BANGKOK, 9 June 2025: Safety concerns have dominated headlines about the decline in Chinese tourists to Thailand, but a senior executive from Fliggy, Alibaba Group’s travel platform, says that rising travel costs are also contributing to the weakening demand. (This report has been updated on 12 June 2025 with a background clarification from Fliggy.)

Fliggy Area General Manager – Southeast Asia, Jason Lu, made the observations to TTRW on current booking trends on the sidelines of the Thailand Travel Mart+ (TTM+) 2025, held in Chiang Mai from 4 to 6 June 2025.

He noted that while destinations such as Japan, Malaysia, Vietnam, Singapore, and South Korea are showing strong growth in the region, at 30 to 40% year-on-year, Thailand has experienced a noticeable decline in demand over the same period.

“IP views, which indicate travel interest, have dropped for Thailand by about 2.6%. In contrast, Japan tripled its numbers in the same period,” the executive explained. “Fewer people are searching, and that translates into fewer bookings.”

Rising hotel costs have played a significant role. Compared to 2019, hotel prices in Thailand have increased by at least 30%. Lu cited his company’s corporate outings as an example, noting that some four-star resorts in Phuket were quoting net prices of THB6,500 to THB7,000. This level becomes difficult to justify for group travel. 

He noted that the company employs around 240,000 staff, and Thailand had long been a popular choice for team-building trips.

By contrast, similar destinations such as Danang in Vietnam and Kota Kinabalu in Malaysia were offering nearly 60% lower rates for comparable experiences, making them increasingly attractive for corporate travel and drawing attention and budgets away from the Kingdom.

However, the outlook isn’t all bleak. Lu believes the market will self-correct, with hotel prices likely to decrease later this year — especially if July and August, typically the high season months, remain soft. 

“Travel isn’t a once-in-a-lifetime thing — it happens every year,” he noted. 

Despite the downturn, Fliggy continues to promote Thailand as part of its broader 618 mid-year campaign. 

“Last year, during this period, we focused solely on promoting Thailand because demand was strong. However, this year, we need to diversify by including other destinations like Malaysia and Singapore to maintain traffic and engagement.” the executive said.

Fliggy, unlike traditional online travel agencies (OTAs), benefits from Alibaba’s integrated ecosystem, which is fundamentally a shopping platform that is demand-driven by price-conscious consumer habits shaped by years of online shopping behaviour.

“In the end, our users want value for money. And when the price is right, they’ll come back,” the Figgy executive concluded.

Fliggy feedback

Thursday, 12 June 2025: Fliggy responded with additional clarification post-TTM

“Fliggy’s data shows that Thailand has consistently been ranked among the most popular outbound destinations for Chinese tourists.
“During the recent Dragon Boat Festival holiday (31 May to 2 June 2025), Thailand was one of the top five most sought-after international travel destinations.
“Over the past week, Thailand hotel bookings have achieved double-digit year-on-year growth, building on last year’s strong performance. Signature Thai experiences like snorkelling, surfing, bamboo rafting, and jungle trekking remain particularly popular with Chinese travellers.
“In November 2023, Fliggy deepened its partnership with the Tourism Authority of Thailand (TAT) to expand joint efforts across multiple areas, including innovative marketing, the development of emerging Thai destinations, the creation of an online service hub for Chinese tourists, and professional talent development.
“The decline in demand and interest, as reflected in IP views, was subject to a number of parameters and should not considered a reliable indicator of travel demand.
“Fliggy does not publicly disclose specific data on demand trends or IP viewership in Asian markets.”

BANGKOK, 9 June 2025: The Tourism Authority of Thailand (TAT) reaffirms its collaborative efforts with the public and private sectors to rebuild trust among Chinese tourists following a reported 32% drop in arrivals. 

The decline has been attributed to safety concerns related to call centre scams amid increasing competition from other destinations.

According to TAT, despite the decrease, China remains Thailand’s top source market, with 1.95 million arrivals recorded from 1 January to 31 May 2025 — a 32.71% drop compared to the same period last year.

Speaking to international media, including those from China, during the Thailand Travel Mart Plus (TTM+) held in Chiang Mai from 4 to 6 June, TAT highlighted the strong presence of international buyers from China. 

Of the 406 international buyers from 53 countries, 33.25% represented the East Asia market, with China topping the list with 97 buyers from both primary and secondary cities — demonstrating a strong commitment to promoting  Thailand to the Chinese outbound travel market.

TAT Governor Thapanee Kiatphaibool emphasised that the Thai government prioritises safety and security, working closely with the Tourist Police and tourism stakeholders to restore confidence among Chinese travellers.

“It is essential to cultivate a renewed perception grounded in experiences that are tangible and meaningful to tourists. Among efforts to enhance travellers’ confidence, we are working with the Thai Hotels Association to address four key priorities to enhance safety for tourists: CCTV coverage for improved security, communication in Chinese and English, transportation infrastructure to ensure access via public transport and taxis, and an efficient payment system to accommodate the cashless preferences of Chinese travellers. These priorities mustn’t be just promises, but they must be seen and felt by travellers.” 

According to the TAT governor, in addition to the existing Amazing Thailand Safety and Health Administration (SHA) certification — which assures hygiene and sanitation standards in line with COVID-19 protocols — TAT and the Thai Hotels Association are considering incorporating these safety enhancements into the existing SHA and Trusted qualification framework, offering hotels a stronger platform to market themselves as safe and reliable to travellers.

Earlier in May, TAT launched “Sawasdee Nihao,” a series of events commemorating 50 years of Thai–Chinese diplomatic relations. The initiative serves as a strategic platform to reposition Thailand’s image in the Chinese market through a push-pull strategy, combining business matching, policy forums, and media engagement. Key activities include a mega FAM trip, celebrity marketing, and safety tools such as the “Nihao Alert” app. Continuing these efforts through TTM+, TAT has maintained its target of welcoming 6.9 million Chinese tourists by the end of 2025.

This year, TAT is using TTM+ as a platform to present Chiang Mai from a fresh perspective, promoting lesser-known experiences. Highlights include the “Wisdom and Wellness Experience” showcase, which celebrates Lanna heritage through award-winning spa therapies, herbal treatments, wellness cuisine, and hands-on workshops. Activities such as Thai scent-making, mindful crafts, and traditional music therapy reflect the essence of Thai soft power.

Nine pre-tour routes were curated to showcase Chiang Mai through activities such as community-based tourism, gastronomy, spa and wellness, and golf. 

Additionally, six post-tour routes offer travel options to destinations in Lampang, Phrae, and Nan provinces, as well as destinations around the country, including Khon Kaen, Rayong, Chantaburi, Prachuap Khiri Khan and Phetchaburi, and Surat Thani. Each route highlights Thailand’s local identity and soft power while integrating sustainable tourism practices. The carbon footprint of each itinerary is being calculated to support environmentally responsible travel.