Thailand Faces Stiff Competition In The 2025 Tourism War As Countries Like Vietnam And Japan Aim For Over Ten Percent Growth In Arrivals, While Thai Growth Targets Struggle To Keep Up

Published on November 14, 2025

As Thailand approaches the upcoming 2025 tourism season, Thailand experiences heightening pressures in the Warfare of Tourism across Asia. Competing countries, for instance, Vietnam and Japan, expect exceed 10% economic growth in tourism, and Thailand is expected to follow. Thailand remains one of the most popular countries to visit, yet the country is experiencing a downslide in international tourism, particularly in the Chinese market. The international market is declining and competitive pressures are rising; thus, Thailand faces the necessity of redefining its tourism policies and strategies.

In 2025, Thailand’s tourism industry finds itself under mounting pressure in the face of fierce regional competition. As the global economy grapples with uncertainty, Asian countries are turning tourism into a primary driver of economic growth, and Thailand is caught in the crossfire of an intensifying Tourism War. With declining tourist numbers and a reduction in spending, Thailand’s competitiveness has been challenged by its regional counterparts, who have seen impressive growth in their tourism sectors.

The Intensification of the Tourism War in Asia

Across Asia, tourism has become a focal point for economic development. Countries like Japan, South Korea, Vietnam, and Malaysia have set ambitious targets for international arrivals, with many aiming for growth rates of 10% or more. Japan, for example, has set a target of 40 million foreign visitors in 2025, building on a record of nearly 37 million in 2024. Similarly, Singapore, Vietnam, and Malaysia have adopted aggressive growth strategies, aiming for over 20% increases in their foreign tourist numbers despite having smaller bases.

In contrast, Thailand has set a more modest target of 39 million international tourists in 2025. While this figure represents a reasonable goal, it highlights the relative stagnation in Thailand’s tourism growth compared to its competitors. The country’s struggle is compounded by several key factors, including the global economic slowdown, safety concerns among tourists, and an increasingly crowded regional tourism market.

The Shift in Regional Competitiveness

The global economic slowdown and its impact on international travel have forced many countries to reevaluate their tourism strategies. As a result, the competition for tourist dollars has become more intense, with countries aggressively working to capture the attention of international travelers. In this battle, Thailand has faced difficulties, particularly with its traditional key markets such as China.

China has historically been a major source of tourists for Thailand, but recent years have seen a decline in Chinese visitor numbers. Contributing factors include concerns over safety, political tensions, and the increasing allure of other Southeast Asian destinations. This has been compounded by the fact that many of Thailand’s competitors are targeting the same tourist markets, making it increasingly difficult for the country to stand out. Countries like Vietnam and Singapore, for instance, have developed strategies that overlap with Thailand’s traditional tourist bases, further eroding the country’s market share.

Declining Tourist Spending and Its Impact

Another challenge facing Thailand is the decline in tourist spending. While the number of visitors to the country remains significant, the average spending per tourist has been lower compared to other countries in the region. This reflects a deeper issue—Thailand’s tourism offerings often fail to match the high-end experiences that other countries are offering to attract wealthy tourists.

Countries like Japan, South Korea, and Malaysia have made strides in attracting high-spending visitors by focusing on luxury experiences, cultural tourism, and unique destination offerings. These efforts have paid off, with increased revenue from tourists who are willing to spend more on premium experiences. In contrast, Thailand’s tourism products have primarily catered to mass tourism, leading to lower spending per tourist. This highlights the need for a shift in focus towards attracting higher-value travelers who contribute significantly to the economy.

