Vietnam’s rapid economic growth is reshaping Southeast Asia’s multi-billion-dollar tourism industry, Bloomberg reported. The country’s surge stands in stark contrast to Thailand, which is steadily losing market share.
Data from China Trading Desk, a firm monitoring Chinese travel and spending, suggests Thailand could lose more than $3.5 billion in revenue as tourists redirect their spending to Vietnam and neighbouring destinations.
Much of this shift is being driven by younger Chinese travellers who favour independent trips, signalling a structural change in the world’s largest tourism market.
“For this new group of Chinese tourists, Vietnam offers a new and fresh experience,” said Subramania Patra, CEO of China Trading Desk. “Many tourists feel that Vietnam is still less crowded and more authentically local.”
Vietnam has already recorded nearly 14 million international arrivals this year, the highest in its history. Chinese visitors, its largest market, increased by 44 percent year-on-year in the first eight months alone.
Neighbouring Malaysia has also benefited, with tourist arrivals from mainland China rising 35 percent in the first half of the year, alongside a 50 percent boost in flight capacity from China.
Shaharruddin Saaid, Executive Director of the Malaysian Association of Hotels, said visa-free entry and a weaker ringgit are expected to bring in even more visitors. Hotels have already reported stronger demand and higher occupancy compared to last year.
Vietnam’s New Strategy
Vietnam is adapting quickly to appeal to this new wave of travellers. In Quang Ninh province, which borders China, local authorities have partnered with businesses to stage paragliding and hot-air balloon festivals.
In Da Nang, Chinese-language signs are now common at hotels, restaurants, and massage parlours, while staff fluent in Mandarin, or equipped with translation apps, are becoming standard.
Modern Chinese tourists are also moving away from budget group tours that dominated before the COVID-19 pandemic.
“Currently, over 40% of Chinese travelling abroad for the first time are independent, educated and looking for an authentic foreign experience,” Patra noted.
“This group of tourists doesn’t want to be put on a bus and taken to places that feel like China. And importantly, they are willing to pay more.”
Companies are shifting strategies to match. Hava Travel in Da Nang and Nha Trang has pivoted from low-cost packages to boutique experiences. In August, it served about 2,000 customers, up 20 percent from earlier this year.
“Our Chinese tourists are willing to pay higher prices,” said Nguyen Ngoc Thien, Deputy General Director of Hava Travel.
Hotels are seeing similar results. At the Mercure Nha Trang Beach Hotel, nearly half of the rooms are consistently booked by Chinese guests, according to Luong Phu Hai, Marketing and Sales Director for Accor SA’s Vietnam operations.
Thailand’s Struggles
Thailand, meanwhile, faces headwinds. Aviation data from Cirium shows one-way flight seat capacity from China to Thailand fell more than 11 percent year-on-year in the first eight months of 2025, down to just 5.1 million seats.
Although Chinese visitors remain Thailand’s largest market, the decline contributed to a 7 percent drop in overall international arrivals, despite growth from Europe and the United States. The Kasikorn Research Centre forecasts hotel revenue in Thailand will shrink by 4.5 percent this year, with occupancy rates weakening.
The country has also struggled with reputational issues. The abduction of Chinese actor Wang Xing, who was lured to Thailand and later trafficked to Myanmar by a call-centre gang, has raised safety concerns.
On social media, many Chinese travellers have also complained about higher hotel prices, food costs, and taxi fares since the pandemic.
Still, industry leaders see reasons for optimism. The upcoming winter peak season could help recovery, and Bangkok remains the most popular Asian city for repeat visitors on Agoda’s booking platform.
Damien Pfirsch, the company’s Chief Commercial Officer, said the return of Chinese tourists would be “a key driver for revitalising the sector.”
