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    Home » Thai tourism faces decline amid strong baht, China fears
    Tourism & Travel

    Thai tourism faces decline amid strong baht, China fears

    adminBy adminDecember 31, 2025No Comments3 Mins Read
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    Thai tourism faces decline amid strong baht, China fears
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    BANGKOK – Thailand, famed for its fantastic food and wild nightlife, is poised for its first annual drop in tourist arrivals in a decade outside the pandemic after multiple crises hurt the confidence of holidaymakers.

    The country had welcomed 32.6 million foreign travellers as of Dec 28, the Ministry of Tourism and Sports said on Dec 30. That represents a more than 7 per cent drop from the same period last year.

    The year 2025 started badly, with many Chinese travellers scrapping plans to visit after actor Wang Xing was abducted from Thailand and later

    rescued from a scam centre

    in neighbouring Myanmar.

    Thailand was then rocked by

    Myanmar’s biggest earthquake

    in a century, a bloody border conflict with Cambodia, severe flooding in the south, and a political crisis that brought a new government to power.

    On top of that, the baht’s

    8 per cent gain

    made Thailand more expensive than rival destinations like Indonesia, where the rupiah dropped 4 per cent.

    “Safety concerns and the baht’s strength are the key factors impacting tourist arrivals this year,” said Mr Adith Chairattananon, secretary-general of the Association of Thai Travel Agents.

    Full-year international tourist arrivals are expected to reach 32.8 million people, generating revenue of 1.52 trillion baht (S$62 billion), down from 35.5 million people and 1.67 trillion baht in 2024, the Thai-language newspaper Thansettakij reported earlier, citing Tourism Authority of Thailand Governor Thapanee Kiatphaibool.

    The decline is bad news for the country, which has struggled to revive tourism in the wake of Covid-19 and seen growth lag that of neighbours Indonesia, Malaysia and the Philippines.

    The travel industry makes up about 12 per cent of Thailand’s gross domestic product and supports millions of jobs.

    Malaysians topped the list of foreign visitors with 4.5 million people, followed by 4.4 million Chinese tourists and 2.5 million holidaymakers from India, according to the Ministry of Tourism and Sports data. Tourism revenue generated from international arrivals totalled 1.5 trillion baht as of Dec 28.

    The Thai tourism authority aims to welcome 36.7 million foreign tourists in 2026, with visitors from short-haul markets anticipated to make up more than 70 per cent of international arrivals, The Nation reported, citing Mr Thapanee.

    Chinese holidaymakers are projected to total 6.7 million, matching the 2024 arrival number, Mr Thapanee said, according to the news report.

    Whether Chinese confidence in Thailand rebounds is critical to the sector’s prospects. International visitors could reach 38 million in 2026 if Chinese arrivals total 8 million or 9 million, and the Thai authorities could manage the border dispute impact, as well as tame the baht’s strength, Mr Adith said. BLOOMBERG

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