Asia’s tourism map is being redrawn, and Thailand—the perennial favourite—suddenly feels a little less like the centre of the sun and more like one of several bright stars in an increasingly crowded constellation. As Vietnam and South Korea roll out expanded visa-free entry and targeted incentives, travellers are recalibrating their itineraries, and industry insiders warn that Thailand may see a slowdown through the remainder of 2025.
At the heart of the shift are two simple moves: easier access and sharper value. South Korea has opened visa-free entry for Chinese tour groups starting in September—timed perfectly ahead of China’s October Golden Week—while Vietnam has added visa-free access for 12 more markets (including Belgium, the Netherlands and Switzerland), bringing its total to 39 visa-free countries. The result? A fresh wave of visitors choosing newer, often cheaper options elsewhere in Southeast Asia.
“Visa-free counts, but perception sells,” says Thanapol Cheewarattanaporn, President of the Association of Thai Travel Agents (ATTA). Thailand still offers visa-free entry for 93 countries, a generous number on paper, but Thanapol warns that numbers alone aren’t enough. “If tourists are worried about safety or don’t hear a clear invitation from us, they will simply pick the path of least friction—easy visas, lower prices and fewer headlines about trouble.”
That last point matters because image is sticking. Border friction with Cambodia and a high-profile August 8 attack on two Malaysian tourists in Bangkok have fed negative chatter across international social media. The upshot: confidence is faltering just when rivals are making their moves. ATTA plans roadshows to Taiwan and India next month to try and reset the narrative and restore confidence.
The statistics underline the concern. As of August 10, Thailand recorded 20.2 million arrivals year-to-date—a 6.9% decline compared with the same period last year. Chinese tourists remain the largest single group at 2.8 million arrivals, but that number is down roughly 30% as Beijing’s tourists explore alternatives. Vietnam, by contrast, has enjoyed a boom: 12.2 million arrivals in the first seven months of the year, up 22.5% year-on-year. China and South Korea are major drivers, with 3.1 million and 2.5 million visitors respectively. Da Nang alone has welcomed about 1 million South Korean tourists, proof that focused outreach and accessible entry can pay off fast.
Morrakot Kuldilok, President of the eastern chapter of the Thai Hotels Association (THA), paints a clear picture of what’s shifting on the ground. “We’re losing groups—especially from Russia, Europe and India—that previously came to Pattaya. They’re drawn to Vietnam’s newer hotels and much lower prices. A five-star property in Vietnam can cost half of what you’d pay for a comparable stay in Pattaya.”
Currency dynamics aren’t helping. A stronger baht has nudged Thai hotel prices up by an estimated 5–7%, making holidays in Thailand less competitive for price-sensitive markets. Meanwhile, a domestic tourism co-payment scheme—designed to encourage local stays—has produced mixed results. A July THA survey of 126 hotels found 47% of respondents believed the scheme would not increase their revenue, and 28% expected a revenue boost of no more than 5%. Some hotels in the eastern region are slightly more optimistic, forecasting 6–10% gains. Chon Buri looks to be the big winner among major cities, projected to receive roughly 48,000 bookings out of 300,000 allocations.
So what can Thailand do to pivot from caution to comeback? Industry leaders point to a few clear priorities:
- Rebuild and communicate safety — Quick, transparent responses to incidents and visible steps to reassure tourists could stem the tide of negative social media. The government needs to be proactive, not reactive.
- Refresh the product — New attractions, boutique properties and offbeat itineraries (think culinary islands, wellness villages, regenerative travel) can make Thailand feel like a destination that’s constantly reinventing itself.
- Price competitiveness — Addressing currency impacts, incentivising mid-week or off-peak travel, and encouraging hotel promotions can blunt the appeal of cheaper alternatives.
- Targeted marketing — Roadshows, partnerships and on-the-ground promotion in growth markets like India, Taiwan and Korea can re-open pipelines that are shifting to neighbours.
Thailand hasn’t lost its allure—the beaches, temples, food and warm hospitality are still world-class—but the market is no longer a monopoly of desirability. As neighbours tighten visa policies and sharpen incentives, Bangkok, Pattaya and Phuket need a two-pronged response: practical fixes to safety and pricing, and creative storytelling that reminds the world why Thailand is more than a destination—it’s a feeling.
“The tools are there,” Thanapol says. “But timing and execution will decide whether Thailand strolls back to the top or watches others set the pace.” If tourism is a race, for now it looks like the field is widening—and Thailand’s comeback will depend on how fast it can sprint.
Thailand has been resting on its laurels for years; now the bill is due. Vietnam and Korea are playing chess while we’re playing checkers, and that’s why arrivals are slipping. If Bangkok doesn’t move fast on safety and pricing, tourists will keep walking away.
