Thailand Trades Mass Tourism for Higher Spending

Thailand is restructuring one of Asia’s largest tourism industries after foreign arrivals failed to regain their pre-pandemic peak. The government is no longer treating record visitor numbers as its main measure of success and is shifting attention towards travellers who stay longer and spend more on healthcare, wellness, sport, gastronomy, festivals and premium accommodation.

Thailand steps away from the tourism numbers race

Thailand expects to receive about 33 million international visitors in 2026. That would be broadly in line with the 2025 result but far below the record 39.8 million arrivals registered in 2019.

Should the final number fall below last year’s 32.97 million, Thailand would record two consecutive annual declines in international arrivals for the first time since at least 1995, excluding the pandemic period. The government no longer views such an outcome solely as a failure, as revenue generated by each trip is becoming the more important measure.

An international visitor currently spends about $1,500 per trip. Officials ultimately want to raise the amount to approximately $2,400, an increase of 60%. International tourism receipts, however, are projected to rise only marginally from 1.54 trillion baht in 2025 to 1.55 trillion baht in 2026.

The Business Times reported that the revised strategy is targeting medical patients, wellness visitors, golfers, marathon runners and people travelling for concerts and festivals. These groups generally remain in Thailand longer and buy a wider range of services.

The large difference between the spending ambition and the nearly flat revenue forecast illustrates the difficulty of the transition. Higher expenditure by individual travellers may not immediately replace the money previously generated by millions of conventional holidaymakers.

Tourism remains a foundation of Thailand’s economy

Tourism and related activities account for about one-fifth of the Thai economy. Foreign demand supports hotels, restaurants, markets, transport companies, diving schools, tour operators, shops and hundreds of thousands of small family businesses.

The infrastructure of Phuket, Chiang Mai, Pattaya, Koh Samui and several coastal provinces was developed around large visitor volumes. Revenue at a small hotel or restaurant depends primarily on occupancy and customer turnover, which makes it difficult to compensate for fewer guests through the spending of a limited affluent group.

A premium traveller may pay a substantial amount to a private hospital, international hotel group or luxury shopping centre. Much of that expenditure may remain concentrated among a small number of large operators and deliver limited benefits to markets, drivers, independent restaurants and local suppliers.

The higher-value model will benefit the wider economy only if additional spending moves through the entire tourism supply chain rather than remaining inside integrated resorts and medical facilities.

Medical care and wellness become growth priorities

The Tourism Authority of Thailand is building its 2026 programme around a value-over-volume principle. The country had welcomed more than 14 million international visitors by June 2, generating approximately 679 billion baht. Its full-year target is 33 million foreign arrivals and 2.65 trillion baht in combined domestic and international tourism revenue.

Promotion now focuses on preventive medicine, longevity programmes, rehabilitation, traditional healing, spas, gastronomy and nature-based travel. Major events include the Global Wellness Summit in Phuket, the International Monetary Fund and World Bank annual meetings, Tomorrowland Thailand, the Bangkok marathon and several international sporting competitions.

Thailand’s wellness economy was valued at $42.7 billion in 2024. The country plans to combine its private hospitals, traditional treatments, resort capacity and international transport network while promoting environmental hotel standards, regional food routes and trips to less familiar provinces.

Such diversification could reduce the industry’s dependence on beach holidays and seasonal demand. A patient or wellness customer usually books more nights, uses local transport, purchases meals and may travel with accompanying relatives.

Long-haul markets are expected to offset Asian weakness

Thailand is expanding promotion in Europe and North America. Marketing events have been held beyond London in cities such as Oxford and Manchester, targeting customers able to purchase higher-priced flights, accommodation and specialist services.

Long-haul visitors generally stay longer than travellers arriving from neighbouring countries. Europeans and Americans are more likely to spend two or three weeks in Thailand, visit several provinces and pay more for hotels, restaurants and excursions.

Thailand cannot abandon Asia’s mass market. China, Malaysia, India, Russia and South Korea continue to account for a large share of hotel and airport demand. Weakness in any of these markets quickly affects accommodation, retail and transport revenue.

Chinese arrivals have yet to return to their pre-pandemic scale. Before 2020, China was the main source of Thailand’s tourism expansion. The recovery has been constrained by changing consumer preferences, economic uncertainty, safety concerns and stronger competition from Japan, Vietnam and other Asian destinations.

