Last week, during a significant meeting with Chinese President Xi Jinping, Thailand’s Prime Minister Anutin Charnvirakul made it clear that his administration would not support the legalization of casinos in the country. This declaration was part of a broader strategy to strengthen ties with China, with Xi promising to stimulate Chinese tourism to Thailand as a gesture of goodwill.
Upon his return to Bangkok on Saturday, Anutin shared that the discussions with President Xi had been productive, characterized by a spirit of mutual understanding. According to Anutin, President Xi seemed relieved to hear Thailand’s stance against legalizing casinos, reassuring that this decision would encourage the Chinese government to endorse Thailand as a travel destination for its citizens.
The backdrop of this diplomatic dialogue was the Asia-Pacific Economic Cooperation (APEC) meeting held over the weekend in South Korea, with a focus on future sustainability.
Anutin’s firm anti-casino policy was not unexpected following his election on September 5th, which came shortly after the impeachment of former Prime Minister Paetongtarn Shinawatra. From the onset, Anutin, leader of the Bhumjaithai Party, maintained that the concept of legal casinos would have to wait for a successor.
The previous administration under Shinawatra had pushed forward the Entertainment Complex Bill, a legislative proposal intended to legalize and regulate casino operations. The Ministry of Finance had supported this initiative, projecting that it would boost tourist arrivals by 5% to 10% annually, with each tourist spending between $1,296 and $1,945. Furthermore, it was anticipated to double tourism revenue from $3.5 billion to $7 billion, create up to 15,300 new jobs, attract over $2.9 billion in new investment, and generate between $354 million to $1.1 billion in government revenue annually.
However, this plan was met with resistance from President Xi, who expressed concerns during a February visit by then-Prime Minister Shinawatra to Beijing. Xi warned of the heightened risk of crime associated with casinos, subtly suggesting that should Thailand proceed with the legislation, China might reduce its travel, trade, and investment engagements with the country.
The impact of these diplomatic and legislative dynamics was reflected in a 34% decline in Chinese tourists to Thailand during the first half of 2025. This downturn was influenced by economic uncertainties and safety concerns following a significant earthquake in Myanmar in March, which was felt in parts of Thailand. Consequently, the Tourism Authority of Thailand adjusted its projections, reducing the anticipated number of foreign visitors from 37 million to 33 million, a figure still significantly lower than the 40 million peak in 2019.
Despite these challenges, Thanapol Cheewarattanaporn, president of the Association of Thai Travel Agents, emphasized the critical importance of the Chinese market for Thailand’s tourism sector. He acknowledged that completely reducing dependence on Chinese tourists is complex, but maintaining the current travel flows is paramount given the vast base of Chinese travelers.
In his discussions, President Xi reiterated his commitment to fostering China-Thailand cooperation across various domains, including trade, investment, cultural exchange, and tourism. While Anutin’s strategy seems to prioritize the immediate benefits of bolstering Chinese tourism, it does face criticism. Some argue that Thailand could miss out on potential long-term economic gains from a legalized and regulated casino industry, which could diversify the economy and reduce dependency on any single market.
Ultimately, the decision to reject casinos reflects broader geopolitical and economic strategies. Anutin’s administration appears focused on ensuring stability and leveraging international relations to maintain Thailand’s appeal as a tourist destination, particularly for the lucrative Chinese market. As these developments unfold, the balance between immediate diplomatic gains and potential economic opportunities remains a topic of debate and strategic calculation for Thailand’s government and its stakeholders.
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