Kasikorn Research warns of first domestic alcohol market contraction in four years despite eased sales rules; reviving tourism is key for Thailand to boost alcohol sales and support thousands of local businesses. (Photo by Jetsada Homklin) PATTAYA, Thailand – The fragile purchasing power of Thai consumers, coupled with a decline in international visitors, has caused the domestic alcohol market to shrink by 1.8% this year—the first contraction in four years, according to Kasikorn Research Center. Despite government easing restrictions on alcohol sales at airports, hotels, and entertainment venues, the market faces significant challenges. While Thai alcohol consumption slightly increased in 2024 due to easier access and stress-related factors, rising health risks such as alcohol-related liver disease continue to pose concerns. The sector also grapples with intense competition, over 2,000 local alcohol businesses, and a growing influx of imported products, which expanded at an average annual rate of 16%. For tourism-reliant cities like Pattaya, foreign tourists are vital to sustaining alcohol sales. The drop in international visitors has directly impacted bars, nightclubs, and restaurants where alcohol consumption typically surges. Reviving tourism flows is critical for Pattaya to boost its struggling alcohol market and support the livelihoods of thousands dependent on this sector.