WHILE Thai tourism industry still looks rosy in 2025 signs of a slowdown next year have emerged with this requiring a comprehensive overhaul to maintain momentum, PPTVHD 26 quoted an in-depth research by TTB Analytics as saying today (Oct. 11).
That a slowdown seems to be looming next year is due to saturation of existing tourist destinations, with no opportunity to expand and develop new attractions. This has impacted both Thai and international repeat visitors.
It is now necessary to urgently “overhaul” Thai tourism to maintain momentum and create new value in the long term, the research said.
Domestic tourism revenue continues to grow
According to the Tourism Authority of Thailand (TAT), in 2024, Thailand’s total tourism revenue exceeded 2.9 trillion baht, with domestic tourism remaining the key driver and this helping distribute income to communities in remote areas.
TTB Analytics estimates that the number of domestic tourists this year will reach 284 million person-trips, marking the third consecutive year of record growth. Despite “close-to-home, round-trip, and consolidated routes” promotions spending per trip has dropped but the increased number of trips will generate over 1.2 trillion baht for the economy.
Signs of a slowdown are becoming clear in many areas
While the past two to three years have been a “golden age” for domestic tourism, 2025 is seeing a slowdown in tourist arrivals across all city groups.
– Major cities such as Ayutthaya experienced 15.3% growth in 2023, but this will be reduced to just 0.4% in 2025;
– For Songkhla, the drop is from 59.1% to 6.3% over the same period;
– For secondary cities with overnight stays, for example Chanthaburi, the plunge is from 206.8% to -8.2%;
– Day trip secondary cities , such as Chachoengsao, are seeing a decrease to 6.8%;
– In connected provinces, such as Nakhon Phanom and Sakon Nakhon, the slide is to 7.2%.
The main reasons for this are the repetitive existing tourist attractions that have not been developed to offer new experiences, coupled with Thai tourists’ increasingly cautious spending amid rising living costs.
Recommended: Three-dimensional overhaul
To address the challenges facing the tourism sector and create new long-term momentum, TTB Analytics proposes three key development strategies:
1/ Upgrading the public transport system
Access to tourist attractions remains a significant obstacle. Although Thailand has sufficient road and airport infrastructure, lack of “connectivity” between transportation systems, particularly at the “last mile,” leads to high and complicated travel costs.
The high-speed rail project could be a “major turning point” if the government accelerates the connection of train stations with local transportation systems to facilitate travel and encourage more Thais to travel domestically.
2/ Creating a new “All-Seasons Tourism” image
Promoting tourism only in specific seasons leads to congestion during peak periods. Creating a new image of “travelling in Thailand at any time” will help distribute income and increase the attractiveness of tourist destinations. Examples include:
– Promoting the rainy season as the “Green Season” with nature-based and adventure activities.
– Enhance the charm of winter through seas of mist, high mountains, and hiking trails.
3/ Government support and incentives
Increase tax incentives for tourism in secondary cities, such as tax deductions based on actual income, or extending the “copay” programme to the tourism and hotel sectors, to stimulate spending and distribute income more evenly.
It’s time to overhaul the “Thai Tourism Engine”
TTB Analytics said that the Thai tourism sector today is like the “main engine of the economy” that is not functioning at full capacity. While some maintenance can prolong it, to fully return to full operation, a complete “overhaul” is required, including accessibility, rebranding, and designing all-seasons tourism. This will ensure that Thai tourism can become a sustainable long-term economic driver.
CAPTION:
Tourists having fun in Chiang Mai, above, and enjoying themselves elsewhere, insert and Front Page. Photos – Thai Rath
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