Vietnam Joins China, Japan, Hong Kong, South Korea, Taiwan and More Countries as ASEAN Tourism Boom and Strategic Visa Advantages Pressure Thailand to Reinvent Travel Experience and Spotlight Chiang Rai, Nan, Udon Thani, Trang, Chanthaburi, Nakhon Si Thammarat and Buri Ram

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Vietnam Joins China, Japan, Hong Kong, South Korea, Taiwan and More Countries as ASEAN Tourism Boom and Strategic Visa Advantages are driving a surge of travellers to Thailand, prompting the country to rethink and enhance its travel offerings. The combination of increased regional mobility, attractive visa policies, and growing interest in authentic cultural experiences is putting pressure on Thailand to spotlight emerging destinations like Chiang Rai, Nan, Udon Thani, Trang, Chanthaburi, Nakhon Si Thammarat, and Buri Ram, ensuring that visitors enjoy diverse, immersive, and well-managed travel experiences while easing congestion in traditional tourist hubs.

Thailand, long regarded as the crown jewel of Southeast Asian tourism, now faces increasing pressure as Vietnam emerges as a rapid-growth competitor in the ASEAN tourism market. With the rise of strategic visa advantages, aggressive promotion, and an innovative digital ecosystem, Vietnam has triggered a wake-up call for Thailand to modernise its tourism strategy, enhance traveller confidence, and prioritise secondary destinations such as Chiang Rai, Nan, Udon Thani, Trang, Chanthaburi, Nakhon Si Thammarat, and Buri Ram.

The post-pandemic tourism landscape in Southeast Asia has shifted dramatically. Changing traveller behaviours, increased long-haul competition, and regional rivals’ aggressive moves have created a highly competitive environment. Thailand, which welcomed nearly 40 million foreign visitors in 2019, is experiencing structural challenges, while Vietnam has become a powerful force in the region’s tourism sector.

Key Countries Driving ASEAN Tourism Competition

The current tourism dynamics involve the following key countries:

• Vietnam – Emerging as the fastest-growing tourism hub in Southeast Asia, driven by infrastructure investment, digital platforms, and visa flexibility.
• China – A historically critical source market for Thailand, with arrivals decreasing in recent years, highlighting vulnerability in East Asian dependency.
• Japan – Significant long-haul market contributing to regional tourism competition.
• Hong Kong – Key East Asian visitor source, particularly for urban and cultural tourism.
• South Korea – Vital market for both Thailand and Vietnam, supporting leisure and MICE tourism.
• Taiwan – Important for high-value long-haul tourism with repeat visitation trends.
• ASEAN region – Regional tourism players including Malaysia, Singapore, Indonesia, and the Philippines contribute to intra-regional competition and collaborative opportunities.

These countries collectively shape the competitive landscape for Thailand and Vietnam, with Vietnam leveraging visa policies and digital solutions to accelerate growth.

Thailand’s Current Tourism Landscape

Thailand’s tourism sector rebounded by more than 26% in 2024 following the pandemic. However, 2025 showed a slowdown, with foreign arrivals decreasing to 32.97 million, down 7.23%, and revenue from international tourists falling 4.71% to 1.53 trillion baht. A significant factor was the sharp decline in Chinese arrivals, which dropped by 33.8%, recovering to only around 40% of pre-Covid levels. Although long-haul markets improved, they could not fully offset losses from Thailand’s key East Asian markets.

Thailand continues to lead in visitor volume and global recognition. Its tourism brand, product diversity, and hospitality infrastructure remain robust, supporting both leisure and MICE segments. However, emerging competitors such as Vietnam are making significant strides by combining aggressive marketing, digital innovation, and policy flexibility.

Vietnam’s Tourism Surge

Vietnam achieved record-breaking growth in 2025. International arrivals reached approximately 21.1–21.2 million, a 20.4% increase from 2024, surpassing pre-pandemic levels by 17.8%. Tourism revenue exceeded 1 quadrillion dong (around US$39 billion or 1.27 trillion baht), reflecting both volume and growing long-haul market appeal.

Key factors in Vietnam’s success include:

• Visa Flexibility: Dual visa policies providing 45-day exemptions for select countries and 90-day e-visas for international travellers worldwide.
• Digital Tourism Infrastructure: Development of the “Visit Vietnam” super app, integrating AI and blockchain for seamless visitor information and bookings, scheduled for completion by 2027.
• Infrastructure Investment: Expansion of airports, hotels, and transport connectivity, making secondary destinations more accessible.
• Strategic Promotion: Aggressive marketing campaigns and international outreach to attract new source markets.

