Thailand's tourism industry is poised for significant growth in 2025, driven by various factors including government initiatives, the rise of "Workation," and evolving preferences among domestic travelers.
According to Nairanuch Traijakwanit, the CEO of MakaLeisure Thailand, the country is predicting continuous growth in its tourism sector, which could surpass last year’s performance. Factors contributing to this optimistic outlook include government measures to promote tourism, the global trend of combining work with vacation, and a noticeable shift in Thai travelers' lifestyles that emphasizes unique experiences.
Recent surveys indicate that younger families are traveling more frequently, averaging about four to five trips a month, with a strong preference for nearby destinations within 200 to 300 kilometers from home. This allows for trip durations typically spanning two days and one night, which have become increasingly popular.
Interestingly, the average budget for a trip has risen to approximately 7,000 baht per person, reflecting an increase of 20 to 30 percent compared to previous years when the average was around 5,000 baht. This trend suggests that travelers are willing to spend more for enhanced experiences.
The choice of accommodations has also evolved, as distinct groups of travelers showed varied preferences. For instance, young adults and first-time jobbers are increasingly inclined towards budget hotels featuring contemporary designs that offer affordability, safety, and convenience for attending activities such as concerts and festivals.
Conversely, friends traveling together, identified as “The Gang,” lean towards pool villas or shared accommodations that promote group activities. Facilities like karaoke rooms or game rooms significantly influence their booking decisions.
Families, particularly young families, which comprise parents and young children, represent the most frequent travelers as they opt for properties with child-friendly amenities, including playgrounds and water parks. These preferences make it easy for them to select suitable accommodations.
Lastly, multi-generational families, comprised of grandparents, parents, and children, prioritize properties designed with universal accessibility in mind to accommodate elderly family members.
Nairanuch further emphasized the ongoing interest among Thai travelers in events and festivals, particularly the upcoming Songkran festival. A few of the most popular choices include Pattaya for its beach environment, Ayutthaya for its cultural activities, Hua Hin as a relaxation destination, and Chiang Mai for its Northern Thai water-splashing festivities.
These insights align with trends in the real estate sector, as Suphinth Mechucheep, Managing Director of Property DNA, projected significant changes in the Thai real estate market by 2025. According to him, three primary sectors are expected to lead growth: the residential market, industrial investments, and the luxury market.
The residential market specifically anticipates a rise in demand for small-sized, affordable apartments, spurred by the increasing number of single-person households, which grew from 6.4 percent in 2012 to 26.1 percent in 2022. Developers are adjusting strategies to focus on these smaller units appealing to working individuals and expatriates.
Simultaneously, investments in alternative assets like industrial parks, data centers, and healthcare facilities are gaining traction, driven by investor interest. Furthermore, the luxury market is projected to see annual price increases between 3 to 7 percent, fueled by a growing demand from domestic and international buyers in areas such as Bangkok, Phuket, and Pattaya.
Despite the positivity in the market, banks have shown increased caution in home mortgage lending. Suphinth noted that financial institutions should adopt less stringent lending criteria for first-time homebuyers since demand remains high, despite many aspiring homeowners facing difficulties in securing loans. This situation leads many potential buyers to turn to rental options instead, thus fostering a robust rental market.
Additionally, companies like DDproperty.com report that rental demand continues to outpace purchasing interest, with data showing that 52 percent of inquiries are for rental properties, versus 48 percent for home purchases.
As real estate dynamics continue to evolve, significant industry events such as the PropertyGuru Thailand Property Awards 2025 will celebrate achievements while recognizing emerging trends in the sector. The awards will introduce new categories and nominations are currently open until May 11, 2025, with the gala event scheduled for September 12 in Bangkok.
These intertwined narratives demonstrate that Thailand's tourism and real estate sectors are not merely co-existent but are set to influence each other's growth trajectories in the coming years.
