Thailand’s Hotel Industry Faces Revenue Decline In 2025 But Maintains Positive Outlook With Thirty-Three Million Visitors Projected In 2026 Amid Regional Occupancy Growth

Published on December 25, 2025

Thailand’s tourism industry is set to welcome Thirty-Three Million foreign visitors in 2026, maintaining a steady influx of travelers. However, the sector faces significant challenges, including rising operational costs, labor shortages, and anticipated declines in revenue. Despite strong projections for international arrivals, hotel operators are concerned that these economic pressures could hinder the industry’s long-term growth and profitability, especially in the face of mounting competition and insufficient destination development.

A recent survey conducted by the Thai Hotels Association (THA) in collaboration with the Bank of Thailand has revealed the expectations of hotel operators regarding tourism trends in 2025 and beyond. The survey, which was conducted from November 13-30, 2025, shows that most hotel operators anticipate the foreign arrivals in 2026 to remain close to the 33 million level seen in 2025. However, while the foreign tourism numbers are expected to stay steady, there are concerns over declining revenues in the latter half of 2025.

According to the findings of the survey, around 54% of hotel operators expect total foreign tourist arrivals in 2026 to match or be close to the 2025 level, which is estimated to be around 33 million. The survey, which collected responses from 83 hotels, indicated a cautious outlook on the country’s tourism growth, with many operators anticipating lower revenues as the year progresses. Nearly one in four hotel operators see potential growth if the government introduces new measures and promotional campaigns to boost the sector. On the other hand, 22% of operators are bracing for a decline in arrivals.

Among the challenges influencing these projections, the survey highlights several factors. A poor image of the country as a tourism destination, coupled with higher travel costs in Thailand compared to competing countries, continues to affect travel decisions. Additionally, economic uncertainty in key source markets and the lack of sufficient development of Thai destinations are contributing to these concerns. Operators are also cautious about the impacts of the global economic environment on tourism demand.

As for revenues, while the fourth quarter of 2025 saw a slight uptick, particularly in hotels located in southern Thailand, many operators anticipate a decrease in revenue in the second half of 2025 compared to the same period in 2024. The revenue growth in the fourth quarter was partly attributed to government schemes such as the “Half-Half Thailand Travel” and “Tiew Dee Mee Kuen,” which were aimed at stimulating domestic tourism. However, these measures only led to a modest 3% increase in revenues compared to a year earlier, when no such government initiatives were in place.

The survey also noted that hotel occupancy rates showed improvement in November 2025. The average hotel occupancy for the month was recorded at 76%, which is higher than both the previous month and the same time in 2024. Occupancy rates for December 2025 are forecasted to increase slightly to 77%. Notably, hotels with four stars and above performed better, recording an occupancy rate of 78%, compared to 68% for three-star hotels and below.

Regionally, the South of Thailand emerged as the leading performer in terms of hotel occupancy, with a notable increase from 67% in October to 82% in November. This increase was attributed to the rise in long-haul visitors, particularly from Europe. The Central region also saw a positive performance, with occupancy climbing from 64% to 78%. The East and North regions experienced moderate improvements, with occupancy rates rising to 75% and 60%, respectively.

In addition to concerns about occupancy and revenue, hotel operators in Thailand are increasingly grappling with labor shortages, especially in the Central and Southern regions. These shortages are affecting service quality and the overall guest experience, prompting calls for government intervention. Many hotel operators are requesting support in five key areas to address these challenges:

1. Tourism Stimulus Measures: Operators are calling for stimulus packages aimed at both major cities and secondary destinations to attract both Thai and international tourists.
2. Cost Relief: There is a strong push for measures that would help alleviate the financial burden on hotel businesses, including lower energy costs and tax incentives.
3. Financial Support: Operators are seeking low-interest “soft loans” to finance renovations, particularly for properties impacted by recent unrest along the Thai-Cambodian border and the flooding in the South.
4. Labor Support: A more stable and efficient foreign worker registration system is being requested to help address labor shortages and ensure a steady workforce.
5. Infrastructure Upgrades: There is a call for improvements in tourism-related infrastructure, particularly airports, to enhance travel convenience and streamline operational processes.

Looking ahead, the THA remains cautiously optimistic about the future of Thailand’s tourism sector. The high season, bolstered by long holidays, is expected to drive tourism numbers, both from domestic travelers and international visitors. Efforts to stimulate long-haul markets, increase airline capacity, and encourage year-end celebrations are expected to boost tourism activity during this period. Furthermore, measures to promote domestic travel, such as subsidies and promotional schemes, are expected to continue supporting the sector’s recovery. As a result, the tourism industry is likely to experience more positive growth during the high season, despite ongoing challenges.

While hotel operators remain optimistic about the overall stability of Thailand’s foreign tourist arrivals in the coming years, the industry faces several challenges that could impact revenue growth. The call for targeted government support in areas such as tourism promotion, financial assistance, and infrastructure upgrades is crucial for sustaining the country’s tourism recovery and ensuring a competitive edge in the global market.