China's hotel giants ignore Thailand - is there a risk of a tourism crisis?

China's hotel giants ignore Thailand - is there a risk of a tourism crisis?

There is a lot of rumblings in the Thai tourism industry: While news of new hotel openings in Southeast Asia is making the rounds on October 31, 2025, Thailand is being left out of the expansion plans of major Chinese hotel chains. Loud LINE Today Hotel groups Jin Jiang International and H World International have big plans to open more than 100 new locations in countries such as Malaysia, Vietnam and Cambodia. But Thailand is not on the list. This decision could further jeopardize the kingdom's already fragile tourism recovery, particularly with regard to Chinese travelers, who have traditionally been an important group of visitors.

The situation isn't getting any easier: Thailand faces a 5 percent drop in international arrivals in 2025. This reports Travel and Tour World. Chinese tourists, who are forecast to fall from over 11 million visitors in 2019 to fewer than 5 million next year, are the main cause of this decline. Various factors, including economic changes and increasing competition from neighboring countries, are contributing to the situation.

Absence of Thailand in expansion plans

The absence of Thailand from the strategies of major hotel chains is alarming. Jin Jiang International, the largest hotel management company in China with over 13,500 hotels, recently – how LINE Today reported – signed a contract that will see the opening of 180 hotels in several countries by 2030. H World Chief Strategy Officer Ji Hong He has made it clear that Southeast Asia is seen as an exciting market, but this does not translate into considering Thailand in its expansion plans.

With the planned developments, the hotel chains want to shine less with Thai locations and more with budget to luxury hotels in the region. What is particularly worrying is that there could be fewer Chinese tourists coming to Thailand in the 2024 period, when 20.4 million Chinese visitors will travel to ASEAN countries.

Current challenges and possible solutions

Despite these challenges, the Thai government has responded as usual and taken measures to support the industry. The “Kha Yeap Pan Din” fee, which is relevant to tourism, has been postponed to mid-2026. Likewise, a subsidy program of THB 350,000 per charter flight was launched and new agreements were made with travel agencies to bring about 150,000 Chinese visitors to Thailand.

The forecasts show some hope: experts are optimistic that the number of Chinese tourists could return to 70-80 percent of pre-pandemic levels by the end of 2026. Until then, Thailand remains challenged to become more attractive to other markets and to continually improve the tourist experience.

During this turbulent time, maintaining a positive image and breaking down barriers for travelers will be of utmost importance. How planned developments, both by hotel chains and government measures, will ultimately impact Thai tourism remains to be seen. What is certain, however, is that Thailand will have to make an effort to avoid falling behind its competing neighbors.