Thailand switches its tourism focus

Thailand is switching its tourism focus with the average number of tourists from Asia that visit having dropped.

The Tourism Authority of Thailand (TAT) reported the Asian nation had 9.5 million international arrivals in the first quarter of 2025, growing 2% year-on-year, which generated 471 billion baht, a 7% year-on-year increase, the Bangkok Post reported.

The main Asian markets, including China, Hong Kong, Taiwan, South Korea and Vietnam, decreased by 17% on average in the period due to declining safety confidence in Thailand and reduced flight numbers.

Natthriya Thaweevong of the Tourism and Sports Ministry and the TAT said the focus should be on long-haul markets, which typically spend more per person than Asian markets.

Although US tariffs are expected to impact the global economy, the ministry believes that European tourists may avoid travelling to the US and instead turn to Asian destinations, presenting an opportunity for Thailand to attract more European visitors.

Based on tourism projections for the second quarter of 2025, the markets with high potential for Thailand include Sweden, Saudi Arabia, Austria and the UK.

Natthriya said the markets that were still able to increase air ticket bookings by 10% in the second quarter were mostly from Europe, comprising the UK and Germany, along with Israel, Australia and South Korea.

Thailand has also been advised to showcase festivals like Songkran (top image) and Loy Krathong, which possess cultural and tourism potential - yet remain underleveraged in driving international travel.

Despite high levels of global awareness, participation remains low due to concerns over safety, festival management, and infrastructure.

A recent study by Sasin Management Consulting (SMC) Sasin School of Management, Chulalongkorn University revealed that only a fraction of international tourists visits Thailand specifically for these celebrations.

I actively avoid Thailand during Songkran, so maybe I am not the target market here.



Research conducted by Sasin Management Consulting (SMC) said there is there's a significant gap between awareness and actual visitation.

The survey of 2,200 potential international tourists showed that while 75% were aware of Songkran, the New Year water festival, only 20% had traveled to Thailand to experience it first hand. 

A similar trend appeared for Loy Krathong, known as the ‘festival of lights’ with over 50% aware of the festival, yet only 16% having visited during the celebration.

An appetite for cultural experiences was detected with 70% of respondents praising Thailand's rich cultural value.

To learn more about the recent study by Sasin Management Consulting (SMC), see https://www.chula.ac.th/en/highlight/231879/

Hotel sells for a record price

So you fancy owning a five-star hotel in Sydney?

You'd better have very deep pockets.

The Hilton Hotel (above) in the Sydney CBD was this week sold to a major Asian private equity firm for $530 million – the largest single-asset transaction on record in the Australian hospitality sector, Hotel Management magazine reported.

Baring Private Equity Asia’s (BPEA) announced on Thursday that its affiliated real estate funds, BPEA Real Estate, had acquired the 587-room Hilton Sydney at 488 George Street.

BPEA Real Estate, Head of Australia, Paul Gately, described it as a ‘great opportunity’ and expressed his confidence in the local real estate market.

“We are excited to be a part of the next chapter of one of the most famous hotels in Australia,” Gately said.

“The Sydney Hilton is an iconic hotel, well-known to business and leisure travellers alike, while its restaurants, bars, and conference facilities have played host to Sydney locals for years.

“Quality assets in prime locations like the Sydney Hilton are tightly held and don’t become available often, so it’s a great opportunity for the BPEA Real Estate team. We have a strong conviction about the long-term outlook for Australian real estate and are excited about the potential of finding similar opportunities across a variety of sectors.”

The Hilton - built in 1974 - includes award-winning food and beverage venues, events and conferencing facilities and luxury retail outlets.

The company intends to make significant investment in the hotel with plans to upgrade and expand guest rooms, food and beverage outlets and front and back of house operations.