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Bangkok Post
4 days ago
- Business
- Bangkok Post
Tourism revival goes into reverse
Over the past three years, Thai tourism has been struggling to regain the peak it once reached prior to the pandemic, while neighbouring countries Malaysia and Vietnam have already surpassed their performance in 2019, recording 37 million and 17 million tourist arrivals, respectively. The closest opportunity occurred in 2024 when Thailand welcomed 35.5 million foreign tourists, an increase of 26% year-on-year. However, repeating the success of 2019 when 39.9 million foreign tourists arrived and spending hit 1.9 trillion baht is unlikely to occur in 2025, given that Thailand only attracted 16.6 million foreign arrivals in the first half, dipping 4.6% year-on-year. The Tourism Authority of Thailand (TAT) is scheduled to unveil its marketing direction for 2026 today under the "Healing is a new Luxury" theme, as well as the 2026 target for the international market, which is expected to be only 1.63 trillion baht from 36 million visitors, while targeting 214 million domestic trips, generating 1.17 trillion baht. Even if Thailand was actually able to achieve the revenue goal of 2.8 trillion baht next year, there is still a long way to reach the 3 trillion baht earned in 2019. ARDUOUS TASK During the pandemic, Thailand saw a sharp plunge from 39.9 million tourists in 2019 to just 427,000 in 2021, a decrease of approximately 93 times. A modest rebound just began in the second half of 2022 after the government lifted entry restrictions on July 1, including the Thailand Pass registration and mandatory health insurance. Signs of hope became more evident in 2023, when the country experienced an unexpected surge to 28 million tourists, up from only 11 million in 2022. This growth was largely driven by the reopening of China's borders in January 2023. At the time, the TAT anticipated a smooth path to full recovery, fuelled by pent-up demand across global markets. However, a closer look in 2024 revealed that the Chinese market, which accounted for 25% of total visitors in 2019, had been recovering slowly. Its visitors to Thailand might appear to have grown impressively, doubling from 3.5 million in 2023 to 6.73 million in 2024, but the growth trend weakened significantly toward the end of the year. A staggering 453.7% increase in January 2024 dwindled to just 25.6% in December, despite it being the high season. In the first half of this year, the crisis in the Chinese market has become more apparent, with only 2.26 million arrivals, a 34% year-on-year decline. While the sluggish Chinese economy has been a contributing factor over the past two years, it alone cannot explain the downturn as other countries have continued to attract large amounts of Chinese travellers. Vietnam saw a 144% increase to 2.7 million in the first six months of this year, while Japan recorded a 62.9% rise to 3.92 million. Yuthasak Supasorn, former governor of the TAT, said that the market downturn in the past few years mostly stemmed from Asian travellers, particularly Chinese, which saw the daily average drop by half, from 21,380 in January 2025 to an average of 12,000 daily visitors in the first six months. He said that if this trend persists in the second half, Thailand might have only 4-5 million Chinese visitors in 2025, which will be the first time in 12 years that the number has fallen below the 5-million benchmark, excluding the Covid-19 lockdown period. CHRONIC ILLNESS The main obstacles to the goal of 40 million tourists have been mostly attributed to prolonged internal factors, particularly safety issues, which were like a chronic illness, said Mr Yuthasak. Every tragic incident in the past always led to a dramatic drop in the Chinese market, including the Erawan shrine bombing in 2015 and the deadly boat accident in Phuket in 2018. This year, the abduction of the Chinese actor Wang Xing from Thailand, plus the collapse of the 30-storey building intended to house the State Audit Office on March 28, were the final nails in the coffin, which led to a drastic fall of inbound Chinese. According to the latest Chinese Traveller Sentiment Report by Dragon Trail International in April, the safety perception of Thailand has plunged to 19%, from 26% in September 2024. These concerns were echoed by the World Economic Forum's Travel & Tourism Development Index (TTDI) 2024, in which Thailand's ranking in the travel and tourism socioeconomic impact section plunged to 106, while the safety and security index ranking nosedived from 86 to 102, stemming from low confidence in local police and in safety walking alone at night. Mr Yuthasak said it will be difficult for Thailand to return to the glory days if does not seriously tackle these problems. "Thailand has been resilient in every crisis. But the current situation is different as we've lost the ability to adapt to changes and cannot solve the ongoing decline in confidence," he said. He said the only way Thailand can reach 40 million annual arrivals is by having the same Chinese market volumes as in 2019. INADEQUATE COMPENSATION Mr Yuthasak, who was in charge during the peak period in 2019 and the rock-bottom period in 2021, said that even though Thailand could compensate for the lack of the Chinese market and gain a large volume, the remaining question is about revenue, noting that it would be hard to match the 1.9 trillion baht recorded in 2019. He said the Malaysian market surged to No.1 for Thailand in the first half, but their spending power is questionable. In terms of revenue, Malaysians spent 21,450 baht during a stay of 4.17 days on average, while Chinese travellers spent 42,428 baht during their 7.35-day tour. "Every single Chinese tourist we lose means we must fill the revenue gap with two Malaysian tourists, which might not be practical, considering the stark contrast between a population of 35 million in Malaysia and 1.4 billion in China," said Mr Yuthasak. To fix the income gap, TAT this year also put more focus on European travellers, whose spending per head is twice as high as the Chinese. Suksit Suvunditkul, president of the southern chapter of the Thai Hotels Association, said the long-haul markets in the last high season were extremely robust, as they helped push up average room rates in four- and five-star hotels in Phuket to a record high. However, the situation was a stark contrast entering the low season, as the island experienced a quieter period than the same time in 2023–24. In June 2025, Mr Suksit said the occupancy rate in Phuket stood at 59%, down from 72% in the corresponding period in 2024 and about the same level as in 2023, but the average room rate was recorded at only 2,394 baht, trailing behind 2,746 baht in 2024 and 2,617 baht in 2023. "The situation in this low season is more severe than those of the past few years. Hotels that still perform well are those that can target Indian and Middle East markets," he said. Mr Yuthasak said Thailand not only lost market share due to poor tourist safety, but its old charm as an affordable destination was no longer attracting tourists due to soaring living costs. According to the 2024 TTDI, Thailand's price competitiveness sits at 48th, dropping by three spots from the previous survey. This is obviously against the travel trend on the mainland, where Qióngyóu (budget travel) has been trending among travellers seeking the best value for money trips. Mr Yuthasak suggested Thailand use this crisis to change from a "More for Less" to a "Less for More" approach by setting a revenue target based on appropriate arrival numbers that match carrying capacity and can ensure quality tourism experiences. "Optimisation for maximum economic impacts is the key to solving this crisis. This new direction might need 2-3 years to achieve, but Thailand still has potential due to its strong foundations in tourism and services," he said.
