September 6, 2025 | 12:30 pm
TEMPO.CO, Jakarta - After four years of nearly doubling tariffs compared to 2001, hotels in Thailand are now lowering rates as the number of foreign visitors slows, particularly from China and other key markets.
According to credit rating agency Tris Rating, Thailand is projected to welcome 33.1 million foreign tourists in 2025, a 5.6 percent decline from 35.5 million in 2024. The slowdown is driven by weaker demand from traditionally strong Asian markets, including China, Malaysia, and South Korea.
Decline in Foreign Tourists
The Ministry of Tourism and Sports reported on Tuesday, September 2, 2025, that 21.9 million foreign tourists arrived in Thailand during the first eight months, a 7.2 percent drop from the same period last year. However, Indian tourists showed growth, entering Thailand’s top five source markets.
Long-haul visitors also performed well, with United States arrivals up 7.4 percent and European tourists surging 15.6 percent year-to-date. Thailand remains the top summer destination for European travelers on Agoda for the second year in a row.
Hotel Occupancy Rates Expected to Decline
Hotel occupancy, which peaked post-pandemic in 2024 above pre-pandemic levels, is expected to dip in 2025, partly due to the growing number of hotels in the country. To maintain occupancy, operators are lowering room tariffs.
Tris Rating highlighted potential risks: “We view the recent Thailand-Cambodia border conflict as a factor that, if it escalates significantly and persistently, could negatively impact both domestic and international tourism.”
Chinese tourist arrivals are projected to drop to 4.6 million in 2025, down from 6.7 million in 2024, marking a 35 percent decline in the first seven months. Many Chinese travelers are choosing alternative destinations such as Japan, which saw nearly 70 percent year-on-year growth, and Vietnam, which recorded a 78 percent increase in Chinese visitors.
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