Thailand is being urged to implement major reforms in its tourism sector following a notable drop in international arrivals, particularly from key East Asian markets, during the first quarter of 2025, according to a former senior tourism official.
Yuthasak Supasorn, former governor of the Tourism Authority of Thailand (TAT) and current chairman of the Industrial Estate Authority of Thailand, said the country recorded a 1% decline in foreign tourist arrivals by May 11, 2025. He attributed the downturn primarily to falling numbers from East Asian countries, which typically account for around 60% of Thailand’s inbound tourism.
Arrivals from China, Hong Kong and South Korea dropped sharply—by 31%, 20.8% and 14.9%, respectively. The Southeast Asian market also shrank by 2.2%, with Vietnamese visitors down 15%. Myanmar was the exception, with a 13.5% increase in visitors.
Previously, Thailand welcomed an average of 900,000 Chinese tourists per month, or about 30,000 per day. That figure has dropped significantly, with just 13,739 Chinese arrivals per day recorded over the first four months of this year.
The Meetings, Incentives, Conferences and Exhibitions (MICE) segment also weakened. In the first quarter of 2025, international MICE arrivals fell 15%, while revenue from the sector dropped by 21% year-on-year.
Yuthasak emphasized the urgent need to halt what he described as a “freefall” in the tourism sector and seize the opportunity to restructure it to attract higher-value visitors. He cited growing concerns over tourist safety, stating that restoring confidence would require more than just reputation management—it would demand significant upgrades in hospitality standards.
Thailand’s position in the World Economic Forum’s 2024 Travel & Tourism Development Index fell 12 places to 47th globally, the largest drop among Southeast Asian nations. The report highlighted deficiencies across all evaluated areas, particularly in safety and sustainability, where Thailand slipped 16 and 59 positions, respectively.
To address these challenges, Yuthasak proposed moving from a demand-driven to a supply-driven approach, focusing on the development of high-value tourism products. He pointed to health and wellness tourism and business-leisure hybrids as sectors with strong growth potential.
Additionally, he encouraged the government to promote alternative destinations beyond the country’s over-visited beaches and islands, aiming to diversify tourism flows and ensure more equitable distribution of tourism income across communities.
Attending the discussion were officials and stakeholders from various sectors involved in Thailand’s tourism industry.
