Aftershocks Begin to Impact Thailand’s Tourism Industry

The March 28 earthquake led to over 1,100 hotel cancellations in Thailand, prompting safety concerns among tourists and a projected decline of 200,000 to 700,000 foreign visitors, with significant revenue losses.

Key Points

• Booking Cancellations: The Thai Hotels Association (THA) reported that approximately 1,100 hotel room bookings were canceled within two days after the earthquake. Additionally, about 10% of foreign tourists checked out early, particularly in Bangkok, Chiang Mai, Chiang Rai, and Ayutthaya. (Earthquake to cut Thailand tourism revenue by 10-15%, says THA)
• Songkran Festival Affected: The Songkran holiday, a major tourist attraction, saw a 25% drop in hotel bookings compared to the previous year. Foreign tourist arrivals in April 2025 are projected at 2.07 million, down from 2.76 million in April 2024. (Songkran hotel bookings drop 25% amid earthquake concerns)
• Revenue Decline: TTB Analytics forecasts a 13.5% year-on-year decrease in Songkran holiday spending, estimating it will fall to 36 billion THB (approximately 1.05 billion USD). (Thailand’s Tourism Boom Crashes Under The Weight Of Earthquake …)

Impact of the Mega Earthquake on Tourism

The mega earthquake on March 28 has significantly affected Thailand’s tourism sector, with preliminary data indicating approximately 1,100 hotel cancellations nationwide, particularly in Bangkok. A recent survey from the Thai Hotels Association reveals a 25% drop in advance bookings for the Songkran festival compared to last year, as safety concerns have led foreign tourists to monitor the situation closely.

Projections and Recovery Scenarios

SCB EIC estimates a potential decline of 200,000 to 700,000 foreign tourists during the recovery period. Various scenarios outline the possible impact: a 9% decline could lead to a THB 9.53 billion loss, while a 15% drop might result in THB 33 billion in lost revenue.

Strategies for Restoring Confidence

To expedite recovery, the government must enhance safety measures and provide reliable information to tourists. Initiatives like the “We Travel Together” program could stimulate domestic tourism and economic activity while restoring foreign tourist confidence in Thailand’s safety.

Thailand’s tourism sector is experiencing significant challenges following the recent 7.7-magnitude earthquake centered in Myanmar, which caused structural damage in Bangkok and heightened safety concerns among potential visitors. (Thailand fears 10-15% drop in foreign tourist arrival after Myanmar …)

Broader Economic Implications

• Tourism Revenue Targets Adjusted: The Thai government has revised its 2025 tourism revenue target from 3.5 trillion baht to 2 trillion baht, acknowledging the impact of regional instability and a sluggish return of Chinese visitors. (Thai Tourism Target in Jeopardy as PM Calls for Strategy Overhaul)
• GDP Contribution: Tourism, accounting for about 13% of Thailand’s GDP, is facing setbacks that could affect the country’s overall economic growth. (Thailand fears 10-15% drop in foreign tourist arrival after Myanmar …)

Government Response

• Safety Measures: Prime Minister Paetongtarn Shinawatra has called for the quick restoration of damaged infrastructure and emphasized the importance of rebuilding foreign confidence in Thailand’s safety standards. (Thailand’s tourism gloomy in fear of earthquake – Vietnam News)
• Strategic Overhaul: In light of the challenges, the government is considering a strategic overhaul of its tourism sector to address safety concerns and adapt to changing tourist behaviors. (Thai Tourism Target in Jeopardy as PM Calls for Strategy Overhaul)

Outlook

While the immediate impact of the earthquake has led to a decline in tourist arrivals and revenue, the Thai government and industry stakeholders are actively working to restore confidence and adapt strategies to revitalize the tourism sector.

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