PATTAYA, Thailand – Thailand’s hospitality sector is showing a striking paradox: while international tourist arrivals have declined—particularly Chinese visitors, down a staggering 34.1%—developers continue to push forward with new hotel projects across the country. According to the Real Estate Information Center (REIC), the first half of 2025 saw a surge in hotel applications in ten provinces, accounting for 75% of new supply nationwide.
Bangkok remains the hottest market, but its occupancy rate has slightly dipped, reflecting rising competition and the risk of oversupply. Samut Prakan posted the strongest growth, with new hotel applications jumping 366.7% year-on-year, while Chonburi, home to Pattaya, actually contracted by 63%, signaling uneven momentum across provinces.
Industry experts note that this aggressive expansion signals a strategic, long-term vision by operators, who are preparing for a rebound in demand from emerging markets such as India (+13.8%), Russia (+12.4%), and the UK (+17.9%). Despite lower Chinese arrivals, new hotels in Phuket, Chiang Mai, Krabi, and Pattaya are expected to capitalize on these shifting trends.
“The market is no longer just about opening new hotels—it’s about surviving and thriving at the right time,” said REIC analysts. Success now depends on a combination of service quality, unique experiences, and alignment with evolving tourist behavior, rather than simply location or pricing.
Thailand’s hotel scene may be navigating uncertain waters, but the sector’s forward-looking developers are clearly betting that today’s slowdown is only temporary—and that strategic expansion now will pay off when international tourism fully rebounds.
