TCT: Thai tourism must compete on quality, not price, in 2026

The tourism sector in Thailand will shift in 2026 from "recovery" to "adaptation and competition in quality." After the "revenge travel" period of 2023–2024, this year the behaviour will change as people return to normalcy. 

Travel will be planned more carefully, with tourists less willing to spend just to go on a trip, but rather willing to pay for valuable experiences.

According to the Tourism Council of Thailand’s (TCT) Q4 2025 confidence index report, the “tourism trends for 2026” will shift. The “senior traveller” (active seniors aged 50-70) segment will grow, especially from Europe, Japan, and within Thailand. Businesses that provide universal design and health services will have an advantage.

Another trend gaining momentum is “quietcation,” a type of tourism focused on tranquility, privacy, and minimal crowds. It is not about visiting popular tourist spots but about finding peace and rest in less-known locations. 

Active seniors, in particular, prefer to delegate the planning of their trips to tour operators, trusting them to find peaceful destinations within their set budget and time frame.

“Green tourism” is expected to become a standard rather than a trend in 2026. It will significantly impact the hotel and accommodation industry in terms of costs, marketing, and operations. 

Global regulations are increasingly targeting businesses that disregard the environment. Tourist destinations must reduce pollution and carbon emissions. Locations lacking environmental quality will immediately be eliminated from the choices of discerning travellers.

Young people and Europeans are increasingly looking for eco-friendly accommodations. Online travel agency (OTA) platforms will start ranking eco-conscious accommodations higher in search results.

Furthermore, the trend of “wellness tourism” will expand beyond spas to gastronomy and mental health retreats. Additionally, “meaningful travel” is rising, with tourists wanting to deeply experience local communities rather than just taking photos. 

Tourism to secondary cities will continue to grow if marketed with compelling storytelling.

Cost of living and interest rates—key factors in tourism

Economic factors such as the “steady cost of living and interest rates” will impact travel in 2026. Despite global inflation slowing down, the prices of goods and services such as flight tickets and accommodations remain high. 

As a result, global travellers will tend to be more selective and will seek “value for money.” They will compare prices carefully before making bookings.

Meanwhile, China continues to face domestic economic issues, which could prevent mass Chinese tourism from recovering fully in 2026. Thailand will therefore need to rely more on high-spending tourists from China and diversify its focus towards markets in Europe, India, South Korea, and the Middle East.

At home, high household debt is reducing spending power, leading Thai tourists to travel less frequently but with more focus on quality or discounted promotions.

However, the tourism industry cannot compete on “price wars” anymore as it leads to higher operating costs. The key to survival is competing on “service quality” to attract high-spending customers.

Competition with neighbouring countries: Thailand must adapt

At the same time, intense competition from neighbouring countries such as China, Japan, and Vietnam means Thailand can no longer compete by simply claiming "Thailand has the most beautiful beaches." 

Instead, it must compete on “management quality,” such as safety, comfort, and creating meaningful experiences for tourists.

The role of AI technology in trip planning is growing, making it easier for tourists to access in-depth information and reducing the role of traditional tour operators. Businesses must adapt and create content that AI can find. 

Additionally, customers now expect seamless and personalised service. Businesses that continue to operate traditionally will fail to meet the complex demands of modern travellers.

Regarding the risks and obstacles facing the tourism sector in Q1 2026, the report points to “PM 2.5 dust” as a major short-term negative factor between mid-January and March, especially in Bangkok and the North.

Tourists are likely to avoid the pollution by heading to the southern beaches or neighbouring countries, which means businesses in the northern regions must prepare in advance.

The general election as a pivotal moment for Thailand’s economy

The general election on February 8 marks a crucial turning point for Thailand’s economy. If a government can be formed within one to two months, the economy will recover as planned, with continuous budget disbursement. 

However, if a caretaker government is in place for 3-5 months, GDP growth for 2026 could fall below 1.5%, and private sector investment will stall. Delays in government formation may also cause a delay in the 2027 budget, affecting mega infrastructure projects.

Geopolitical and social factors, such as international conflicts, trade wars, and the Middle East crises, continue to pressure oil prices and flight routes. These global tensions are expected to directly impact long-haul tourists.