Tourism Thailand’s Tourism Confidence Dips Amid Economic Challenges

[snoop1130]

Photo courtesy of Bangkok Post

 

Thailand’s tourism industry is grappling with a slump in confidence, as reported by the Tourism Council of Thailand (TCT), citing safety concerns and cautious spending linked to global economic tensions. The TCT's recent survey reveals a concerning picture, with the tourism confidence index for the second quarter sinking to just 70, a marked decline from 79 last year and a steep drop from pre-pandemic levels of 100.

 

Forecasts for 2023 suggest Thailand will attract only 33.3 million foreign visitors, yielding around 1.75 trillion Thai baht—figures that fall short of last year’s numbers. TCT President Chai Arunanondchai attributes these challenges to a mix of economic and geopolitical factors, including the United States' implementation of a reciprocal tariff policy. This policy has slowed global economic growth to its weakest pace in 16 years and triggered financial anxieties among potential tourists, nudging them towards destinations closer to home.

 

The situation is further aggravated by regional incidents, such as the kidnapping of a Chinese actor in Myanmar and a significant earthquake in March, which have severely impacted Chinese-speaking tourist arrivals, plunging more than 50%. Additionally, ongoing border disputes with Cambodia may trouble tourism in neighbouring provinces during low seasons.

 

Across Thailand’s regions, the tourism confidence index has sunk year-on-year, with the Eastern and Western regions faring relatively better, thanks to tourist influxes from Bangkok. However, even these areas recorded indices of just 78 and 73, respectively.

 

Particularly hit is the entertainment sector, where confidence has fallen to a mere 60 from 73 last year. Tourism operators report revenues are only at 45% of 2019's levels, coupled with hotel occupancy rates declining from 55% to 48%. Although labour shortages are not currently critical, Mr Chai warns they could become problematic if businesses continue to shutter.

 

Despite most businesses—94%—still operating as usual in the second quarter, this is down from 97% earlier in the year. The outlook remains grim, with a forecasted dip in the confidence index to 65 in the third quarter.

 

In response, the TCT has urged the Tourism Authority of Thailand to consider subsidies for bus operators to boost domestic travel, aiming to navigate these turbulent times and rejuvenate the nation's vital tourism sector.

 

  Adapted by ASEAN Now from Bangkok Post 2025-07-25

 

 

[hotchilli]

15 hours ago, snoop1130 said:

Thailand’s tourism industry is grappling with a slump in confidence, as reported by the Tourism Council of Thailand (TCT), citing safety concerns and cautious spending linked to global economic tensions.

Mostly people finding better places to visit in Asia, better entertainment, infrastructure, safety and food choices

not forgetting better prices.

Thailand is not so cheap anymore.

[Mark17AA]

Is this TAT under a different guise.

[Krabi King]

16 hours ago, snoop1130 said:

Forecasts for 2023 suggest

 

Proof reading ? 🤷🏼‍♂️

[BangkokReady]

23 minutes ago, hotchilli said:

Thailand is not so cheap anymore.

 

They don't want budget tourists, but they forgot to do anything to attract any other kind.  🤷‍♂️

[Cameroni]

Jing Jai market in CM is still packed with Koreans. Try getting a parking space there, if you dare.

[baansgr]

Still cheap...same same as 20 years ago..no inflation here unless your are a drinking monger..rents..cheaper, utilities..cheaper, gasoline..cheaper, food... marginally more...best place on Earth 👍 

[thongplay]

Why do we have the Tourism Council of Thailand (TCT) and the TAT (Tourism Authority of Thailand) and the ministry of sports and tourism?

 

 

[dinsdale]

16 minutes ago, baansgr said:

Still cheap...same same as 20 years ago

 20 years ago you could get 3 bottles of Leo or Chang with one one hundred baht note. Now you can get one.

[Ginner]

7 minutes ago, dinsdale said:

 20 years ago you could get 3 bottles of Leo or Chang with one one hundred baht note. Now you can get one.

Yes you can, Chiang 500m bottle B50, even less in Big C, Lotus, Makro 

[Robbkk]

This article is pure garbage. The high tariffs will only kick in next month.

 

They should just say they have no idea why tourists stopped coming.

 

In Japan and Vietnam the numbers are up over 20% compared to 2024.

