PATTAYA, Thailand – Since April 2025, Pattaya’s local businesses have been struggling amid a sharp downturn, with many reporting sales declines exceeding 50%. The slump has been especially severe following the Songkran holiday, as inbound Chinese tourism—the city’s once dominant market—has sharply slowed. At the same time, the domestic economy is showing signs of stalling, further weakening consumer spending.
Official statistics reveal that Thailand welcomed 16.7 million international tourists between January and June 2025, marking a 4.66% decrease compared to the same period last year. Chinese tourists remain the largest foreign visitor group with approximately 2.26 million arrivals, but their numbers have noticeably declined since the start of the year. In June alone, international arrivals totaled 2.32 million, down 15.24% year-on-year.
This drop in Chinese visitors is acutely felt in Pattaya, where many street food vendors, family-run shops, and small restaurants depend heavily on their business. Local associations report a stark reduction in foot traffic and spending, forcing many vendors to reduce menus, cut staff, and scale down operations just to survive.
Meanwhile, domestic consumers are tightening their belts amid inflation, stagnant wages, and rising household debts. The combination of fewer tourists and weaker local spending has created a difficult environment for Pattaya’s small businesses, many of which now report sales down by more than half since April.
However, there is a silver lining. Emerging markets like India and Russia have been steadily increasing their presence in Pattaya. These groups are drawn to the city’s vibrant street food scene and affordable dining options, often spending generously on local cuisine, shopping, and entertainment.
Indian tourists, in particular, are noted for their enthusiasm for shopping and dining out, frequently purchasing souvenirs, clothing, and accessories from family-run shops and markets. Russian visitors also contribute positively by splurging on higher-end goods, leisure activities, and condos, injecting much-needed stimulus into local retailers and service providers.
Chinese tourists have long been a vital economic force for Pattaya. Their enthusiastic shopping sprees, frequent dining out, and willingness to splurge on luxury goods have helped many small businesses thrive, supporting daily operations and encouraging investments in the community, including new homes, vehicles, and lifestyle upgrades. Their presence has brought vibrancy and financial momentum, making them a key pillar of Pattaya’s economy.
While the recent slowdown has been painful, the memory of this strong spending remains a hopeful reminder of what Pattaya’s economy can regain when these high-spending tourists return.
Industry experts warn that without a significant rebound in Chinese tourism and improvements in the domestic economy, challenges will persist. Still, many vendors and shop owners remain cautiously optimistic as they navigate through this critical period.
