Thailand’s tourism industry is facing significant challenges, with a decline in arrivals from key markets such as China, the US, South Korea, India, and Malaysia. The country’s tourism sector has been impacted by economic strain, rising travel costs, and environmental sustainability concerns, making it difficult for the industry to recover to pre-pandemic levels. According to the Ministry of Tourism and Sports, foreign arrivals between January 1 and October 26, 2025, totalled 26.25 million, a drop of 7.25% compared to the same period in 2024.
The decline in tourism is attributed to various factors, including inflation, high airfare costs, and the growing preference for more accessible destinations. The Bank of Thailand has lowered its tourism forecast for 2025, adjusting expectations from 35 million to 33 million visitors. The country’s infrastructure, including airports, is also struggling to handle the volume of passengers during peak travel periods, and environmental issues such as pollution in popular destinations are deterring eco-conscious tourists.
Malaysia remains Thailand’s largest source of international tourists, contributing 3.8 million visitors, while China contributed 3.72 million visitors, particularly during the Golden Week holiday. However, these positive trends have not been sufficient to offset the decline from other critical markets. The tourism industry is a crucial part of Thailand’s economy, contributing around 12% to its GDP, and a drop in foreign arrivals significantly impacts businesses, from street vendors to five-star hotels.
To address these challenges, the Ministry of Tourism and Sports is promoting various initiatives, including year-end festivals and offering visa incentives to attract visitors. The country is also investing in green initiatives to protect its natural beauty and attract eco-friendly travellers. However, achieving the target of 40 million visitors seems increasingly unrealistic, and experts believe that Thailand should diversify its tourism offerings, focusing more on wellness and cultural tourism.
The future of Thailand’s tourism industry will depend on how well it can adapt to shifting global trends, including the rising demand for sustainability and the need for infrastructural improvements. The country’s ability to navigate these challenges will likely determine the long-term health of its tourism sector and the broader economy. With the right strategies and investments, Thailand can recover and thrive, but it will require a concerted effort from the government, industry stakeholders, and local communities to address the complex challenges facing the tourism sector.