Yup, every tourist knows Thailand used to be cheaper and safer. Now it feels like you’re paying extra for headaches.
Data suggests the baht’s appreciation and global competition are significant drivers, not just headlines. Policy response needs to be both macro — e.g., currency management — and micro — hotel incentives. Coordination between ministries would help signal seriousness.
Exactly, coordination is the missing piece. Roadshows sound good, but where’s the national pivot plan?
People act like Vietnam is a miracle cure; it’s just cheaper right now. Lower prices can mask poor infrastructure and crowds.
Cheaper but cleaner and safer? Depends where you go. Vietnam has invested a lot in modern waterfronts and new hotels.
As a Korean who travels to Da Nang often, the visa changes are a game-changer for us. It’s convenient and honestly feels planned to capture our market. Thailand should learn from targeted windows like Golden Week outreach.
Planned, yes, but will it hold long-term if services degrade? Thailand’s brand still has strength if they stop being complacent.
The statistical drop in Chinese arrivals is a clear signal about substitution effects; tourists simply reallocate when frictions rise. Vietnam and Korea lowered transaction costs and communicated an invitation; Thailand has to match that messaging. Long-term recovery will hinge on policy credibility.
Words are cheap — real enforcement and public safety matter more.
From an industry angle, price elasticity among Indian tourists is huge; modest incentives can shift millions of bookings. Roadshows in India must be paired with visa facilitation and airline seat deals. Otherwise the money spent on promotion will underdeliver.
Agreed — promotion without ease of entry is like advertising a party that no one can enter. Thailand’s 93 visa-free count is meaningless if perception says ‘too risky.’
Calling for ‘quick, transparent responses’ is easier said than done when institutions are bureaucratic and slow. Thailand’s tourism ministry needs a PR makeover and faster incident response teams. Tourists see slow answers as indifference.
PR is vital but so is street-level safety — more patrols, better lighting in tourist zones. You can spin headlines all you want, but people want to feel secure.
Exactly, simple visible actions beat fancy campaigns.
And don’t forget community engagement — locals have to be part of the welcome, not just hired guides. Regenerative tourism can work if it empowers neighborhoods.
Market forces are doing their job; Thailand shouldn’t expect handouts. If hotels can’t compete on price, they need to innovate.
Innovation is expensive, though, and many small hotels are drowning in debt. Government guarantees or tax relief could buy them time.
As a hotel rep, I can confirm many properties are squeezed by higher costs and a stronger baht. We need targeted subsidies, not blanket schemes.
So fund big hotels and ignore small guesthouses? That will hollow out local culture. Support should be equitable.
I just want my island holiday without headlines ruining it.
That’s fair, but you also want honest reporting — hiding risks is worse. Tour operators need clearer briefings for guests.
Tour operators must be transparent but also reassure with facts and upgrades. Crisis communication shouldn’t be a political ping-pong.
Think strategically: exchange rate policy, tourist taxes, and subsidy targeting are tools the government can use to improve competitiveness. But these fiscal levers have broader macro implications and must be calibrated carefully. Overuse could fuel inflation or create deadweight loss.
Why talk about taxes when I just want cheap street food and beaches?
Public policy talk is necessary; individual desires matter but markets respond to policy. If Thailand staggers policymakers, the recovery will be slower.
True, micro-experiences matter, but they are shaped by macro stability. A coordinated package can improve both price and quality.
Korea’s timing around Golden Week is textbook political economy — capture demand spikes when they matter most. Vietnam’s visa liberalization across Europe is also smart; they focused on market segments that were growing. Thailand’s scattergun approach feels less focused.
Timing is everything — airlines and hotels can ramp up capacity if they see predictable demand windows. That predictability fuels investment.
Exactly, predictable windows create virtuous cycles.
But predictable windows also mean overcrowding and loss of charm if not managed. Better to have steady flows than sudden surges.
Seoul is pushing both marketing and practical entry ease, which is rare. Korea learned to package K-culture with travel incentives and it’s paying off.
Cultural exports do create demand, but copying Korea’s model requires investment in soft power from Thailand. Thailand has culinary tourism and culture — double down there.
Agreed — storytelling around food and heritage could be Thailand’s advantage if done authentically. Avoid copying competitors outright.
India is a growth market but we want clear visa rules and affordable flights. Thailand should offer multi-city discounts and partner with Indian rail and tour operators for packages. Roadshows will fail without airline seat commitments.
Seat capacity is indeed the binding constraint, not just demand. Airlines need incentives to open new routes and pricing tiers.
Good point — focus on logistics as much as PR. If flights are scarce or expensive, roadshows are just noise.