Thai tourism takes hit as strong baht, war compounds Chinese fears

Thai tourism takes hit as strong baht, war compounds Chinese fears

International visitors could reach 38 million next year if Chinese arrivals total 8–9 million and authorities manage the border dispute and the baht’s strength.

THAILAND ECONOMY TOURISM
Malaysians topped the list of foreign visitors to Thailand with 4.5 million, followed by 4.4 million from China and 2.5 million from India. (EPA Images pic)
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 travelers as of Dec 28, the tourism and sports ministry said today.

That represents a more than 7% drop from the same period last year.

The year started badly, with many Chinese travelers scrapping plans to visit after 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% gain made Thailand more expensive than rival destinations like Indonesia, where the rupiah dropped 4%.

“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 ฿1.52 trillion (US$48 billion), down from 35.5 million people and ฿1.67 trillion 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% 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, according to the tourism and sports ministry data.

Tourism revenue generated from international arrivals totaled ฿1.5 trillion as of 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 more than 70% of international arrivals, The Nation reported, citing Thapanee.

Chinese holidaymakers are projected to total 6.7 million, matching the 2024 arrival number, Thapanee said, according to the news report.

Whether or not Chinese confidence in Thailand rebounds is critical to the sector’s prospects.

“International visitors could reach 38 million next year if Chinese arrivals total 8 or 9 million and Thai authorities could manage the border dispute impact as well as tame the baht’s strength,” Adith said.

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