Though there are other high-performing countries, both in the region and throughout Asia, Thailand soars above them all when it comes to tourism appeal – and the execution of policies and initiatives.

Thailand continues to cement its place as the undisputed leader in Asia-Pacific tourism, outpacing strong competitors such as Australia, Japan, and Vietnam. According to a recent analysis by Travel and Tour World, Thailand’s winning combination of accessibility, affordability, and a diverse range of experiences has driven record-breaking tourist arrivals and revenue.

By implementing traveller-friendly policies and maintaining top-tier infrastructure, the “Land of Smiles” appeals to travellers of all demographics and budgets. Unlike niche-market destinations like Malaysia and Singapore or luxury-focused spots like the Maldives, Thailand’s inclusive appeal ensures its consistent dominance in the region.

THAILAND’S RECORD-BREAKING TOURISM NUMBERS

Thailand welcomed over 35 million international visitors by 27 December 2024, surpassing its target of 35 million. This figure far exceeds competitors in the region, with Australia recording just 7.5 million visitors and Malaysia reaching 16.45 million by August 2024 – half of which came from neighbouring Singapore. From 11 million visitors in 2022 to 28 million in 2023, Thailand’s steady growth solidifies its status as a regional powerhouse.

Impressive Tourism Revenue

Thailand’s tourism sector generated an exceptional 1.8 trillion Baht in 2024, outperforming Australia’s A$31.7 billion and Malaysia’s RM198.7 billion. The country’s ability to draw high-spending visitors is evident in its revenue growth, from $14.9 billion in 2022 to $29.7 billion in 2023.

High Hotel Occupancy Rates

Thailand’s average hotel occupancy rate stood at an impressive 69.33% in 2023, a remarkable recovery from the pandemic and significantly higher than neighbouring Malaysia’s 52.9%. This year-round demand reflects Thailand’s broad appeal, from budget stays to luxury resorts.

DIVERSE TOURIST DEMOGRAPHICS

In 2023, Thailand’s top visitor sources included Malaysia (4.4 million), China (3.51 million), Singapore (1.65 million), India (1.62 million), and Russia (1.48 million). This eclectic international appeal sets Thailand apart from destinations with narrower visitor profiles.

WHAT MAKES THAILAND THE TOP CHOICE?

Thailand’s affordability, cultural wealth, natural beauty, and vibrant urban centres provide something for everyone. Whether it’s Bangkok’s bustling streets, Phuket’s pristine beaches, or Chiang Mai’s tranquil mountains, Thailand offers unmatched variety. The numbers speak for themselves – Thailand is thriving and continues to outpace regional rivals.

Additionally, Thailand’s visa-free policy welcomes travellers from 93 countries, streamlining the planning process for visitors from Europe, Asia, North America, and Oceania. By targeting emerging markets like Russia and Kazakhstan alongside traditional neighbours like Malaysia and Laos, Thailand has successfully opened its doors to the world.

MUST-VISIT THAILAND DESTINATIONS

Bangkok – Urban Energy Meets Tradition

Bangkok offers a dynamic mix of modern skyscrapers and cultural landmarks like Wat Arun and the Grand Palace. Visitors can explore Chatuchak Market or take a Chao Phraya River cruise for a unique urban adventure.

Chiang Mai – Culture and Nature Unite

Chiang Mai’s ancient temples and lush mountains create a serene escape. Highlights include the Old City, the vibrant Night Bazaar, and trekking opportunities in the surrounding hills.

Phuket – Beach Paradise

Phuket caters to every type of traveller, from Patong’s nightlife to Kata’s tranquillity. Don’t miss island-hopping adventures and the iconic Big Buddha.

THAILAND VS MALAYSIA

The same report made comparative analyses of Thailand versus several other Asia-Pacific countries, including Malaysia, which was noted as a strong contender, but ultimately still falling well short of its northern neighbour. Compounding this, Thailand’s biggest source for international visitors is, as noted above, Malaysia, with its residents eschewing domestic travels and instead streaming to Thailand in record numbers in 2024.

TOURIST ARRIVALS

Malaysia had recorded 16.45 million international visitors by August 2024 (about 60% of its 2024 goal of 27.3 million), following 20 million in 2023 and 10 million in 2022. While respectable, these figures lag significantly behind Thailand’s more than 35 million arrivals in 2024. Also notable is that typically around half of Malaysia’s international arrivals come from neighbouring Singapore, as the two countries are very closely linked.

Malaysia’s tourism revenue is forecast to reach RM198.7 billion in 2024, contributing 10.5% to its national economy. However, in absolute terms, Malaysia still trails Thailand’s remarkable $50 billion (1.8 trillion Baht) in the same year.

Malaysia’s hotel occupancy rate averaged 52.9% in 2023, well below Thailand’s robust 69.33%. This highlights Malaysia’s challenge in fully capitalising on its accommodation sector.

Malaysia’s top visitor sources in 2023 included Singapore (8.3 million), Indonesia (3.1 million), and Thailand (1.5 million). While these figures reflect regional strength, Malaysia lacks the global appeal Thailand enjoys. However, its visa-free policy, covering 167 countries, remains a significant strength, offering easy access to visitors from Asia, the Middle East, Europe, and beyond.

WHAT MALAYSIA NEEDS TO COMPETE

According to the report, Malaysia’s attractions, such as Kuala Lumpur’s vibrant streets, Penang’s cultural charm, and Langkawi’s tropical beauty, offer strong appeal. However, to rival Thailand, Malaysia must expand its global reach, improve hotel occupancy, and create a more dynamic tourism ecosystem.