THAILAND: Thailand has positioned itself as a leader in Asia’s competitive tourism market, outperforming regional rivals such as Vietnam, Indonesia, Malaysia, Singapore, South Korea, and Japan.
According to Travel and Tour World, Thailand is setting the stage for continued dominance with a blend of ambitious targets, strategic initiatives, and a balanced focus on both domestic and international tourism.
With a target of 40 million tourists by 2025, the country is recovering from the pandemic and poised for an unparalleled growth era.
Thailand’s path to 40 million visitors
The Thai government has set a clear target — welcoming 40 million tourists by 2025. This bold objective aims to recover the momentum lost during the COVID-19 pandemic and position Thailand as the leading tourism hub in Asia.
Key strategies include promoting lesser-known destinations, expanding flight capacities, and showcasing the rich cultural heritage of Thailand to the global market.
These efforts are designed to distribute tourist traffic more evenly, reducing overcrowding in popular spots like Bangkok, Phuket, and Chiang Mai.
Tourism plays a critical role in Thailand’s economy, employing nearly 20% of the workforce.
By focusing on international and domestic travellers, Thailand has developed a resilient strategy that ensures steady growth despite external challenges.
Domestic tourism – Thailand’s secret weapon
While international tourism is crucial, Thailand’s domestic tourism has proven to be a game-changer. In 2023, domestic tourism reached an impressive 136.2 million trips, a 21% increase compared to pre-pandemic levels.
This surge has directly impacted hotel occupancy rates, which rose to 72.6% nationwide, with an Average Daily Rate (ADR) of 1,920 baht per room — a 9% increase from 2019.
The southern region of Thailand, famous for its luxury resorts and high-end hotels, saw the highest growth.
Here, the ADR soared to 2,486 baht, underscoring the power of domestic tourism to drive profitability. This strong domestic market gives Thailand a distinct edge over competitors like Indonesia and South Korea, which rely more heavily on international tourists.
International tourism to Thailand is also on the rise. Between January and September 2023, the country welcomed over 5.2 million Chinese tourists, expecting to reach 8 million by year’s end.
The strong presence of Chinese tourists reflects Thailand’s effective marketing campaigns and operational efficiency. For 2024, Thailand anticipates 36.5 million international arrivals, a robust recovery from the 39.9 million visitors in 2019.
This influx of tourists will generate THB 500 billion in revenue from foreign visitors, while Thai tourists are expected to contribute an additional THB 400 billion.
Together, these figures ensure that Thailand is not only recovering but thriving.
A booming hospitality sector
Thailand’s hotel industry is seeing an extraordinary financial rebound. Projections for 2025 show hotel revenue reaching 960 billion baht, a 108% increase compared to pre-pandemic levels.
The growth is driven by increased tourist numbers and rising accommodation costs.
Domestic travellers, in particular, are contributing to the sector’s profitability. In 2023, the average Thai traveller spent 3,500 baht per trip on accommodation, and this figure is expected to rise to 3,800 baht in 2024.
With occupancy rates projected to reach 71.9% by 2025, Thailand’s hospitality sector is entering a new era of profitability. The Tourism Authority of Thailand (TAT) has played a pivotal role in driving this success through its global marketing campaigns.
Initiatives like “Thai Tourism Year 2023” and “Visit Thailand Year 2023: Amazing New Chapters” have significantly boosted international arrivals, with over 28 million international tourists visiting in 2023 — a 154.4% year-on-year increase.
Capitalizing on the holiday boom
Thailand is also set to capitalize on the peak holiday season. The TAT forecasts 1.56 million foreign visitors will arrive between December 21, 2024, and January 1, 2025, marking a 16% increase over the previous year.
Tourism revenue during this period is expected to hit THB 45 billion (USD 1.3 billion), a 20% increase from 2023.
This surge in holiday tourism highlights Thailand’s ability to outpace other Asian countries, especially Vietnam, South Korea, and Japan, which have not launched similarly ambitious campaigns for the year-end period.
Thailand leads the way in Asia’s tourism industry
With a clear vision, strong domestic tourism growth, and a focus on attracting diverse international markets, Thailand is firmly ahead of its competitors in Asia’s tourism race.
By balancing the needs of both international and domestic travellers, optimizing hotel revenue, and maintaining an aggressive marketing strategy, Thailand is setting the standard for tourism recovery and growth in the region.
As the country pushes toward its 40 million tourist target by 2025, it is well on its way to becoming Asia’s most formidable tourist destination.