Tourism revenue for the second half is forecast at 1.46 trillion baht, putting total annual income at 2.8 trillion baht, 25% growth from last year, according to the Tourism Authority of Thailand (TAT).
TAT governor Thapanee Kiatphaibool said the rebound in flight levels as well as promotional campaigns should help lift tourism revenue from international and domestic markets in the second half to grow 23% year-on-year.
Foreign arrivals are expected to tally 18.2 million for the period, generating 964 billion baht in revenue, while the domestic market is estimated to take 103 million trips creating 504 billion baht, according to the agency.
Thailand is expected to welcome at least 35.9 million foreign arrivals this year and record 192 million domestic trips, said Ms Thapanee.
From July to December, international flights should resume to 80% of the level in 2019, a gain of 10% from the same period last year, with around 22 million seats in total.
The agency hopes for robust traffic during the long holidays, including China's Golden Week in October and the New Year holiday.
Top inbound markets in the second half comprise East Asia, Europe and South Asia. China is forecast to be the top inbound country with 3.6 million arrivals, followed by Malaysia (2.6 million) and South Korea (1 million).
To increase the Chinese market, the TAT plans to launch a campaign called "Nihao Month" in September to celebrate the 50th anniversary of diplomatic relations between Thailand and China.
The agency is offering a joint promotion with five Chinese online travel platforms, running from September until the end of the year, as recent travel trends in the country indicate tourists seek destinations offering the best value for money.
Ms Thapanee said the TAT is attracting meeting and incentive groups from India, as well as joining trade shows in the Middle East market.
The agency is also opening a new office in Chicago to cater to growing demand in the Midwest and Canada.
A sluggish Chinese economy and geopolitical risks such as the wars in Ukraine and Gaza could hamper the industry, she said.
Thailand also faces stiff competition from China, Japan, Vietnam and Malaysia, which relaxed visa requirements and launched more aggressive marketing campaigns to draw high-spending tourists.
The TAT held travel campaigns and events across five regions in Thailand to increase domestic tourism.
However, high costs remain a barrier for the domestic market, particularly fuel prices.
Roughly 80% of local travellers prefer driving during their trips, meaning a sharp rise in travel costs might affect travel decisions among locals in the second half, said Ms Thapanee.