The Rise of Proactive Strategies Across Asia

As Thailand grapples with these challenges, its regional competitors have adopted increasingly sophisticated strategies to attract foreign tourists. Key strategies being used across Asia include:

1. Visa Reforms and Special Measures: Many countries have introduced new visa exemptions or simplified visa procedures to attract more tourists. These measures are aimed at making travel easier and more accessible, especially for high-demand markets.
2. Building Stronger Tourism Brands: Countries are focusing on building unique tourism brands that offer distinct experiences. This includes promoting local culture, culinary heritage, and new man-made attractions to appeal to travelers seeking something different.
3. Leveraging Digital Marketing: Influencers and online platforms have become central to the marketing strategies of many countries. By harnessing the power of social media and digital content, nations are enhancing their global image and driving more interest in their tourist destinations.
4. Collaborations with Tourism Businesses: Many countries have teamed up with airlines, hotels, and tour operators to create all-inclusive promotional campaigns that combine flights, accommodation, and activities to offer tourists seamless travel experiences.
5. Expansion of Flight Networks: Expanding flight routes and improving connectivity has become a priority for many countries in the region. Increased accessibility is crucial in attracting tourists from distant markets and ensuring that tourism growth is sustainable.

Thailand’s Tourism Challenges: Market Overlap and Increased Competition

As Thailand faces heightened competition from other countries, the issue of market overlap has become increasingly apparent. Several countries, including Vietnam, Singapore, and Malaysia, are vying for the same international tourists, especially from key markets like China, India, and the UK. This overlap has made it more difficult for Thailand to distinguish itself and capture the attention of potential visitors.

Furthermore, Thailand’s challenges are compounded by its reliance on a small number of key markets. While other countries have diversified their target markets and expanded their appeal, Thailand has struggled to broaden its tourism base. To remain competitive, Thailand needs to look beyond traditional tourist markets and explore new regions, such as the US, Canada, and Australia, which are seeing growing interest in Southeast Asia.

Adapting to the Changing Tourism Landscape

To improve its competitiveness, Thailand must adopt several key strategies:

1. Enhanced Marketing and Branding: Thailand needs to create a more distinct tourism brand that focuses on its unique offerings, such as its rich cultural heritage, natural beauty, and hospitality. By emphasizing the quality and uniqueness of its experiences, Thailand can attract higher-value tourists who are willing to spend more on luxury experiences.
2. Diversifying Target Markets: Expanding the target tourist base to include regions like North America and Oceania will help reduce Thailand’s dependency on a few key markets. Special promotions, tailored experiences, and partnerships with international tour operators can help increase awareness and demand in these regions.
3. Improving Service Quality: Service quality plays a critical role in maintaining Thailand’s competitiveness. By upgrading service standards across the tourism industry, businesses can ensure that tourists have memorable experiences and are encouraged to return. Thailand should also focus on sustainable tourism practices that appeal to eco-conscious travelers.
4. Innovative Experiences and Events: To stand out from the competition, Thailand should invest in creating innovative experiences, including cultural events, art exhibitions, and sports tourism. These initiatives can help generate buzz and attract a diverse range of tourists who are looking for something beyond traditional sightseeing.
5. Government Support and Collaboration: The Thai government’s role in supporting the tourism sector will be crucial in ensuring long-term growth. By promoting tourism through global campaigns, enhancing tourism infrastructure, and collaborating with international partners, Thailand can maintain its position as a leading destination in Southeast Asia.

Thailand’s tourism industry is at a crossroads. As the Tourism War intensifies, the country faces significant challenges from its regional competitors, many of whom are implementing proactive strategies to attract international visitors. However, by focusing on improving service quality, diversifying target markets, and creating innovative tourism experiences, Thailand can regain its competitiveness and achieve sustainable growth in the years to come.

Thailand’s tourism industry faces stiff competition in 2025 as countries like Vietnam and Japan target over ten percent growth in arrivals, while Thailand’s growth targets struggle due to declining visitor numbers and increased competition.

In the face of rising competition, Thailand must adapt quickly and leverage its unique assets to remain a key player in the ever-evolving tourism landscape of Asia. By making strategic investments and fostering strong partnerships within the industry, Thailand can rise to the challenge and ensure that its tourism sector continues to thrive in the global arena.