Tourism dips as Thailand tackles debt and sluggish growth
Officials eye debt relief and stimulus to counter slowdown
Thailand’s foreign arrivals declined over a recent 10-month period, prompting officials to revise forecasts and accelerate economic recovery efforts.
Thailand welcomed 26.25 million foreign visitors from January 1 to October 26 this year, marking a 7.25% drop compared to the same period in 2024, the Ministry of Tourism and Sports announced today, October 28.
Malaysia led the pack as the top source market, with 3.8 million visitors, followed closely by China at 3.72 million. While tourism continues to recover post-pandemic, the decline signals ongoing challenges for Thailand’s vital travel sector.
The Bank of Thailand (BoT) has already lowered its forecast for total foreign arrivals in 2025 to 33 million, down from the earlier estimate of 35 million. This falls short of the pre-Covid record of nearly 40 million visitors in 2019.
BoT Governor Vitai Ratanakorn addressed concerns at a business seminar today, stating that the country’s economy is expected to improve in the first quarter of 2026 after a slowdown in the second half of this year.
“A key challenge we must urgently address is bad debt. Support measures will be finalised within the next week or two.”
The Thai government has announced plans to spend 10 billion baht (US$305.34 million) this month to purchase bad debts, to provide relief to approximately 2 million individuals.
Household debt remains one of the biggest economic burdens, with the ratio of household debt to gross domestic product (GDP) at 86.8% as of the end of June, one of the highest in Asia. Total household debt stands at 16.3 trillion baht, reported Bangkok Post.
According to the BoT, Thailand’s economy, already lagging behind regional peers, is forecast to grow by just 2.2% in 2025 and a mere 1.6% in 2026. In comparison, growth in 2024 was recorded at 2.5%.
While tourism remains a crucial pillar of Thailand’s economic recovery strategy, the country faces a tough balancing act: attracting more international visitors while grappling with deep-rooted financial challenges at home.
Officials are hoping that renewed economic measures, combined with a gradual rebound in travel, will help lift Thailand out of its current slump and put it back on a path toward sustained growth.
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