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17 Jun 2025

Tourism

Thailand’s tourism sector, an economic driver beginning to lose momentum (Current Issue No.3585)

คะแนนเฉลี่ย

With the number of foreign tourist arrivals to Thailand projected to decline in 2025 for the first time in three years, this raises the critical question: Will the tourism sector remain a key driver of the Thai economy?

KResearch believes tourism will continue to play a significant role, as reflected in the expected positive net tourism revenue. However, its economic momentum may weaken going forward. For 2025, net tourism revenue is projected at THB 2.38 trillion, declining from the previous year, due to: 1) Revenue from the foreign tourist market facing intense competition; 2) Thais continuing to travel abroad; and 3) Domestic travelers becoming more cautious with their spending.

What should be done to revive the tourism sector and support the Thai economy?

In the near term, we believe accelerating the restoration of tourist confidence is crucial. In addition to stimulating domestic tourism through the “Half-Price Thai Travel” scheme in 2H25, the government should also implement targeted plans to boost key foreign tourist markets with differentiated approaches, including: 1) Short-stay but high daily-spending groups like China and Singapore; 2) Long-stay but moderate daily-spending groups like Europe and the US; and 3) Long-stay, high daily-spending groups like the Middle East.

Moving forward, Thailand will need to support more non-leisure tourists. Simultaneously, enhancing the ecosystem to drive high-value tourism should be implemented immediately, whether through gastronomy, medical, wellness, or sustainable tourism, as spending per trip in these markets is projected to exceed standard levels by at least 20-30 percent.

Tourism

TourismNumber of touristsForeign nationals