Thailand's tourism industry outlook 2025-2030

Thailand tourism industry market size

The introduction of a visa exemption agreement between Thailand and China, effective in early 2024, has emerged as a pivotal factor in strengthening inbound tourism from one of the country’s largest source markets. The removal of visa requirements is expected to facilitate increased travel volume, particularly among short-haul and first-time visitors, reinforcing Thailand’s position as a preferred destination for Chinese tourists.

In 2019, Chinese arrivals accounted for 27% of total foreign visitors, reaching 11.0 million travelers. However, in the aftermath of the pandemic, the recovery of this segment has been slower than anticipated, with Chinese arrivals in 2024 reaching only 61% of pre-pandemic levels. The elimination of visa processing barriers is expected to stimulate travel demand by reducing cost and administrative friction for prospective visitors. Previously, delays and additional documentation requirements had discouraged some travelers, particularly those booking last-minute trips.

The visa exemption policy aligns with Thailand’s broader objective of attracting high-spending travelers, particularly from China’s growing middle class. The average expenditure per Chinese tourist is projected at THB 47,400 per trip in 2025, with spending concentrated in accommodation, dining, and shopping. Growth in luxury and experiential travel, including wellness tourism and premium retail, is expected to benefit from the policy shift.

Thailand’s airline capacity and flight connectivity with China will also shape the effectiveness of the visa waiver. Although flight routes have expanded, seat capacity on China-Thailand routes remains below pre-pandemic levels, creating bottlenecks in supply. The extent to which airlines adjust their capacity to meet rising demand will determine the full impact of the policy on arrival numbers.

Visa-Free Stays for Long-Haul Travelers

Thailand is actively considering an extension of visa-free stays for long-haul tourists from 30 days to potentially 90 days, targeting high-spending visitors from key markets such as the United States, the United Kingdom, Germany, France, and Scandinavian nations. The proposal, currently under review by the National Tourism Policy Committee, reflects a broader strategy aimed at strengthening Thailand’s position as a long-stay destination while maximizing the economic benefits associated with inbound tourism. If approved, the policy could lead to a structural shift in visitor spending patterns, encouraging extended stays and higher per-trip expenditures.

The primary winter season in Europe and North America (November–March) coincides with Thailand’s peak inbound travel period, allowing the country to capture increased demand for warm-weather destinations. A more flexible visa policy would enable tourists to consider extended itineraries, increasing overall spending on accommodation, dining, wellness tourism, and recreational activities.

The proposal builds on recent precedents in Thailand’s visa policy strategy. A temporary measure introduced in November 2023 extended visa-free stays for Russian tourists to 90 days, leading to higher arrivals and per capita spending. Similarly, in July 2024, Thailand extended visa-free stays from 30 to 60 days for citizens of 93 countries, reinforcing the government’s commitment to adaptive policies that enhance inbound travel.

Reputation for beach, cultural, and wellness tourism

Thailand’s reputation as a top destination for beach, cultural, and wellness tourism continues to shape its appeal among international travelers. Its coastlines, historic sites, and wellness retreats attract visitors seeking a mix of relaxation, cultural immersion, and health-focused experiences.

Coastal destinations remain a core attraction, with Phuket, Krabi, and Koh Samui drawing millions of visitors each year. These locations have embraced sustainable tourism efforts, including the Krabi Model’s focus on green tourism and conservation programs on islands such as Koh Tao and Koh Lanta. Initiatives such as Maya Bay’s controlled reopening and the 30+ Islands Clean-Up campaign reflect an ongoing commitment to preserving marine ecosystems while maintaining tourism appeal. In addition, Pattaya Beach’s ISO 13009 certification for beach management highlights Thailand’s efforts to align with international standards, reinforcing its position as a leading sun-and-sea destination.

