Japan Joins South Korea, China, Vietnam, Laos, Cambodia, And More Prominent Asian Nations As Contributors To Thailand Projected Seven Percent Tourism Drop In 2025: Everything You Need To Know

Published on November 21, 2025

Vietnam joins Japan, South Korea, China, Laos, Cambodia, and other leading Asian economies in contributing to a 7% decline in Thailand’s tourism for 2025 due to a sharp contraction in short-haul markets. This decline is driven by a variety of factors, including economic challenges, shifting travel preferences, and geopolitical tensions in key source countries. While long-haul markets from Europe and the U.S. show resilience, the downturn in vital Asian markets, particularly China, has created a significant imbalance, with foreign arrivals expected to fall to 33.16 million, far below the Tourism Authority of Thailand’s initial targets for the year.

Thailand’s tourism sector is facing a significant downturn in 2025, with a 7% decline in overall foreign arrivals compared to the previous year. This marks a sharp contrast from the robust growth seen in long-haul markets, especially from Europe, yet short-haul markets—particularly from neighboring Asian countries—are underperforming. The situation is a result of multiple challenges, with countries like Vietnam, Japan, South Korea, China, Laos, and Cambodia experiencing notable drops in outbound travel to Thailand. These declines are expected to leave a long-lasting impact on Thailand’s tourism revenues and its position as a regional travel hub.

The Decline in Short-Haul Markets

The short-haul markets have been the primary source of the current setback for Thailand’s tourism industry. Countries across Asia that traditionally contribute a significant share of foreign visitors are facing sharp declines in 2025. The situation is particularly severe for countries that were key contributors to Thailand’s tourism inflow before the pandemic. The 7% decline in foreign arrivals, expected to total 33.16 million visitors, is primarily driven by the contraction in short-haul markets.

The sharpest drop is being observed in markets like China, which has historically been one of Thailand’s top source countries. However, other Southeast Asian nations are also showing troubling signs of contraction. Here’s a closer look at the countries contributing to this downturn:

• China: With an estimated 33% drop in arrivals, China is one of the largest contributors to the decline in Thailand’s tourism numbers. Before the pandemic, Chinese tourists accounted for around 28% of total foreign arrivals to Thailand, making the sharp drop a crucial blow to the industry. The reasons for the decline include stricter visa policies and ongoing concerns about political tensions in the region.
• Vietnam: Vietnam is witnessing a decline of about 33% in the number of outbound tourists heading to Thailand. This decline is compounded by internal factors, including economic pressures and shifting travel preferences among Vietnamese tourists who are increasingly opting for regional destinations like Japan and South Korea.
• Laos: A 19% decrease in Lao tourists visiting Thailand adds to the troubling trend. With Laos’ economy facing struggles and political unrest, travel to neighboring Thailand has decreased considerably, further intensifying the tourism decline.
• Cambodia: Cambodia is facing the largest drop, with a staggering 55% decrease in outbound travel to Thailand. This dramatic drop is attributed to both economic challenges and travel disruptions. While Thailand remains a popular destination for Cambodians, they are now increasingly exploring other neighboring countries such as Vietnam and Malaysia.
• South Korea: South Korea has been facing a 16% drop in arrivals, which further exacerbates the decline in Southeast Asian tourist numbers. South Korean travelers traditionally have a strong presence in Thailand, but factors such as economic challenges, increased domestic travel options, and shifting preferences are dampening the travel flow to Thailand.
• Japan: Japan, with a 29% decrease in tourists visiting Thailand, is another key player in the short-haul decline. The impact of global travel restrictions, fluctuating exchange rates, and reduced outbound tourism budgets have all played their part in the downturn.

Long-Haul Markets Show Resilience

While short-haul markets are declining, long-haul markets have provided a counterbalance, contributing significantly to the overall tourism landscape. The growth in visitors from countries outside the immediate Southeast Asia region has helped offset some of the damage caused by the reduction in regional travel.

