Bangkok’s bustling markets and gleaming shopping malls, once thronged with Chinese tourists snapping up souvenirs and luxury goods, are facing an unfamiliar quiet. A sharp drop in visitors from China—long a cornerstone of Thailand’s retail and tourism economy—has sent ripples through the sector, prompting major companies to rethink strategies, target new markets, and stage events to keep the cash registers ringing.
A Vital Market Slips Away
The decline in Chinese tourists, who have historically been among Thailand’s biggest spenders, has hit the retail and souvenir industries hard. Safety concerns, amplified by high-profile incidents such as the widely reported “Xing Xing’s kidnapping” and a subsequent earthquake, have dented confidence among potential visitors. Numbers have plummeted as a result, with some companies reporting significant drops in foot traffic and sales since early 2025. The impact is particularly acute for businesses reliant on Chinese spending, from souvenir vendors selling herbal oils to major retail chains operating in tourist hotspots like Bangkok and Pattaya. 
Beyond isolated incidents, broader geopolitical and economic factors are at play. China’s government has been actively promoting domestic tourism, encouraging citizens to explore attractions closer to home rather than venturing abroad. Coupled with global uncertainties—such as ongoing trade disputes and tariff policies—this has led to a marked reduction in outbound travel from China, a trend that Thai businesses are struggling to counteract.
Retail Giants Adapt to the New Normal
Major players in Thailand’s retail sector are not standing still. Central Pattana, one of the country’s leading shopping mall operators, has been quick to pivot. CEO Nattakit Tangpoonsinthana revealed that the company had foreseen a potential slowdown in Chinese tourism as early as the start of 2025. “We’ve been fortunate to have a diverse international customer base” said Nattakit, pointing to strong spending from visitors hailing from Russia, the United States, and Malaysia. High-spending tourists using e-wallets have also provided a buffer, with some segments showing double-digit growth in expenditure.
Central Pattana is leveraging big data to analyze global tourism trends, identifying affluent travelers from emerging markets such as the Middle East and Europe as key targets. This strategic shift reflects a broader recognition that reliance on a single demographic—however lucrative—can leave businesses vulnerable to sudden shifts in travel patterns.
Similarly, Big C, a retail giant with a strong presence across Thailand, is recalibrating its approach. CEO Aswin Techajareonvikul noted that the reduction in Chinese outbound travel is not solely due to safety concerns but also mirrors Beijing’s domestic tourism push and wider economic headwinds. “We’re seeing a structural change in how Chinese tourists prioritize their spending” said Aswin. In response, Big C is diversifying its customer outreach, focusing on regions less affected by these dynamics.
One Bangkok, a major mixed-use development in the capital, reported a noticeable dip in Chinese visitors during February and March 2025. To offset this, the company has turned its attention to tourists from Europe, the United Arab Emirates, and India—demographics known for higher per-capita spending. Weekly events, expanded retail offerings, and targeted marketing campaigns are being rolled out to maintain vibrancy in its spaces and attract foot traffic from these new markets.
Souvenir Sellers Feel the Pinch
For smaller businesses, particularly those in the souvenir trade, the decline in Chinese tourists has been a bitter pill to swallow. Products like herbal oils, pain relief plasters, and boxing liniment—once snapped up in bulk by Chinese visitors—are seeing sales slump. Athichaporn Chanprasit, CEO of Devakam Osoth, a company specializing in traditional Thai remedies, described the shift in stark terms. “Chinese tourists used to buy 50 to 100 bottles of liniment oil at a time” said Athichaporn. “Now, we’re focusing on Middle Eastern tourists and the domestic Thai market to make up the shortfall.”
Chalermpong Drongsuwan of Thai Glico, a confectionery and snack manufacturer, echoed this sentiment. With Chinese demand waning, the company is pivoting to Western, Malaysian, and Singaporean consumers, adapting its product offerings and marketing to appeal to different cultural tastes. While this diversification shows promise, it remains a work in progress, with many vendors still grappling with the immediate revenue gap.
Reaching Out to Independent Travelers
Amid the challenges, some industry leaders see untapped potential in China’s independent travelers, often referred to as Free Independent Travelers (FITs). Vichit Khunkongkapan, head of the international market team at Media Intelligence Group, believes that these self-organized tourists represent a significant opportunity—if only they can be effectively targeted. “There are still many FITs from China who want to visit Thailand, but we’re not reaching them directly” said Vichit. He advocates for a more aggressive digital strategy, utilizing platforms like Douyin (China’s version of TikTok), influencers, and Key Opinion Leaders (KOLs) to engage this demographic.
Unlike traditional tour groups, FITs often seek unique, immersive experiences—think cooking classes in local markets or off-the-beaten-path cultural tours—rather than cookie-cutter itineraries. Vichit urges both public and private sectors in Thailand to tailor their outreach accordingly, crafting campaigns that highlight the country’s diversity and authenticity to win back a segment of the Chinese market.
Economic Implications and Future Outlook
The downturn in Chinese tourism is more than a retail sector headache; it carries broader implications for Thailand’s economy, where tourism accounts for a substantial share of GDP. In 2019, before the global pandemic disrupted travel, Chinese visitors made up nearly a third of Thailand’s 40 million international arrivals, contributing billions of Thai Baht to the economy. A prolonged absence of this key demographic could dampen growth projections, particularly in tourist-dependent regions like Bangkok, Phuket, and Chiang Mai.
Yet there are glimmers of resilience. The shift toward Middle Eastern and European markets, while not a complete replacement for Chinese spending, signals adaptability. Events and festivals—ranging from cultural showcases to shopping promotions—are helping to sustain interest among both international and domestic visitors. For instance, investments in weekly events by companies like One Bangkok aim to create a lively atmosphere that draws crowds, even if the composition of those crowds has changed.
Moreover, the Thai government has a role to play. Industry observers suggest that policy measures—such as streamlined visa processes for emerging markets or partnerships with Chinese digital platforms—could help reverse the trend. Safety perceptions, too, must be addressed through targeted campaigns reassuring potential visitors of Thailand’s commitment to their well-being.
A Balancing Act for Recovery
As Thailand’s retail and tourism sectors navigate this challenging landscape, the decline in Chinese tourists serves as a stark reminder of the risks of over-reliance on a single market. The pivot to new demographics and innovative marketing strategies offers a path forward, but it is not without hurdles. Smaller businesses, in particular, may struggle to adapt without the resources of corporate giants like Central Pattana or Big C.
For now, the streets of Bangkok may be quieter, and the shelves of souvenir shops a little fuller, but the industry’s response hints at a determination to evolve. Whether through data-driven targeting of affluent travelers or creative engagement with independent Chinese tourists, Thailand is betting on diversity to weather the storm. As these strategies unfold, the question remains: can the Land of Smiles reclaim its place as a top destination for global travelers, regardless of where they come from?
