Vietnam and Malaysia have emerged as the leading destinations for Chinese tourists in 2025, surpassing Thailand amid rising safety concerns and changing travel preferences. As Chinese travelers seek more secure and personalized experiences, both Vietnam and Malaysia are capitalizing on this shift, attracting record numbers of visitors. With Vietnam’s tourism booming and Malaysia seeing a significant surge, these countries are becoming the new hotspots in Southeast Asia. Meanwhile, Thailand faces a sharp decline in Chinese arrivals, signaling a major transformation in the region’s tourism landscape as travelers look beyond Thailand for richer and safer travel options.
This summer, a family from Sichuan province, China, decided to forgo Thailand’s famous beaches and ornate temples, choosing instead to spend two weeks in Vietnam. This decision came amidst growing safety concerns surrounding Thailand, fueled by recent incidents such as scam operations and a highly publicized kidnapping of a Chinese actor earlier in the year. These developments have significantly affected Chinese tourism to Thailand, with arrivals plummeting by around 35% in 2025.
As Thailand grapples with this decline, Vietnam has experienced a remarkable surge in tourism, highlighting a significant shift in South-East Asia’s multi-billion-dollar tourism market. Thailand, traditionally the dominant player in the region, is losing ground to its neighbor, as more Chinese travelers opt for Vietnam and other destinations in Southeast Asia. This shift is estimated to cost Thailand approximately US$3.5 billion (RM14.7 billion) in lost revenue, now redirected to countries like Vietnam, Malaysia, and others in the region, according to China Trading Desk, which tracks Chinese travel spending.
The primary driving force behind this change is the growing number of independent Chinese travelers, signaling a major shift in the preferences of the world’s largest outbound tourism market. Traditionally, Chinese tourists have flocked to organized, group tours, often seeking package deals. However, with increasing concerns over safety and a desire for more personalized experiences, many are now opting for independent travel to destinations like Vietnam.
Vietnam has made significant strides in capitalizing on this trend. The country has seen a sharp rise in foreign arrivals, with nearly 14 million visitors recorded so far in 2025. Chinese tourists, in particular, have shown an impressive 44% year-on-year increase through August, a testament to the growing appeal of Vietnam as a travel destination. Malaysia has also benefited from this shift, experiencing a 35% increase in mainland Chinese visitors during the first half of 2025, and with airlines ramping up their seat capacity by nearly 50%.
The Vietnamese government and private tour operators are actively courting more foreign visitors, particularly from China. Cities like Danang have embraced the influx of Chinese tourists, with businesses catering to their preferences. In Danang, Chinese characters now feature prominently on hotel entrances, street food stalls, and massage parlors. Many hotels have hired Mandarin-speaking staff or rely on translation apps to communicate effectively with their guests, ensuring a smooth and welcoming experience for Chinese visitors.
One of the key shifts in Vietnam’s tourism industry is the movement away from traditional chartered, budget travel. In the past, large groups of tourists would follow guides waving flags, stopping at tourist hotspots for quick deals and photo ops. However, Vietnam is now attracting a more affluent segment of Chinese tourists, particularly those looking for boutique, high-end experiences.
A tour operator based in Danang and Nha Trang, for example, has pivoted from catering to budget travelers to offering curated, boutique experiences. In August alone, the agency served around 2,000 clients seeking more personalized and unique travel experiences, marking a 20% increase compared to the start of the year. This shift aligns with the broader trend of Chinese tourists moving away from mass tourism to more tailored, luxurious offerings.
In Danang, across from a prominent resort and casino, a restaurant has adapted to the tastes of these high-end travelers by offering private rooms and a menu focused on Cantonese-style hotpot and fresh seafood. These private rooms cater to wealthy clients, some of whom visit for business, golf, or gambling, and the bills often exceed US$400 (RM1,682) — a figure equivalent to a factory worker’s monthly salary in Vietnam. The ease with which such bills are paid reflects the growing spending power of Chinese tourists in Vietnam.
This increase in high-spending visitors has had a significant impact on Vietnam’s tourism retail sales, which have soared by about 51% in 2025 compared to the previous year. The country is on track to attract a record-breaking 22.6 million tourists in 2025, surpassing the previous high of 18 million visitors recorded in 2019. This growth further cements Vietnam’s place as a top destination in Southeast Asia for international tourists, especially from China.
On the other hand, Thailand’s tourism industry is facing a stark contrast. The first eight months of 2025 have seen a significant decline in Chinese visitors, with one-way airline seat capacity from China to Thailand dropping by more than 11% year-on-year, reaching only 5.1 million seats, according to Cirium flight analytics. While Chinese visitors still represent Thailand’s largest source market, the drop in their numbers has contributed to a 7% overall decline in foreign visitors to the country through August, despite strong growth from other regions such as Europe and the United States.
Vietnam and Malaysia have overtaken Thailand as the top travel destinations for Chinese tourists in 2025, driven by growing safety concerns and a desire for more personalized travel experiences. This shift marks a major realignment in Southeast Asia’s tourism market, with both countries seeing significant increases in arrivals, while Thailand struggles to maintain its dominance.
Thailand’s tourism sector is now grappling with how to recover from this setback. The decline in Chinese tourism, which has traditionally been a vital contributor to the country’s tourism revenue, poses a significant challenge for the government and the private sector. Efforts are being made to appeal to other international tourists, but the shift towards other Southeast Asian countries, particularly Vietnam, suggests that Thailand’s tourism market may need to undergo a more substantial transformation to reclaim its status as the region’s tourism leader.
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