The number of foreign tourists visiting Thailand is expected to decline in 2025 for the first time in three years, raising the question of whether the Thai tourism sector will continue to be a significant driver of the economy.

The Kasikorn Research Center believes that tourism still plays a crucial role, as reflected in the projected positive net tourism income. However, the support for the economy in the near future is at risk of diminishing. In 2025, net tourism income is expected to be 2.38 trillion baht, a decrease from the previous year due to several factors: 1. High competition in the foreign tourism market, 2. Thai citizens continuing to travel abroad, and 3. While Thais are traveling domestically, they are spending more cautiously.

What should be done to revive the tourism sector and support the Thai economy?

In the short term, we believe that quickly restoring tourists' confidence is crucial. In addition to stimulating domestic tourism through the 'Half-Half Thailand' project in the second half of the year, the government should have plans to stimulate the foreign tourist market with different strategies, including: 1. Short-stay groups that spend high per day, such as from China and Singapore, 2. Long-stay groups that spend less per day, such as from Europe and America, and 3. Long-stay groups that spend high per day, such as from the Middle East.

For the longer term, there should be increased support for tourists traveling for purposes other than leisure. At the same time, enhancing the ecosystem to focus on high-value tourism is an immediate course of action, whether it be Gastronomy Tourism, Medical Tourism, Wellness Tourism, or Sustainable Tourism, as spending per trip in these tourism markets is estimated to exceed normal levels by at least 20-30%.