PATTAYA, Thailand — As Thailand enters the low season, the country’s tourism industry — a critical economic driver — is facing mounting pressure, with hoteliers and tourism operators calling for urgent intervention from the government amid falling international arrivals, plunging occupancy rates, and intensifying regional competition.
According to the Thai Hotels Association (THA), average hotel occupancy in Pattaya dropped to 63% in April, and is expected to fall further to just 52% in May, marking a sharp decline in what was once one of Thailand’s most resilient tourist hubs. The drop is largely attributed to a steep fall in Chinese tourist numbers, with second-quarter projections showing a 30% decline in Chinese arrivals, a trend driven by both economic headwinds and rising safety concerns.
“Thailand is facing a perfect storm — global economic uncertainty, a sluggish Chinese economy, internal safety image issues, and increasingly aggressive competition from regional destinations like Vietnam and Malaysia,” said Thienprasit Chaiyapatranun, President of the THA.
Official data from the Ministry of Tourism and Sports show that Thailand welcomed 12.95 million international visitors from January 1 to May 11, 2025, down 1.04% from the same period last year. China remains the top source market with 1.77 million visitors, but is now only marginally ahead of Malaysia, which has emerged as a strong challenger.
Hoteliers across the country are bracing for further revenue loss. The THA’s April confidence index, conducted jointly with the Bank of Thailand, found that over 25% of hotels expect Chinese guest numbers to drop more than 30% this quarter. Over half of the surveyed hotels also reported plans to cut room rates by over 10% year-on-year in response to weak demand, especially in the central and southern regions. Only a quarter of hotels — mainly 4-star and above — are able to maintain or slightly increase rates, and even then, by less than 5%.
While Songkran in April provided a temporary boost, the outlook remains grim. Operators cite multiple image problems — ranging from human trafficking concerns, earthquake-related fears, and rising mentions of the so-called “grey Chinese” criminal networks — that have circulated heavily on Chinese social media and dampened confidence among potential visitors.
“Thailand is in the middle of a social media war,” said Thienprasit. “Online narratives about safety and scams are scaring tourists away.”
Meanwhile, competitors like Vietnam and Malaysia are capitalizing on the opportunity with proactive marketing campaigns, cost-reduction strategies, and favorable policies aimed at attracting tourists.
Industry Demands Swift Government Action
The THA and private sector stakeholders are urging the Thai government to implement five key support measures:
- Aggressive tourism stimulus campaigns, including international PR efforts, tourism events, and infrastructure improvements in both major and secondary cities — with a strong emphasis on restoring Thailand’s image and safety perception.
- Cost relief through subsidies or reductions in utility bills, energy, wages, and corporate and personal taxes.
- Access to low-interest financing to help operators weather the downturn.
- Labor policy reform, including upskilling the workforce and simplifying procedures for hiring foreign workers.
- Investment in public infrastructure and enforcement against illegal accommodations to ensure fair competition and improve tourist experiences.
Despite these challenges, stakeholders remain optimistic about the long-term potential of Thai tourism — if decisive government action is taken now.
“We must shift focus from mass numbers to quality,” Thienprasit said. “Enhancing service standards, restoring confidence in safety, and boosting international visibility are critical to keeping Thailand competitive and ensuring tourists not only come, but come back.”
