Chinese Tourists and Investors Turn Away from Thailand Amid Rising Scam Fears – What’s Behind the Shift?

Chinese Tourists and Investors Turn Away from Thailand Amid Rising Scam Fears – What’s Behind the Shift?

Chinese Tourists and Investors Turn Away from Thailand Amid Rising Scam Fears – What’s Behind the Shift?

The tourism and property markets in Thailand are facing a significant decline in demand from Chinese tourists and investors, primarily due to growing concerns over safety and scam-related incidents. A shift in sentiment has been particularly noticeable since January 2025, following the viral spread of videos on Chinese social media regarding the abduction of Chinese actor Wang Xing in Thailand. This case, where Wang was reportedly trafficked to a scam compound near the Myanmar border, has highlighted the growing concerns among Chinese travelers about their safety in Southeast Asia.

The rise in scam-related narratives on Chinese social platforms such as Douyin, Weibo, and Xiaohongshu has accelerated this shift. Once seen as a go-to destination for Chinese travelers and investors, Thailand now faces the challenge of rebuilding its reputation amidst these troubling stories. These concerns have had a direct impact on tourism and property investment in Thailand, with a noticeable slowdown in both sectors in 2026.

The Viral Spread of Safety Concerns

The abduction of Wang Xing and subsequent media coverage are just one example of a larger trend that has emerged in recent years. Kidnapping-related incidents, often involving Chinese nationals, began to gain widespread attention in 2024. These incidents, although not always connected, were often presented as part of a broader narrative of safety risks in Thailand. As videos and posts about these incidents spread rapidly on Chinese social media, individual events were stripped of their context and pieced together under alarmist captions, further fueling fears of traveling to Thailand.

In the digital age, perception can often outpace fact. Social media narratives, especially those in countries with large online audiences like China, have a powerful influence on consumer behavior. In this case, a combination of alarmist narratives and sensationalized stories led to a decline in confidence, long before official reassurances were issued by Thai authorities. The shift in sentiment was swift, with social media users increasingly questioning the safety of traveling to Thailand.

Impact on Chinese Tourism: A Slower, More Selective Recovery

The fallout from these perceptions has been most apparent in the Chinese outbound tourism market. Flight capacity between China and Thailand now stands at approximately 60% of its 2019 level, signaling a clear decline in demand. In popular tourist destinations like Phuket and Pattaya, the average group size of Chinese tourists has dropped from 42 passengers per coach in 2019 to just 28 passengers today. Moreover, spending levels among Chinese tourists have also softened, with duty-free expenditure per visitor dropping by 18% in RMB terms.

The shift in travel preferences has been attributed to an increased focus on safety over other factors such as price, proximity, or familiarity. In a recent traveler survey, safety concerns emerged as the top reason for ruling out certain destinations. This marks a stark contrast from previous years, when cost was typically the most common deciding factor for travelers.

As James Woo, Executive Director at Colliers, explained, Chinese tourists today are much more risk-aware and selective. They are now far less willing to return to destinations that once seemed like default choices, such as Thailand. The decline in demand is not just a matter of fewer visitors but also a change in how decisions are made, with safety now holding the power to veto other considerations.

Property Investment: A Shift in Chinese Buyer Sentiment

The same concerns affecting tourism are also evident in Thailand’s real estate market. Chinese buyers, who historically accounted for nearly half of all foreign freehold condominium transfers in Bangkok, have dramatically reduced their investment. By the third quarter of 2025, Chinese buyers were responsible for just over 20% of all foreign condominium purchases in Bangkok, a sharp drop from nearly 50% in 2018. The drop in investment has coincided with a reduction in property prices, with average prices paid by Chinese buyers falling from THB 118,000 per square meter in 2019 to THB 98,000 in 2025.

This decline in Chinese property investment is not just about price but also the growing uncertainty about safety and governance. In the past, Chinese buyers were more likely to invest in Thailand for lifestyle or long-term stays, but now the focus has shifted to cautious, yield-driven investments. In Phuket, where the villa market once thrived with Chinese investments, the market share for Chinese buyers has slipped into the low teens, with negotiated discounts becoming more common.

Competing Destinations Capitalize on the Shift

As Chinese investment in Thailand softens, other destinations have begun to capture the displaced demand. Japan and Dubai are benefiting the most from the shifting preferences of Chinese buyers. The appeal of Japan lies in its safety, legal clarity, and visa certainty, which make it a more attractive option for Chinese buyers seeking a less risky investment. In Dubai, the appeal is similar—safety and certainty around legal processes are drawing Chinese investors toward this emerging market.

In fact, property transactions by Chinese buyers in Tokyo, Osaka, and Fukuoka have surged by more than 90% compared to 2019. In Dubai, transactions have increased by 60% year-on-year, reflecting the growing confidence in these markets.

In Southeast Asia, Vietnam and the Philippines have also seen an uptick in Chinese tourism and investment. These destinations offer newer infrastructure and an increasingly attractive, clean brand narrative that appeals to Chinese investors seeking safer alternatives to Thailand.

Thailand’s Efforts to Restore Confidence

The Thai government and local authorities have been actively working to address these safety concerns. Measures have been introduced to tighten immigration screening and enforce stricter regulations against scam networks. There has also been a concerted effort to improve cooperation with Chinese authorities in combating trafficking and scam-related crimes. These initiatives have been praised by Chinese officials, but the return of confidence has been slow.

Marciano Birjmohun, vice chairman of the Singapore-Thai Chambers of Commerce, highlighted the importance of visibility in restoring trust. While policy reforms and enforcement actions are crucial, it is the perception of safety and the visible outcomes of these measures that will ultimately rebuild confidence. Until there is sustained progress and clear evidence that the situation is improving, Thailand will continue to face a gradual capital diversion rather than an immediate reversal of fortunes.

Conclusion: A Long Road to Recovery

Thailand is not facing sudden irrelevance, but the gradual shift away from the country by Chinese tourists and investors is undeniable. As perceptions of safety improve, the country may see a slower, more selective recovery in both tourism and property markets. The credibility gap will need to be addressed through visible and effective measures, backed by data and consistent communication.

In the meantime, competing markets will continue to capture displaced demand. For Thailand, the challenge lies in restoring trust and reaffirming its position as a safe and attractive destination for both tourists and property investors.

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