Former Tourism Authority of Thailand (TAT) Governor Yuthasak Supasorn has warned that Thailand’s tourism industry can no longer sustain the country’s economy on its own, as declining visitor numbers, high household debt and growing regional competition weaken its contribution to economic growth.
According to a report by The Nation published on October 17, Yuthasak argued that Thailand must reduce its dependence on tourism and develop other industries capable of supporting long-term economic growth.
Thailand welcomed 32.97 million foreign tourists in 2025, down 7.23% from 2024 and well below the pre-pandemic record of 39.9 million in 2019. International tourism revenue also fell 4.71% to approximately 1.53 trillion baht.
The outlook for this year remains uncertain, with Kasikorn Research Center forecasting 31.36 million international arrivals, a further decline of 4.9%.
Recent figures from the Ministry of Tourism and Sports reinforce those concerns. Thailand recorded 23.94 million foreign arrivals between January 1 and October 10, down 4.04% year on year.
Yuthasak identified the loss of Chinese visitors as a major concern. Thailand previously attracted more than 11 million Chinese tourists annually, but numbers have weakened substantially amid safety concerns and stronger domestic tourism promotion in China.
Although travellers from Europe and the Middle East generally spend more per visit, their smaller numbers have been insufficient to compensate for the decline in Chinese arrivals.
Thailand also faces stronger competition from Vietnam, which offers comparatively lower travel costs, and Japan, where the weaker yen has made holidays and shopping more affordable.
Another concern is the amount of tourism revenue leaving the country. Research cited by The Nation estimates that approximately 28.37% of tourist spending flows overseas through imported goods, foreign business profits and international booking platforms.
Meanwhile, high household debt is restricting domestic spending, prompting Thai travellers to choose shorter, cheaper holidays and putting additional pressure on smaller hotels.
Yuthasak argued that Thailand’s tourism industry should focus on retaining more visitor spending through local businesses while the wider economy expands into advanced manufacturing, technology and green industries.
His recommendations align with a World Bank report published in February, which identified electric vehicles, solar technology and energy-efficient equipment as promising growth sectors.
The World Bank noted that green products already account for nearly 10% of Thailand’s exports, with opportunities to develop higher-value industries and employment.
Yuthasak maintained that tourism would remain important to Thailand, but warned that its long-term economic resilience would depend on developing a more diversified economy rather than relying on ever-growing visitor numbers.
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