Chinese Tourism Decline in Thailand, Vietnam Drawing More Tourists, Leads to Thai Government Forming Strategic Response

Thailand-

Thailand’s tourism sector, a major part of its economy, is grappling with a continued decline in Chinese visitors in 2025, driven by safety concerns, economic challenges, and increased competition from other destinations like Vietnam.

China has historically been Thailand’s largest tourism market, contributing nearly a third of international arrivals pre-pandemic. However, recent data paints a bleak picture: Chinese tourist arrivals plummeted to a record low of 5,833 on April 16, 2025, compared to the previous daily average of 15,000–20,000. For the first quarter of 2025, Thailand welcomed just 1.3 million Chinese tourists, a 24% year-over-year drop, with projections now estimating only 4.2–5.5 million Chinese visitors for the year, far below the government’s target of 7 million.

The decline stems from multiple factors such as high-profile incidents, such as the abduction of Chinese actor Wang Xing near the Thailand-Myanmar border for a call center scam group in January 2025, that have fueled safety concerns amplified on Chinese social media. A March earthquake in Myanmar and a construction site collapse in Bangkok further hurt Chinese tourism confidence. The Thai government stressed quick reactions to both of these incidents and how Thailand was safe overall but regardless the incidents hurt Chinese tourism.

Additionally, China’s economic slowdown and aggressive promotion of domestic tourism, like 13% VAT refunds for foreign visitors, have diverted travelers to destinations like Japan and Vietnam. Vietnam, in particular, outpaced Thailand in March 2025, attracting 670,000 Chinese tourists compared to Thailand’s 300,000, helped by visa exemptions and enhanced infrastructure. Posts on social media reflect the urgency, with users noting Thailand’s over-reliance on Chinese tourists and the need for a solid recovery plan.

In response, the Tourism Authority of Thailand (TAT) is pivoting to restore confidence and diversify its tourism base. Key initiatives include a project, inviting 600 Chinese travel agents and influencers from 30 provinces to experience Thailand’s offerings and counter negative perceptions. The TAT is also teaming up with airlines for over 1,000 charter flights from Chinese cities and partnering with online travel agencies like Trip.com to leverage digital platforms.

To address safety concerns, Thai authorities are enhancing security through cooperation with Tourist Police and establishing a social media “war room” to monitor and counter negative online misinformation about Thailand. Proposed visa policy adjustments, such as reducing the visa-free stay from 30 to 7–10 days, aim to align with typical Chinese travel patterns, although critics question if this measure will help or hurt Chinese tourism.

Beyond the Chinese market, Thailand is targeting high-value and long-haul markets, including Europe, the Middle East, and emerging markets like Bhutan. The TAT is promoting niche segments such as luxury travel, wellness tourism, and sports activities like Muay Thai and diving, particularly in cities like Chiang Mai and Phuket. Participation in the Arabian Travel Market 2025 aims to strengthen ties with Middle Eastern travelers, framing Thailand as a medical and wellness destination. These efforts reflect a shift from volume to quality, with a focus on higher per-visitor spending to offset lower arrivals.

Despite a modest 2% increase in total international arrivals (9.5 million) overall and a 10.5% rise in tourism revenue (THB 463 billion) in Q1 2025, the sharp drop in Chinese visitors remains a critical challenge. Some tourist destinations, notably Pattaya, thanks to domestic tourism and constant events, and Samui, thanks to the White Lotus, remain strong in terms of tourism overall in Thailand.

Tourism industry leaders warn that without fast action, Thailand risks losing its edge in the competitive Southeast Asian tourism market to Vietnam. By addressing safety perceptions, enhancing digital marketing, and diversifying its visitor base, Thailand aims to stabilize its tourism sector and reclaim its position as a premier global destination.

Photo credit: Pattaya News team, tourists on Jomtien Beach recently.