Tourist Visits Decline, Tourism Industry of Indonesia's Neighboring Countries Enters Critical Phase

For decades, Thailand has stood as one of the main pillars of global Tourism. The charm of its tropical beaches to historic cities has attracted millions of travelers to Thailand. However, the country's Tourism industry is now on the brink of decline, pressured by rapid changes in the global Travel map and increasing regional competition, especially with Vietnam.

According to Thaiger, the latest data shows a significant shift. International Tourist Arrivals to Thailand fell by 7.2% throughout 2025, a sharp contrast to Vietnam, which surged by 20.4% in the same period. 

This figure serves as a warning signal for Thailand, which has long been comfortable in its position as a top Asia-Pacific destination.

Vietnam's success did not come by chance. The country is seen as quicker to read changing travel trends, especially among tourists from China, while expanding connectivity and accelerating infrastructure development. 

This gap is expected to widen further if Thailand does not adapt immediately.

Vietnam is implementing a long-term strategy to capture the global tourism market share, ranging from plans to build 12 new airports, developing a high-speed Railway network, to large-scale hotel projects in various strategic regions.

Bill Barnett, Managing Director of C9 Hotelworks, believes Thailand's tourism industry has entered a crucial phase demanding a new approach.

He states that strategy is far more important than merely scaling up; it's no longer about recovery, but time to make big decisions. 

"Competitors in the region are investing huge sums, and Thailand cannot keep relying on past glories. The decisions made now will significantly determine the direction of Thai tourism for the next ten years," said Barnett.

Despite increasing pressure, optimism hasn't completely faded. Hospitality industry players and investors still see Thailand as a destination with strong appeal, both as a tourist hotspot and a place to live. 

However, this allure is seen as needing to be accompanied by a new entrepreneurial drive capable of delivering fresh experiences for global tourists.

A similar view was expressed by Managing Partner and Co-Head of Central Group Capital and Head of Hotel and Alternative Investment Division at Central Pattana (CPN), Phoom Chirathivat. He mentioned that optimism remains, though shadowed by caution.

"As an investor, I am naturally optimistic, but remain cautious. This wariness arises from global uncertainties, including geopolitical and security issues. Regionally, competition is intensifying, while domestic economic conditions are also not fully favorable," said Phoom.

One of Thailand's main challenges is its reliance on classic destinations like Phuket, Koh Samui, Pattaya, and Chiang Mai. Phoom believes this approach needs to be expanded by developing other regions that have been overlooked.

The Isaan region in northeastern Thailand, for example, offers cultural richness, unique cuisine, and authentic local community life. 

Meanwhile, Nakhon Sri Thammarat on the southeast coast boasts over 3,000 kilometers of natural coastline, with landscapes that remain tranquil and minimally touched by massive development.