Thai Hotel Industry Faces First Decline in Five Years

According to the research centre, a number of key factors are contributing to the challenging outlook:

Fewer Tourists: The number of international tourists is projected to fall by 9% in 2025 to approximately 32.2 million. The average length of stay for foreign visitors is also expected to decline.

Lower Occupancy and Room Rates: For the first seven months of 2025, the nationwide occupancy rate was 71.66%, a 0.2% drop year-on-year. The full-year occupancy rate is expected to fall by 2.3% to about 69.83%. Average room rates are also projected to decline by 4% for the year, following a 5% drop in the first seven months.

Declining Other Revenue: Income from meetings and seminars has shrunk due to fewer international events and concerts compared to the previous year. In the first half of 2025, both domestic and international meetings and seminars decreased by 13%.

Rising Costs: Hotel operators are grappling with increased operational costs, especially higher labour wages. However, due to a subdued tourism market and intense competition, they are unable to fully pass these costs on to customers.