Thailand, long hailed as Southeast Asia’s tourism hotspot, is now facing a worrying decline in visitor numbers. Unlike cities struggling with overtourism, Thailand is seeing fewer tourists, causing concern for its economy. In the first half of 2025, tourist arrivals dropped to 16.6 million, down from 17.5 million in 2024—a 5 percent decline. May alone recorded a 14 percent decrease compared with the previous year. With tourism contributing about 20 percent of the country’s GDP, this trend has government officials on alert.
Chinese Tourists Stay Away Over Safety and Costs
The drop in tourism is mostly linked to Chinese travellers, Thailand’s largest visitor group. Between January and May 2025, arrivals from China fell from 2.9 million to 1.9 million. Rising travel costs due to a stronger baht, economic slowdown in China, and increased competition from neighbouring countries like Vietnam and Cambodia are key factors. Even Japan, with its weak yen, has become an attractive alternative for Chinese tourists.
Safety fears are another major reason. High-profile incidents, such as Chinese actor Wang Xing being lured to Thailand and trafficked to Myanmar, have gone viral online. These real-life events mirror themes from Chinese films highlighting scams in Southeast Asia, making many potential tourists wary. Scam centres, often run by criminal syndicates across Thailand, Myanmar, and Cambodia, have further damaged the country’s image.
Tourist Complaints and Discrimination Add to the Problem
Despite government campaigns like “Nihao-Sawadee” and “safe travel stamps” aimed at reassuring tourists, negative experiences persist. Visitors frequently report taxi scams, inflated attraction fees, and dual pricing at temples. Beyond Chinese tourists, Indian, Middle Eastern, African, and Black American visitors have shared experiences of discrimination, including being denied entry to entertainment venues.
Thailand’s attempts to boost tourism with legal recreational marijuana and proposed casinos have also faced obstacles. With neighbouring countries offering safer, less commercialised experiences, Thailand’s reputation is slipping. To win back trust, the country must tackle scams, casual racism, and inconsistent pricing. Otherwise, the “Land of Smiles” risks losing its status as a top tourist destination.