Thailand’s tourism industry is facing its steepest decline in years, as a drop in arrivals from neighbouring Asian countries drags down overall visitor numbers — and not even the buzz from the latest season of “The White Lotus” has been enough to reverse the trend.
Foreign arrivals fell for the fourth consecutive month in May, sliding 14% year-on-year to 2.6 million, according to official data. It marks the country’s longest stretch of monthly declines since 2021, when pandemic-era border closures halted global travel.
The downturn is most pronounced among regional travellers, who typically make up the majority of Thailand’s tourism base. Arrivals from other Asian countries were down nearly 11% in the first five months of 2025 compared to the same period last year.
Chinese tourists, Thailand’s single largest source of international visitors, have dropped by nearly 33% so far this year, equating to roughly 1 million fewer arrivals than in 2024.
The decline has raised concerns across the tourism industry, particularly as the summer travel season approaches. Tourism accounts for about 12% of Thailand’s GDP, making it a vital economic engine.
Industry leaders attribute the slump to a range of factors, including ongoing safety concerns among Chinese tourists following a high-profile incident in January, when Chinese actor Wang Xing was kidnapped near the Thai-Myanmar border by a scam gang.
The incident went viral in China and triggered a wave of cancellations, with travellers opting for perceived safer destinations such as Japan and Singapore.
“We have lost a lot tourists to other competing countries in Asia because we didn’t tackle the negative images seriously,” said Ratchaporn Poolsawadee, vice-president of the Tourism Council of Thailand. “Thailand’s tourism is resilient, but this may take months to rebound.”
Malaysia, Thailand’s second-largest market, has also seen a drop in numbers — with arrivals down as much as 17% over the same period.
Travel advisories issued by Hong Kong, the United Kingdom, and Australia, citing safety and earthquake-related risks, have further impacted visitor confidence.
According to data from China Trading Desk, flight bookings from China for the upcoming summer months (June to August) are down 15% compared to a year ago.
The slowdown is already being felt in the hospitality sector. A recent survey by the Thai Hotel Association, which includes nearly 140 members, forecasts hotel occupancy in May to fall to 52%, down from 63% in April.
Average daily room rates are also expected to drop in the second quarter as hotels cut prices to stay competitive.
In response to growing criticism, the Thai government has stepped up efforts to shut down scam compounds and publicised arrests following Wang’s kidnapping.
But with a 2025 target of over 39 million visitors — expected to generate roughly $68 billion in spending — industry officials fear these measures may not be enough.
Some are now calling for broader marketing efforts, particularly targeting non-Chinese markets.
Western Markets Show Promise
Amid the gloom, there is one bright spot. The third season of HBO’s “The White Lotus,” filmed at luxury resorts in Koh Samui and Phuket, has helped draw attention from Western travellers.
The show, which follows the dramatic lives of wealthy guests and resort staff, has coincided with a rise in tourist numbers from the US and Europe.
US arrivals surged 12% year-on-year to over 625,000 through May, while European arrivals climbed nearly 18% to more than 3 million during the same period.
However, industry insiders warn that the show’s Western appeal may do little to entice Asian travellers, who see the tropical backdrop as less exotic.
“Thailand was hit with a string of bad news events,” said Thienprasit Chaiyapatranun, president of the Thai Hotels Association. “
So now we have travellers concerned about safety and security. The government should act right now and do a lot more to reassure and attract visitors.”
With regional competition heating up and public perception at stake, Thailand’s tourism rebound may depend less on TV exposure — and more on swift, strategic action.
