Thailand Tourism Struggles with Major Decline in Foreign Visitors as Rising Costs and Fierce Competition Disrupt Travel Trends

Published on September 17, 2025

Thailand tourism has seen a notable decline in foreign visitors, experiencing a 7.1% drop in tourist arrivals from January 1 to September 14, 2025. According to the Tourism and Sports Ministry, the country welcomed about 23 million visitors during this period, a decrease compared to the same time last year. This trend highlights the shifting dynamics in global travel, with factors such as rising prices and increased competition from neighboring countries influencing Thailand tourism.

The Decline in Foreign Tourist Arrivals

The latest statistics on foreign tourist arrivals reveal a significant 7.08% decrease in the number of international visitors to Thailand. Despite Malaysia and China continuing to be key source markets, with 3.28 million and 3.23 million visitors respectively, the country’s overall tourism sector is facing difficulties. In light of this decline, the Tourism and Sports Ministry revised its forecast for the year, lowering the expected number of foreign tourist arrivals to 33 million, down from the previous projection of 37 million. These figures underscore the growing challenges Thailand faces in maintaining its appeal as a top destination in Asia.

Factors Impacting Thailand Tourism Trends

Several factors are contributing to the shift in Thailand tourism trends. One of the most significant is the rising cost of travel within the country. Post-pandemic price hikes in hotels, food, and transportation services have left many tourists questioning whether Thailand is still a cost-effective option compared to other regional destinations. The impact of price hikes on tourism has become a growing concern for travelers, particularly from key markets like China, where tourists are sensitive to rising costs.

Complaints about higher prices have flooded social media, with visitors expressing dissatisfaction over the increased rates for accommodation and local services. These complaints are affecting tourist numbers in Thailand as travelers are opting for alternative destinations where they can enjoy similar experiences at a lower cost. This trend is being fueled by increasing competition from neighboring countries such as Vietnam, which has become a more attractive option for tourists due to its lower costs.

The Competition from Neighboring Destinations

Thailand is no longer the undisputed leader in Southeast Asia tourism. Vietnam, for example, has surpassed Thailand in popularity among Chinese travelers. Many tourists are now choosing Vietnam for its competitive pricing, rich culture, and stunning natural landscapes. This shift in tourist behavior is putting pressure on Thailand tourism, highlighting the need for the country to rethink its strategies to remain competitive.

As part of Thailand tourism trends, travelers are increasingly prioritizing affordability. This, combined with the rising costs within Thailand, means the country has to address pricing concerns more urgently than before. While Thailand continues to have a broad appeal due to its diverse attractions, it faces an uphill battle to maintain its dominant position in the region’s tourism market.

Addressing the Impact of Price Hikes on Tourism

The impact of price hikes on tourism has become a key issue for Thailand’s tourism recovery. The country’s services have become more expensive, leading to reduced satisfaction among visitors who expected value for money. The Tourism and Sports Ministry has recognized these concerns and is exploring ways to combat the negative effects of these price increases.

In response to this challenge, Thailand may introduce promotional campaigns or discounts to encourage tourists to visit, even if they are already aware of the price hikes. These measures are intended to reassure visitors that they can still experience the best of Thailand at competitive rates. It’s essential for Thailand to restore its reputation for offering affordable, high-quality experiences to counter the negative effects of rising costs.

Thailand Tourism’s Path to Recovery

Thailand tourism’s recovery will depend on its ability to respond to the evolving needs of global travelers. This includes addressing rising costs, improving the overall tourist experience, and enhancing value for money. The tourism sector will also need to find new ways to engage with tourists from key international markets, such as China, while competing with other countries that are increasingly attractive to travelers.

The government is likely to focus on targeted marketing campaigns that emphasize Thailand’s unique experiences and exceptional tourism offerings. By showcasing its rich cultural heritage, vibrant cities, and stunning landscapes, Thailand can still position itself as an essential destination for travelers seeking diverse and enriching experiences.

Looking Ahead: Thailand Tourism’s Future

Thailand tourism faces a challenging road ahead, but with the right strategies and adjustments, the country can recover and thrive once again. The decline in foreign visitors in 2025 is a sign that the tourism sector needs to evolve to meet the changing demands of global tourists. By focusing on affordability, quality, and unique experiences, Thailand can improve its appeal and strengthen its position in the global tourism market.

Key Takeaways:

• Thailand tourism has experienced a 7.1% drop in foreign visitors in 2025.
• Malaysia and China continue to lead as major tourist markets, contributing 3.28 million and 3.23 million visitors, respectively.
• The Tourism and Sports Ministry has revised its forecast, lowering the number of expected foreign tourist arrivals to 33 million.
• Rising prices in Thailand are significantly impacting tourist numbers in Thailand, with visitors opting for more affordable alternatives.
• The impact of price hikes on tourism is a central concern for Thailand as it competes with other regional destinations.