Thailand’s tourism faces formidable challenges

BANGKOK, 9 January 2025: In a recent report by the Deloitte Thailand team, Thailand is set to shine in 2025 as its tourism industry prepares to play a pivotal role in the nation’s economy. 

The “Land of Smiles” is evolving to meet global and domestic challenges with resilience and creativity. Tourism, a key pillar of Thailand’s GDP, is estimated to generate USD67 billion in 2025, with 36 to 39 million visitors expected for the year up from around 34 million in 2024. 

Photo credit: Andrew Wood. Bangkok’s riverside skyline.

However, the industry faces pressing issues, such as climate change. Rising temperatures threaten popular outdoor attractions, but Thailand is not backing down. 

According to Deloitte Thailand Executive Director Dr Narain Chutijirawong, tourism is poised to drive the country’s economic growth in 2025.

2025: Tough climate change challenges 

Creative solutions, such as shaded outdoor spaces, innovative indoor cultural hubs, and climate-resilient infrastructure, have been recommended to ensure Thailand remains a top destination. One of the brightest prospects is the growth of “creative tourism,” which includes interactive museums, performing arts, and music venues. These offerings could attract more visitors while diversifying Thailand’s appeal beyond beaches and temples.

The Thailand Development Research Institute has also emphasised the urgent need to adapt tourism infrastructure to climate change. By blending tradition with innovation, Thailand creates unique experiences that cater to travellers seeking something different, reinforcing its reputation as a forward-thinking destination.

However, challenges remain. Climate adaptation is only one piece of the puzzle. Economically, Thailand must navigate shifting global trade dynamics, including potential US tariff increases and resource shortages. Despite these hurdles, the country’s low inflation and stable monetary policies provide a strong foundation for growth.

The tourism industry must also embrace advanced technologies to enhance efficiency and deliver personalised experiences for visitors. Deloitte experts recommend businesses set clear goals and adopt technologies, including AI, responsibly, ensuring proper workforce training and robust data security measures.

Thailand’s ability to thrive in 2025 will depend on its commitment to sustainability, innovation, and strategic planning. By addressing challenges head-on and building on its cultural and natural strengths, Thailand is poised to remain one of the world’s favourite destinations while shaping a brighter, more resilient future.

(Source: Andrew Wood)

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