The national hotel occupancy rate rose by just 0.18% year-on-year in the first nine months of 2026, according to Bangkok-based Kasikorn Research Center (KResearch).

New business registrations also slowed, with 779 hotel and accommodation businesses established from January to September, down 31.2% from a year earlier.

However, the figure remained higher than in the same period of 2024.

Thailand’s hotel and accommodation market is projected to reach THB1.1 trillion (US$34 billion) in 2026, up 2.6% from 2025.

Industry insiders said the sector is under growing pressure from weak tourism demand, intensifying competition and high operating costs, The Nation Thailand reported.

KResearch forecasts that Thailand will welcome around 31.4 million foreign visitors in 2026, down 4% from 2025 and equivalent to about 79% of the pre-pandemic level in 2019.

The research firm attributed the sluggish recovery to intensifying competition from other tourism destinations, economic weakness in source markets, safety concerns and geopolitical tensions.

The Chinese embassy in Thailand recently issued an urgent safety advisory for its citizens traveling to or residing in the country following a rising incidence of forced labor, human trafficking, and bogus job offers.

Neighboring countries like Malaysia and Vietnam are stepping up efforts to attract international tourists by launching direct flights to Asia and Europe and easing visa requirements.

Thailand, Southeast Asia’s second most visited country after Malaysia, received 23.4 million foreign tourists in the first nine months of this year, a 3.88% decline year-on-year.

The country eyes 33 million tourists by the end of this year.