The anticipated impact of US import tariffs is expected to become clear in the next 4-6 months.
The prevailing economic slowdown due to the cost of living crisis may also deter people from travelling, reducing the number of those willing to spend on holidays.
Nonetheless, the industry awaits the outcome of ongoing trade negotiations between “Team Thailand” and the US, particularly concerning blanket import tariffs on goods from 14 countries.
Thailand faces a high 36% tariff rate, commencing 1 August 2025. The results will determine Thailand’s competitive position against its neighbours and the broader trade agreements between the US and other nations.
Thienprasit further commented that while the BOT indicates Chinese tourist numbers are stabilising, restoring safety confidence will take time.
The association notes that daily Chinese arrivals, now over 10,000, are an improvement from 7,000-8,000, but still far from the past peak of 30,000 per day. While not fully satisfactory, there is potential for a return to previous levels.
“I’ve spoken with Immigration Bureau executives who confirmed that Chinese tourists typically stay in Thailand for only 3-5 days on average. Those staying 7-10 days are usually here for work or business rather than pure tourism, but their spending still benefits the economy,” he added.
Regarding the list of 93 countries or territories granted visa-exemption (free visa) for temporary stays of up to 60 days for tourism, business, and short-term work (effective 15 July 2024), the association has “repeatedly” proposed to the government a review and reduction of free visa stay durations for certain markets.
They argue that most tourists come from 30-40 countries, and given varying travel behaviours and average stays, a uniform free visa duration for all countries is unnecessary from a security perspective.
“We believe it wouldn’t be detrimental to reduce free visa stay durations for certain markets, such as China, where it was previously 60 days. It could be cut to 15 days to align with actual tourist behaviour, similar to Japan’s 15-day free visa for Thais, not 60 days. We are waiting to see if the government will act on this, as the private sector has frequently made this proposal, especially since the safety image issues emerged in early 2025,” Thienprasit urged.
Nat Wongpanich, president of the Thai Retailers Association, outlined key strategies to revitalise Thailand’s continuously slowing economy and tourism sector.
The association proposes that the government expedite “Thailand Shopping Paradise” to attract quality tourists, suggesting measures like piloting an immediate 7% VAT refund at participating shops for tourists with a minimum purchase of 3,000 baht, starting in key Bangkok shopping districts.
They also recommend reducing import duties on fashion, clothing, perfumes, and cosmetics, which currently face high tariffs of 20-30% in Thailand.
This would enhance competitiveness with other regional countries, stimulate spending by high-potential tourists, and, crucially, reduce the incentive for purchasing goods from the grey market.
Furthermore, the TRA advocates for establishing Duty-Free Zones in tourist provinces like Phuket to incentivise spending and encourage long-term repeat visits.
They also propose organising nationwide discount festivals, similar to Singapore’s “Great Singapore Sale,” through integrated cooperation among retail stores, restaurants, hotels, and small businesses to create a nationwide shopping atmosphere.
“To stimulate spending and distribute income from quality Russian tourists, who are high-spenders and prefer long stays, we should consider extending their visa validity from 30 days to 45 days after the current scheme ends,” Nat suggested.
Finally, the association views the government’s efforts to tackle “nominee” businesses illegally fronted by foreigners (especially in restaurants, hotels, and supermarkets) and to strictly control “cheap, substandard imported goods” as steps in the right direction, with some positive results already visible. They urge continuous and serious enforcement to ensure fair trade for Thai businesses, particularly SMEs.