Thai tourism takes hit as strong baht, war compound China fears
As at Dec 28, the country has welcomed 32.6 million foreign travellers, a more than 7% drop from the same period in 2024
[BANGKOK] Thailand, famed for its fantastic food and wild nightlife, is poised for its first annual drop in tourist arrivals in a decade outside the pandemic, after multiple crises hurt the confidence of holidaymakers.
The country had welcomed 32.6 million foreign travellers as at Dec 28, the Ministry of Tourism and Sports said on Tuesday (Dec 30). This represents a more than 7 per cent drop from the same period last year.
The year started badly, with many Chinese travellers scrapping plans to visit after Chinese actor Wang Xing was abducted from Thailand, and later rescued from a scam centre in neighbouring Myanmar.
Thailand was then rocked by Myanmar’s biggest earthquake in a century, a bloody border conflict with Cambodia, severe flooding in the south and a political crisis that brought a new government to power.
On top of that, the baht’s 8 per cent gain made Thailand more expensive than rival destinations such as Indonesia, where the rupiah dropped 4 per cent.
“Safety concerns and the baht’s strength are the key factors impacting tourist arrivals this year,” said Adith Chairattananon, secretary-general of the Association of Thai Travel Agents.
Full-year international tourist arrivals are expected to reach 32.8 million people, generating revenue of 1.5 trillion baht (S$61.9 billion), down from 35.5 million people and 1.7 trillion baht in 2024, the Thai-language newspaper Thansettakij reported earlier, citing Tourism Authority of Thailand governor Thapanee Kiatphaibool.
The decline is bad news for the country, which has struggled to revive tourism in the wake of Covid, and seen growth lag that of neighbours Indonesia, Malaysia and the Philippines.
The travel industry makes up about 12 per cent of Thailand’s gross domestic product, and supports millions of jobs.
Malaysians topped the list of foreign visitors with 4.5 million people, followed by 4.4 million Chinese tourists and 2.5 million holidaymakers from India, indicated the Ministry of Tourism and Sports data.
Tourism revenue generated from international arrivals totalled 1.5 trillion baht as at Dec 28.
The Thai tourism authority aims to welcome 36.7 million foreign tourists in 2026, with visitors from short-haul markets anticipated to make up more than 70 per cent of international arrivals, The Nation reported, citing Thapanee.
Chinese holidaymakers are projected to total 6.7 million, matching the 2024 arrival number, Thapanee said in the news report.
Whether Chinese confidence in Thailand rebounds is critical to the sector’s prospects.
International visitors could reach 38 million next year if Chinese arrivals total eight to nine million, and Thai authorities could manage the border dispute impact as well as tame the baht’s strength, Adith added. BLOOMBERG
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