Thailand’s cultural landscape remains a key differentiator, offering a variety of historic landmarks, traditional festivals, and interactive experiences. Ayutthaya and Sukhothai’s UNESCO-listed ruins continue to attract history-focused travelers, while Bangkok’s Grand Palace and Chiang Mai’s temples serve as central points for cultural exploration. Festivals such as Songkran, Loy Krathong, and regional events in Isaan and Loei draw both domestic and international tourists looking to experience Thailand’s heritage firsthand. Additionally, culinary tourism and craft workshops have gained popularity, allowing visitors to engage with Thai culture beyond traditional sightseeing.

Wellness tourism has become an increasingly important sector, with Thailand recognized for its spa retreats, holistic therapies, and medical tourism services. Destinations such as Chiang Mai, Phuket, and Koh Samui cater to travelers seeking relaxation and health-focused experiences, from meditation and yoga retreats to advanced medical procedures. The development of the Andaman Wellness Economic Corridor (AWC) reflects a broader push to position Thailand as a leader in luxury wellness tourism, integrating traditional healing practices with modern healthcare. With rising global interest in well-being travel, Thailand’s reputation for high-quality, affordable wellness services continues to attract long-stay visitors and health-conscious travelers.

Competitive pricing in accommodation & travel

The country’s affordability remains a significant advantage compared to regional and global destinations, supported by competitive hotel pricing, cost-effective travel expenses, and a well-developed transportation network. In the accommodation sector, budget guesthouses and dormitories in major tourist hubs such as Bangkok, Chiang Mai, and Phuket start at THB 200–450 per night, while mid-range hotels typically range from THB 2,500–3,000 per night (As of early 2025). Even five-star resorts in Phuket and Bangkok maintain lower price points compared to Western luxury markets, with nightly rates between THB 8,000–14,000, significantly underpricing counterparts in cities such as Singapore and London. These price advantages, combined with seasonal discounts and competitive online booking rates.

Airfare affordability has further strengthened Thailand’s attractiveness, with low-cost carriers (LCCs) expanding both domestic and international connectivity. Airlines such as Thai AirAsia, Thai Smile Air, and Thai VietJet Air now operate high-frequency routes linking major cities such as Bangkok, Chiang Mai, Phuket, and Krabi, with fares starting at THB 890 one-way. The expansion of direct flights from key markets, including Japan, South Korea, and Taiwan, has contributed to a substantial recovery in air travel, while the resumption of direct flights from the United States in early 2025 following Thailand’s FAA Category 1 safety rating reinstatement is expected to drive long-haul tourism.

Supporting decentralization policies for domestic tourism

Thailand’s domestic tourism sector remains a key driver of growth, supported by government-led initiatives aimed at increasing travel frequency among Thai residents. These initiatives not only support local businesses and employment but also help reduce dependence on international arrivals and decentralize income distribution especially to secondary cities, creating a more resilient tourism economy. Key example policies include the revamped “We Travel Together” (Rao Tiew Duay Kan) program which continues to play a central role in stimulating domestic travel. For 2025, the program offers up to 50% subsidies on accommodations, dining, and air travel, with higher incentives for travel to secondary cities and weekday bookings. Previous phases of the program is estimated to generate over THB 58.6 billion in tourism spending.

To further decentralize tourism, TAT has introduced targeted regional promotions, such as the “Hidden Gem Cities” campaign, highlighting secondary cities such as Nan, Loei, Trang, and Lampang as alternative destinations rich in cultural and natural attractions. The “Thai Charms” initiative promotes traditional crafts, culinary experiences, and cultural heritage in rural and less-visited areas. The program encourages visitors to engage in local experiences such as textile weaving in the North, silk production in the Northeast, and seafood-based gastronomy in the South. By emphasizing regional identities, the initiative helps preserve traditional practices and generate income for small-scale artisans and farmers. These policies are designed to create a more sustainable tourism ecosystem by easing congestion in heavily touristed areas such as Bangkok and Phuket.

