21,450 baht over 4.17 days.

 

Efforts to attract European travellers, who spend more on average, have helped locations like Phuket, but only temporarily. Occupancy rates in Phuket’s low season dropped to 59% in June, down from 72% the previous year, with room rates dipping to 2,394 baht.

 

Thailand's appeal as a budget destination is fading, with its cost competitiveness ranking slipping to 48th. The rise of "Qióngyóu," budget travel among Chinese millennials, has diverted price-sensitive tourists elsewhere.

 

Yuthasak argues for a strategic pivot: attracting fewer, high-spending tourists to maximise economic impact. The country’s historical resilience in crises is being tested amid this prolonged recovery effort.

 

To regain its stature, Thailand must focus on rebuilding trust, enhancing safety, and offering better value. Transforming from a budget haven to a quality destination could redefine its future. The clock is ticking, as regional rivals forge ahead.

 

Yuthasak underscores Thailand's potential: "We can't rest on past glories. It's time to evolve, or risk being left behind."

 

  Adapted by ASEAN Now from The Thaiger 2025-07-21

 

 

[Maxbkkcm]

Evolve definitely. They cater high spender now. You can see it in bkk. Wealthy traveler all over now. 

[chawbdurian]

F tourism

[TheAppletons]

1 hour ago, Maxbkkcm said:

Evolve definitely. They cater high spender now. You can see it in bkk. Wealthy traveler all over now. 

 

  Definitely.  There are even guys selling Rolex watches on the streets to the wealthy travelers.