[baansgr]

11 minutes ago, dinsdale said:

 20 years ago you could get 3 bottles of Leo or Chang with one one hundred baht note. Now you can get one.

Try reading my post..."unless you are a drinking monger"...so the point you are trying to make is irrelevant, and yes I remember you could, it will now cost you 168 baht... 👍 

[pest]

Just back from a night in Patong 

I thought i was in Doha or Bahrain 

Western folk very thin on the ground 

Wont be russian to go back there

[baansgr]

8 minutes ago, Robbkk said:

This article is pure garbage. The high tariffs will only kick in next month. They should just say they have no idea why tourists stopped coming. In Japan and Vietnam the numbers are up over 20% compared to last year.

Don't forget Malaya, I think they are the biggest increase in tourist numbers

[baansgr]

2 minutes ago, pest said:

Just back from a night in Patong 

I thought i was in Doha or Bahrain 

Western folk very thin on the ground 

Wont be russian to go back there

And.probably paid almost as much you would in doha 😁 

[Aussie999]

41 minutes ago, baansgr said:

Still cheap...same same as 20 years ago..no inflation here unless your are a drinking monger..rents..cheaper, utilities..cheaper, gasoline..cheaper, food... marginally more...best place on Earth 👍 

OMG, someone who is blind, isolated from facts, even TAT admits costs .are higher

[Tom100]

Here is this week's update from the Bangkok Post...Thai tourism has been struggling to regain prepandemic peak https://www.bangkokpost.com/business/general/3072756/tourism-revival-goes-into-reverse. View our policies at http://goo.gl/9HgTd and http://goo.gl/ou6Ip. © Bangkok Post PCL. All rights reserved.

[Jack Hammer]

25 minutes ago, dinsdale said:

 20 years ago you could get 3 bottles of Leo or Chang with one one hundred baht note. Now you can get one.

Go to 7/11, cheaper. You are talking about bar prices.

[baansgr]

Just now, Aussie999 said:

OMG, someone who is blind, isolated from facts, even TAT admits costs .are higher

Please read my post...costs for day to day living have barely increased in 20 years. Internet is cheaper, water/electric same price. Gasoline same price, rents are cheaper and marginal increase in food....please tell me where you think costs have increased???..I really would.like to know

[Tom100]

44 minutes ago, thongplay said:

Why do we have the Tourism Council of Thailand (TCT) and the TAT (Tourism Authority of Thailand) and the ministry of sports and tourism?

AI says:  Thailand has three main organizations involved in tourism—the Ministry of Tourism and Sports, the Tourism Authority of Thailand (TAT), and the Tourism Council of Thailand (TCT)—because they serve different roles in the policy-making, promotion, and industry coordination of tourism. Here's how their responsibilities differ:

---

1. Ministry of Tourism and Sports (MOTS)

Type: Government ministry
Role: Policy maker and regulator

Responsibilities:

• Develops national tourism strategy and policy

• Oversees legal frameworks, regulations, and development plans for tourism and sports

• Coordinates with other ministries for tourism infrastructure, immigration, and safety

• Supervises government agencies like the TAT

Think of this as the top-level authority setting the direction for the tourism sector at the national level.

---

2. Tourism Authority of Thailand (TAT)

Type: Government agency (under MOTS)
Role: Marketing and promotion agency

Responsibilities:

• Promotes Thailand as a tourism destination internationally and domestically

• Runs advertising campaigns, travel fairs, and public relations

• Operates TAT offices in Thailand and abroad

• Provides market intelligence, travel trends, and visitor statistics

This is the "sales and marketing arm" of Thai tourism, actively attracting tourists and improving Thailand’s image abroad.

---

3. Tourism Council of Thailand (TCT)

Type: Private sector umbrella organization
Role: Industry representative and advisor

Responsibilities:

• Represents private tourism-related businesses (hotels, tour operators, airlines, etc.)

• Provides feedback to government on industry needs and concerns

• Supports tourism standards and workforce development

• Acts as a bridge between the public and private sectors

TCT ensures the voice of tourism businesses is heard in national planning and helps coordinate the private sector’s response to policies and crises.

