Thailand’s Tourism Faces Setback As Border Tensions Affect Hotel Occupancy, While Vietnam Sees Record Growth In Visitors

Published on August 30, 2025

The tourism manufacture successful Thailand is suffering a awesome rustle owed to nan existent separator conflicts pinch Cambodia, starring to a reduced complaint of overseas arrivals which will successful move trim edifice occupancy by much than 10%. On nan different hand, it seems that Vietnam is witnessing a tourism roar arsenic a consequence of fierce visa policies and debased pricing which leads to a surge successful overseas tourists. Thailand is presently trying to woody pinch nan issues astatine manus while astatine nan aforesaid time, proactive policies from Vietnam person boosted nan federation to a increasing hub successful Southeast Asia pinch accrued visitors walking to nan country, frankincense expanding nan nation’s stock successful nan region.

The latest Thailand–Cambodia separator disputes person far-reaching ramifications that could trim edifice occupancy rates successful Thailand’s tourism assemblage by complete 10% annually. At nan aforesaid time. Vietnam is seeking to marque itself arsenic an emerging destination by expediting its tourism policies to tie successful much travelers. Vietnam’s timely action to recreation challenges overseas, particularly its fierce visa policies, is paying off, peculiarly successful position of overseas tourer arrivals.

Thailand’s Tourism Setback Amid Border Tensions

Thailand has agelong been a staple of Southeast Asia’s tourism, pinch millions flocking to its beaches, vibrant cities, and taste practice sites each year. However, caller separator tensions pinch Cambodia, which began past month, person raised concerns complete nan effect connected Thailand’s tourism industry. Bill Heinecke, nan president of Minor International — 1 of Asia-Pacific’s largest hospitality and edifice companies — has noted that since nan clashes, location has been a marked simplification successful nan number of overseas visitors visiting Thailand.

The effect has been peculiarly evident successful cities for illustration Bangkok and Phuket, which are usually favorites among world travelers. Heinecke besides observed a diminution successful U.S. visitors to Thailand, citing nan separator issues arsenic a contributing factor. The governmental instability astatine nan separator appears to beryllium dissuading travelers from choosing Thailand arsenic their preferred destination. According to caller reports from nan Bangkok Post, Minor hotels successful Thailand person seen less overseas bookings, which is exacerbating nan diminution successful nan country’s wide tourism numbers.

According to nan Thai Ministry of Tourism, Thailand welcomed complete 21 cardinal overseas visitors from January 1 to August 24, 2025 — a driblet of 7.14% compared to nan aforesaid play past year. If nan inclination continues, Thailand’s full overseas arrivals this twelvemonth could autumn by 10%, which would further effect edifice occupancy rates crossed nan country.

Challenges to Thailand’s Hotel Sector

Thailand’s edifice manufacture has been heavy limited connected world visitors, and nan caller separator tensions are apt to trim nan number of tourists, particularly from countries for illustration nan U.S., Europe, and neighboring Asian nations. The alteration successful overseas arrivals is having a cascading effect connected nan hospitality sector, peculiarly successful position of edifice occupancy. Hotel owners and operators are already bracing for lower-than-expected occupancy rates for nan remainder of nan year.

Thailand’s enduring charm — pinch its vibrant culture, stunning beaches, and budget-friendly options — continues to pull visitors, but caller challenges whitethorn punctual visitors to see different destinations. The request for accommodation, peculiarly successful apical tourer spots, is being affected, and without a important boost successful nan number of world arrivals, Thailand’s tourism manufacture could look challenges successful maintaining its starring position successful nan region.

Vietnam: A Rapid Growth Trajectory Amidst Tourism Reforms

In stark opposition to Thailand, Vietnam is making awesome strides successful boosting its tourism industry. The country’s tourism assemblage has seen exceptional growth, pinch overseas visitant arrivals successful nan first 7 months of 2025 reaching 12.2 cardinal — a 23% summation year-on-year. Vietnam’s authorities is aggressively pursuing policies to heighten its tourism appeal, and these efforts are already yielding results. One of nan cardinal measures has been nan preamble of sweeping visa reforms designed to pull much world travelers.

In August 2025, Vietnam waived visa requirements for citizens of 12 further countries, including Belgium, Bulgaria, Croatia, Czechia, Hungary, Luxembourg, nan Netherlands, Poland, Romania, Slovakia, Slovenia, and Switzerland. This move expands nan full number of countries benefiting from Vietnam’s unilateral visa waiver database to 24, pinch a full of 39 countries now eligible for visa-free entry. ASEAN personnel countries are already portion of nan visa-waiver program, and these changes awesome nan government’s committedness to facilitating seamless recreation for tourists.

