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Thailand Eyes High-Spending Markets Amid China Tourism Slump
Thailand built its tourism engine on volume, and no market delivered like China. But with Chinese arrivals nowhere near pre-pandemic numbers, Thai tourism officials are making a hard pivot: fewer tourists, but higher spenders.
From January 1 to June 8, Thailand recorded more than 15 million international arrivals, according to government data. Yet that total is nearly 3% below the same period last year. Tourism revenue reached THB 699 billion ($21.5 billion), but the momentum isn't quite where the country hoped it would be by midyear.
The main reason for this has been a sharp slowdown in Chinese arrivals.
China, once the dominant feeder market for Thai tourism, has now slipped behind Malaysia as the top source of inbound travelers. In response, the Tourism Authority of Thailand (TAT) is placing its bets on markets showing stronger returns, particularly Europe and the Middle East.
TAT Governor Thapanee Kiatphaibool on Tuesday said the country has been seeing real movement from European markets.
Presenting the latest data, Kiatphaibool said between June 1 and 9, arrivals from Germany jumped 71% year over year. Visitors from Italy rose 28%, and Switzerland 24%. While the absolute numbers remain modest, TAT officials emphasized the significance of their spending power.
'These are high-purchasing-power travelers,' Kiatphaibool said — exactly the type of tourists Thailand's revised strategy is now prioritizing.
Forward airline bookings for the third and fourth quarter look 'strong' from Europe, she added, especially heading into the winter high season. That's welcome news in a year when Thailand has already lowered its annual international tourism revenue target from THB 2.3 trillion ($69 billion) to THB 2 trillion ($60 billion).
Middle East on the Rise
The Middle East too has entered its own seasonal travel peak and Thailand is reaping the benefits. Saudi Arabia, Oman, and the UAE all posted year-on-year growth of more than 50% in early June, according to TAT data. Kiatphaibool said these markets are 'performing very well.'
Like their European counterparts, Middle Eastern travelers fit TAT's focus on 'quality tourism' — meaning longer stays, higher daily spending, and interest in bespoke experiences.
According to Kiatphaibool, Thailand is projecting summer-period growth of 21% from Europe, 25% from the Middle East, and 7% from other Asian markets. For the winter season (October through December), bookings remain strong: up 17% from Europe, 12% from the U.S., and 22% from Asia.
Malaysia and India Quietly Surge
Meanwhile, Malaysia has quietly taken the lead as Thailand's top source market, with just over 2 million arrivals so far this year. Between June 1 and 9, Malaysian visits increased by more than 13% year over year.
India has also crossed the one million mark. According to TAT, demand is coming not only from major metros but increasingly from smaller cities like Surat and Rajkot particularly among premium travelers.
Safety concerns have dented Chinese traveler confidence. A string of events, including incidents near the Myanmar border, a fatal construction collapse in Bangkok following the March 28 earthquake, and reports of local scams targeting Chinese nationals, have all fed perceptions of insecurity.
Chinese tourist arrivals crossed 2 million during the first half, but that figure pales in comparison to the yearly arrival of 11 million Chinese visitors to Thailand in 2019.
Thai officials have also revised down their target for Chinese arrivals in 2025 from 8 million to 6.7 million — the same number as last year.
Thailand has also seen softening from other East Asian markets, including Japan and South Korea.
Refined Strategy, Trimmed Budgets
TAT has also adjusted its marketing approach to match the shifting global landscape.
The agency is doubling down on long-haul and mid-sized markets with stronger per-trip spending, these include the U.K., Germany, France, Russia, and the U.S.
That shift comes as TAT proposed to trim its domestic subsidies and reallocate funds to attract international visitors. Budget previously earmarked for Thai travel stimulus would be redirected toward inbound charter flight subsidies and partnerships with global online travel agencies to promote tourism during off season.
Thailand began the year with ambitious targets: 39 million foreign arrivals and 2.23 trillion baht in international revenue. Those figures have now been adjusted downward to 35.5 million visitors and 2 trillion baht in receipts.
Even those revised numbers assume continued strength from higher-spending, long-haul markets.
Nithee Seeprae, Deputy Governor of the Tourism Authority of Thailand, at the Skift Asia Forum last month in Bangkok.
