Thai Tourism Giants Slash Growth Targets as Chinese Visitor Recovery Stalls
Leading hospitality groups ERW, MINT and AWC adjust strategies as visitor numbers plateau and regional competition heats up
- Thailand's national tourism authority is revising its 2025 foreign arrival target to show no growth over 2024, citing a slower-than-expected recovery of Chinese visitors.
- Major hospitality firm The Erawan Group has cut its 2025 revenue growth forecast from a projected 6-8% down to 3-5% due to the challenging conditions.
- In response to the shortfall, tourism companies are diversifying their customer base to attract travelers from Europe, India, and the Middle East, while also benefiting from domestic travel stimulus.
Thailand's tourism industry is grappling with mounting challenges in the second half of 2025, as the recovery of Chinese visitors proves slower than anticipated whilst competition from rival destinations intensifies.
The Tourism Authority of Thailand (TAT) is preparing to revise downward its target for foreign tourist arrivals throughout 2025, setting the figure equal to 2024's 35.5 million visitors.
However, the sector continues to benefit from domestic tourism stimulus through the government's "Half-Price Thailand Travel" scheme during low season periods.
The Erawan Group Trims Ambitious Targets
Apinya Ngamapichon, deputy managing director and chief financial officer of The Erawan Group Public Company Limited (ERW), reported to the Stock Exchange of Thailand that the company has adjusted its full-year 2025 revenue growth target to 3-5%, down from the previous forecast of 6-8%.
The hospitality group's five-star to economy hotel segment is now expected to grow at similar levels to the previous year, a reduction from the earlier target of 3-5%.
Meanwhile, the budget hotel division has scaled back its growth expectations from 23% to 20% compared to 2024.
Despite these challenges, ERW continues to pursue a diversification strategy spanning five-star properties to budget accommodations under its Hop Inn brand, alongside international expansion to mitigate volatility from tourist fluctuations in individual countries.
"We're implementing proactive pricing strategies to meet market demands, expanding our customer base to include growth markets such as Europe, India, and the Middle East, whilst maintaining strict operational cost controls," Apinya stated.
The group is pressing ahead with development plans, including a mid-range hotel project near BTS Phrom Phong station under a long-term land lease agreement, and renovations across its portfolio from five-star to economy properties.
Minor International Eyes European and Asian Markets
Chaiyapat Paitoon, chief financial officer of Minor International Public Company Limited (MINT), expressed confidence in the company's readiness for sustainable growth despite the challenging global business environment.
Minor Hotels' European and Asian properties are well-positioned for the peak season in Q3-Q4 2025, with robust advance bookings already secured. In Europe, travel demand remains strong, with corporate clients growing faster than leisure travellers.
Forward booking data indicates single-digit growth in revenue for the second half of 2025 compared to the previous year, with approximately three-quarters of this growth driven by higher average room rates. Revenue per available room is expected to accelerate in Q4 2025 compared to Q3.
Hotels in Spain and the Benelux countries are performing strongly across both leisure and corporate segments, whilst Italian properties continue to rely primarily on business travel demand.
The Maldives destination shows robust advance bookings, bolstered by demand for premium experiences. Beyond room revenue, food and beverage income alongside other hotel services contribute to the positive outlook through Minor Hotels' unique experience offerings.
For Thailand, the completion of major hotel renovations ahead of high season is expected to support higher average room rates, even as foreign visitor arrivals decelerate.
Asset World Unveils Cultural Tourism Project
Wallapa Traisorat, chief executive officer and managing director of Asset World Corp Public Company Limited (AWC), announced the company's continued portfolio expansion in the second half of the year.
The highlight is the upcoming launch of "Lannatique Kalare," a new cultural destination showcasing Lanna art and culture in central Chiang Mai, alongside maintaining the industry's strongest financial structure and disciplined cost management.
The company benefits from the government's "Half-Price Thailand Travel" tourism stimulus measure, which has boosted domestic demand, particularly for hotels in Hua Hin and Pattaya.
Strategic partnerships with global allies boasting a network of over 710 million quality travellers worldwide have increased direct bookings to 70%, significantly contributing to growth in AWC's hotel bookings, especially in major tourist cities including Chiang Mai, Samui, Krabi, and Pattaya.
Industry Concerns Mount for Second Half
Several factors continue to pose risks to the sector's performance in the latter half of 2025, including the pace of Chinese tourist recovery, border disputes between Thailand and Cambodia, and economic concerns in various countries stemming from international trade policies that could reduce travel demand.
Currency volatility and climate change impacts also present ongoing challenges. Tourism companies are closely monitoring these factors whilst adapting strategies to changing circumstances, prioritising financial stability and liquidity.
The industry's cautious approach reflects broader uncertainties in global travel patterns, even as domestic initiatives and strategic partnerships provide some cushion against international headwinds.