Vietnam plans to attract 25 million international visitors and generate 150 million domestic trips in 2026, with total revenue targeted at approximately 1.125 quadrillion dong (around US$45 billion or 1.47 trillion baht). While growth has been volume-driven, there is increasing focus on improving per-visitor spending and travel experience quality.

Thailand vs Vietnam: Strategic Divergence

Thailand’s approach is anchored in quality tourism under the “Up Level, Add Story, Create Value” strategy. The country aims to increase total tourism revenue to 3.4–3.5 trillion baht. Thailand focuses on:

• Promoting secondary destinations such as Chiang Rai, Nan, Udon Thani, Trang, Chanthaburi, Nakhon Si Thammarat, and Buri Ram to relieve pressure on traditional hotspots.
• Enhancing premium tourism, targeting digital nomads, wellness travellers, and MICE visitors through the Destination Thailand Visa (DTV).
• Strengthening the national digital tourism ecosystem to enable seamless bookings, transparent merchant ratings, and cross-border payments.

Vietnam, by contrast, is pursuing long-term competitiveness to enter the top 30 in the Travel and Tourism Development Index (TTDI) by 2030. Policy reforms, digital innovation, and visa advantages are central to its strategy, giving Vietnam a head start in attracting new and high-spending travellers.

Five Strategic Priorities for Thailand

To retain ASEAN leadership, Thailand must address:

1. Restoring Traveller Confidence: Crack down on grey-market operations and establish a national crisis communication centre to reinforce trust.
2. Targeting High-Yield Markets: Use the DTV and promote wellness, medical, and premium tourism services to attract top-spending visitors.
3. Building a Digital Tourism Ecosystem: Develop a seamless, blockchain-enabled digital platform covering bookings, payments, and ratings to compete with Vietnam’s super app.
4. Managing ESG and Overtourism: Direct tourists to secondary cities and hidden gems, reducing pressure on traditional hotspots.
5. Leveraging Regional Partnerships: Encourage common visa arrangements and fast-track immigration to capture transit spending from ASEAN travellers.

Secondary Destinations: Unlocking Thailand’s Hidden Gems

Highlighting secondary destinations is critical for sustainable growth. Thailand’s focus on:

• Chiang Rai: Northern cultural and natural attractions.
• Nan: Lesser-known northern heritage sites.
• Udon Thani: Gateway for eco-tourism and historical experiences.
• Trang: Southern beaches and community-based tourism.
• Chanthaburi: Coastal and gem-focused tourism.
• Nakhon Si Thammarat: Southern temples and cultural heritage.
• Buri Ram: Historical and sports tourism.

Promoting these cities helps diversify tourism, improve visitor experience, and reduce overcrowding in traditional hotspots like Bangkok, Phuket, and Chiang Mai.

Recommendations for Thailand

• Move Beyond Visitor Numbers: Focus on spending per visitor, trip duration, repeat visits, trust, and safety indicators.
• Prioritise Safety: Establish a Tourism Risk Command Centre with AI monitoring and multilingual crisis response.
• Reinvent Experiences: Transform attractions into story-driven, activity-based experiences.
• Invest in Tourism Talent: Train professionals in AI, languages, service design, and crisis management.
• Enhance Digital Adoption: Build a robust, integrated digital platform for tourism.

Thailand remains a leading ASEAN tourism destination but faces mounting pressure from Vietnam’s rapid growth, visa flexibility, and digital innovation. To maintain its competitive edge, Thailand must accelerate strategic reforms, promote secondary destinations, improve traveller confidence, and create high-value, memorable, and safe tourism experiences.

The ASEAN tourism landscape is evolving, and the countries shaping the current competition include:

• Vietnam
• China
• Japan
• Hong Kong
• South Korea
• Taiwan
• ASEAN region countries (Malaysia, Singapore, Indonesia, Philippines, etc.)

Vietnam joins China, Japan, Hong Kong, South Korea, Taiwan and more as ASEAN tourism growth and strategic visa benefits drive more travellers to Thailand, prompting the country to enhance experiences and highlight emerging destinations like Chiang Rai, Nan, Udon Thani, Trang, Chanthaburi, Nakhon Si Thammarat and Buri Ram.

Thailand’s ability to innovate, embrace technology, and strategically market emerging destinations will determine its leadership position in the coming decade.