Declining Visitor Numbers

4.6% Drop in 2025

Thailand recorded a 4.56% decline in foreign tourist arrivals from January 1 to June 29, 2025, compared to the previous year, according to the Tourism and Sports Ministry. The period saw 16.61 million visitors, falling short of expectations for a robust recovery. This downturn signals challenges for Thailand’s tourism sector, a key economic driver contributing 12% to GDP, as the nation aims to rebound from pandemic-era lows.

Top Source Countries

Malaysia and China Lead

Malaysia topped the list of source countries with 2.29 million visitors, closely followed by China with 2.25 million, reflecting strong regional travel demand. These figures, reported on July 1, 2025, highlight Southeast Asia’s role in sustaining Thailand’s tourism market. Despite the overall decline, these countries underscore the importance of neighboring markets, which account for 30% of arrivals, per ministry data, in sustaining visitor flows.

Revised Tourism Forecasts

Bank of Thailand Adjusts Expectations

The Bank of Thailand (BoT) recently lowered its 2025 foreign tourist forecast to 35 million from 37.5 million, acknowledging the sector’s slower-than-expected recovery. This adjustment, announced last week, reflects cautious optimism amid global economic uncertainties and regional competition. In 2019, Thailand welcomed a record 39.8 million visitors, a benchmark the country struggles to approach post-pandemic, with 2024 seeing 34.5 million arrivals.

Economic Ripple Effects

Tourism Slowdown Impacts Growth

The tourism sector’s softening, coupled with a decline in manufacturing, contributed to Thailand’s economic slowdown in May 2025, despite a surge in exports, per the BoT. The tourism industry, which supports 20% of jobs nationwide, faces pressure from reduced visitor spending, estimated at 1.6 trillion baht in 2024. This decline challenges efforts to stimulate growth, especially as household debt remains high at 90% of GDP.

Factors Behind the Decline

Global and Regional Challenges

Several factors contribute to the drop, including geopolitical tensions, such as Thailand’s border dispute with Cambodia, and a strong baht deterring budget travelers. Additionally, competition from destinations like Vietnam, with 18 million arrivals in 2024, per ASEAN data, draws visitors away. Social media sentiment on X suggests concerns over political instability, including the recent suspension of Prime Minister Paetongtarn Shinawatra, may also deter travelers.

Strategies for Recovery

Boosting Domestic and Regional Tourism

To counter the decline, Thailand is promoting domestic tourism through initiatives like the “Tiew Thai Khon La Krueng” campaign, offering subsidies for low-season travel. The government is also targeting high-spending markets like India and the Middle East, which grew 15% in arrivals in 2024. Enhancing unique experiences, such as farmstays in Chiang Rai, and improving infrastructure, like new roads to Don Mueang Airport, aim to restore Thailand’s appeal as a top global destination.

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