Key points
- Thailand’s hotel industry is bracing for a challenging season as hoteliers predict steep declines in occupancy levels, particularly due to the absence of Chinese travelers.
- According to the latest “Hotel Operator Confidence Index for August 2025,” more than 57 percent of Thai hoteliers expect a decline in Chinese arrivals in the coming months, with one in four anticipating drops of more than 15 percent compared to earlier this year.
- Beyond safety and pricing, industry insiders also cite a lack of new attractions, minimal government support, and economic uncertainty in source markets as reasons behind the waning appeal of Thailand.
Thailand Hotel News: Growing Worries for the last Quarter of 2025
Thailand’s hotel industry is bracing for a challenging season as hoteliers predict steep declines in occupancy levels, particularly due to the absence of Chinese travelers. Once the country’s most reliable tourism market, Chinese visitors are now holding back, citing safety concerns, rising travel costs, and the stronger baht. At the same time, Vietnam is attracting price-conscious tourists with cheaper rates, deep discounts, and more aggressive promotional campaigns. This Thailand Hotel News report reveals that local operators fear the combined impact could push occupancy rates to their lowest levels in years.
Thai hotels face declining occupancy as Chinese visitors vanish while Vietnam gains the upper hand with lower rates and attractive travel packages
Image Credit: AI-Generated
Industry Confidence Slipping
According to the latest “Hotel Operator Confidence Index for August 2025,” more than 57 percent of Thai hoteliers expect a decline in Chinese arrivals in the coming months, with one in four anticipating drops of more than 15 percent compared to earlier this year. The survey, which covered 104 operators across the country, also found that over a third expect fewer international visitors overall, while 43 percent predict domestic tourism will weaken. Beyond safety and pricing, industry insiders also cite a lack of new attractions, minimal government support, and economic uncertainty in source markets as reasons behind the waning appeal of Thailand.
Cheaper Travelers Filling the Gap
While high-spending groups are vanishing, lower-budget travelers from India, Southeast Asia, Latin America, and parts of Europe are slowly replacing them. Many of these visitors are not checking into traditional hotels but instead staying at hostels, cheap guesthouses, or booking inexpensive AirBnB accommodations. This shift has left mid-tier and luxury hotels struggling to fill rooms, especially in Bangkok, Phuket, and Chiang Mai, where competition for international guests remains fierce. Industry leaders warn that without decisive action, Thailand risks becoming a low-value destination compared to its regional rivals.
Impact on Occupancy and Revenue
The report highlights that hotel occupancy averaged 62 percent in August, lifted slightly by the European summer holiday season. However, forecasts for September point to a dip to just 54 percent. Revenue per available room is also shrinking as properties slash rates in desperation to lure bookings. Compounding the issue, Vietnam continues to lure tourists with affordable packages that include not just accommodation, but also excursions, food, and domestic flights—making Thailand appear overpriced by comparison.
Outlook and Potential Lifelines
Despite the grim picture, some optimism lingers. Thailand still retains strong cultural and natural attractions that can compete regionally if supported with proper promotion. The easing of safety fears in certain areas and the rollout of targeted tourism stimulus projects could provide some relief. Long-haul markets, particularly from Europe and the United States, are showing modest booking growth, especially in four-star hotels across the north and south. But experts agree that unless Thailand repositions itself with new strategies and more competitive pricing, the country’s dominance in regional tourism could continue to erode.
Thailand’s hotel sector now finds itself at a crossroads. If heavy reliance on Chinese and high-spending tourists is not replaced with diversified, sustainable growth strategies, the industry risks long-term damage. Hoteliers are calling for fresh policies, stronger marketing campaigns, and a sharper focus on safety improvements to restore global confidence. Without such measures, the nation could see its reputation shift toward being a budget stopover, losing ground to competitors like Vietnam, Indonesia, and Malaysia.
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