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Thailand’s tourism golden era is over – Former TAT Governor proposes 3 strategies to revamp the travel landscape
Facing shifting markets and safety concerns, Thailand must reinvent its tourism with fresh targets, authentic experiences, and sustainable growth. (Photo – Pattaya Beach in June)
PATTAYA, Thailand – Yuthasak Supasorn, Chairman of the Board of the Industrial Estate Authority of Thailand (IEAT) and former Governor of the Tourism Authority of Thailand (TAT), revealed that in the past, Thai tourism has overcome countless crises and challenges successfully, serving as a key driver of the country’s economy. However, at present, Thai tourism is at a critical turning point, facing a significant structural change. The tourism landscape is shifting, as evidenced by the recent slowdown in tourism.
According to statistics from the first five months of this year, the number of foreign tourists visiting Thailand totaled 14.3 million, representing a 2.7% decrease compared to last year. What is particularly worrying is the significant contraction in the Asian market—which accounts for nearly 63% of all tourists. This segment shrank by 11.35%, even though there were increases in tourists from Europe, America, Oceania, the Middle East, and Africa.
The main problem stems from a decline in Chinese tourists. During the first five months of this year, Chinese visitors to Thailand dropped to 1.95 million—a decrease of 32.7% compared to 2.91 million last year. The decline shows a continuous trend, with the average daily arrivals dropping from 21,300 in January to only 10,000 in May.
This year marks the first time in 12 years that Chinese tourist arrivals may fall below 5 million. If the current trend continues, China’s tourists to Thailand for the entire year 2025 may only reach 4-5 million, a sharp contrast to the pre-pandemic peak of 11.1 million out of 39.8 million total foreign tourists, representing 28% of the total. This equates to an average of 925,000 Chinese tourists per month or over 30,000 per day.
A survey by Dragon Trail International found that Chinese tourists’ concerns about traveling to Thailand have doubled. Negative perceptions fueled by the film “No More Bets,” which depicted scams, human trafficking, organ trade within call center gangs, and other safety issues, have created a new image of Thailand’s management as inadequate and unsafe.
Analyzing the top 10 foreign tourist markets comparing 2024 and 2025, there are significant changes. Malaysia may rise to become Thailand’s number one source market, overtaking China, because Malaysia’s tourism decline is less severe. India is expected to surpass Russia to become the third-largest source, boosted by free visa policies. Taiwan might drop from sixth place to the bottom by the end of 2025.
Tourists from nearby markets still view Thai tourism as relying on traditional formulas: “sea + food,” without fresh or new selling points. Additionally, Thailand’s global competitiveness in tourism has declined across all dimensions. The 2024 Travel & Tourism Development Index (TTDI) by the World Economic Forum ranked Thailand down 12 places to 47th out of 119 countries. Notably, the sustainability dimension dropped 36 places, and the safety dimension fell from 86th to 102nd place.
Meanwhile, the cost of living in Thailand—especially accommodation and food—has increased in recent years, eroding Thailand’s advantage as an affordable destination. Thailand now ranks second last in price competitiveness among ASEAN countries, outperforming only Singapore.
These accumulated problems have put Thai tourism into what is described as a “boiling frog industry.” This analogy means that if the industry does not adapt to its changing environment and remains complacent amidst gradual changes, it will only realize the severity of the situation when it is too late.
Thailand’s tourism golden era has ended — it’s time for a bold new era focused on quality, safety, and sustainability, says Former TAT Governor Yuthasak.
Recommendations to Revamp Thai Tourism’s Landscape
It is time for Thai tourism to transform. We must create a “new era” of tourism under a “new landscape” built on the foundations of balance, quality, and sustainability, following the concept of Better Target / Better Quality / Better Future:
Better Target: Accelerate the return of Chinese tourists while seeking new target groups to compensate for the loss in Chinese arrivals, focusing on quality revenue generation through both FIT (Free Independent Travelers) and groups. Target markets include neighboring countries and other regional short-haul markets as holiday and weekend destinations. Marketing should emphasize quality over quantity, focusing on high-income groups, high spenders, special interest travelers, and socially responsible tourists.
There must be balance in terms of geography (major cities and secondary cities) and timing (high and low seasons), ensuring that every city is a must-visit destination at any time of the year. It is also crucial to intensify promotion of domestic tourism seriously, making “Thai people traveling in Thailand” a main and stable source of revenue, equivalent to “foreigners traveling in Thailand.” This will spread risks and reduce reliance on foreign income that can be affected by external negative factors.
Better Quality: Rapidly create superior quality travel experiences to position Thailand as a popular, trusted destination known for quality and genuine care in safety. Promote the idea that “Thailand Always CARES,” utilizing Thai hospitality to ensure traveler safety, for both locals and foreigners.
Establish safe tourism zones (T-Zones) with alert systems based on the “Thailand Always CARE” concept, where CARE stands for Caution (risk reduction and alerts), Aid in Emergencies (immediate assistance), Remedy (emotional healing for travelers), and Escalate (enhanced prevention measures).
Address safety and hygiene standards urgently and seriously to rebuild traveler confidence. Develop high-quality new travel routes with the 3C principle: Charisma, Cheerfulness, and Colorfulness. These must highlight local identity, nature, history, culture, and lifestyle to create fresh, “unseen” destinations that offer unique and must-experience travel experiences. This includes natural sites, man-made attractions, and creative activities such as music, sports, arts, local food, and festivals.
Better Future: Strategically position Thailand as a leader in sustainable tourism, using sustainability as the key strategy for growth and revenue generation. This new selling point will elevate and improve both natural and man-made tourist attractions, along with the entire tourism supply chain, ensuring high standards, quality, and innovation using modern technology.
Promote meaningful travel experiences that link systematically to the country’s grassroots economy, ensuring benefits are widely and fairly distributed to local communities without causing negative social, economic, or environmental impacts.
All sectors—public and private—must rapidly adapt to the changing environment to maintain tourism’s importance as an ongoing and effective economic driver. The worst-case scenario for the “boiling frog industry” is complacency—accepting current abnormalities without recognizing the changes happening around. The time has come for Thai tourism to transform. While the golden era may be over, there is strong belief that Thai tourism can enter a new era of sustainable growth, regaining strength and competitiveness on the global stage.
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