With international tourism numbers dropping, especially post-pandemic, Thailand is recalibrating its approach by focusing on high-spending visitors from these regions while navigating challenges in the global travel landscape.
In 2024, the Kingdom hosted 35.5 million international tourists, falling behind both Malaysia and Japan, which saw 38 million and 36.9 million visitors, respectively. Once a top destination for travelers from China, the Southeast Asian country is now adjusting to new dynamics in its tourism industry, particularly in light of reduced arrivals from China. This marks a significant departure from the days when Chinese tourists made up a substantial share of Thailand’s tourism revenue.
Strategic Shift: Quality Over Quantity
Tourism authorities in Thailand are now focusing on “quality over quantity.” This strategic pivot, which has been promoted by the Tourism Authority of Thailand (TAT) since 2018, prioritizes attracting high-spending visitors rather than simply boosting the overall number of tourists. TAT Governor Thapanee Kiatphaibool stated that the country is now targeting high-purchasing-power travelers, especially from Europe, the United States, and the Middle East. These regions are increasingly viewed as vital to compensating for the reduction in Chinese visitors.
As part of this reorientation, Thailand has been actively promoting new air routes for long-haul markets and showcasing its cultural and sports tourism offerings. Events such as Thailand’s cultural festivals and eco-tourism initiatives have also been highlighted to attract more discerning tourists.
The Impact of Geopolitical Tensions on Travel Trends
The ongoing geopolitical tensions, especially in the Middle East, have made international travel more unpredictable, posing another challenge to Thailand’s tourism recovery. Experts warn that if these trends continue, Thailand could face more hurdles in attracting international tourists. Hannah Pearson, founding partner of Pear Anderson tourism consultancy, noted that while the Thai tourism sector has experienced growth from markets like Germany and Italy, it still depends heavily on the long-haul visitor market for stable recovery.
Many tourism analysts, such as Gary Bowerman, have stressed that Thailand must adopt a more measured approach in its tourism predictions, acknowledging that the road to full recovery will not be short. “Thailand needs to rethink its strategy and stop making rash predictions,” Bowerman added.
Declining Chinese Tourist Numbers: A Growing Concern
One of the most pressing issues facing Thailand’s tourism industry is the substantial drop in Chinese arrivals. In 2019, Thailand welcomed over 11 million Chinese visitors, but by 2024, that number had fallen drastically to fewer than 2 million in the first five months alone. A variety of factors have contributed to this decline, including safety concerns and the perception that Thailand is no longer as appealing as it once was to Chinese tourists.
The kidnapping of Chinese actor Wang Xing and the subsequent safety concerns raised by incidents like the shooting in Bangkok’s Siam Paragon mall in 2023 have damaged Thailand’s image as a secure destination for travelers from China. Additionally, Chinese films such as No More Bets, which depict themes of human trafficking in Southeast Asia, have further deterred Chinese tourists.
Thailand’s efforts to win back Chinese tourists include marketing campaigns, subsidized flights, and collaborations with Chinese digital platforms like Baidu. However, these efforts have yet to yield significant results, with many Chinese tourists expressing nostalgia for past visits but little desire to return without more substantial changes in Thailand’s offerings.
Sustainable Tourism: More Than Just Luxury
Despite the focus on attracting high-spending tourists, there is growing concern that Thailand’s notion of “quality tourism” is often synonymous with luxury. While luxury tourists certainly bring in high revenue, there is a growing need to redefine what “quality” means in a more inclusive and sustainable way. Ian Di Tullio, Chief Commercial Officer at Minor Hotels, emphasized that Thailand’s reputation as a high-end travel destination is evolving, thanks to investments in wellness tourism, gastronomy, and luxury experiences. However, experts like Krittinee Nuttavuthisit, Associate Professor of Marketing at Chulalongkorn University, argue that quality tourism should extend beyond wealth and touch on community-based initiatives that benefit both locals and tourists.
Social enterprise projects like Local Alike are creating immersive travel experiences where tourists can engage with local communities and help foster sustainable tourism development. Such initiatives, while still niche, are seen as vital for the long-term health of Thailand’s tourism industry, balancing profit with social and environmental responsibility.
Competition from Regional Neighbors
Thailand is also facing increased competition from neighboring countries in Southeast Asia, particularly Malaysia and Vietnam. Malaysia has rolled out strategic marketing efforts, including roadshows and a visa-free policy for Chinese nationals, while Vietnam has bolstered its e-visa system and added more direct flights. Thailand is now at a crossroads, as countries like the UAE, Japan, and South Korea are also vying for the same travelers that Thailand once attracted in large numbers.
Gary Bowerman pointed out that countries in the Middle East and Central Asia are also increasing their efforts to capture tourist dollars, making it even harder for Thailand to retain its competitive edge in the region. Thailand now faces the dual challenge of not only attracting new visitors but also retaining the tourists it already has.
Looking Ahead: A Balanced Approach to Tourism Growth
As Thailand’s tourism industry continues to recover from the pandemic, its focus on high-spending, long-haul travelers and sustainable tourism practices seems to be the way forward. However, experts agree that this will require a long-term strategy rather than a quick fix. While Thailand’s ambition to attract 68.5 million visitors by 2028 remains, analysts caution that the country must be realistic about its goals, considering the ever-changing global tourism landscape.
Ultimately, the key for Thailand will be to focus on attracting tourists who value authentic, meaningful experiences over sheer volume—balancing growth with sustainability and ensuring that both visitors and local communities benefit from the tourism sector.
Tags: China, Europe, the US, Japan, Australia, Middle East, India, Russia, South Korea, tourist arrivals Ian Di Tullio, Minor Hotels, Tourism Authority of Thailand (TAT)
