Analysts expect travel demand in Thailand to benefit during the latter half of 2026 through 2027 from a weak baht, the reintroduction of visa-free entry for Indian tourists and an incentive offering free domestic flights to foreign travellers.
A weak baht, an incentive offering free domestic flights to foreign travellers, and the reintroduction of visa-free entry for Indian tourists offer upsides for travel demand in Thailand during the second half of the year through to 2027, although conflicts in the Middle East linger, say analysts.Boonyakorn Amornsank, an analyst with Maybank Securities (Thailand), said recent data from Cirium, an aviation data and analytics company, indicates that travel demand in the fourth quarter of 2026 is likely to remain relatively flat, despite a 3% year-on-year increase in airline seat capacity in the third quarter.
Chinese airlines are cautiously restoring capacity, while Indian airlines have reduced the number of seats after Thailand waived the 2,000-baht visa-on-arrival (VOA) fee for Indian tourists in June 2026, he said.
However, Maybank expects airline seat capacity forecasts to be increased following Thailand's decision to waive the VOA fee for Indian tourists and reinstate a 30-day visa-free entry privilege.
