Thailand and Vietnam are pursuing different tourism strategies as both countries respond to changing travel trends and economic pressures, according to Yuthasak Supasorn, chairman of the Industrial Estate Authority of Thailand (IEAT) and former governor of the Tourism Authority of Thailand (TAT). Get today's headlines by email Thailand’s tourism sector entered a difficult adjustment phase after strong growth in 2024. International arrivals reached 35.54 million visitors that year, up 26.27% from the previous year. However, in 2025, arrivals fell to 32,974,321, a decline of 7.23%, while total spending by foreign tourists dropped 4.71% to THB1.53 trillion, largely due to fewer Chinese visitors. Vietnam, meanwhile, recorded a landmark year in 2025. International arrivals surged to between 21.1 and 21.2 million visitors, an increase of 20.4% from 2024 and 17.8% above pre-pandemic levels in 2019. Tourism revenue exceeded VND1 quadrillion, or around US$39 billion, for the first time, prompting the government to set a target of 25 million international visitors and 150 million domestic trips in 2026. Despite this growth, Vietnam faces what analysts describe as a “quantity trap”. Revenue growth remains heavily dependent on increasing visitor numbers rather than higher spending per traveller or premium tourism products. This limits profitability and highlights weaknesses in the country’s tourism value chain. The comparison is reflected in the 2024 Travel & Tourism Development Index (TTDI) from the World Economic Forum. Thailand ranked 47th overall, supported by strong natural resources, culture and tourism infrastructure. However, its safety and security ranking dropped to 102nd due to concerns over crime and public confidence. Vietnam ranked 59th overall but performed strongly in price competitiveness, placing 16th globally, and safety and security, where it ranked 23rd. However, the country continues to face infrastructure challenges, with service infrastructure ranked 80th and tourism policy prioritisation ranked 98th. Thailand maintains a significant advantage in transport connectivity, tourism product diversity, luxury accommodation, shopping and medical services. Efficient logistics and established tourism infrastructure help distribute visitors throughout the country. Vietnam’s main competitive strength is affordability. Travel costs are estimated to be 20-30% lower than in Thailand, while the cost of living in Bangkok is reported to be 54% higher than in Hanoi. Affordable accommodation, food, internet services and favourable exchange rates continue to attract budget-conscious travellers and remote workers. Safety perceptions also play an important role. Vietnam benefits from an image of political stability and low crime levels affecting foreign visitors. Thailand, however, continues to face challenges linked to high-profile incidents that have affected confidence among some international markets, particularly Chinese travellers. Thailand is responding with a strategy focused on quality tourism, promoting higher-spending visitors through initiatives such as the Destination Thailand Visa (DTV), medical and wellness tourism, MICE events, and soft-power campaigns. The government aims to generate THB3.4-3.5 trillion in tourism revenue. Vietnam is pursuing broader market expansion through visa reforms, including visa exemptions for citizens of 13 countries and expanded e-visa access worldwide. The country is also investing in a national tourism super app, Visit Vietnam, which is scheduled for full operation by 2027 and will use AI, blockchain and integrated national data systems to improve visitor experiences. The Nation reported that analysts warn that Vietnam may face limits to future revenue growth unless it develops premium tourism products and higher-value services. Thailand, meanwhile, faces pressure from declining visitor numbers and rising operating costs, creating financial strain for businesses built to serve tourism volumes exceeding 40 million visitors. Picture courtesy of The Nation Join the discussion? Already a member? Adapted by ASEAN Now Nation 8 June 2026
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