Thailand: a strong baht and regional competition are driving tourists away

The Thai National Tourism Office (TAT) expects 33.4 million foreign visitors this year, a 6% drop from 2024.

This decline is attributed to the downturn in Southeast Asia and East Asia markets.

The agency expects Thailand to welcome:

• 2.62 million travelers in October,
• 3.07 million in November,
• 3.63 million in December.

It expects arrivals from East Asia to decrease by 25%, mainly due to a sharp decline from China, while arrivals from Southeast Asia will decrease by 8%.

TAT added that tourists are also concerned about travel safety and the ongoing border conflict with Cambodia.

See: Thailand: tourism is collapsing due to the decline in Chinese visitors

But beyond security concerns, it is mainly the Asian markets that are plummeting.

Decline of Asian markets

Asian tourists visit the Grand Palace in Bangkok. Photo: The Nation.

Rung Kanjanaviroj, Executive Director of Planning at the TAT, said:

“In East Asia, the TAT notes a decline in the number of travelers from China, Taiwan, Hong Kong, and South Korea, while arrivals from Japan remain stable.”

In Southeast Asia, fewer Malaysians are visiting the country.

The authority is monitoring this trend and believes that travelers may turn to other destinations.

Thailand faces intense tourist competition

Panorama of Ho Chi Minh City in Vietnam in 2019. Photo: Lê Minh Phát

In addition, the kingdom is facing intense tourism competition from other countries in the region.

While Thailand is losing visitors, Vietnam is breaking records and establishing itself as the new tourism tiger in the region.

In the first eight months of 2025, Vietnam recorded nearly 14 million foreign tourist arrivals, an increase of 21.7% compared to the previous year.

See: Vietnam: the new economic tiger threatening Thailand

Next year, the TAT expects Thailand to face stronger competition from China, where improved infrastructure facilitates travel for independent travelers.

Vietnam, for its part, is developing new artificial attractions at competitive prices.

Kriengkrai Thiennukul, President of the Thai Industry Federation (FTI) emphasized the importance for Thailand to develop artificial attractions as well.

Mr. Kriengkrai explained that China has succeeded in creating such destinations and integrating them with existing sites of interest to create complete tourist routes.

He also encouraged the Thai tourism industry to adopt sustainable tourism.

“If Thailand can tap into new markets, the country could eventually attract 70 million foreign visitors per year and tourism revenues could account for more than 20% of the country's GDP,” he said.

Arrivals from Europe are expected to increase

A tourist wears traditional Thai clothing during her visit to Wat Arun in July 2025. Photo: Pattarapong Chatpattarasill/Bangkok Post

The good news, according to the TAT, is that arrivals from Europe are expected to increase by 15% this year, those from South Asia, the Americas and Oceania by 8% each, and those from the Middle East by 4%.

As the global economy remains challenging, it will be difficult to increase tourist spending per traveler, said Ms. Rung.

The strength of the baht, a determining factor

Tourists queue at a currency exchange counter. Photo: Bangkok Post.

Mr. Kriengkrai said:

The appreciation of the baht to its highest level against the US dollar in four years has not only hurt Thai export industries, but has also affected the tourism sector.

The strength of the baht has made Thailand less competitive compared to other destinations, as the weakness of the Japanese yen and the depreciation of the Vietnamese dong both favor foreign travelers. »

Between an overly strong currency, regional competition, and security concerns, Thailand needs to accelerate its adaptation to remain one of the world's top destinations.

Source : Bangkok Post