The situation requires the new government to establish a tourism war room in collaboration with private sectors to plan a proactive tourism strategy, reports the Bangkok Post.
Thienprasit Chaiyapatranun, president of the Thai Hotels Association (THA), said the government and private stakeholders must take a more serious approach to analyse competitors like Vietnam and plan how to drive tourism and new investment this year.
Based on informal discussions with representatives from Yango Ads, a digital advertisement tech company targeting Russians, the numbers from this market visiting Vietnam have doubled during the high season, he said.
Some Thai hotels targeting European markets also saw a decline in group tourists, such as those hailing from Poland, as they shifted to Vietnam.
These changes are attributed to new hotels and attractions in Vietnam, and the persistently strong baht in relation to foreign currencies, he said.
"Thailand still has plenty of high spending and repeat travellers, but it is uncertain how much this segment would drop and shift to Vietnam in the future," said Mr Thienprasit.
"We need a tourism war room supported by private operators to plan the low-season and long-term strategy."
Regarding the first-quarter outlook, overall hotel performance is expected to be similar to that of last year, both in terms of occupancy rate and room rate, he said.
According to THA’s latest report, which surveyed 107 hotels in December 2025, four-star properties and those located in the southern provinces should be able to increase their room rates in the first quarter of 2026 compared with the corresponding period of last year.
However, hotels with three stars and below are less likely to increase their rates compared to more premium segments.
The survey also suggested that during the first quarter, over half of hotels still expected a year-on-year drop in Chinese guests, although long-haul guests are still growing consistently.
The THA expects hotels nationwide to have a 74% occupancy rate in January, a slight drop from 76% recorded in December 2025.
Mr Thienprasit said that since Chinese New Year in 2026 will fall in mid-February, the number of Chinese tourists might pick up next month.
Many hotels are still gaining a few bookings from the Chinese market compared to previous years, as their booking windows are very short. Hotels have to wait until late January or early February to see a clearer picture, he said.