Chinese Tourists Flock to Vietnam, Overtaking Thailand with Budget-Friendly Travel

The tourism landscape in Southeast Asia is shifting dramatically as Vietnam rises as a top choice for Chinese travelers, quietly overtaking Thailand. Once regarded as the unrivaled leader in the region, Thailand is now confronting new challenges as younger travelers seek affordability, flexibility, and authentic experiences over traditional group tours. For years, Thailand was the first choice for Chinese visitors. Its reputation for safety, hospitality, and cultural accessibility helped it attract families, couples, and organized travel groups. However, 2025 marked a significant turning point. Vietnam welcomed over 5.3 million Chinese tourists, surpassing Thailand for the first time, while Thailand experienced a 30% drop in arrivals compared with the previous year. This is not merely a temporary fluctuation but a reflection of evolving traveler priorities and shifting perceptions. Safety concerns, political tensions, and the travel preferences of younger generations have begun to reshape the region’s tourism hierarchy. Local businesses, particularly those dependent on Chinese visitors, report declining sales and growing concerns over their survival if these trends persist. Thailand’s decline in appeal is influenced by a combination of security incidents, regional tensions, and political instability. Cross-border criminal activity affecting tourists and occasional border disputes have weakened confidence in Thailand as a reliable destination. At the same time, traditional competitors such as Japan have faced setbacks from geopolitical issues and disrupted flights, opening the door for Vietnam to strengthen its position.