The Tourism Authority of Thailand (TAT) is revising its proposed 3.5 billion baht tourism stimulus budget, aiming to bolster international arrivals and meet a 2025 tourism revenue target of 3 trillion baht. The revised plan includes subsidies for chartered flights from China and expanded promotional campaigns with global online travel agents, as the agency adjusts strategies to address softening demand from key foreign markets.
This updated marketing approach reflects Thailand’s downgraded forecast of 35.5 million foreign tourist arrivals for 2025, slightly below the earlier target of 39 million but close to last year’s figures. Despite fewer visitors, the TAT aims to boost foreign tourism revenue by 10% to approximately 1.84 trillion baht, compared to 1.67 trillion baht in 2024. Meanwhile, the domestic tourism revenue target remains steady at 1.17 trillion baht from an estimated 205 million domestic trips, with a co-payment scheme for local tourists planned for the second half of the year.
Initial plans had called for the cabinet to allocate the full 3.5 billion baht for promotional efforts. However, as foreign arrivals in the first four months of 2025 grew just 0.2% year-on-year, with sharp declines from China (down 30%), Hong Kong (down 19%), and South Korea (down 14%), resources will be redirected to strengthen international campaigns. According to TAT governor Thapanee Kiatphaibool, despite a tempered arrival forecast, maintaining a 10% revenue increase will hinge on stimulating higher spending per visitor, particularly from growing markets such as Europe, which saw arrivals rise 16% in early 2025.
Although concerns linger among Chinese tourists following issues such as call centre scams and the March 28 earthquake, TAT maintains that the Chinese market is too significant to overlook. Without intervention, Chinese visitor numbers could fall to 4 million in 2025, from 6.7 million in 2024 and 11 million in 2019. To counter this, the TAT will host the “Sawasdee Nihao” forum on 29 May, gathering 300 Chinese tour agents from across all provinces, in an event expected to be attended by Prime Minister Paetongtarn Shinawatra and security officials, including the Tourist Police chief, to underscore safety initiatives.
Subsidising chartered flights is also part of TAT’s strategy to restore airline seat capacity, which dropped from 8.8 million seats in 2024 to 7.9 million this year. Part of the stimulus budget will fund promotional partnerships with online travel agents to further tap into independent traveler segments worldwide. For domestic tourism, the agency may reduce the number of privileges per participant under the co-payment programme, as past phases saw underutilised benefits leading to unspent funds.
According to TAT projections, the European market is anticipated to generate the highest revenue at 660 billion baht (up 44%), followed by Southeast Asia at 407 billion baht (a 36% increase). The Chinese market is forecast to contribute 313 billion baht, reflecting a 19% decline.
