Malaysia overtakes Thailand as ASEAN’s top tourist destination in Q1 2025
In the first quarter of 2025, Malaysia surpassed Thailand to become the most-visited country in Southeast Asia, drawing 10.1 million international tourists, an increase of 22% year-on-year. Thailand followed second with 9.5 million visitors, Vietnam welcomed six million, and Singapore recorded four million visitors. Thailand had previously held the first ranking.
The largest number of visitors to Malaysia came from Singapore 4.9 million trips, followed by China and Indonesia, with nearly 1.1 million visits each.
The Malaysian government recently extended its visa-free policy for Chinese tourists by five years, with a potential extension to 2036. Indian tourists are also included in the scheme, which currently runs through 2026.
Air connectivity between China and Malaysia has also been enhanced. In April, Sichuan Airlines made its debut in Penang with the commencement of direct flights from Chengdu. This marks Sichuan Airlines’ first entry into northern Malaysia, operating five weekly flights, offering enhanced access between western China and Penang.
Hainan Airlines commenced four times weekly direct services from Haikou (Hainan Island) to Kuala Lumpur. China Eastern Airlines introduced a Lanzhou-Kunming-Kuala Lumpur route, enhancing access from China’s northwest and southwest to Malaysia. Juneyao Airlines also launched a direct flight from Shanghai Pudong to Kuala Lumpur in June.
Visit Malaysia Year 2026
The Malaysian government has set ambitious goals for 2025 31.3 million international tourist arrivals and about US$26.6 billion in tourism receipts. These targets represent an expected 25% increase in arrivals and a 23% rise in revenue compared to 2024.
For ‘Visit Malaysia Year 2026’, Malaysia increases its KPI to welcome 35.6 million international visitors and generate more than US$36 billion in tourism receipts. As such, Malaysia is intensifying its efforts overseas to attract tourists to the country via a series of events, promotions, and developments that celebrate Malaysia’s culture, heritage, and tourism offerings.
Vietnam welcomed more Chinese tourists than Thailand for first time
Vietnam welcomed more Chinese tourists than Thailand for the first time in Q1 2025, where 1.6 million Chinese tourists visited Vietnam, compared with just 1.3 million to Thailand. This shift is notable given that in 2024, the number of Chinese visitors to Vietnam was only half of those arriving in Thailand.
Several new direct flight routes between China and Vietnam have been launched or are planned, particularly by Vietjet and Juneyao Airlines. Vietjet is adding routes connecting Hanoi to Chengdu and Xi’an. VietJet launched its new Ho Chi Minh City-Xi’an route in April.
Juneyao Airlines is launching flights between Shanghai and both Hanoi and Ho Chi Minh City. Additionally, Spring Airlines is starting direct flights from Ho Chi Minh City to Guangzhou and Shanghai.
Thailand saw a 24% year-on-year drop in Chinese arrivals in the first quarter of 2025, largely due to concerns over safety following the high-profile kidnapping of actress in January. This trend accelerated in May, when Chinese arrivals to Vietnam surpassed those from South Korea for the first time, reaching 357,907 visitors—or nearly 40% of all international tourists that month.
Visa-free travel boosts Chinese tourism across ASEAN
China has long been a critical source market for ASEAN tourism, and visa-free access is amplifying the region’s appeal.
Singapore is another country that offers visa-free entry to Chinese nationals. In 2024, Singapore welcomed 13.6 million foreign visitors, with China among the top three source markets. There is also a strong network of direct flights linking Singapore with numerous Chinese cities.
Thailand faces worsening downturn in tourist arrivals
Arrivals from China to Thailand experienced a significant downturn in numbers in the first half of 2025, plummeting by 34% Statistics for the first six months of 2025 show 16.6 million international tourist arrivals in Thailand, marking a 4.6% decrease year-on-year. There were 2.26 million visitors from China, marking a substantial 34% drop.
Thailand also saw 2.32 million foreign arrivals in June alone, a 15% year-on-year decline, due to factors such as the ongoing conflict in the Middle East, slower recovery in Chinese outbound travel, and the low season for the European market.
Thailand ups efforts to fight the tourism slump
This year, Thailand’s tourism strategy is focused on survival rather than expansion, as regional competitors accelerate ahead.
Thailand now faces fierce competition especially from its Southeast Asian neighbours. To maintain competitiveness, closer public-private cooperation to extend visitors’ length of stay through targeted segments such as medical and wellness tourism, MICE (meetings, incentives, conferences, and exhibitions), gastronomy tourism, long-stay travel, and work-from-anywhere packages, are being encouraged.
Tourism Authority of Thailand is also developing the “Thailand Safe Travel Stamp” to enhance safety standards across the tourism industry and promote accredited operators. Furthermore, a publicity campaign for 2025, running until September, will target international markets by promoting ultra-luxury tourism to high-spending visitors.
Thailand maintains target of 35 million foreign arrivals in 2025
The Thai Cabinet has approved a 3.96 billion baht (about US$121 million) stimulus package for the tourism sector, which will support seven projects aimed at boosting tourism during the second half of the year, with an expected economic impact of 200 billion baht (about US$6 billion).
Almost one third has been allocated to support charter flights for at least 1,000 flights from 15 second-tier Chinese cities and high-potential markets. These flights will connect to Bangkok, Phuket, Chiang Mai, Chiang Rai, Pattaya, Krabi, and Samui.
Joint promotions with both Thai and international commercial airlines are being planned, especially those operating from the Middle East and ASEAN countries, with the aim of stimulating travel in the second half of the year. The campaign is expected to bring in at least 790,000 additional tourists, generating an estimated 33.5 billion baht in revenue.
Thailand is maintaining its target of 35 million foreign visitors for 2025. With 16.68 million arrivals recorded in the first half, the second half would need to deliver nearly 19 million arrivals to hit the goal.
If achieved, the 35 million target would represent at least a 10% increase in tourism revenue, rising from 1.67 trillion baht (US$51 billion) in 2024 to an estimated 1.83 trillion baht (about US$56 billion) in 2025.
