Vietnam's Tourism Grows, Thailand Worries About Losing Competitiveness

January 25, 2026 | 09:06 am

TEMPO.CO, Jakarta – Thailand has been one of Asia's most successful tourist destinations for decades. However, competition with neighboring countries is intensifying. Thailand is beginning to worry about losing out to Vietnam after tourism visits to the country decline by 2025.

According to Thaiger, international tourist arrivals to Thailand will decline by 7.2 percent in 2025, while Vietnam will record growth of 20.4 percent. Vietnam is growing rapidly thanks to a shift in outbound travel trends away from China, improved connectivity, and aggressive infrastructure development.

Competition is intensifying because Vietnam has a sound tourism development strategy. The country is improving connectivity to many countries and tourism facilities, including 12 new airports, a proposed high-speed rail network, and substantial hotel development plans. All of this is part of a long-term strategy to capture regional and global market share.

Bill Barnett, Managing Director of C9 Hotelworks, said that Thailand's tourism industry is at a critical juncture. He believes this is no longer a recovery phase, but a reckoning phase. "Regional competitors are investing billions, and Thailand cannot rely on past success. The choices made now will define the next decade," he said.

Hotels Remain Optimistic

However, the hospitality and investment industries remain optimistic that Thailand remains a destination with enduring appeal as a place to visit and live. However, new entrepreneurial energy is needed to develop new products, experiences, and destinations that appeal to a global audience.

The Tourism Authority of Thailand (TAT) recorded 32.9 million foreign tourists visiting the country from January to December 2025, a 7.2 percent decrease from 35.32 million in 2024.

As reported by the Bangkok Post, this decline is the first in a decade. Travelers' confidence in the country's safety is the cause, following a series of events. Many Chinese tourists canceled their vacation plans to Thailand after actor Wang Xing was kidnapped and then rescued in Myanmar. After that, Thailand was rocked by Myanmar's biggest earthquake in a century, a bloody border conflict with Cambodia, severe flooding in the south, and a political crisis.

Read: Why Thailand Is Labeled 'Tailan' on Indonesia's Latest Map

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