KUALA LUMPUR - Thailand is on track to record its first yearly drop in tourist arrivals in a decade outside the Covid-19 period, as several crises weaken traveller confidence.

The Tourism and Sports Ministry said the country received 32.6 million foreign visitors as of December 28.

This figure marks a decline of more than seven per cent compared with the same period last year.

The year began on a weak note after many Chinese tourists cancelled travel plans following the abduction of Chinese actor Wang Xing in Thailand, who was later rescued from a scam centre in neighbouring Myanmar.

Thailand then faced further setbacks, including Myanmar’s strongest earthquake in a century, a deadly border clash with Cambodia, severe flooding in the south, and a political crisis that led to a change in government.

Tourism was also affected by the baht’s eight per cent rise, which made Thailand more expensive than nearby destinations such as Indonesia, where the rupiah weakened.

Secretary-General of the Association of Thai Travel Agents, Adith Chairattananon said safety concerns and the baht’s strength are the key factors impacting tourist arrivals this year.

“Safety concerns and the baht’s strength are the key factors impacting tourist arrivals this year,” said Adith.

Full-year international arrivals are expected to reach 32.8 million, generating tourism revenue of 1.52 trillion baht (USD48 billion), down from 35.5 million visitors and 1.67 trillion baht in 2024, according to Thai-language daily Thansettakij.

The decline is a setback for Thailand, which has struggled to fully revive tourism after the pandemic while lagging behind regional rivals Indonesia, Malaysia, and the Philippines.

Tourism accounts for about 12% of Thailand’s gross domestic product and supports millions of jobs nationwide.

Malaysians were the largest group of visitors with 4.5 million arrivals, followed by 4.4 million tourists from China and 2.5 million from India, ministry data showed.

Tourism revenue from foreign visitors reached 1.5 trillion baht as of December 28.

The Tourism Authority of Thailand is targeting 36.7 million foreign arrivals in 2026, with short haul markets expected to make up more than 70% of visitors, The Nation reported.

Chinese tourist arrivals are forecast to reach 6.7 million, matching 2024 levels, according to the report.

The recovery of Chinese tourist confidence is seen as a key factor in the sector’s outlook.

“International visitors could reach 38 million next year if Chinese arrivals total 8 or 9 million and Thai authorities could manage the border dispute impact as well as tame the baht’s strength,” Adith noted.