Thailand Hotels Brace For Unexpected Growth Slowdown In Third Quarter, Nearly One-third Expect Over Thirty Percent Decline In Chinese Visitors

Published on August 15, 2025

As Thailand’s edifice manufacture enters nan 3rd 4th of 2025, operators are bracing for a slowdown successful overseas visitors, particularly from China, amid rising information concerns. This forecasted downturn comes aft a play of humble growth, pinch hotels reporting an mean occupancy complaint of 58% successful July 2025, up from nan erstwhile month. Despite this affirmative trend, edifice operators are worried astir a important driblet successful nan number of Chinese tourists, pinch almost a 3rd of hoteliers predicting a year-on-year diminution of much than 30%. The alteration successful Chinese arrivals is mostly attributed to concerns complete safety, alongside ongoing challenges successful nan labour marketplace and location capacity disparities. These factors harvester to create a cautious outlook for Thailand’s edifice industry, signaling a much subdued tourism play successful nan upcoming months.

Thai Hotels Predict Q3 Slowdown successful Foreign Visitors, Particularly from China

The Thai edifice manufacture is bracing for a imaginable slowdown successful overseas visitors during nan 3rd 4th of 2025, pinch astir a 3rd of hotels predicting a driblet of complete 30% successful Chinese impermanent numbers. This forecast stems mostly from concerns complete safety, which person impacted recreation patterns.

According to nan July 2025 Hotel Business Confidence Index, Thai hotels reported an mean occupancy complaint of 58% successful July, marking an betterment from nan erstwhile month. This uptick was observed crossed almost each edifice prima ratings and regions, partially owed to nan summertime schoolhouse holidays successful respective countries, peculiarly successful Europe.

Regional Occupancy Trends

The Central region saw nan highest occupancy rate, reaching 67% successful July, a important jump from 61% successful June. The Eastern region recorded a flimsy dip successful occupancy, falling to 58% from 58.7%. Meanwhile, nan South knowledgeable a noticeable improvement, pinch occupancy climbing from 45% successful June to 56% successful July. The North besides witnessed a affirmative trend, expanding from 29.2% to 41%. For August 2025, nan nationalist occupancy forecast stands astatine 56%.

Despite this wide growth, challenges persist. Labor shortages stay a pressing issue, pinch astir hotels reporting that nan shortage is affecting work quality, though not their expertise to accommodate guests. In consequence to these challenges, galore hotels person adjusted their staffing practices. Some person reassigned unit to grip aggregate roles, others person opted for casual, job-based hires alternatively of imperishable staff, and respective person reduced non-labor costs, specified arsenic power and disposable supplies.

Impact of Safety Concerns connected Chinese Tourism

The outlook for overseas tourism, peculiarly from China, is considerably subdued. The Thai Hotels Association’s President pointed retired that nan study reflected expectations of a diminution successful overseas tourer arrivals for Q3 compared to nan aforesaid play past year. This is particularly existent for hotels successful nan Central and Southern regions, wherever Chinese visitors are forecast to statement much sharply than successful different regions.

Nearly 30% of edifice operators successful Thailand are forecasting a simplification of complete 30% successful Chinese impermanent numbers year-on-year. This diminution is attributed chiefly to concerns complete safety, which person had a important effect connected Chinese tourism. An further 18% of hoteliers are predicting a diminution successful Chinese guests by 21-30%, while 19% expect a smaller drop of betwixt 11-20%.

Short-Haul and Long-Haul Market Outlook

In position of nan short-haul market, nan outlook is besides little than optimistic. 28% of hotels foretell a driblet of 11-20% successful visitors, while 26% expect a diminution of nary much than 10%. Some hotels, however, are anticipating a much important fall, pinch 19% of operators expecting a alteration of complete 20% successful short-haul impermanent numbers.

The long-haul market, connected nan different hand, shows immoderate signs of hope. Certain bluish tourer areas are forecast to spot growth. However, nan wide image remains challenging, pinch 27% of operators forecasting a fall of up to 10% successful long-haul tourism. 21% expect a diminution of 11-20%, and 16% foretell a driblet of much than 20%.

Domestic Stimulus Scheme Impact

Regarding nan Thai government’s “Half-Half Thai Travel” home stimulus scheme, which intends to boost section tourism, 47% of hotels reported that nan strategy would person nary effect connected their revenue. However, 28% estimated that nan inaugural would consequence successful a humble 5% summation successful revenue year-on-year. Hotels successful nan Eastern region seemed to use much from this scheme, pinch more than a quarter of them expecting a 6-10% gross increase.

While nan Thai edifice manufacture knowledgeable an uptick successful occupancy successful July 2025, peculiarly driven by European summertime holidays, a much challenging outlook lies up for nan 3rd quarter. Concerns complete information and nan ongoing labour shortages, on pinch nan anticipated driblet successful Chinese tourism, are apt to dampen growth. As nan state continues to navigate these obstacles, nan government’s stimulus measures whitethorn connection immoderate support, peculiarly for home travelers. However, overseas arrivals, peculiarly from short-haul and long-haul markets, are expected to look a reliable roadworthy ahead. The evolving trends awesome a play of accommodation for nan hospitality sector, arsenic it adapts to shifting request and outer factors.