Improvement in basic infrastructure and regional connectivity

Land Transport Infrastructure

Expanding land transport infrastructure remains a priority to accommodate increasing visitor flows. Highway and expressway developments are focused on improving intercity connectivity and reducing traffic congestion in key tourism hubs. The Bangkok Outer Ring Road (M9) and the Chalong Rat Expressway Extension are expected to ease traffic in high-density areas and provide smoother access to secondary cities. In Phuket, the Kathu-Patong Expressway, a THB 14.67 billion project, will feature Thailand’s first mountain tunnel and is expected to improve access between Patong Beach and other key areas by 2031. Additionally, major highways such as Highway No. 4027 (Baan Para–Baan Muang Mai) in Phuket are being expanded to improve local traffic flow near tourist hotspots.

Urban mobility solutions are also being integrated into tourist-dense locations. Smart traffic management systems, including automated signals and real-time traffic monitoring, are being deployed in congested tourist hubs such as Phuket. These technologies are designed to optimize road usage and improve transport efficiency for both residents and visitors.

Rail transport infrastructure is also undergoing significant expansion. The Thailand-China High-Speed Rail Project, a multi-phase initiative linking Bangkok to Nakhon Ratchasima and Nong Khai, is anticipated to complete its second phase by 2026, further connecting Thailand with Laos and China. This project is expected to support increased cross-border tourism and trade. Additionally, the Bangkok–Pattaya high-speed rail line is expected to encourage domestic weekend travel and provide a faster alternative to road transport.

To improve suburban and intercity travel, Bangkok’s Red Line suburban train network is expanding, with three new routes and a fare cap of 20 baht per trip to make rail travel more accessible. In addition, double-track railway projects, such as the Chira Junction–Ubon Ratchathani line (37.5 billion baht), are being implemented to enhance connectivity between urban and regional centers, improving interprovincial tourism.

Air Transport Infrastructure

As air travel demand continues to rise, airport expansions and new airport developments are a central focus of Thailand’s tourism strategy. Suvarnabhumi Airport’s South Terminal is under construction to accommodate increasing passenger volumes, with Thailand projected to handle 240 million air travelers by 2035. This expansion is expected to significantly improve the airport’s handling capacity, reducing congestion and improving passenger experiences.

Several regional airports are also being upgraded to support tourism growth. Phase 2 expansions at Chiang Mai and Phuket airports are aimed at increasing capacity for both domestic and international flights. Additionally, new airports such as Andaman International Airport and Lanna Airport in northern Thailand are being developed to improve accessibility to high-demand tourism regions, easing congestion at existing aviation hubs.

Beyond traditional air travel, Thailand is preparing for the introduction of seaplane operations to improve connectivity between island and coastal destinations. Seaplanes are anticipated to provide direct links to popular tourist spots such as Koh Samui, Pattaya, and Phuket, offering an alternative mode of transport for high-spending travelers.

Water Transport Infrastructure

Enhancements to water transport infrastructure are expected to improve Thailand’s attractiveness to international cruise passengers and facilitate easier inter-island travel. New cruise terminals in Samui, Pattaya, and Phuket are being developed to support the growing luxury cruise market. These terminals aim to increase cruise-related revenues by seven to eight times while improving convenience for travelers.

Efforts to modernize existing ports and piers are also underway. Phase 3 of Laem Chabang Port, Thailand’s largest deep-sea port, is being expanded to support both shipping and tourism activities, further integrating maritime transport into the country’s tourism infrastructure. Meanwhile, upgrades to 29 public piers along the Chao Phraya River are anticipated to enhance Bangkok’s river-based tourism experience, making historical and cultural landmarks along the river more accessible to visitors.

A larger-scale maritime project, the Chumphon–Ranong Land Bridge, is currently under consideration for development to connect the Gulf of Thailand with the Andaman Sea. This initiative is expected to shorten shipping transit times by four to five days while opening new opportunities for maritime tourism along Thailand’s western coastline.

The financing of these large-scale infrastructure projects is being supported through public-private partnerships (PPPs), particularly in high-investment sectors such as expressways and rail networks.

Continued growth by major APAC countries

Rising disposable incomes, improved air connectivity, and relaxed visa policies have contributed to the expansion of inbound travel from Mainland China, South Korea, India, and Malaysia. These markets are expected to play a crucial role in sustaining Thailand’s international tourism growth, particularly as the government continues to implement strategies aimed at attracting high-spending travelers and expanding travel accessibility.

