PATTAYA, Thailand – As 2025 approaches its final quarter, Thailand’s tourism industry is entering the much-anticipated high season. However, the sector faces multiple challenges, including safety concerns undermining confidence among Chinese tourists, and increased competition from neighboring countries, particularly Vietnam, which has been attracting international travelers with new attractions. The strong Thai baht is also making travel and tourism in Thailand appear more expensive, posing a difficult challenge for the new government under Prime Minister Anutin Charnvirakul to address quickly.
Tassapon Bijleveld, Executive Chairman of Asia Aviation Public Company Limited (AAV), the parent company of Thai AirAsia, highlighted that successive governments have always emphasized tourism as a key industry capable of generating revenue quickly. Yet, the sector has rarely received budget allocations commensurate with its role as a revenue engine, nor sufficient support for developing “man-made attractions,” unlike neighboring countries that have heavily invested in such attractions to lure tourists.
From the private sector’s perspective, reviving programs like “Khon La Khrueng” (Half-Half Co-Payment Scheme) is positive, as it has proven effective in stimulating the economy. However, Thailand still struggles with safety perception issues, particularly for Chinese tourists, and lacks proactive measures compared to its neighbors. Since the start of 2025, Chinese tourist arrivals have dropped by more than 30% compared to the same period last year.
“After the Chinese New Year this year, Chinese tourists declined sharply because of safety concerns, leaving airlines to focus on domestic routes. The previous government considered distributing free domestic flights to international visitors, and it remains to be seen how the new government will proceed,” Bijleveld noted.
Without Measures, Thailand Will Struggle
Thailand’s tourism has traditionally focused on high-spending international travelers, mostly from long-haul markets like Europe. Yet, the country is capable of accommodating all segments—from low-cost airline passengers to luxury travelers, from backpackers to five- and six-star hotel guests. The key is to provide good service, increase the number of attractions, and reduce high transportation costs in tourist cities. The strong baht has further complicated matters, as tourists may perceive Thailand as less cost-effective, pushing them toward neighboring destinations.
“The high season in Q4 2025 into Q1 2026 is crucial, and without stimulus measures, Thailand will struggle,” Bijleveld emphasized.
Strong Baht Threatens Tourism Benefits
Outbound Thai travelers are increasingly visiting Japan due to the weak yen and the strong baht. The exchange rate shift from 33 to 31 baht per U.S. dollar makes international travel more accessible for Thais. This trend explains why Thai AirAsia X is opening a new route from Bangkok to Sendai, Japan, in December 2025.
The short-term challenge is ensuring that the strong baht does not deter tourists during the high season. Without interventions, Thailand risks missing out on peak tourist inflows, especially after declines in Q2 and Q3, notably among Chinese visitors post-Chinese New Year.
Thai AirAsia X CEO Calls for Tourism Stimulus
Pattra Bussarawong, CEO of Thai AirAsia X, stressed the importance of restoring confidence in safety, which is crucial for tourism. International arrivals in the first eight months of 2025 reached 23 million, down 7% compared to last year. She urged the government to provide targeted tourism support beyond the co-payment scheme, including short-term measures such as subsidized domestic flights for international visitors, similar to Japan’s model.
Pattra also recommended the development of new tourist attractions and landmarks to compete with destinations like Vietnam, as many international travelers are currently choosing Vietnam over Thailand.
