Government boosts tourism promotion as Chinese arrivals drop sharply

Tourism, Thailand’s key economic driver, has faced a series of challenges this year that have affected tourist confidence, especially regarding safety. 

Incidents such as call centre scams along the Thailand–Myanmar border, an earthquake, the murder of an LGBTQ woman in Pattaya, and concerns surrounding Chinese grey businesses have all contributed to a more cautious travel environment.

As a result, Thailand recorded 12.09 million foreign arrivals from January to April — a year-on-year decrease of 0.26%, despite a 5.24% increase in tourism revenue, which reached 577 billion baht.

While several tourist markets have helped sustain revenue growth — particularly long-haul markets from Europe, the Middle East and the United States — the sharpest decline was seen among Chinese visitors. The number of Chinese tourists fell to 1.64 million, down 25% compared to the same period last year.

Chinese tourists were once the largest international market for Thai tourism, peaking at a record 11.13 million visitors in 2019 before the Covid-19 pandemic. That figure represented 28% of the 39.8 million total international arrivals that year.

In 2024, Chinese arrivals stood at 6.73 million — only 60% of the pre-pandemic level in 2019 — accounting for 19% of Thailand’s total 35.54 million international tourists.

Thai tourism on the brink

Tourism and Sports Minister Sorawong Thienthong has warned that Thai tourism is nearing a crisis, as certain international markets have seen a decline in visitor numbers since the beginning of 2025.

However, overall tourism revenue has increased compared to the same period last year, thanks to a rise in the number of high-spending quality tourists.

“Although the current situation with international tourist arrivals is becoming critical — as both the Tourism and Sports Ministry and the private sector have expressed concern — it is still in the early stages and can be addressed,” he said.

He noted that global tourism competition is increasingly intense, with many countries stepping up their efforts to attract travellers. China, in particular, has become a strong contender, drawing a significant share of international tourists away from other destinations.

Meanwhile, Thailand continues to face a wave of negative publicity. If these negative perceptions are not addressed, it could severely damage the country's overall image — not just in terms of tourism, but across all sectors, Sorawong cautioned.

Tourism revenue target cut to 3 trillion baht

Thapanee Kiatphaibool, Governor of the Tourism Authority of Thailand (TAT), stated that the country's tourism revenue target for 2025 would be revised down from 3.5 trillion baht to 3 trillion baht — equivalent to the level recorded in 2019, prior to the Covid-19 pandemic.

TAT expects 35.5 million international arrivals this year, matching last year’s figure and contributing 1.89 trillion baht in foreign tourism revenue. Meanwhile, the domestic tourism market is seen as a key pillar for recovery. The target for domestic travel remains unchanged at 205 million trips, generating 1.17 trillion baht in revenue.

In a worst-case scenario, Thapanee anticipates that the number of Chinese tourists visiting Thailand could drop to 4-5 million. However, if the situation stabilises and confidence can be restored, the figure could reach 6.7 million — the same as last year.

She expressed concern over several issues that have negatively impacted Thailand's image among Chinese travellers. 

Issues such as human trafficking, earthquake-related safety concerns, the murder of an LGBTQ woman, and the presence of Chinese grey businesses have been widely circulated, discussed and amplified online — fuelling uncertainty among tourists.

“Managing the current situation is extremely challenging and requires government-to-government (G2G) cooperation,” she said. 

She added that the Thai Tourism and Sports Minister will extend an invitation to the Chinese Minister of Culture and Tourism to attend celebrations marking the 50th anniversary of Thailand–China diplomatic relations in July 2025.

While TAT is shifting its promotional focus towards long-haul markets such as Europe and the Middle East — where both arrival numbers and spending per trip are strong — Thapanee emphasised the need to maintain the Chinese market. 

She warned that if Chinese arrivals fall to just 4–5 million this year, revenue from long-haul markets alone will not be sufficient to compensate for the shortfall.

Thapanee added that TAT is preparing to submit a revised tourism stimulus plan to the Tourism and Sports Ministry, which will then be proposed to the Cabinet in mid-2025. The plan seeks to utilise a 3.5 billion baht emergency reserve budget to effectively boost both domestic and international tourism through three key initiatives:

• The first initiative is the Half-Price Thai Travel scheme, aimed at stimulating domestic travel during the low season this year. Following recent discussions, the number of available subsidies may be reduced to fewer than one million, and participants will be limited to a maximum of 10 subsidies per person.
• The second initiative focuses on joint promotion in collaboration with online travel agencies (OTAs), targeting independent travellers (FITs).
• The third initiative involves joint marketing efforts with airlines, specifically aimed at the Chinese tourist market. Priority will be given to supporting charter flights, with an initial condition requiring a minimum passenger load factor of 85% per flight.

Stronger incentives needed to attract foreign tourists

Thanapol Cheewarattanaporn, president of the Association of Thai Travel Agents (ATTA), said the goal of supporting charter flight schemes from secondary cities in China — particularly aimed at first-time travellers — is to reignite interest in Thailand during June to August this year and build long-term confidence among tourists.

“The project should help boost the number of Chinese visitors to 7 million this year, which is highly achievable,” he said, “Previously, many Chinese tour operators shifted to selling packages to Japan and Vietnam, but if the buzz around Thai tourism returns, they’re likely to promote Thailand again.”

Voralak Tulaphorn, Chief Marketing Officer of The Mall Group, noted that the decline in Chinese arrivals has forced the department store operator to adapt its marketing strategy and tap into new markets.

She urged the government to consider increasing incentives and benefits for international tourists through tax measures, to encourage spending and boost Thailand’s appeal as a travel destination.

For The Mall Group’s city-centre shopping malls like Emporium and EmQuartier, international tourists account for 40–50% of customers — with around 30% of sales previously coming from Chinese tourists.

Although that figure has dropped to 25%, strong spending continues from Japanese, Malaysian, Hong Kong and Singaporean tourists, who remain important target groups.

“This is a period of adjustment, and we’re focusing on attracting more visitors from other countries,” Voralak said, “Tourists from Asia, Southeast Asia and CLMV countries may not spend as much as Chinese tourists, but their potential is steadily increasing.”

Wallapa Traisorat, CEO and president of Asset World Corporation (AWC), cited a range of challenges impacting the economy and tourism — from global economic volatility and trade wars to geopolitical tensions.

She emphasised the need for all sectors to work together in attracting quality tourists and boosting spending, particularly in segments like meetings and events, which remain subdued and require careful timing to recover. 

Most importantly, she said, the industry must collectively restore confidence and develop unique concepts that promote Thailand’s strengths.

“Thailand is a truly special destination. We must work together to develop concept-driven initiatives that deliver exceptional experiences to tourists,” she said.

Paitoon Wongsasutthikul, Chief Investment Officer at AWC, added that the property and tourism sectors generate a multiplier effect throughout the economy, creating widespread benefits and employment opportunities.

“It’s essential that all sectors unite to overcome the negative factors currently affecting the economy and tourism,” he said.