Mainland China

China remains Thailand’s largest international visitor source, with over 6.7 million Chinese tourists recorded in 2024. The Tourism Authority of Thailand (TAT) aims to increase this figure to 9 million by 2025, approaching the pre-pandemic peak of 11.0 million in 2019. The majority of arrivals originate from urban centers such as Beijing, Shanghai, and Guangzhou, though second-tier cities Chengdu, Wuhan, and Chongqing are emerging as key feeder markets due to expanding charter flight services and growing outbound tourism demand.

Thailand’s appeal among Chinese tourists is supported by rising disposable incomes, with China’s per capita GDP surpassing $12,000 in 2023, enabling more middle-class citizens to afford international travel. Spending patterns indicate growing demand for luxury experiences, wellness tourism, and high-end shopping, with payment data from Alipay and WeChat Pay reflecting increased spending by Chinese tourists.

Several factors continue to drive Chinese travel to Thailand. Proximity and accessibility remain significant, as flight durations average 4–6 hours, and the visa-free agreement introduced in March 2024 allows stays of up to 30 days without a visa. Thailand’s cultural familiarity, including shared Buddhist heritage and festivals such as Chinese New Year celebrations in Bangkok and Phuket, strengthens its attractiveness. Additionally, diverse tourism offerings appeal to different segments, with beach destinations such as Phuket and Krabi, shopping and culinary experiences in Bangkok, and eco-tourism in Chiang Mai ranking among the top choices.

A substantial proportion of Chinese visitors travel through organized tour groups, which typically follow structured itineraries covering major attractions such as the Grand Palace, Ayutthaya Historical Park, and floating markets.

Beyond China, several other Asia-Pacific markets are experiencing strong growth, driven by improving economic conditions, cultural appeal, and increased flight connectivity.

South Korea

South Korea remains one of Thailand’s top five inbound markets, with over 1.9 million South Korean visitors recorded in 2024. The market benefits from expanded direct flights between Seoul and major Thai cities such as Bangkok and Chiang Mai, making travel more convenient. Thai cuisine and wellness tourism are key attractions, with many South Korean tourists seeking spa treatments, detox programs, and culinary experiences in Thailand’s major tourist hubs.

India

India has emerged as a key growth market, with nearly 2.1 million Indian tourists visiting Thailand in 2024. Rising middle-class incomes and increased spending power have fueled demand for family vacations and premium travel experiences. Thailand’s popularity as a wedding destination continues to grow, driven by luxurious yet affordable resort venues in destinations such as Phuket, Hua Hin, and Pattaya. Additionally, increased flight routes between India and Thailand have improved accessibility, encouraging more inbound travel.

Malaysia

Malaysia remains one of Thailand’s largest tourism contributors, with over 5.0  million Malaysian tourists visiting in 2024. Proximity and strong cultural and economic ties drive consistent travel demand, with popular destinations including Hat Yai, Phuket, and Krabi. Cross-border travel is further supported by road, rail, and air connectivity, allowing Malaysian tourists to visit Thailand frequently for leisure, shopping, and religious tourism.

In Q1 2024, Thailand announced efforts to increase long-haul visa free stays from 30 days up to a potential 90 days to increase long-stay for visitors from high-spending source markets such as the US and Europe.

The government decided not to implement a tourist tax in hopes of encouraging higher tourist spending elsewhere

Major airports and international rail network links are being improved and expanded

A growing number of regional low-cost carriers and international flag carriers are expanding connections to Bangkok and other tourism hubs of Thailand

Growing regional spending powers and disposable income levels will support sustained inbound arrivals growth over the medium term

The government gradually opened borders for quarantine-free travel for international travellers for the first time in over 18 months from November 2021. This began with a sandbox programme that resulted in international travellers being permitted to visit resorts in the market without having to quarantine. 

