Thailand’s tourism faces intense competition in Asia’s “Tourism War,” while rivals grow over 10%

The Economic Intelligence Center (EIC) highlights that Thailand’s tourism industry is under heavy pressure from the Tourism War in Asia, with declining tourist numbers and low spending, contrary to the growth of its competitors in the region who are seeing over 10% growth. Many countries have adjusted their strategies to make tourism a central engine for economic growth, urging Thailand to revamp its tourism approach to attract global visitors.

The SCB EIC notes that the global economic slowdown and high uncertainty have led many Asian countries to place greater focus on tourism. As a result, a policy competition has intensified, with countries like Thailand, Japan, South Korea, Malaysia, Vietnam, Singapore, and China competing for tourists. Each country has set high growth targets of 10% or more, showing their proactive strategies to drive tourism as a key economic driver, resulting in an increasingly fierce Tourism War in the region.

In 2025, many countries are aiming for significant growth in international tourism, with some targeting over 10% growth in foreign arrivals, reflecting aggressive tourism strategies. Countries like Japan aim to attract 40 million foreign visitors in 2025, after a record of 36.9 million in 2024. Similarly, Singapore, Vietnam, and Malaysia have set growth targets of over 20%, despite having smaller foreign tourist bases.

For Thailand, the government has set a target of attracting 39 million international tourists in 2025. While China has not set official targets, it has been consistently implementing proactive tourism promotion measures.

The high growth targets set by various countries show the proactive strategies to push tourism as one of the most important engines for economic growth and income generation. This will lead to an even more intense Tourism War moving forward.

The Tourism War has changed the dynamics of competition in Asian tourism, putting increased pressure on Thailand’s competitiveness, with declining foreign tourist numbers that are moving against the strong growth seen in many countries. It has become harder to reach target tourist markets due to high market overlap in many countries, and spending per tourist is still low compared to others.

In the first nine months of 2025, many countries have successfully attracted more than 10% growth in foreign tourists, especially China and Vietnam, benefiting from their depreciated currencies. Meanwhile, Thailand faces challenges from the decline in Chinese tourists, partly due to concerns over safety, and partly due to the intense competition from other countries targeting China’s key tourist market.

Furthermore, targeting the right tourist segments has become more difficult, as 18 countries dominate the top 10 foreign tourist markets in the six major Tourism War countries, particularly Vietnam and Singapore, which have overlapping markets with Thailand.

Additionally, Thailand has faced challenges in boosting tourist spending, with average trip spending in 2024 decreasing compared to other countries that have seen increases. The average daily spending in Thailand remains lower than in other countries, highlighting the need to elevate the quality of tourism to increase the revenue potential from foreign tourists.

As the Tourism War intensifies, countries are using increasingly sophisticated strategies to attract foreign tourists. Key strategies being employed by many countries include:

• Introducing special visa measures targeting specific tourist groups. Many countries are implementing additional visa measures this year to expand their tourist markets, including visa exemptions and special visa types.
• Building a strong tourism brand image by offering unique experiences to attract foreign visitors.
• Leveraging online content and the power of influencers to promote tourism and enhance the country's image globally.
• Collaborating with tourism businesses to create promotional campaigns that cover flights, accommodation, and activities, encouraging tourists to visit.
• Upgrading existing tourist attractions and creating new man-made destinations to boost competitiveness against other countries.
• Expanding flight networks to cover more routes, which will help gain an advantage in capturing more tourist markets.

The Tourism War’s impact is pushing Thai businesses to adapt their strategies quickly to handle the situation. The impact on different tourist segments can be categorized into three groups, and businesses must develop strategies accordingly to improve their competitive edge:

Leaders in certain tourist segments but facing increasing competition, such as Malaysia, India, Russia, the UK, and the Philippines, where Thailand should focus on maintaining its competitive advantage by enhancing service quality and creating new experiences to encourage repeat visits and higher spending.

High-growth tourist markets but with limited expansion in Thailand, such as Japan, the US, Australia, and Canada, where Thailand should boost promotions and create unique selling points to encourage more visitors from these high-demand markets.

Highly competitive tourist markets where Thailand is facing slow growth, such as China, South Korea, Taiwan, Singapore, and Indonesia, where businesses should use aggressive marketing strategies to stimulate the recovery of these markets quickly through country-specific promotions while continuously promoting tourism.

In the long term, businesses should focus on strategies to enhance sustainable competitiveness, such as 1. Building a distinctive tourism brand to stand out from competitors, 2. Enhancing new experiences for tourists through events, activities, and services that align with modern travel trends, and 3. Forming business partnerships with international tourism service providers to continue driving tourist traffic to Thailand.

Additionally, government measures will play a crucial role in driving Thai tourism amid fierce competition and help secure competitive advantages by addressing emerging challenges. Government support through promotional campaigns, tourism promotions, and upgrading tourism sites must be carried out seriously, continuously, and with flexibility to adapt to the dynamic Tourism War battlefield. Developing a robust tourism data infrastructure will be crucial for informing policy decisions.

Tourist spending data will be vital for ensuring that policies are as effective as possible. The government may also consider giving businesses access to deeper tourism data to help them adjust strategies quickly in response to market changes.

Finally, long-term tourism industry development and brand image management will be key to enhancing Thailand’s competitiveness in the Tourism War and achieving sustainable growth. Proper management of tourism areas and infrastructure will be essential to improve Thailand’s tourism competitiveness on the global stage.