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Thai hotels face double whammy from tariffs
Bangkok Post
|May 15, 2025
Thai hotels are likely to face secondary effects from the US reciprocal tariffs as slowing tourist arrivals may cause hoteliers to cut prices or introduce more aggressive campaigns at home, while their overseas operations cannot escape the impact of the global economic slowdown.
Spending per person in Thailand is expected to decline 1% next year and stay flat in 2027, attributed to the weaker global economic outlook, said CGS International Securities.
CGS International, a unit of Beijing-based China Galaxy Securities, cut its tourist arrival estimate to 34.5 million for this year from 39 million, down from 35.5 million posted last year. The brokerage’s estimate for 2026 was downgraded to 36.3 million from 41 million.
Tourist arrivals amounted to 9.5 million in the first quarter of 2025, up 2% year-on-year, but 12% below the same period of 2019.
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