Thailand falls behind Japan and Vietnam in tourism race
China remains Thailand’s top market—yet its biggest competitor—as regional rivals sharpen their tourism edge
Thailand’s once-booming tourist scene has hit a bump in the road.
The kingdom welcomed 19.29 million international arrivals between January and July this year—a 6% drop compared to the same period last year, according to data released by the Ministry of Tourism and Sports.
Meanwhile, regional rivals are leaving Thailand in the dust. Japan raked in 21.5 million foreign visitors in just six months, up 21% year-on-year. Vietnam, too, is gaining momentum with its fresh image and budget-friendly prices, eating into Thailand’s long-held dominance in Southeast Asia.
In contrast, Thailand’s six-month total was 16.69 million.
“China has become both our biggest customer and most significant competitor,” said Tourism Authority of Thailand (TAT) Governor Thapanee Kiatphaibool.
“Many countries are dedicating massive resources to attract Chinese tourists, while China itself is investing heavily to draw international travellers.”
China narrowly reclaimed its top spot as Thailand’s biggest source market, delivering 2.69 million tourists, just ahead of Malaysia’s 2.66 million. Other major markets include India (1.37 million), Russia (1.12 million), and South Korea (902,000).
However, Thailand is also becoming a bigger player abroad. A total of 680,500 Thai tourists visited Japan in the first half of the year—a 10.1% rise. In Japan, Chinese visitors surged 53.5%, while South Koreans led the charge with 4.78 million arrivals.
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Despite welcoming millions of visitors, Thailand’s international tourism revenue fell 4.22%, totalling 895.16 billion baht during the seven months. TAT now faces the uphill task of attracting 16.21 million more foreign tourists by year’s end to meet its 2025 goal of 35.5 million visitors.
“Tourists today are looking for emotional and unique travel experiences, not just selfies at landmarks,” said TAT officials.
Meanwhile, cybersecurity concerns and sustainability standards are increasingly shaping how destinations must market and operate.
On the domestic front, however, things look brighter. Thai residents took 100.23 million local trips in the first half of 2025—a 2.49% rise—despite household debt and economic pressures, reported The Nation.
“Despite constraints from grassroots economic conditions, Thai people continue to travel consistently,” said Tourism and Sports Minister Sorawong Thienthong, predicting 1.1 trillion baht in domestic tourism revenue by year’s end.
Officials hope the extended Mother’s Day weekend in August will help jump-start the sluggish recovery as the critical high season approaches.
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