Yahoo
13-04-2025
- Yahoo
White Lotus Wanderlust: How Thailand Became 2025's Hottest Destination — and Why I'll Never Forget Winter 2022
Thailand has officially taken off. Again. Thanks in no small part to the White Lotus effect, the Land of Smiles is basking in the glow of a new wave of wanderlust. The announcement that the third season of the wildly popular HBO series would be filmed in Thailand sent travel searches surging, catapulting the country back into the spotlight as one of the best places to visit in 2025. From the jungles of Chiang Mai to the dreamy shores of Koh Samui, Thailand is having its long-overdue main character moment. But while I love Thailand in any season, it's hard not to feel a little nostalgic for the version I experienced during the winter of 2022 — one of the most surreal, unforgettable, and bittersweet travel moments of my life. Back then, the world was still gingerly tiptoeing its way out of a pandemic. Thailand had cracked open its doors just slightly, welcoming travelers under its Thailand Pass program, a bureaucratic obstacle course of epic proportions. I submitted health declarations, acquired special COVID insurance, scheduled multiple PCR tests, and pre-booked my quarantine stay. Travel felt like applying for a visa to Mars. And yet, I wouldn't trade those hoops for anything. Because on the other side? A Thailand that hadn't existed for more than two decades. I wandered the Grand Palace in Bangkok and didn't have to dodge a single selfie stick. Ayutthaya's crumbling ruins, usually crawling with tour groups, stood stoic and silent, the only other sound the distant hum of cicadas. There were no tuk tuk jams along Sukhumvit. No lines for ferries along the Chao Phraya. Koh Samui was quiet. So quiet. Chaweng Beach, often bustling with nightlife, felt like a forgotten tropical outpost. In Ao Nang, the longtail boats waited patiently, bobbing on clear aquamarine waters, no queues of sunburned tourists clamoring to island-hop. The beaches of the Andaman Sea felt like I'd stumbled into a postcard — only there was no one else in the frame. This was slow travel in its purest, most meditative form. But it wasn't all halcyon beaches and blissful solitude. That version of Thailand came at a cost. A country that thrives on tourism saw its lifeline choked. Hundreds of local businesses shuttered. Whole neighborhoods felt eerily still, their once-vibrant restaurants and guesthouses closed with handwritten signs taped to the gates. The competition among those who remained was intense, and some locals shared quietly how hard it was to keep hope alive. As a traveler, I felt the paradox deeply: the awe of having Thailand "to myself" was constantly shadowed by the weight of what had been lost. Still, that winter trip etched itself into my soul. Not because it was perfect, but because it was utterly singular. It's a memory that feels wrapped in amber — a moment in time that will likely never come again. Today, Thailand is bustling once more. Chiang Mai's night markets are alive with sizzling woks and the jingle of trinkets. Phuket is back in the headlines, its turquoise waters packed with speedboats and White Lotus film crews. Koh Samui is no longer whispering, but navigating its way through not only the usual throngs, but a new wave of travelers fueled by the intoxicating White Lotus high. And I am so glad for it. Thailand deserves it. But when people ask me when the best time to visit Thailand was, I always pause. The truth? It's not now. Not for me, anyway. Thailand is absolutely one of the top travel destinations for 2025, thanks to White Lotus Season 3, its wealth of wellness retreats, luxe hotels, and remote work escapes. Yet a piece of my heart still lives in 2022 — in the hush of sunrise in an empty Wat Arun, in the deserted jungle roads of Mae Hong Son, in the heartfelt greetings of hoteliers who hadn't seen a guest in months. Travel, at its core, is about transformation — of the world around us, and of ourselves. Thailand taught me that some of the most magical moments come not when the world is wide open, but when it pauses — just for a moment — and lets us truly see it.
