Intertwined futures: urban placemaking & Thai tourism

While Thailand remains a prominent draw for travellers, its tourism sector now faces increasing competition. Since the end of the pandemic, neighbours like Vietnam, China, and Malaysia have outpaced Thailand in inbound visitor growth. Beautiful beaches, renowned cuisine, rich local culture, and quality hospitality remain the country’s core advantages, these strengths alone may no longer secure success in today’s dynamic tourism landscape.

Figure 1: Recovery in the number of inbound tourists across selected APAC markets

Source: JLL Thailand Research, Thailand Tourism Authority, JNTO, Vietnam Tourism, KCTI,
Singapore Tourism Board (STB), Tourism Malaysia, Ministry of Tourism Maldives, news

While real estate isn’t the only answer, it could serve as a powerful lever to fortify the tourism appeal. In Bangkok, destination malls like ICONSIAM, CentralwOrld, and EmDistrict already are major draws for tourists, complementing its cultural landmarks and vibrant neighbourhoods. These projects blend shopping, entertainment, and experiential spaces. However, private development limits the scale of their “destination” features, such as SOOKSIAM at ICONSIAM or the Dusit Arun at Dusit Central Park.

Globally, the bar is rising for retail-led development. In China, destination retail has become a strategic pillar. For example, Taikoo Li Sanlitun in Beijing created 3,400 jobs and raised the district’s tax contribution by 11.7%-points between 2012 and 2020, achievements made possible by ongoing municipal support and a shift from purely commercial to culturally driven tourism spaces. Taikoo Li Chengdu expanded this model, integrating cultural themes and placemaking at its core. Unique concepts, such as street retail atop Shenzhen’s Upper Hills, and government-backed revitalisation of historic districts, further illustrate how coordinated efforts embedded in wider strategies – not just isolated projects – can deliver signature attractions. This trend, which gained momentum in the late 2010s, has continued to materialise and accelerate in the post-COVID era.

Bangkok boasts one of the region's highest retail densities at 1.04 sqm per resident and a thriving mall culture. However, the city lacks broader placemaking initiatives such as district revitalisation, leisure-led mixed-use precincts and integrated entertainment hubs. High land costs and fragmented ownership prevent the large-scale, purpose-led master planning seen in global peers. The private sector alone cannot fill this gap.

Figure 2: International case studies of systematic support for real estate-driven tourism – China, Vietnam, Singapore, and Thailand

Source: Ministry of Culture and Tourism (China), STB, official press releases, developers’ websites

To strengthen urban tourism, Thailand could deploy a wider set of government support measures. One key lever involves strategically mobilising prime state-owned land for agenda-driven projects that go beyond maximising commercial returns. Alongside proactive land policy, government could adopt additional measures such as targeted tax incentives, Public-Private Partnership (PPP) schemes, and streamlined permitting. If successful, such initiatives could become key elements in a broader policy mix, helping Thailand fortify its regional tourism leadership. The benefits would reach well beyond economics by providing residents with highly valued semi-public spaces, and making cities more liveable and attractive.

Figure 3: Map of prime land plots in Inner Bangkok held by government-related entities

Source: JLL Thailand Research

It is increasingly clear that land utilisation and real estate policy are areas where Thailand lags behind regional peers in bolstering tourism. While privately developed retail destinations remain impactful today, their long-term competitive advantage may weaken if the government delays broader, strategic interventions. Given the long lead times these initiatives require, early and decisive government action is essential. The government must work holistically and collaboratively with the private sector to bridge this gap, uphold Thailand's tourism leadership and create more liveable, attractive cities for all.