Thai hotels forced to cut room rates

Asian markets continue to sag

- NAREERAT WIRIYAPONG

Thailand's hotel sector is experiencing its first pricing pressure after four consecutive years of rate increases that have nearly doubled average room rates since 2021, as tourists from China and other major Asian markets have dropped significantly, says Tris Rating.

In its latest Industry Spotlight report, Tris projects total tourist arrivals in Thailand of 33.1 million this year, reflecting a slowdown from several traditionally strong Asian markets including China, Malaysia and South Korea, which typically represent Thailand's core tourist base.

However, the decline has been partially offset by notable growth in Indian arrivals. India now ranks among Thailand's top five source markets, supported by robust connectivity with more than 15 cities offering direct flights to Bangkok and Phuket.

In the first 34 weeks of 2025, tourist arrivals tallied 21.4 million, marking a 7% year-on-year decline.