PATTAYA, Thailand – Currently, Thailand is heavily affected by a decline in the number of foreign tourists, especially Chinese tourists.
However, there is one country whose tourist numbers keep increasing significantly. Last year, Malaysia set a target of 27.3 million tourists but ended up with over 38 million visitors, making it one of the countries with the highest tourist arrivals in the ASEAN region. This surpasses Thailand, which had long been the champion for many years but recently saw a drop, missing its target with only 35.5 million tourists. That country is Malaysia.
If you have ever been to Malaysia or followed tourism news, you’ll find that Thailand still outranks Malaysia in many ways. To be fair and straightforward, both countries have beautiful natural resources like mountains and seas. But what Thailand has and Malaysia doesn’t is culture, freedom, and fun — due to differences in religion and the easy-going, service-minded nature of Thai people that is hard to match in Malaysia.
Looking at travel data, relatively few Thais choose to visit Malaysia, and among those who do, many are not particularly eager to return. In contrast, Thailand is an extremely popular destination for Malaysians, many of whom visit repeatedly. One key reason for this is the perception of Thailand as a fun and welcoming place, where people are friendly and the social atmosphere feels more relaxed and free—less constrained by the stricter religious or legal norms that exist in Malaysia.
If we analyze the 38 million figure deeper, much of this includes day-trippers, especially Singaporeans who frequently visit southern Malaysia (Johor state) for leisure. This is part of why Singaporean tourist arrivals in Malaysia reached 9.1 million—more than the entire population of Singapore, meaning the average Singaporean visits Malaysia more than once per year.
Smart marketers and politicians in Malaysia use the 38 million figure as proof of success because it dethrones Thailand’s long-held top spot. More importantly, this number exceeds forecasts by 10 million, making it a strong marketing tool to attract even more tourists in coming years.
The most dangerous threat to Thailand from Malaysia’s rapid tourism growth is that the two countries have very similar resources. Economically and from a marketing perspective, Thailand and Malaysia are substitute products—simply put, if travelers visit Malaysia, they might not feel the need to come to Thailand.
However, Thailand’s advantage that Malaysia lacks is its culture, people, and Buddhist heritage. Meanwhile, Malaysia offers strict order and safety, which Thailand lacks. Safety concerns are a key reason why many tourists from various countries choose to skip Thailand, citing issues like human trafficking, exploitation of tourists, and minor security problems at tourist spots.
It is time for Thailand to seriously prioritize safety, as this is the main reason the tourism economy is sluggish and why Malaysia has overtaken Thailand as a regional tourism leader.