Thailand has built a solid reputation for tourism over the past decades and boasts a healthy infrastructure for reputable hotels, transport options and healthcare facilities

Prospect of casino legalization & entertainment complex bill

The Entertainment Complex Bill, approved in principle by the Thai Cabinet in January 2025, represents a major policy shift aimed at legalizing casinos within integrated resorts to boost tourism, attract foreign investment, and curb illegal gambling. Thailand has historically maintained strict prohibitions on gambling under the Gambling Act of 1936, with only state-run lotteries and horse racing permitted. However, with increasing regional competition from Singapore and Macau, the government has explored controlled legalization as a way to generate tax revenue, create jobs, and enhance Thailand’s positioning as a premium travel destination.

The bill outlines a structured licensing framework, requiring a minimum investment of THB 10 billion (~$297 million) for standard projects and up to THB 100 billion (~$2.76 billion) for large-scale developments. Casinos will be limited to 5–10% of total entertainment complex space, emphasizing non-gaming revenue such as luxury hotels, convention centers, and retail areas. A Gross Gambling Revenue (GGR) tax of 17%, alongside corporate tax rates of 20–30%, is projected to generate THB 12–40 billion (~USD 336 million–USD 1.12 billion) annually. Proposed locations include Bangkok, Phuket, Chiang Mai, and select border provinces, with operations expected to begin by 2029.

The introduction of integrated casino resorts is anticipated to increase foreign tourist arrivals by 5–10% annually, contributing THB 119–238 billion (~$3.3–6.6 billion) in additional tourism revenue. These developments are expected to enhance Thailand’s appeal to high-net-worth visitors and MICE (Meetings, Incentives, Conferences, and Exhibitions) travelers, strengthening its position as a regional tourism hub. However, concerns over gambling addiction, crime risks, and regulatory oversight remain, prompting the government to implement entry restrictions, anti-money laundering measures, and strict licensing controls. WE expect that if successfully executed, the bill has the potential to drive growth and diversify Thailand’s tourism sector.

Relaxation of alcohol sales restrictions

Thailand’s Alcoholic Beverage Control Act of 2008 imposed strict regulations on alcohol sales, limiting retail purchases to 11:00 AM–2:00 PM and 5:00 PM–midnight, with additional bans on Buddhist holy days. While originally intended to reduce alcohol-related harm, these regulations have been criticized for being outdated and inconsistent with modern tourism and economic needs. Recognizing the need to adapt policies to align with international tourism standards, the Thai government has begun revising alcohol regulations to support the “Amazing Thailand Grand Tourism & Sports Year 2025” campaign, which aims to attract 40 million foreign visitors and generate THB 2.8 trillion (~$83 billion) in tourism revenue.

Recent policy shifts include a pilot program launched in December 2024, which extended alcohol sales hours in Bangkok, Chiang Mai, Chon Buri, Phuket, and Koh Samui by two hours and allowed entertainment venues to operate until 4:00 AM. While this measure aimed to boost nightlife and tourism revenue, early data indicated a 31% increase in road accidents between 2:00 AM and 6:00 AM, raising concerns about public safety. In February 2025, Prime Minister Paetongtarn Shinawatra directed a review of the 2:00 PM–5:00 PM sales ban, with the Ministries of Public Health, Interior, and Tourism evaluating potential adjustments. A new Alcohol Beverage Control Bill, submitted to Parliament in January 2025, proposes relaxing sales restrictions to better align with international norms while maintaining safeguards against underage drinking and drunk driving.

Adjusting Thailand’s alcohol regulations is expected to enhance visitor satisfaction, support small businesses, and increase tourism-related spending. The Thai Alcohol Beverage Business Association estimates that removing the afternoon sales ban could boost revenue for restaurants, convenience stores, and breweries by allowing tourists to dine more freely. Thailand’s current alcohol laws contrast with regional competitors such as Vietnam and Cambodia, where fewer restrictions improve the overall visitor experience. If implemented, these policy adjustments could strengthen Thailand’s position as a global tourism hub given the rising competition in neighboring countries.