Thailand Tourism Booms: German, Japanese Tourists Fuel Growth
Strong growth in key markets like Germany and Japan offsets a Chinese slowdown, fueling Thailand’s tourism boom.
Thailand anticipates a robust February for tourism, projecting 3.5 million international arrivals—a 5% year-on-year increase. While most major markets show significant growth, the Tourism Authority of Thailand (TAT) notes a softening in the Chinese market, attributed to ongoing safety concerns. This projection follows a promising start to 2025, with combined January and February arrivals expected to reach 6.9 million.
TAT Governor Thapanee Kiatphaibool highlighted diverse growth across inbound markets. Germany and Japan lead the surge, with projected increases of 20% and 18%, respectively, compared to February 2024. This translates to approximately 124,000 German and 123,000 Japanese tourists expected throughout the month. The Japanese market’s continued momentum from the final quarter of 2024 reinforces its significance to the Thai tourism industry.
Russia remains the largest long-haul market, although its growth is more moderate at 3%, with an estimated 211,000 visitors anticipated. China, despite a projected 7% contraction, remains the largest overall inbound market, with 630,000 expected arrivals in February. Other key short-haul markets contributing to Thailand’s tourism rebound include Malaysia (513,000 visitors), South Korea (198,000), and India (170,000).
Ms. Kiatphaibool attributed the positive growth trend to the resumption of international flights and a corresponding 14% surge in ticket bookings this month, mirroring a 15% increase in seat capacity to 4.3 million. While encouraging, this figure still lags behind the 5 million seats recorded in February 2019, indicating continued recovery potential. The TAT remains optimistic, citing the anticipated positive impact of the upcoming White Lotus Season 3, filmed in Thailand, which is expected to generate further interest and attract more visitors.
However, the Chinese market remains a key variable. Although experiencing 30% growth during the recent Chinese New Year holiday, this fell short of the TAT’s initial 60–70% growth forecast. The situation requires careful monitoring, as it significantly influences overall arrival numbers.
The domestic tourism market also shows promise, with a projected 33.9 million trips in the first two months of 2025—a 2% year-on-year increase. This is expected to generate 169 billion baht, an 8% increase compared to the same period last year, further bolstering the overall tourism sector.
Thienprasit Chaiyapatranun, President of the Thai Hotels Association, offered further insight. While nationwide hotel occupancy reached a healthy 74% in January, it is predicted to dip slightly to 68% in February. Revenue growth was observed across most markets in January, except for the stagnant Chinese market. Looking ahead, approximately 70% of Thai hotels anticipate raising room rates in the first quarter of 2025, with increases ranging from 5% to over 10%, particularly among four-star and higher-rated properties.
This mixed picture of growth and challenges underscores the dynamic nature of Thailand’s tourism sector. While the recovery trajectory appears positive, sustained growth will depend on navigating factors such as the evolving Chinese market situation and maintaining momentum from other key international markets.