PATTAYA, Thailand – Travelers considering a trip to Pattaya or other parts of Thailand may soon find better deals on accommodation, as clear signs suggest that hotel prices are heading for a downward trend in the coming months. Several key economic and tourism indicators point to this shift, with both international and domestic challenges putting pressure on the country’s hospitality sector.
According to the latest Hotel Business Operator Sentiment Index released by the Thai Hotels Association (THA), the average hotel occupancy rate across Thailand in April 2025 fell to 63%, down from 66% in March. While Songkran celebrations provided a temporary boost, the overall picture is worrying, especially with the continued online circulation of safety concerns, human trafficking issues, and the lingering negative perception associated with the term “grey Chinese”. These perceptions are significantly impacting Chinese travelers’ confidence in visiting Thailand.
The ripple effect is already being felt. Between January 1 and May 5, 2025, the number of Chinese tourists to Thailand dropped by a staggering 30%, making it the steepest decline among all Asian markets. In comparison, East Asia saw an average drop of 20%, while Hong Kong and South Korea posted declines of 18% and 14%, respectively. Meanwhile, destinations such as Vietnam and Malaysia are actively promoting tourism with aggressive marketing, successfully attracting a growing share of Chinese travelers.
Hotel Prices Likely to Drop in Q2
Faced with falling occupancy rates and a shrinking Chinese market, hotels across Thailand are beginning to adjust. Over 50% of hotel operators surveyed expect room rates to decrease in the second quarter of 2025. Many plan to cut prices by more than 10% compared to the same period last year in a bid to attract more guests. Only a quarter of higher-end hotels, especially 4-star establishments and those in the South, believe they might slightly increase prices — but even then, by no more than 5%.
In Pattaya, where tourism is highly sensitive to external trends, travelers could benefit significantly. The Eastern region, which includes Pattaya, was the only area to see a slight uptick in occupancy in April (69.2%, up from 67.4% in March), but with overall international demand weakening, local hoteliers are likely to join the nationwide wave of price adjustments.
Looking ahead to May, the national average hotel occupancy is forecasted to dip even further to just 52%, amplifying the pressure on accommodation providers to offer promotions and rate reductions.
Tourism Sector Urges Government Support
In response to the downturn, hotel operators are calling for government intervention. Proposed measures include enhanced domestic and international marketing campaigns, upgrading tourism infrastructure, organizing more events and conferences, and improving Thailand’s image with a focus on safety and reliability. Additional support is sought in the form of tax relief, utility subsidies, low-interest loans, and relaxed employment regulations, especially concerning foreign workers.
Hope for Recovery Later in the Year
Despite the current slump, the Tourism Authority of Thailand (TAT) remains cautiously optimistic. Deputy Governor for Asia and South Pacific Markets, Phatthara-anong Na Chiang Mai, believes the Chinese market might rebound between July and August 2025, coinciding with school holidays and possibly as late as October during China’s National Day Golden Week. Still, TAT has already revised its Chinese arrival forecast from 8 million to 6.9 million, and in a worst-case scenario, arrivals could drop to just 4-5 million.
In the meantime, the focus is on tapping into new markets to fill the gap left by Chinese tourists. Visitors from India, Oceania, and Japan are showing positive growth, with increases of 12-16%, offering a glimmer of hope to Thailand’s ailing tourism sector.
For travelers eyeing a tropical escape to Thailand, particularly in popular destinations like Pattaya, the coming months may present an ideal opportunity to secure attractive accommodation deals amid a buyer’s market.
