Preliminary data from the Ministry of Tourism and Sports of Thailand (MOTS), released on 3/12, indicates that total international arrivals to the country reached an estimated 29.6 million by the end of november, a 7% decrease compared to the same period in 2024.

In Southeast Asia, Vietnam is currently Thailand's sixth largest source market, trailing Malaysia, Laos, Indonesia, Singapore, and the Philippines.

Flood scene in Hat Yai province, Thailand, on 23/11. Photo: Reuters

According to SCMP experts, Thailand's tourism sector faces numerous challenges in 2025, including political instability amid border tensions with Cambodia, natural disasters like floods, and a stronger baht, which increases travel costs. In may, the Tourism Authority of Thailand (TAT) adjusted its annual visitor target from over 37 million to more than 35 million, matching 2024 figures.

The baht's more than 8% appreciation against the USD this year has directly eroded Thailand's cost competitiveness in tourism, making the country less of a preferred choice for budget travel. Additionally, economic policies from the US under President Donald Trump have indirectly impacted global consumer sentiment, leading long-haul travel markets to become more cautious.

While Thailand struggles, Malaysia has rapidly gained ground. By the end of 8/2025, Malaysia welcomed 28.24 million international tourists, a 14.5% increase from the previous year. This success stems from flexible visa exemption strategies for major markets like China and India, coupled with efforts to diversify urban and shopping tourism products. The Malaysian Tourism Promotion Board stated its target of 47 million visitors by 2026, a figure that could enable the country to surpass Thailand in total tourist arrivals.

Anh Minh (According to SCMP, MOTS)