Thailand Faces Over 7% Decline in Foreign Tourist Arrivals Amid Strong Baht and Regional Competition

Thailand's tourism sector is facing a significant downturn in 2025, with foreign arrivals dropping by over seven percent year-on-year through September, totaling approximately 23.45 million visitors, leading to a revised annual forecast of 33 million arrivals, down from earlier projections of 37 million and well below pre-pandemic levels. This decline is largely attributed to intensified regional competition from countries like Vietnam and Japan, rising costs that have eroded Thailand’s value proposition, and a sharp decrease in Chinese tourist arrivals, a historically significant market. Additionally, the strengthening Thai baht against the US dollar has made Thailand more expensive for American tourists while encouraging Thai nationals to travel abroad to countries with weaker currencies, further pressuring tourism revenue, which could decline by up to 17 percent. Despite these challenges, the Tourism Authority of Thailand is focusing on revitalizing Thailand’s image with a "New Thailand" concept emphasizing quality, value, safety, and sustainability, alongside ramping up major events and targeted campaigns to boost tourism momentum in the fourth quarter. Efforts include festivals, marathons, and promotional initiatives aimed at both international visitors, including a Chinese tourist campaign during China’s Golden Week, and domestic travelers through discounted tour packages.