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Thailand faces lower tourist numbers

BANGKOK: The Tourism and Sports Ministry has instructed the Tourism Authority of Thailand (TAT) to revise the 2025 tourism marketing plan, which could downgrade foreign receipts from B2.3 trillion to B2trn, to cope with the weak Asian market that dropped 17% in the first quarter. 

tourismeconomics
By Bangkok Post

Tuesday 22 April 2025 08:46 AM


A traffic police officer from Phra Ratchawang police station ensures the safety of tourists crossing the street near Wat Pho in Bangkok on March 9. Photo: Apichart Jinakul / Bangkok Post

A traffic police officer from Phra Ratchawang police station ensures the safety of tourists crossing the street near Wat Pho in Bangkok on March 9. Photo: Apichart Jinakul / Bangkok Post

According to TAT, Thailand gained 9.5 million international arrivals in the first quarter, growing 2% year-on-year, which generated B471 billion, a 7% year-on-year increase, reports the Bangkok Post.

However, the key Asian markets, including China, Hong Kong, Taiwan, South Korea and Vietnam decreased by 17% on average in the period due to declining safety confidence in Thailand and reduced flight numbers following the end of the Songkran festival.

Natthriya Thaweevong, the ministry’s permanent secretary and the TAT board’s chairman, said the revised plan should be finalised and presented to the board for approval by May in order to execute it in the second half.

“As several negative factors led by safety concerns and the economic impact from the US tariff hike weigh on our tourism target, we have to shift the plan to maintain the same revenue as 2019, when we secured B2trn,” she said.

She said the marketing direction now would need to be changed from headcount to spending ratio, putting more focus on long-haul markets, which typically generate higher income per head than Asian markets.

Although the new US tariffs are expected to impact the global economy, the ministry believes that European tourists may avoid travelling to the US and instead turn to Asian destinations, presenting an opportunity for Thailand to attract more European visitors.

Based on tourism receipts’ projection in the second quarter of 2025, the markets with high potential for Thailand include Sweden, whose citizens spent B69,817 on average, Saudi Arabia, whose citizens spent B68,354 on average, Austria, whose citizens spent B66,729 on average, and the UK, whose citizens spent B60,823 on average.

Ms Natthriya said the markets that were still able to increase air ticket bookings by 10% in the second quarter were mostly from Europe, comprising the UK and Germany, along with Israel, Australia and South Korea.

“We’ve set the outline for TAT to accelerate tourists’ decisions by offering tailor-made tour packages that will match segments with high spending. For instance, the medical tourist segment, who book long-stay accommodation for themselves and their families, should have tour package options to purchase easily while in Thailand,” she said.

The key performance indicator for TAT would also be adjusted based on the nationality of arrivals and might have to exclude the Chinese market, which is expected to significantly drop this year, said Ms Natthriya.

For instance, the benchmark of 2.0 would be earmarked for travellers from long-haul markets, but the benchmark from short-haul markets would be lower at 0.5-1.0, depending on their average spending and the length of stay.