Thailand, long a tourism heavyweight in Southeast Asia, is facing intensifying competition as regional rivals step up their game.
Vietnam, in particular, has emerged as a formidable challenger. While Thailand’s international arrivals fell 7.2% in 2025, Vietnam recorded growth of 20.4%, benefiting from shifting Chinese outbound travel patterns, improved air connectivity and an aggressive push on infrastructure development.
Related: Thailand faces sharp drop in tourist numbers: Travel Weekly Asia
The Thailand–Vietnam comparison was a key point of debate at the Thailand Tourism Forum 2026, where industry experts and hospitality investors weighed the implications for Thailand’s competitiveness.
Bill Barnett, managing director of C9 Hotelworks, said: “Thailand’s tourism industry stands at a critical juncture – where strategy matters more than scale… Thailand cannot rely on past success. The choices made now will define the next decade.”
Infrastructure in focus
At the centre of the discussion is Thailand infrastructure gap – and the risk of neighbouring markets closing in fast.
It is a gap that could widen further as the Vietnamese government steps up its support in this area. Government-backed plans include 12 new airports, a proposed high-speed rail network and a substantial hotel development pipeline, signalling a long-term strategy to capture regional and global tourism demand.
Vietnam’s room supply has also expanded rapidly. According to figures from the Vietnam National Authority of Tourism, the country now has around 780,000 rooms across 38,000 accommodation establishments. Thailand, by comparison, has approximately 704,000 rooms across about 16,000 properties nationwide.
While average room rates in Vietnam remain lower than in Thailand – raising questions around yield and value – observers note that Thailand is a far more mature destination, further along the tourism lifecycle.
No resting on laurels
Despite the competitive pressure, hospitality and investment leaders remain bullish on Thailand’s long-term prospects. At the same time, many stress the urgency of developing new destinations and experiences as travel patterns shift and regional competition intensifies.
Phoom Chirathivat, managing partner and co-head of Central Group Capital and head of hotels and alternative investments at Central Pattana (CPN), acknowledged the challenges posed by rising competition and an uncertain global economy, but remains “very optimistic in a country where cultural depth and diversity offer a gold mine to create high-value products”.
Looking ahead, he emphasised the need to look beyond Thailand’s traditional tourism strongholds – Phuket, Koh Samui, Pattaya, Chiang Mai and Bangkok – towards emerging destinations such as Isan in the northeast and Nakhon Si Thammarat on the southeast coast.
Marriott International’s chief development officer for Asia Pacific, Gautam Bhandari, echoed confidence in Thailand’s resilience. “I’ve always seen Thailand going through tough times, but coming back strong. It’s a tough environment out there, not only for Thailand, but for a lot of markets.”
He projects a better year for Thailand in 2026, where the hotel giant has lined up “robust signings”. Currently, Marriott has 67 operating hotels in Thailand and another 31 in the pipeline, which signals “long-time confidence in Thailand”.