ASEAN Tourism War Heats Up as Malaysia Surpasses Thailand

Strategic Insights -

Malaysia has overtaken Thailand as the most-visited country in Southeast Asia in the first quarter of 2025, with 10.1 million international tourists, while Vietnam welcomed 6 million visitors and Singapore recorded 4 million. Thailand's tourism industry has struggled to regain the Chinese market, with a 24% year-on-year drop in Chinese arrivals in the first quarter of 2025. Vietnam, on the other hand, has seen a significant surge in Chinese tourism, with 1.6 million visitors in the first quarter of 2025, surpassing Thailand's 1.3 million.

Key Takeaways:

  • Malaysia surpassed Thailand to become the most-visited country in Southeast Asia in Q1 2025, with 10.1 million international tourists.
  • Vietnam welcomed 6 million international tourists in Q1 2025, a significant increase from 2024.
  • Thailand's tourism industry has struggled to regain the Chinese market, with a 24% year-on-year drop in Chinese arrivals in Q1 2025.
  • Vietnam's tourism surge can be attributed to intensified tourism promotion campaigns, geographical advantages, and affordability.
  • China has long been a critical source market for ASEAN tourism, and visa-free access is amplifying the region's appeal.
  • Singapore offers visa-free entry to Chinese nationals, and welcomed 13.6 million foreign visitors in 2024, with China among the top three source markets.
  • Thailand aims to regain its position in the tourism market by focusing on high-spending tourists from major cities like Beijing and Shanghai.
  • Vietnam should position itself as a premium destination for Chinese travellers by offering high-end shopping, world-class cuisine, and five-star hotel experiences.
  • Malaysia's tourism sector continues to grow, with Chinese visitor numbers surging 22% year-on-year in Q1 2025, reaching 16.3 million.
  • Thailand received 14.36 million foreign visitors in the first five months of 2025, a 2.7% decline year-on-year.
  • Malaysia surpassed China as the top source of tourists to Thailand in the first half of 2025, with 2.3 million visitors.

Statistics:

  • 10.1 million international tourists visited Malaysia in Q1 2025.
  • 6 million international tourists visited Vietnam in Q1 2025.
  • 14.36 million foreign visitors received by Thailand in the first five months of 2025, a 2.7% decline year-on-year.
  • 1.6 million Chinese tourists visited Vietnam in Q1 2025.
  • 1.3 million Chinese tourists visited Thailand in Q1 2025.
  • 10.1 million Chinese tourists visited Malaysia in Q1 2025.
  • 2.3 million visitors from Malaysia visited Thailand in the first half of 2025.
  • 2.26 million visitors from China visited Thailand in the first half of 2025.
  • 16.68 million arrivals recorded by Thailand in the first half of 2025, a 4.66% decline compared to the same period last year.

Sources:

  • VNExpress
  • Travel and Tour magazine
  • Hong Leong Investment Bank
  • Dr Andrew L. Tan Tourism Center at the Asian Institute of Management in the Philippines
  • Singapore Tourism Board (STB)
  • East Asian Institute, National University of Singapore
  • Association of Thai Travel Agents (ATTA)
  • Thai Hotels Association (THA)
  • TAT (Tourism Authority of Thailand)