Thailand’s tourism industry has long been a cornerstone of its economy, celebrated for its rich culture, natural beauty, and world‑class hospitality. After the disruption brought on by the pandemic, the sector is once again looking ahead with cautious optimism. Industry leaders see opportunities not just to recover, but to reposition the Land of Smiles as a destination that thrives on quality, resilience, and unique experiences.
In This Post
A Brief Look Back – 2020 to 2025
Tourism industries around the world were hard hit by the pandemic, and Thailand was no exception. Following years of strong growth, international arrivals collapsed in 2020, plunging by more than 80%.
Recovery began as restrictions eased in mid‑2022, and by 2024, Thailand welcomed over 35 million visitors — close to its pre‑pandemic peak of 39.9 million in 2019. As a new year dawned in 2025, officials and industry leaders were brimming with optimism, convinced the rebound would continue. It seemed like the dawning of a new era.
Prime Minister Paetongtarn Shinawatra outlined a strategy to attract high‑spending visitors and promote Thailand’s year‑round appeal. The Tourism Authority of Thailand (TAT) set ambitious targets, forecasting up to 40 million foreign arrivals in 2025. Even as Chinese visitation lagged, officials insisted the focus was shifting to “high value tourism.”
And things did get off to a good start. “Thailand welcomed over 11.35 million visitors from January to April 2025, as it steps up efforts to attract high value travellers in line with national tourism strategy — driving toward its year‑end target of 39 million visitors and 2.23 trillion baht in revenue,” the TAT Newsroom reported in April.
“The aim is to attract at least 38 million arrivals, though the eventual goal is 40 million,” explained TAT Governor Thapanee Kiatphaibool, adding that Asia would contribute around 29 million visitors, with Europe and the Americas adding another 11 million.
Impact on Hotels
The SCB Economic Intelligence Center projected “strong growth in hotel occupancy and room rates for 2025, driven by both domestic and international demand.”
Analysts expected Thailand’s hospitality sector to continue its post‑pandemic rebound, buoyed by rising consumer confidence and a steady return of international arrivals.
Industry leaders echoed the government’s confidence. Hoteliers spoke of record bookings, airlines added new routes, and provincial officials prepared for festivals and events to showcase Thailand’s diversity. The mood was buoyant, with expectations that 2025 would mark the country’s full tourism recovery.
Despite the strong start, unforeseen events created headwinds for the industry, which led to cancellations, while uneven demand placed pressure on tourism operators. Average room rates continued to rise — a trend that began before the pandemic — but occupancy growth was uneven, with many properties working hard to fill newly added supply.
“Bedroom supply continues to expand — with over 5,000 new rooms added in Bangkok alone this past year,” noted Martin Hurley, General Manager of The Lancaster Bangkok, underscoring the pressure on operators to compete in a crowded market.
Policy Shifts
Two of the most closely watched developments in 2025 were adjustments to cannabis legislation and ongoing debates about the legalization of casino resorts. Both carry significant implications for how Thailand positions itself in the global tourism market.
Industry leaders noted that such changes require careful adaptation, particularly in balancing Thailand’s reputation as a family‑friendly destination with opportunities to diversify its appeal. Stability and consistency in policy direction were emphasized as essential for long‑term planning and competitiveness.
Pricing and Value
Thailand’s reputation as a “value destination” came under pressure in 2025. As Martin observed, “The strengthening Thai Baht has also challenged Thailand’s reputation as a ‘value destination,’ particularly compared to Vietnam, where room rates remain 30 to 40% lower.”
This shift was felt across the market. Average rates for Thailand’s quality hotels in 2024 were already 42% higher than in 2019, and the upward trend continued into 2025. Analysts at JLL, one of the world’s leading real estate consultancies, noted that while investment in new properties remained steady, competition intensified as more supply entered the market.
Martin underscored the point: “Bedroom supply continues to expand — with over 5,000 new rooms added in Bangkok alone this past year.”
The result is a paradox: Thailand’s hotels were charging more, but they struggled to maintain occupancy amid declining visitor numbers. For hoteliers, the challenge was to justify higher rates by emphasizing quality, service, and unique experiences.
Looking Ahead to 2026
With the dawning of a new year, leaders remain cautiously optimistic about Thailand’s tourism outlook. Martin emphasized the importance of resilience and adaptability.
TAT has forecast a rebound to 36–37 million visitors in 2026, though analysts warn recovery may be uneven. Vigor Hotel Marketing noted that hotels will need to reposition themselves for resilience, focusing on sustainable growth rather than chasing volume.
Consumer behavior is also shifting. According to Agoda’s Travel Outlook Report, Thai travelers in 2026 are expected to prioritize shorter, flexible trips centered on wellness, relaxation, and culinary experiences. This trend dovetails with Thailand’s strengths in spa culture, gastronomy, and boutique hospitality.
Martin sees opportunity in these changes. “Thailand’s hotels must emphasize quality and unique experiences to justify higher rates,” he says. “Guests are looking for more than just a room — they want a story, a connection.”
With new supply entering the market and regional competition intensifying, Thailand’s hospitality industry faces a pivotal year. The lessons of 2025 — from crisis management to evolving market conditions — will shape how operators adapt in 2026.
Final Thoughts
Thailand’s hospitality industry enters 2026 with cautious optimism. The sector remains anchored by its strengths in culture, service, and unique experiences.
With evolving traveler preferences and new opportunities on the horizon, resilience and adaptability will be the keys to sustaining growth. Thailand is poised to reaffirm its place as one of Asia’s most compelling destinations in the year ahead.
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