Countries in Europe, the CIS, and even the United States have continued to show impressive growth, proving the diverse appeal of Thailand as a holiday destination. Here are some of the long-haul markets showing resilience:

• Russia: With an increase of 12% in visitors, Russia is one of the few long-haul markets that is performing strongly. The growing interest in Thailand as a holiday destination among Russian tourists can be attributed to easier visa processes and direct flight options.
• United Kingdom: The UK market has seen a 13% rise in visitors, signaling an ongoing love affair with Thailand’s beaches, culture, and culinary scene. The European market, in general, has been a bright spot, helping to balance the losses in short-haul markets.
• Germany: Similarly, Germany is up by 11%, with many Germans choosing Thailand as a favorite winter destination. The country’s relatively strong economy and travel confidence are factors that are keeping their tourism flow to Thailand strong.
• France: France has shown impressive growth with an increase of 14.3%, marking Thailand as one of the top destinations for French tourists looking for exotic, affordable, and diverse travel options.
• United States: American arrivals are up by 5%, which is particularly encouraging considering the travel distance and cost involved. This reflects a broader trend in U.S. tourism toward Asia, where Thailand remains one of the top choices.
• Israel: Perhaps one of the most striking performances, Israel saw an increase of nearly 50% in tourist arrivals, indicating Thailand’s growing appeal even among travelers from the Middle East.

Thailand’s Tourism Decline in Context

While the decline in Asian visitors is concerning, it’s crucial to understand that Thailand’s tourism numbers have still managed to hold up reasonably well compared to pre-pandemic levels. According to the Tourism Authority of Thailand (TAT), the total number of foreign arrivals for 2025 is projected to reach 33.16 million, generating 1.53 trillion baht in revenue, despite a significant dip from 2024.

To put this in perspective:

• Thailand’s inbound tourism has seen significant recovery compared to 2024, but the gap from TAT’s early target of 39 million arrivals and 2.23 trillion baht in revenue is evident.
• Comparing 2025 to pre-Covid 2019, Southeast Asia markets, particularly ASEAN countries, have recovered to 91% of pre-pandemic levels. However, the Northeast Asia markets, particularly China, have only recovered to 52%. This stark contrast highlights the ongoing challenges in these key source countries.
• Long-haul markets have exceeded pre-pandemic figures, with Europe performing especially well, reaching 129% of 2019 levels, and the United States at 103%.

The Impact on Thailand’s Economy

The decline in short-haul tourism, particularly from China and ASEAN countries, is expected to have a ripple effect on Thailand’s broader economy. The tourism sector plays a significant role in Thailand’s GDP, contributing around 20%. A reduction in tourist numbers from these regions will likely impact various sectors, from hospitality and transportation to retail and entertainment.

Several businesses in Thailand that rely heavily on Chinese and Southeast Asian tourists, especially in areas like Bangkok, Chiang Mai, and Phuket, may face economic challenges. The reduction in revenue from tourism could lead to layoffs and a decrease in business opportunities, especially in industries heavily reliant on inbound tourism.

Recovery Measures

Thailand’s tourism sector is calling for urgent recovery measures to counteract the decline in short-haul tourism. The following strategies have been proposed:

• Diversifying Target Markets: With the decline in Chinese and Southeast Asian travelers, there is an emphasis on diversifying target markets. This includes focusing more on the European and U.S. markets, where tourism has been performing better.
• Promoting Regional Travel: Thailand can capitalize on regional tourism from neighboring countries like India and Myanmar, which have seen growth in inbound travel. These markets can be targeted with more tailored promotional campaigns and special travel offers.
• Sustainability and Eco-Tourism: As global tourism preferences shift towards more sustainable and responsible travel, Thailand is encouraged to tap into the growing demand for eco-tourism and off-the-beaten-path experiences.
• Improving Infrastructure and Accessibility: To better serve international visitors, improving transportation infrastructure, such as flight connectivity and regional airports, will help make Thailand a more accessible destination.

The tourism landscape in Thailand for 2025 is one of contrast—while the country continues to face challenges in the short-haul market, particularly with declines from China, Japan, South Korea, Vietnam, Laos, and Cambodia, the long-haul market has shown encouraging growth. The tourism industry’s resilience, combined with targeted recovery measures, will be crucial in navigating these challenges and returning to pre-pandemic performance levels.

Vietnam joins Japan, South Korea, China, Laos, Cambodia, and other leading Asian economies in contributing to a 7% decline in Thailand’s tourism for 2025, largely due to economic struggles, travel restrictions, and shifting preferences in key short-haul markets. This has resulted in a significant drop in foreign arrivals, especially from Southeast Asia.

Thailand must diversify its source markets, continue to promote sustainability, and improve infrastructure to weather this storm and emerge stronger in the years to come.