Malaysia Joins China, South Korea, Singapore, And Taiwan In Hammering Thailand’s Tourism Growth With Declining Revenues Despite Half-Half Thailand Travel Initiatives

Published on December 26, 2025

Malaysia, alongside China, South Korea, Singapore, and Taiwan, has significantly impacted Thailand’s tourism growth, with a noticeable decline in revenue despite the government’s balanced approach to promoting inbound tourism. The country’s tourism sector faces mounting challenges as global travel patterns shift, and Thailand’s mixed tourism initiatives struggle to match expectations in attracting visitors. With key regional markets showing decreased spending and arrivals, Thailand’s ambitions for robust growth have been dampened, leaving the industry grappling with tough economic realities.

Thailand’s tourism industry, which had been on the upswing after the pandemic, is now navigating a period of uncertainty, as several key international markets show signs of declining visitor numbers. Despite government measures like the “Half-Half Thailand Travel” and “Tiew Dee Mee Kuen” schemes, which aimed to boost tourism revenue, the country faces mixed results. While occupancy rates improve, especially in southern Thailand, overall revenue growth has slowed down, and some markets have been hit with significant declines.

Tourism Growth Challenges in Thailand: A Mixed Bag of Gains and Losses

In 2025, Thailand was on track to welcome an estimated 33 million foreign visitors, a figure that mirrors 2025’s projections, according to the Thai Hotels Association (THA) and Bank of Thailand survey. However, these numbers are contrasted by the decline in tourist arrivals, especially from key markets, resulting in a 7.56% drop in visitors during the first nine months of 2025.

The survey conducted by the THA reveals that a majority of hotel operators (54%) believe 2026 foreign arrivals will hover around similar levels to 2025. However, several key markets have witnessed declines, and the overall sentiment among hotel operators regarding revenue generation in the second half of 2025 is less optimistic, with many predicting a revenue decrease despite some government-backed promotional initiatives.

Key Factors Behind Thailand’s Declining Tourism Performance

Thailand’s tourism numbers are heavily influenced by the performance of its top international markets. According to the Ministry of Tourism and Sports data, countries that have historically been major contributors to Thai tourism have shown year-on-year declines in arrivals during 2025. China, South Korea, Taiwan, Malaysia, and Singapore are some of the primary markets where declines have been most noticeable.

Here are the major contributing markets with their respective declines:

• China: 3.41 million arrivals, down 34.97% – the largest volume drop and a key driver of the revenue loss, given the high spending from Chinese visitors.
• South Korea: 1.13 million arrivals, down 17.7%.
• Taiwan: 730,000 arrivals, down 9.14%.
• Malaysia: 3.47 million arrivals, down 7.05% – still Thailand’s top source market despite the drop.
• Singapore: 680,000 arrivals, down 1.65%.

Government Measures: Limited Impact on Revenues

While government-backed programs like the Half-Half Thailand Travel and Tiew Dee Mee Kuen schemes were designed to boost the tourism sector, they only led to a modest revenue increase of about 3% compared to the previous year. Despite these efforts, the overall sentiment from industry players remains cautious. Tourism revenue in the second half of 2025 is expected to face a decline, with operators reporting slower growth in comparison to earlier periods.

Regional Performance and Hotel Occupancy Rates: A Brighter Picture in the South

Despite the challenges posed by declining foreign arrivals, hotel occupancy in Thailand has improved. In November 2025, Thailand’s average hotel occupancy rate stood at 76%, a slight increase from the previous month and the same month the previous year. December 2025 is expected to see a further rise to 77%. However, this growth is not evenly distributed across the country. Four-star and above properties reported higher occupancy rates of 78%, while three-star and below hotels averaged only 68%.

Regional Breakdown of Hotel Occupancy in November 2025

• South Thailand: Highest occupancy rate of 82% (up from 67% in October 2025).
• Central Thailand: Occupancy at 78% (up from 64% in October 2025).
• East Thailand: Recorded 75% occupancy (up from 64% in October 2025).
• North Thailand: Occupancy remained the lowest at 60% (up from 51% in October 2025).

The Declining Tourist Arrivals by Country

As Thailand faces a drop in international arrivals, it is evident that some markets have proven more challenging than others. Below is a table summarizing the decline in arrivals from the key source countries:

Positive Trends: India, Russia, and the UK Help Offset Losses

In contrast to the declines seen in certain East Asian markets, other countries have contributed positively to Thailand’s tourism rebound in 2025. India, Russia, and the UK have all shown notable growth in their tourist numbers, with India seeing an impressive increase of 15.28%, Russia up by 9.71%, and the UK gaining 13.66% more visitors.

These increases have helped offset the losses from Thailand’s declining markets and have provided a much-needed boost to the overall tourism figures.

Looking Ahead: Strategies for Recovery in 2026 and Beyond

Looking ahead, Thailand’s tourism outlook remains cautiously optimistic. The country will need to navigate the challenges posed by declining arrivals from traditional markets while capitalizing on growing demand from other regions, such as India, Russia, and the UK. Industry stakeholders have emphasized the need for continued government support through promotional campaigns and targeted market strategies to attract new tourists and bolster revenue generation.

One of the significant aspects to watch in 2026 will be whether Thailand can increase the average spending per visitor, which grew by 1.74% to 46,000 baht in 2025. Further enhancing the quality of the visitor experience through improved infrastructure, including transport and hospitality, will likely be essential for staying competitive in the global tourism market.

While Thailand’s tourism industry faces challenges, there are still positive signs of growth in certain sectors. The combined efforts of the government, tourism boards, and industry operators will be essential to recovering the losses observed in the first nine months of 2025 and ensuring that Thailand remains a top travel destination in the years to come. It will be crucial for the industry to adapt to shifting market trends, enhance the visitor experience, and develop new tourism offerings to stay resilient amidst a changing global travel landscape.

Malaysia, along with China, South Korea, Singapore, and Taiwan, has hampered Thailand’s tourism growth, as declining revenues reflect the limited success of Thailand’s mixed travel initiatives. Despite efforts to balance tourism promotion, these markets have shown a downward trend in arrivals and spending.

Thailand’s tourism industry finds itself at a crossroads. While traditional markets falter, new opportunities from emerging source markets may hold the key to the future. The next few years will be critical for determining the long-term trajectory of Thai tourism.