These visa reforms are apt to beryllium a game-changer for Vietnam’s tourism industry, making it easier for world travelers to sojourn and research nan country. With its expanding number of nonstop flights, improved infrastructure, and visa-friendly policies, Vietnam is quickly positioning itself arsenic 1 of nan astir accessible destinations successful Southeast Asia.

Vietnam’s Hospitality Industry Booms

Vietnam’s edifice manufacture is besides benefiting from nan surge successful world tourism. According to a caller study by world edifice usability IHG Hotels & Resorts, Vietnam’s edifice assemblage saw a 13.2% year-on-year summation successful occupancy rates successful nan first 5 months of 2025. Moreover, nan state knowledgeable a 16.5% emergence successful gross per disposable room (RevPAR), further underscoring nan affirmative effect of accrued overseas arrivals.

Leisure recreation from China, 1 of Vietnam’s largest tourism markets, has seen a melodramatic rise, pinch a 47% summation successful travelers from nan mainland. In addition, long-lead business for IHG’s hotels successful Vietnam accrued by 10%, showing that Vietnam is becoming a favored destination for some business and leisure travel.

These trends propose that Vietnam is becoming an progressively charismatic destination for travelers seeking some taste immersion and modern amenities. The emergence successful edifice bookings and favorable pricing makes Vietnam an appealing action for visitors seeking affordable yet high-quality accommodations. The country’s comparatively debased costs of living, caller resorts, competitory pricing, and all-inclusive packages (often costing half of what they would successful Thailand) are further boosting Vietnam’s position successful nan tourism market.

The Future of Southeast Asia’s Tourism Market: Vietnam vs. Thailand

As Vietnam’s tourism assemblage continues to grow, experts person raised concerns that nan state whitethorn soon surpass Thailand successful position of overseas tourer arrivals wrong nan adjacent 2 to 3 years. Thanet Supornsahasrungsi, president of nan Association of Chon Buri Tourism Federation, highlighted that Vietnam’s increasing appeal, mixed pinch its competitory pricing and caller tourism infrastructure, could soon make it a ascendant subordinate successful Southeast Asia’s tourism landscape.

Vietnam’s tourism assemblage is presently benefiting from a little costs of surviving compared to Thailand, which makes it an charismatic destination for some semipermanent visitors and short-term tourists. The entreaty of Vietnam’s divers offerings — from bustling cities for illustration Ho Chi Minh City and Hanoi to tranquil beaches and taste landmarks for illustration nan UNESCO-listed Hoi An — continues to resonate pinch world travelers.

Second-Tier Cities successful Thailand: An Untapped Potential

Thailand’s tourism strategy must germinate to support gait pinch nan increasing title from emerging destinations for illustration Vietnam. Industry experts, including Damien Pfirsch, propose that Thailand should attraction connected enhancing infrastructure to amended nexus travelers to its lesser-known cities, creating caller experiences beyond nan main tourer hubs. These cities, including Chiang Mai, Khon Kaen, and Ayutthaya, connection unsocial experiences beyond nan well-trodden paths of Bangkok and Phuket.

Second-tier cities successful Thailand are becoming progressively celebrated pinch visitors looking for a much authentic experience. By diversifying its offerings, Thailand could create caller opportunities for travelers and guarantee that its tourism assemblage remains robust successful nan look of rising title from neighboring countries.

Southeast Asia’s Evolving Tourism Landscape

The tourism scenery successful Southeast Asia is undergoing noticeable shifts, reflecting important changes successful nan region’s recreation trends. Thailand is facing challenges owed to Phnom Penh’s governmental tensions pinch their state which has affected edifice occupancy and overseas arrivals, The undisputed leader successful nan region Thailand, is struggling pinch edifice occupancy. In turn, low-cost travel, booming edifice sector, and proactive visa policies are driving tourism successful Vietnam, allowing nan state to scope awesome lengths.

Border disputes pinch Cambodia are negatively impacting Thailand’s tourism by much than 10% successful edifice occupancy. Conversely, tourism successful Vietnam is excelling owed to its caller policies regarding visas and debased pricing which raised tourism to caller levels, making Vietnam a bigger contender successful Southeast Asia tourism market.

As maturation accelerates successful nan tourism market, Thailand needs to reevaluate their attack to clasp world travelers to nan region. Enhancing infrastructure and expanding divers tourism offerings successful secondary cities tin pull much visitors and create caller recreation experiences. In competing pinch Vietnam and different emerging tourism markets successful Southeast Asia, these factors will beryllium crucial. In addition, it seems that travelers are veering towards nan convenience and affordability that Vietnam has to offer.