Minor, Agoda and Thai Airways chart transformation of Thai tourism

Tourism contributes over 10% of Thailand’s GDP, and its future lies beyond recovery, aiming for sustainable value creation and high-yield growth. To achieve this, the country must tap into untapped opportunities and strengthen its tourism foundations. Three industry leaders, Minor International, Agoda and Thai Airways, have shared their insights on what Thailand must prioritise.

Minor highlights sustainability and wellness

William Ellwood Heinecke, Chairman of Minor International, said that post-COVID recovery has brought new trends to Thailand’s tourism sector: sustainability and wellness.

Minor has expanded its wellness clinic offerings, separate from its spa business, which have proven highly successful among long-haul travellers and visitors from the Middle East.

He noted that beyond natural beauty, cultural experiences also remain a strong draw, from elephant sanctuaries in the North to Phuket and Samui’s beaches and iconic Maya Bay.

“Sustainability is increasingly driving higher value in tourism,” he explained. “But it often comes with higher costs, which some visitors may see as unfair and must also take greater responsibility for the environment In Europe, strict environmental standards are enforced, but in Asia and the Middle East we need voluntary measures.”

Minor has introduced initiatives such as Dollar for Deeds, where guests are asked if they wish to add US$1 per night of stay to support community and environmental projects.

 

“We are deeply committed to the environment and to achieving Net Zero by 2050. Growing numbers of travellers now value businesses that demonstrate environmental responsibility. Hotels and service operators must take the lead in raising awareness and driving the industry toward sustainability,” Heinecke said.

 

Minor continues to expand through an “asset-light” strategy, focusing on hotel management and franchising rather than ownership, alongside branded residential projects.

This, Heinecke said, will improve returns on investment and strengthen shareholder value.

Geopolitics and direct flights to Europe

He also warned that Thailand’s tourism industry faces headwinds from global geopolitical tensions, including the Russia–Ukraine war, unrest in the Middle East and South Asia, and even border disputes with Cambodia, which have reduced transit traffic through Thailand as travellers shift to Vietnam.

Anti-Thai sentiment is also affecting major Thai investors abroad. “Companies like PTT are already feeling the impact. If these tensions persist, Thai businesses will face significant losses by Q3 this year,” he cautioned.

Another challenge is the lack of direct flights between Thailand and Europe. Many European tourists are forced to transit through Dubai, which not only lengthens travel time but also risks diverting tourist spending to the Middle East. 

“The hotel sector is waiting eagerly for Thai Airways to expand its fleet,” Heinecke added.

Agoda highlights AI as a key advantage for tourism growth

Damien Pfirsch, Chief Commercial Officer of Agoda, said insights from the platform show Thailand ranked second globally among top travel destinations, with annual growth of 17%. Most visitors come from Japan, South Korea and elsewhere in Asia.

Bangkok remains Agoda’s second most popular city, holding the top spot for repeat visits for two consecutive years. Travellers typically visit Bangkok more than once or twice, more than other Asian destinations. Phuket and Koh Samui are also expanding strongly, each growing at about 20% per year.

“While some markets have softened, particularly for Chinese tourists, we expect demand to recover soon if multiple stakeholders work together. The upcoming winter high season should support strong occupancy and revenue for Thailand,” Pfirsch said.

He noted that travellers to Thailand tend to spend more compared to other destinations. Bangkok, in particular, has been Agoda’s most revisited city for seven consecutive years. However, the decline in arrivals from China underscores the need for stronger promotional efforts in that market.

Balancing growth with sustainability

Agoda research shows that while sustainability is increasingly discussed, 84% of travellers remain less concerned with environmental impact. Pfirsch argued that the responsibility lies with operators to implement positive changes.

Three months ago, Agoda launched the Sustainability Academy, a free online platform for hotels to learn about sustainable practices. “This helps operators save costs, contribute positively to their communities and ecosystems, and enhance their competitiveness. A visible sustainability certification can also drive higher bookings,” he said.

Visa policies and AI as strategic tools

Visa policies remain a powerful lever for tourism in Asia. Thailand’s extended visa scheme helped boost Indian arrivals by 33% year-on-year, while Malaysia and Vietnam have also benefited from similar policies, with Vietnam recording 78% growth.

Pfirsch emphasised that technology and AI are central to the future of travel. “Tools that support cross-border travel are critical for growth. AI improves efficiency and helps us understand customer needs 30% better compared to last year. Investment in AI gives us a competitive edge and enables us to serve today’s diverse travellers more effectively.”

He added that travellers are increasingly “hungry for accurate, contextual information.” Platforms and AI can now serve as the starting point of a travel guide, offering multilingual support and acting as a companion throughout the planning journey.

Thai Airways expands connect flights, prepares new fleet 

Chai Eamsiri, CEO of Thai Airways International (THAI), said the airline has restructured its long-term fleet plan over the past three to four years, reducing the number of aircraft types from eight to just four to lower maintenance costs. 

At the same time, the balance between direct and connecting flights has shifted, with future growth in Asia–Pacific travel set to be the highest in the world.

In the first half of 2025, direct-to-connect flight ratios stood at 80:20, compared with more than 90% direct flights previously, particularly in off-peak seasons. 

“We can attract passengers from around the world to Bangkok and connect them onwards across the Asia-Pacific. Current passenger load factors are around 77%, compared with under 70% in previous Q2 periods, showing a healthier mix of direct and connecting travel,” he said.

The airline is also modernising its fleet for efficiency and sustainability. New aircraft with lower carbon emissions and fuel consumption are being deployed, while routes are optimised for today’s fast-changing travel landscape. THAI’s 20 Airbus A320s have already been upgraded with improved cabin entertainment, a standard to be rolled out across new Airbus A321s and existing Boeing aircraft.

Fleet expansion and long-term challenges

Chai confirmed that the airline is preparing to receive at least 45–50 new Boeing aircraft, mostly long-haul models, though details remain confidential. Deliveries are about 95% secured. Over the next decade, however, the global aviation sector will continue to face challenges from supply chain disruptions. 

Aircraft contain hundreds of thousands of certified parts, and production cuts during the pandemic have left airlines struggling with workforce shortages and delayed deliveries.

To tackle pilot shortages, THAI is funding aviation education programmes to secure future talent amid stiff competition between airlines for skilled staff.

Geopolitics, trade shifts and Chinese tourists

Global geopolitics remains another hurdle. Airspace closures over Iran and Cambodia have forced longer, costlier flight paths, while US trade tariffs under President Donald Trump have discouraged European and Canadian travellers from visiting America, redirecting demand to Asia–Asia-Pacific, an opportunity for THAI.

China remains a concern: outbound Chinese travel is strong, but arrivals to Thailand have slowed. “The Thai government must restore confidence in safety to win back Chinese travellers,” Chai said.

Sustainability and ESG focus

THAI is also embedding Thai-made, eco-friendly products into its operations. Cabin crew uniforms are now produced from recycled PET bottles blended with silk, while pilot shirts are made from 100% recyclable fabrics. Even water bottles are label-free as part of the airline’s “zero waste living product” initiative, aligned with ESG commitments.

These insights were shared at the Thailand Focus 2025: Beyond the Challenges seminar under the theme Beyond Recovery: Transforming Thailand’s Tourism for a Sustainable and High-Value Future.