Should the city lower prices to attract tourists — or risk becoming a magnet for low-quality tourism? PATTAYA, Thailand – As Thailand’s famed coastal city of Pattaya continues to grapple with a noticeable tourism slump, industry leaders are confronting a critical question: How low must prices go to bring back international tourists – and at what cost to the city’s image? The urgency is underscored by shocking new data showing that Vietnam now attracts twice as many Chinese tourists as Thailand, with over 700,000 Chinese visitors in March alone, compared to just 300,000 for Thailand. In a damning comparison, Vietnam not only offers cheaper accommodation, but even hotels with 24-hour food service at lower prices than basic room-and-breakfast packages in Thailand. Meanwhile, Russian tourists are also shifting to destinations like Vietnam and Egypt, further compounding the losses. Thanes Supornsahasrangsri, President of the Association of the Chonburi Tourism Federation (ACTF), recently admitted that Thailand’s tourism image has been deteriorating for some time — particularly among Chinese travelers, once the backbone of Pattaya’s economy. It’s no longer just the loss of Chinese group tours; even independent travelers booking through online travel agents (OTAs) are disappearing. Typically, after landing at Don Mueang or Suvarnabhumi airports, tourists would explore Bangkok before heading to Pattaya or nearby destinations. Now, however, nearly half of Chinese tourists are gone. The government’s slow and ineffective response to negative news and safety concerns has only deepened the crisis. As for European tourists, while their presence may appear to be increasing, it largely reflects the high season between November and March when they seek out Thailand’s warm climate. Once the European winter ends, so too does Thailand’s peak tourist influx. Safety concerns have been crucial: high-profile cases like the Siam Paragon shooting, Chinese celebrities kidnapped by call center gangs, and recent earthquakes have devastated Thailand’s reputation in key markets like China. To make matters worse, Chinese influencers have amplified these safety fears online, further discouraging inbound travel. But beyond safety, the issue is economic competitiveness. Vietnam’s tourism sector has evolved, offering not just natural beauty, but also modern man-made attractions such as theme parks and entertainment complexes. In contrast, Thailand – including Pattaya – continues to rely on legacy appeal without adequate reinvention. Labor costs, food prices, and hotel rates are all cited as factors where Thailand now loses to its regional rivals. There’s a temptation to respond with price slashing — to make Pattaya “cheap again.” But tourism experts warn this could be a double-edged sword. While aggressive discounts might draw short-term numbers, Pattaya risks becoming a hub for low-spending, low-quality tourists, potentially damaging its long-term value and appeal. Striking the right balance is now more crucial than ever. Pattaya must decide: become the bargain bin of Southeast Asia, or invest in quality, safety, and innovation to compete with modern, efficient destinations like Vietnam.