The Thai cabinet approved plans to shorten visa-free stays currently granted to tourists from countries including members of Europe’s Schengen area, the United States, Israel and several South American nations, Tourism Minister Surasak Phancharoenworakul told reporters in Bangkok.

Under the revised framework, most eligible foreign visitors will be permitted to remain in Thailand for up to 30 days without a visa, down from the current 60-day allowance introduced in July 2024 to stimulate tourism and economic recovery after the COVID-19 pandemic. Some nationalities could face shorter stays of only 15 days, officials said.

The government said extensions would still be available through immigration offices, but approvals would no longer be automatic.
“The renewal will be decided by the officer and tourists will have to explain why they are staying longer,” a government spokeswoman said.

Thai authorities linked the policy shift to rising concerns over transnational crime and misuse of long visa-free stays by foreigners operating illegally in the country.

Recent police investigations have involved foreign nationals accused of drug trafficking, sex trafficking and operating businesses such as hotels, schools and entertainment venues without proper permits.

Foreign Minister Sihasak Phuangketkeow said last week the changes formed part of a broader strategy targeting criminal networks exploiting Thailand’s immigration system.

Officials stressed the policy was not aimed at any particular nationality but at individuals violating Thai laws while using tourist entry privileges.

Government spokesperson Rachada Dhanadirek said the existing framework had generated economic benefits through tourism but also created loopholes for illegal activities.

Tourism remains a central pillar of Thailand’s economy, contributing more than 10 percent of gross domestic product. However, visitor numbers have yet to fully recover to pre-pandemic levels despite aggressive government campaigns to revive the sector.
According to tourism ministry data, foreign arrivals fell by approximately 3.4 percent in the first quarter of 2026 compared with the same period a year earlier.

Arrivals from the Middle East declined by nearly one-third during the period.

Thailand expects approximately 33.5 million foreign tourists this year, marginally above the nearly 33 million arrivals recorded in 2025, according to government projections.

The selloff follows a sharp rise in global oil prices toward $100 a barrel, intensifying pressure on Thailand, which relies on the Middle East for nearly half of its oil and gas imports, according to Krungsri Research.

Data showed foreign investors were net sellers of $823 million in Thai equities in March, while bond outflows reached $705 million, marking the largest combined outflow since October 2024. The reversal came after a brief resurgence in inflows earlier this year, including $1.7 billion in equity purchases in February.

Investor optimism had been buoyed by the election of Prime Minister Anutin Charnvirakul, whose victory raised expectations of political stability and economic reform.

However, the outbreak of the Iran conflict at the end of February triggered a rapid reassessment of risk.Analysts say Thailand faces a more acute challenge than many regional peers due to its economic structure and policy constraints.

The economy had already been struggling, with growth of 2.4% last year and a prolonged period of deflation that prompted a rate cut by the central bank in February.“The risk remains that higher fuel costs hit consumption and disrupt exports and tourism,” said Daniel Tan, a portfolio manager at Grasshopper Asset Management, highlighting concerns about key growth drivers.

Thailand’s heavy reliance on natural gas, which accounts for more than half of its power generation, adds to its exposure. Rising liquefied natural gas imports are expected to further increase costs as energy markets tighten.

The Thai baht has weakened nearly 3% since the conflict began, though it has recovered some ground following a recent ceasefire. Analysts say the currency is acting as a key adjustment mechanism, helping absorb external shocks.

Market participants also point to limited policy flexibility. With public debt nearing the government’s self-imposed ceiling of 70% of gross domestic product, fiscal space is constrained, while monetary policy faces a trade-off between supporting growth and containing inflation.

“There’s a broad consensus among investors that Thailand is in a policy bind,” said Gary Tan of Allspring Global Investments, noting that the central bank has limited room to tighten or ease policy without adverse consequences.

Inflation, which had been contracting earlier this year, is now projected to rise as much as 3.5% depending on how the conflict evolves, marking a sharp shift in the economic outlook.

While a temporary ceasefire has supported a rebound in Thai equities and the baht, analysts caution that prolonged high energy prices could further weigh on growth, consumption and the external balance.