BANGKOK, THAILAND – Thailand’s tourism sector ended the year with falling revenues as southern floods and border tensions with Cambodia weighed on New Year travel.
New Year earnings fall amid crises
The Tourism Authority of Thailand (TAT) expected only 70 to 76.5 billion baht in revenue over the New Year holidays, a decline of two to nine percent from the previous year. TAT governor Thapanee Kiatphaibool said devastating floods had effectively shut down the crucial Malaysian market for southern Thailand. The disaster left key flood-hit areas either unattractive or inaccessible for visitors.
Border tensions curb Asian arrivals
The border conflict with Cambodia in early December continued to deter travellers from sensitive markets such as China, Hong Kong and Japan. Expected foreign arrivals between 20 December and 1 January stood at only 1.4 to 1.5 million, a drop of six to twelve percent compared with 2024. Revenue from international tourism was projected to fall by four to 15 percent, to between 51.6 and 58 billion baht.
Bangkok gains cannot offset southern slump
Only long-haul tourism offered some relief, with bookings from Europe and America rising by six percent. Bangkok was listed as a top winter destination in international surveys, and new flight connections from around the world supported confidence. However, these gains were not enough to compensate for the heavy losses in the flooded south.
Domestic travel edges up
Within Thailand, conditions were somewhat better, with 4.96 million trips expected between 31 December and 4 January, a year‑on‑year increase of seven percent. Domestic tourism revenue was forecast to reach 18.5 billion baht. The nine major New Year countdown events organised by TAT were expected to generate about 4.83 billion baht, aided by the cool winter weather that encouraged Thais to travel.
Thais spend more on trips abroad
A clear trend continued as more Thai residents used the holidays for foreign travel, supported by the strong baht, which made overseas trips cheaper.
“China remains the top destination, thanks to visa-free entry and low-cost flights. Japan ranks second because of the weak yen.”
said Tassanee Kiatkamchornchai, from the travel association. Outbound tourism was expected to grow by 10 to 15 percent this year, meaning more Thai spending flowed abroad rather than into the domestic tourism economy.
Warning sign for tourism strategy
The New Year period underlined the vulnerability of Thai tourism, where external shocks such as natural disasters or political tensions quickly darkened the balance sheet. TAT and the government now faced the challenge of restoring international visitor confidence, with stability and safety identified as key priorities. For 2026, strategies would need to be adjusted to reduce dependence on individual markets, a shift framed as a clear warning by the current downturn.