Thailand needs to urgently address the freefall in foreign arrivals, which is more pronounced this quarter among both leisure and corporate travellers, by reforming the sector and creating new destinations, according to a former head of the Tourism Authority of Thailand (TAT).
Yuthasak Supasorn, former governor of the TAT and current chairman of the Industrial Estate Authority of Thailand, said foreign arrivals have contracted 1% this year as of May 11, attributed to a decrease from the East Asian market, which typically comprises 60% of the inbound market.
He said the greatest concern was the Chinese, Hong Kong and South Korean markets, which dropped 31%, 20.8% and 14.9%, respectively.
The Southeast Asian market has contracted by 2.2%, with Vietnam dipping 15%, while the only market in the region that grew was Myanmar, by 13.5%.
Tourist arrivals from China previously averaged 900,000 per month, or 30,000 a day. However, in the first four months of this year, only 13,739 Chinese a day visited Thailand, said Mr Yuthasak.
Total daily arrivals have plunged to less than 60,000 this year, down from an average of 100,000 prior to the pandemic.
Moreover, the Mice (meetings, incentives, conferences and exhibitions) segment also declined in the first quarter of 2025, with the international market plunging 15% and revenue dropping 21% year-on-year.
"We must stop this freefall and halt the crisis in Thai tourism, bringing back tourists and using this opportunity to restructure to attract higher-quality visitors," said Mr Yuthasak.
As safety has become a critical tourist concern, rebuilding the nation's image is insufficient to restore the market, as the hospitality sector needs to be elevated to regain travellers' trust, he said.
Mr Yuthasak said fundamental development in the industry has been neglected for many years, as evidenced by the Travel & Tourism Development index conducted by the World Economic Forum (WEF) in 2024.
According to the WEF, Thailand was 47th in the rankings, down 12 places, the sharpest decline among Southeast Asian nations, with an average score lower than the region in all pillars.
On safety and security, Thailand plummeted by 16 places, while travel and tourism demand sustainability also plunged by 59 places.
Competitors have a stronger reputation than Thailand in terms of safety, so the government should accelerate improvement in this field for tourists by upgrading both products and services, Mr Yuthasak said.
Thailand should encourage tourists to visit new destinations to help refresh perceptions of the country, rather than relying on a few popular but crowded beaches and islands, he said.
In terms of tourism products, he said boosting the high-spending segment in particular was necessary, especially the health and wellness segment as well as business travellers who want to blend their leisure trips together.
"It's time to shift the development approach from a demand-driven to a supply-driven model via quality products," said Mr Yuthasak.
"This involves developing high-value products and services to meet the needs of quality tourists, creating satisfaction and excitement, and strengthening a healthy ecosystem that ensures the fair and equitable distribution of tourism income to local areas and communities."