Chinese tourist arrivals to Thailand dropped by 32.7% in the first five months of 2025, prompting a major Chinese travel agency to propose strategic adjustments to restore confidence and navigate the effects of China’s economic slowdown.
The agency also warned that legalising casinos is unlikely to revive demand from Chinese travellers.
Jennifer Fan, product director at Nasdaq-listed Tuniu Corporation, said bookings for Thailand through the company have fallen sharply, from over 100,000 Chinese tourists annually before the pandemic to just 20,000 this year. She attributed the drop primarily to safety concerns.
“Prior to the pandemic, the country mostly attracted the low-priced segment, but now it should focus on a new potential segment, which is tourists seeking high quality products,” she said.
Flight connectivity has also played a role in the market’s decline. Routes between China and popular Thai destinations such as Chiang Mai and Phuket have diminished since the kidnapping of Chinese actor Wang Xing, contributing to a substantial drop in available seat capacity.
In contrast, competing Southeast Asian destinations have reported growth. Singapore and Malaysia saw Chinese arrivals rise to 1.30 million and 1.44 million, up 1.4% and 37.8% respectively from last year.
Vietnam experienced the most dramatic increase, jumping 156% to 1.9 million visitors, according to national tourism organisations.
Thailand, meanwhile, recorded 1.95 million Chinese tourists between January and May, down from the same period in 2024, according to the Ministry of Tourism and Sports.
Ms. Fan emphasised that Thailand remains one of Tuniu’s key destinations, and she believes the market could rebound with the right strategy. She said the changing expectations of Chinese tourists require more diverse offerings that reflect various levels of purchasing power.
“Since the company launched ‘Niu tours’, which means ‘excellent tours’, offering packages with higher prices than average that are equipped with high standard tour guides, five-star hotels and cuisine, and high quality experiences, feedback from customers has been overwhelming, including the responses to package tours to Thailand,” Ms. Fan said.
Although Niu tours are priced around 25,000 baht per trip—higher than standard packages—they have been met with strong approval.
AI-generated customer feedback shows high satisfaction rates, particularly for Tuniu’s “golden guides,” a group of highly trained Thai tour guides who earned a 100% satisfaction score.
“We prioritise investing in our tour guides by offering competitive rates. When guides are treated well, they’re more likely to provide exceptional service to customers,” she said.
Despite the sluggish Chinese economy, Ms. Fan said tour operators can adapt by tailoring packages to suit different consumer groups.
Travellers from first-tier cities tend to book small-group, high-end tours with five-star accommodation, while those from second- and third-tier cities often prefer affordable, mid-range options.
Tuniu is also capitalising on new digital trends. The company operates more than 300 branches across China and offers outbound tours via its website and app. However, live-streaming on platforms like Douyin (China’s version of TikTok) has emerged as a powerful sales channel.
“The power of new media in China and growing demand from the younger generation have prompted us to shift to new forms of promotion, particularly the live-streaming strategy,” said Ms. Fan.
In May, Tuniu hosted a live-streaming sale from Phuket Town, which reassured viewers of the destination’s safety and showcased it in real time. Ms. Fan said such campaigns allow prospective tourists to visualise the experience and see familiar faces in the crowd, boosting confidence.
To stay competitive, she recommended that the Thai government regularly hold business matching sessions to help Chinese agents stay updated and connect with local tourism providers.
Tuniu staff visit Thailand several times a year to inspect hotels, restaurants, and experiences, helping shape tour standards and marketing visuals.
As Thailand considers legalising casinos as part of an entertainment complex project, Ms. Fan cautioned that this could have negative repercussions among Chinese travellers.
“We don’t suggest our customers join such activities. In China, we don’t encourage casinos,” she said.
Yuthasak Supasorn, former governor of the Tourism Authority of Thailand and current chairman of the Industrial Estate Authority of Thailand, predicted that Chinese arrivals in 2025 could fall to 4–5 million, with daily numbers averaging just 13,000, less than half the 30,000 seen pre-pandemic.
He said Thailand should focus on tourism revenue rather than volume and emphasised the importance of targeting high-spending, niche, or responsible Chinese travellers.
Yuthasak also urged authorities to improve safety by implementing stronger security measures, launching a dedicated Tourism First Aid unit, and preparing a compensation fund for tourists affected by travel-related incidents.
