Former TAT governor calls for a new era in Thailand tourism industry
The former governor of the Tourism Authority of Thailand (TAT) has advised on three key strategies to reshape Thailand’s tourism landscape, asserting that the country’s golden age of tourism has come to an end.
Thailand's tourism industry is undergoing a significant structural transformation amid shifting environmental and market conditions, to the extent that it may never be the same again.
However, former TAT governor, Yuthasak Supasorn—now Chairman of the Industrial Estate Authority of Thailand (IEAT)—believes the industry can step into a new era if the tourism landscape is redefined.
Yuthasak noted that Thailand’s tourism sector has weathered numerous crises in the past, overcoming every challenge with resilience while serving as a vital force in driving the country’s economy.
Nevertheless, he explained, the industry has now reached a turning point, facing profound structural changes. The evolving tourism landscape is evident in the sector’s slowdown.
Tourism slowdown in Thailand
Thailand’s tourism industry has seen a decline in the first five months of this year, with international arrivals dropping by 2.7% to 14.3 million. The most concerning factor is the significant contraction in the Asian market, which accounts for nearly 63% of all visitors, shrinking by 11.35%.
While arrivals from Europe, the Americas, Oceania, the Middle East, and Africa have increased, they have not offset the regional downturn.
The sharp decline in Chinese tourists remains the primary issue. Only 1.95 million Chinese visitors traveled to Thailand during this period, marking a 32.7% drop from last year’s 2.91 million.
The trend is worsening, as daily arrivals have fallen from 21,300 in January to just 10,000 in May. If this continues, total Chinese arrivals for 2025 could be between 4–5 million—the lowest in 12 years.
"Before the Covid-19 pandemic, Chinese visitors accounted for 11.1 million of Thailand’s total 39.8 million foreign arrivals, representing 28% of the total.
A survey by Dragon Trail International indicates growing safety concerns among Chinese tourists, exacerbated by negative media portrayals, such as the film No More Bets, which highlights crime and human trafficking in Thailand. These concerns have created a perception that Thailand lacks proper safety measures.
A shift is also occurring in Thailand’s top 10 inbound markets. Malaysia may soon replace China as the leading source of visitors due to its more stable decline. India is also expected to surpass Russia for third place, aided by Thailand’s free visa policy, while Taiwan could drop from sixth place to last by year’s end.
Many travelers from neighbouring countries still view Thailand as reliant on traditional tourism themes—sea and food—without fresh attractions.
Additionally, Thailand’s global tourism competitiveness has declined, as seen in the 2024 Travel & Tourism Development Index (TTDI) by the World Economic Forum. Thailand dropped 12 places to rank 47th out of 119 countries, with sustainability plummeting by 36 ranks and security by 16.
Rising costs in accommodation and dining have further eroded Thailand’s advantage as a budget-friendly destination. The country now ranks second to last in ASEAN’s price competitiveness, ahead of only Singapore.
With long-standing structural issues and shifting tourist preferences, Thailand must urgently adapt to changing global conditions—or risk falling behind.
Adapt to a new landscape
Former TAT governor has called for a transformation in Thailand’s tourism sector. He emphasised the need to embrace a new era built upon balance, quality and sustainability under the concept of Better Target, Better Quality, and Better Future.
Better Target: Thailand must focus on attracting Chinese tourists back while also identifying new markets to compensate for lost revenue. Efforts should target free independent travellers (FITs) and group tourists, particularly from neighbouring countries and other short-haul markets, positioning Thailand as a holiday and weekend destination.
Marketing should prioritise high-quality visitors over sheer numbers, aiming for higher-income, high-spending tourists, niche interest groups, and socially responsible travellers.
Additionally, a geographic and seasonal balance must be established—ensuring that every city becomes a must-visit destination, making Thailand attractive year-round.
Domestic tourism should be strengthened, establishing Thai tourism as a stable revenue source that complements international arrivals and mitigates risks associated with external factors.
Better Quality: Thailand must elevate its tourism offerings, creating exceptional experiences that position it as a trusted destination known for quality and safety. The global perception should reinforce that Thailand always CARES—whether for locals or international travellers.
The CARE framework consists of:
- Caution: Implementing risk alerts to prevent accidents
- Aid in emergencies: Rapid response through tourism first aid
- Remedy: Providing emotional support and redress for affected tourists
- Escalate: Strengthening preventative measures for enhanced safety
Additionally, Thailand should develop high-quality tourism routes by enhancing emerging destinations under the 3C principle—Charisma, Cheerful, and Colourful—integrating local identity, nature, history, traditions, and lifestyles to create unseen, compelling attractions.
Better Future: Thailand must position itself as a leader in sustainable tourism, using sustainability as the foundation for long-term industry growth and revenue generation. The country should revamp natural and man-made attractions, upgrading infrastructure and facilities across the tourism supply chain to meet high standards.
Embracing modern technology and innovation will enhance the visitor experience while ensuring tourism integrates into the local economy equitably, generating widespread benefits without harming the environment or social fabric.
Yuthasak urged both public and private sectors to adapt swiftly to changing global conditions to retain tourism’s vital role in Thailand’s economic progress.
While the country may have moved beyond its golden age, he remains optimistic that Thailand can thrive in a new era of tourism, achieving long-term, sustainable success on the global stage.
