Surge In The New Travel Agencies In Thailand Causes Growing Pains For The Tourism Industry Of The Country: Here Is what You Need To Know

Published on July 13, 2025

Thailand’s tourism industry, which was a key part of the country’s economy remaining strong for many years, experienced drastic reforms and changing challenges over the past year. More than 3400 new travel agencies opened in the first half of 2025: official reports / June 2015 The first half of 2025 saw the opening of new travel agencies; a whopping 3409 were granted licensing to form new businesses. And despite the influx of new businesses, which are born of an optimism among entrepreneurs based on earnings in what is the world’s most popular tourist destination, Thailand’s notoriously fickle tourism industry faces growing threats from within and without.

An Uptick in the Number of New Agencies

A record 3,436 new travel agencies were officially registered during the first six months of 2025, according to the Thai Department of Tourism. This increase is attributed to activities to help revive the Thai economy from the crisis of COVID-19 and the return of the tourism sector. Efforts by the Thai government to ease the process of obtaining a business permit, meanwhile, have made it more convenient for entrepreneurs to open travel-related businesses, including travel luggage vendors, tour operators, and hospitality services.

The deputy government spokesperson, Sasikarn Wattanachan, has noted that the rising number of travel agencies reflects the robust nature of the tourism sector and investor confidence amidst changing global travel conditions. Most of these new businesses are located in Thailand’s major tourist destinations, such as Bangkok, Phuket, and Pattaya, where demand remains high for both domestic and international tourist services. This growth is positive, as it is good for the economy locally, but it has its risks, especially the level of provision of services to visitors.

Hurdles and Hopes for Thailand’s Tourism Industry

The growth in the number of licensed travel agencies is a positive sign of expansion, but it also flags some serious industry issues. Possibly the biggest challenge is the falling numbers of international arrivals, particularly from China, which is one of Thailand’s top tourism-generating countries. In July 2025, according to official figures from the Tourism Authority of Thailand, the number of Chinese tourists fell by 34.13%—a serious blow to the country’s tourist industry, which previously relied on massive Chinese tourism.

Though the number of Chinese arrivals has fallen, there have been a few shoots of flowers with Russian and European arrivals increasing in Thailand. But industry analysts warn that the change in the types of visitors poses challenges to striking the right balance between drawing lucrative tourists and achieving sustainable growth in tourism in the long run. For economic returns, mass tourism size does matter, but it has the potential to surpass the infrastructure’s capacity and lower the satisfaction level of tourists.

Pattaya’s Struggles with Mass Tourism

One of the most impacted destinations during this shift in the tourism industry is Pattaya—a coastal city that has been a popular haunt for budget and high-end travellers for years. Known as “The Hawaii of the East,” the city is seen as a place that values quantity over quality. Too bad because that strategy appears to have taken its toll, with the destination now beginning to lose its lustre for luxury high-spending visitors in search of the novel and exclusive.

Pattaya, as mentioned, is in a drive to get as many people as possible to visit its area and, as a result, has lost much of its original charm and, in the process, much of the appeal for higher-spending tourists who, as well as valuing money-for-value experiences, tend to be more attracted to more individual and luxurious experiences. Those with less money to spend will crowd into Pattaya, and there is a fear the resort town will find itself left behind in an increasingly crowded market, while other destinations in Southeast Asia vie for attention.

This situation is aggravated by the proliferating travel agencies in Pattaya. Similar to the increasing number of tour operators serving throngs of visitors, there is an increasing concern that the infrastructure of the site will not cope with the upward trend in demand and both overcrowding and diminishing service levels will become a problem. Not only does this impact tourists’ overall experiences, but it also makes it more difficult for businesses to set themselves apart in an overcrowded market.

Response to Problems: Government Attempts to Tackle the Problem

In an attempt to address these issues, the Thai government is implementing a number of initiatives to govern the increasingly busy tourism industry. The authorities acknowledge the need for better quality of service alongside more licensed companies. Deputy Government Spokesperson Sasikarn Wattanachan said businesses should operate according to the 2008 Tourism Business and Guide Act, which requires tour operators to be registered with the relevant government agencies and adhere to safety measures. She said the government is taking action to stamp out illegal tourism, particularly those offered by online platforms without a license.

Experts in the field have cautioned that if such rules are not strictly enforced, unauthorised tour operators could make it easier to exploit tourists. Many unlicensed businesses are already flouting the law, giving tours that don’t meet safety standards and, sometimes, putting tourists in danger. The latest call came to all local businesses, old and new, to ensure they have their business licensed through one of the country’s eight national registration offices.

Licensed operators have to follow onerous safety protocols, such as making sure tourists have the proper form of travel insurance in the event of an accident and receiving sound customer service. These steps are meant to safeguard both the tourists and the image of Thailand’s tourism in the future.

Future Outlook: Sustainability and the Future of Tourism to Thailand

As Thailand’s tourism industry tries to bounce back after some tough times, it’s no longer just a matter of getting people into the country but rather making sure that when they come, they’re treated to quite an experience. Tourism chiefs are working to improve the country’s image as a destination that provides not only great value for money but also a rich cultural experience as well as exclusive high-end offerings.

Thailand’s tourist industry must find a way of managing the one-size-fits-all demands of mass tourism with the ambition to lure more sustainable, higher-value tourists. Thailand can protect its environment and its rich history and keep its tourism sources competitive with a focus on quality, not quantity.

Thailand has the objective of 35.5 million overseas tourists by 2025; however, in order to achieve that, it will need to address these challenges and concentrate on global megatrends that work in favour of sustainable tourism. With the continued government drive for more regulation of the sector and more service, the future of Thai tourism will largely hinge on its ability to adapt to fit in a fast-globalising world, while at the same time retaining the essence of what the country has come to identify with, being a major travel destination.