Thailand Tourism Slips for First Time in a Decade

Thailand has recorded its first annual decline in foreign tourist arrivals in ten years outside the pandemic period. As of December 28, 2025, the country welcomed 32.6 million international visitors, down 7 percent from 35.5 million arrivals in 2024.

Key source markets remain but weaken

Malaysia remained Thailand’s largest source of foreign visitors, contributing 4.5 million travelers in 2025. China followed closely with 4.47 million visitors, while India ranked third with 2.5 million tourists.

Despite these figures, arrivals slowed sharply in the second half of the year. This drop marks a notable reversal for one of Asia’s most tourism-dependent economies.

Regional instability

Tourism was affected by a 6.8-magnitude earthquake that struck Myanmar on March 28, 2025. The disaster killed more than 2,800 people and injured around 4,500, with aftershocks disrupting cross-border travel from Thailand’s eastern provinces, including Chiang Rai and Mae Sot.

Damage to Mandalay Airport and key highways forced the suspension of Thailand-Myanmar bus services and charter flights, while refugee movements added pressure to local infrastructure.

Strong baht weakens price appeal

Thailand’s price competitiveness also suffered as the Thai baht appreciated about 8 percent against the US dollar. The stronger currency was driven by capital inflows, interest rate differentials, and confidence in export performance.

This appreciation made hotels, street food, and wellness services in destinations like Phuket less appealing for budget travelers, hitting leisure demand particularly hard.

China backlash

Additionally, a major setback came when popular Chinese actor Wang Xing was abducted from a scam center in Thailand. The incident triggered a strong reaction across Chinese social media platforms such as Weibo, where boycott campaigns against Thailand quickly gained millions of views.

As a result, Chinese travel agencies reported widespread cancellations of both group tours and independent bookings.

Government moves to stimulate demand

In response to the slowdown, Thai authorities unveiled a tourism stimulus proposal in August 2025 that included free domestic flights for foreign visitors.

The Tourism Ministry’s plan aimed to distribute round-trip domestic tickets to 200,000 international travelers, encouraging them to explore multiple destinations within the country and helping support regional tourism economies.

Photo by Sara Dubler on Unsplash