---

Summary Comparison

Organization	Type	Main Role	Key Focus
Ministry of Tourism and Sports	Government ministry	Policy, regulation, oversight	Strategy, infrastructure, governance
TAT	Government agency	Promotion and marketing	Tourist campaigns, branding, market research
TCT	Private sector body	Industry coordination and advocacy	Business interests, collaboration, standards

---

Why three organizations?

Because tourism is a complex, multi-stakeholder sector, involving:

• Government planning and infrastructure (MOTS)

• Active promotion to attract tourists (TAT)

• Input and support from businesses that serve tourists (TCT)

Having specialized entities helps Thailand balance public policy, market promotion, and industry collaboration effectively.

 

[dinsdale]

1 minute ago, Jack Hammer said:

Go to 7/11, cheaper. You are talking about bar prices.

711 large bottle of Leo is Bt59 twin pack Bt116.

[ronster]

6 minutes ago, baansgr said:

Please read my post...costs for day to day living have barely increased in 20 years. Internet is cheaper, water/electric same price. Gasoline same price, rents are cheaper and marginal increase in food....please tell me where you think costs have increased???..I really would.like to know

Gasoline is certainly not the same price .

When I came here at first it was 18 bht a litre for 95 gasoline , today it's 33 .

[JustinTyme]

Am I the only one who sees a direct relationship between a "strong Baht" and "weak Tourism"  ???
Gosh, you make your country 10%+ more expensive for tourists and exports, and then wonder why the economy and stock market are in the toilet?? Really? Really?

[smew]

Bad publicity back home resulting from variety of scams ( jet skis, motorbike, huge busses blocking all sea views and access, bar overpricing, taxi ripoffs) unbelievable noise within tourist area have reduced and will further reduce tourist arrivals.

[Aussie999]

18 minutes ago, baansgr said:

Please read my post...costs for day to day living have barely increased in 20 years. Internet is cheaper, water/electric same price. Gasoline same price, rents are cheaper and marginal increase in food....please tell me where you think costs have increased???..I really would.like to know

Understand what I said... Thais are struggling more every day due to increased costs..for tourists, hotel costs are much higher, tours, much higher, food much higher... Why do you think tourists are going elsewhere...are with me if you want but the facts are there... Enjoy your isolation.

[Xonax]

In 2024 tourists had plenty of money saved after being locked down for several years and were longing to be able to travel again. Airlines, hotel and tour operators immediately reacted, by increasing prices to a higher level than ever seen before, expecting that the sudden influx of foreign tourists would continue forever. This combined with a strong Baht, what could possibly go wrong?

[ftpjtm]

17 hours ago, snoop1130 said:

Thailand’s tourism industry is grappling with a slump in confidence, as reported by the Tourism Council of Thailand (TCT), citing safety concerns and cautious spending linked to global economic tensions.

 

Not sure if it has occurred to the statistical gurus at TCT, but a government in turmoil grappling with the potential of a war with Cambodia, probably won't do much to attract tourists into Thailand either. And is likely a stronger deterrent than "global economic tensions". 

[Hawaiian]

18 minutes ago, ftpjtm said:

 

Not sure if it has occurred to the statistical gurus at TCT, but a government in turmoil grappling with the potential of a war with Cambodia, probably won't do much to attract tourists into Thailand either. And is likely a stronger deterrent than "global economic tensions". 

Many potential visitors will only read the headlines about the Thai-Cambodian conflict not realizing the hostilities are confined, so far,  to the less touristy areas of Thailand.  If I didn't know that I would be discouraged also.

[baansgr]

26 minutes ago, Aussie999 said:

Understand what I said... Thais are struggling more every day due to increased costs..for tourists, hotel costs are much higher, tours, much higher, food much higher... Why do you think tourists are going elsewhere...are with me if you want but the facts are there... Enjoy your isolation.

 

[spidermike007]

1 hour ago, dinsdale said:

 20 years ago you could get 3 bottles of Leo or Chang with one one hundred baht note. Now you can get one.

Everything has gone up all over the world. Elsewhere much more so than here. It is still reasonable here. Especially for rent and labor. 

 

There are many other factors at play. Thailand ignored the need to address public and traffic safety. They ignored high speed transit. They never improved  law enforcement. The luxury and wine taxes are way too high. The list is endless.