Expensive fuel restricts air connectivity

Foreign visitor numbers and tourism receipts declined again in April 2026, particularly in short-haul markets. Airlines reduced some services because of higher fuel costs, while arrivals from Europe and the Middle East remained subdued.

Conditions partially improved in May as long-haul services recovered and arrivals from China and Malaysia increased during extended holidays. Other South-east Asian markets remained weaker because of high energy costs, reduced flights and cautious demand.

The Bank of Thailand said tourism fluctuations were already affecting hotels, restaurants and private consumption. Rising fuel prices increase fares and reduce the amount travellers can spend after arriving in the country.

Reliable aviation is especially important for medical and wellness travel. Patients, families and older customers are more likely to require direct flights and predictable connections. Route reductions could therefore affect the same high-value groups Thailand is seeking to attract.

Visa rules are becoming more restrictive

Thailand’s Cabinet approved the removal of the blanket 60-day visa-exemption scheme for citizens of 93 countries and territories in May 2026. The replacement framework provides visa-free stays of up to 30 days for 54 countries and territories and up to 15 days for three. The visa-on-arrival list is due to fall from 31 jurisdictions to four.

The government has linked the changes to illegal employment, overstays and the use of tourist status for unauthorised business activities. The rules will take effect 15 days after the relevant Interior Ministry notices are published in the Royal Gazette. Until publication occurs, the implementation date should not be treated as final.

A traveller taking a conventional one- or two-week holiday will experience little difference. The impact will be greater for winter residents, remote workers, retirees and patients requiring lengthy recovery periods.

The visa revision creates a policy tension. Thailand wants visitors to stay longer and spend more while shortening the standard visa-free period. Longer-term visa categories may partly address the issue, but they involve additional applications, documents and costs.

Thailand’s price advantage is weakening

Thailand’s tourism expansion was historically supported by affordable accommodation, extensive services and a favourable exchange rate. A stronger baht and rising domestic costs have gradually reduced that advantage.

Hotels, restaurants and transport operators face higher expenditure on energy, imported goods and labour. Passing those costs to customers makes Thailand less attractive to families and middle-income travellers.

Prices can rise without weakening demand only when service quality improves at the same time. Affluent visitors expect higher standards of safety, transport, cleanliness, healthcare, beach management and staff training.

A higher-spending strategy therefore requires investment beyond advertising. Thailand will need to upgrade destinations, control development, improve public transport and reduce environmental pressure in heavily visited areas.

Vietnam increases competition for tourism spending

Vietnam received almost 21.2 million international visitors in 2025, an increase of 20.4% from the previous year. The total exceeded the 2019 level by 17.8% and set a national record.

Growth was supported by additional international flights, more accessible visa policies, expanded hotel capacity and promotion of destinations beyond Hanoi and Ho Chi Minh City. Vietnam remains smaller than Thailand by total arrivals but is expanding faster and retains a lower-cost position.

Indonesia is also developing premium tourism in Bali and other islands. Governments across the region are investing in airports, resort property, marinas and wellness facilities.

An affluent visitor can now compare Thailand with several neighbouring destinations rather than only with European resorts. When service standards are similar, airfare, entry procedures and infrastructure become decisive factors.

Average spending does not show where the money goes

Average expenditure can rise because of a relatively small number of extremely expensive trips. A procedure at a private hospital or a long villa stay may lift the national figure even while most hotels and restaurants lose customers.

For regional economies, revenue distribution matters as much as the total. International hotel groups may transfer part of their profit abroad, while integrated resorts can rely heavily on imported goods.

More useful indicators would include average length of stay, occupancy across different hotel categories, expenditure outside Bangkok and Phuket, repeat visits and revenue earned by smaller local companies.

As International Investment experts report, the move from mass tourism towards wealthier customers is economically understandable, but the available figures do not yet demonstrate that the transition has been completed. Thailand wants to increase spending per trip by about 60%, while projected international receipts for 2026 are expected to rise by less than 1%. Expensive flights, stricter entry conditions and the concentration of expenditure in large hospitals and hotels could limit the benefits for employment and small businesses. The strategy should ultimately be judged by the amount of tourism revenue retained in provincial and local economies rather than by average visitor spending alone.