Southeast Asia's 2nd largest economy sees tourism confidence plummet

By Hoang Vu July 31, 2025 | 06:33 pm PT

Tourists are seen inside the Grand Palace, one of the favorite tourist spots in Bangkok, Thailand, May 20, 2025. Photo by Reuters

Thailand, Southeast Asia's second-largest economy, saw its tourism confidence index drop sharply in the second quarter amid safety concerns and a decline in foreign arrivals.

The index fell to 70, well below the pre-pandemic benchmark of 100. This marks a significant drop from 83 in the first quarter and 79 in the same period last year, according to the Tourism Council of Thailand (TCT).

The figures are based on a nationwide survey of 740 tourism operators conducted between May 25 and June 10.

The council also forecast that Thailand would welcome only 33.3 million foreign visitors this year, down from 37 million in 2024.

TCT President Chai Arunanondchai said the tourism industry is grappling with even greater challenges than last year, citing a series of negative developments, Bangkok Post reported.

The kidnapping of Chinese actor Xing Xing in January linked to a scam syndicate in Myanmar as well as a March 28 earthquake, have deterred foreign travelers, particularly from China.

Arrivals from the Chinese market have dropped by more than 50%.

From Jan. 1 to July 27, Thailand recorded 18.98 million foreign arrivals, down 6.18% year-on-year, according to the Ministry of Tourism. China remained the top source market with 2.64 million visitors during the period.