The research estimates the number of foreign tourists at between 39 million and 39.8 million at the end of this year, a rise of between two per cent and four per cent over 2018.

“Based on income in 2018, we estimate foreign tourists will spend up to Bt1.97 trillion this year, the research said.

Based on demand generated by Expedia Group’s extensive portfolio of travel brands, the US remains the largest market to Thailand, with demand growing by 20 per cent year on year.

China is the second-largest market to Thailand, surpassing Japan, Hong Kong and South Korea for the first time in two years.

Alongside China’s strong performance, India also upped its game, moving up three ranks to gain a place in Thai’s top 10 international markets.

Noteworthy is that Chinese and Indian travellers show growing appetite for premium accommodation, with more than 60 per cent of the bookings made by Chinese and 55 per cent of those made by Indians being in 4-star and 5-star hotels, Expedia said.

This trend is in line with the Thai’s government focus to attract more high-end arrivals from China and India.

In terms of popular destinations, Bangkok, Phuket and Pattaya, unsurprisingly, are the most visited cities among Chinese and Indian travellers.

Hua Hin (110-per-cent growth year on year), Koh Phi Phi (100-per-cent growth) and Koh Lipe (100-per-cent growth) emerge as the rising markets with triple-digit demand increases during the same period.

Expedia data uncovered that Chinese travellers are the driving force behind strong 50-per-cent demand growth for packages into Thailand.

Almost one in three international package bookings were made by Chinese.

China is also the fastest-growing market for packages, as demand skyrocketed by 200 per cent year on year.

India is trending in the same direction, with package demand up by 160 per cent.

Other markets tracking triple-digit growth in package demand include Ireland (130 per cent), South Korea (120 per cent) and Indonesia (100 per cent).

Earlier this year, the Ministry of Tourism and Sports (MOTS) announced it is expecting more than 40 million tourists to Thailand this year, up from the record-breaking 38.3 million in 2018.

According to the latest numbers released by MOTS, the first two months of 2019 showed a 2.5 per cent Y-o-Y growth in international tourist arrivals at 7.3 million, compared to 7.1 million the previous year.

In the first two months of 2019, the total number of Chinese tourist arrivals decreased slightly by 2.2 per cent Y-o-Y from 2.17 million in 2018 to 2.12 million. Chinese tourist arrivals in February, the month in which the Chinese New Year was celebrated this year, decreased by 12.3 per cent Y-o-Y.

Looking back at 2018, there was a 23.8 per cent M-o-M jump in Chinese tourist arrivals from 0.97 million in January to 1.20 million in February. This year, it was a 1.5 per cent M-o-M decrease in the same market.

Other key feeder markets like Malaysia, India, Korea, and Japan showed double-digit growth in the first two months, with India having the highest figure at 20.1 per cent Y-o-Y.

Even though the combined number of tourists from these four feeder markets was smaller than that of the Chinese market alone, this positive trend could help lessen the impact from the loss of Chinese tourists. The challenge remains for Thailand to win back this biggest feeder market now that the most significant holiday for Chinese people has passed.

Bangkok still attracts tourists from around the world. The number of international tourist arrivals to Bangkok in the first two months of 2019 as reported by MOTS was 4.68 million, a 3 per cent Y-o-Y growth.

The development of a third runway in Suvarnabhumi International Airport, which was approved by the government on 17th April this year, will strengthen Bangkok’s capacity to handle larger numbers of tourists in the future.

“In the first quarter of 2019, Rosewood Bangkok, a 159-key luxury hotel next to Phloen Chit BTS station, opened its doors to the public. This was one of Bangkok’s most highly-anticipated luxury hotel openings together with Capella Bangkok and Four Seasons Hotel Bangkok at Chao Phraya River, both of which will open later this year, underpinning renewed interest in the riverside area and capitalizing on recent developments outside of the hotel sector,” said Atakawee Choosang, Head of Capital Markets – CBRE Hotels in Thailand.

CBRE believes that Bangkok will continue to be one of the top tourist destinations in the world with new luxury hotel openings, improved infrastructure, and attractions that appeal to a wide range of tourists.