Bangkok Restaurants Face Revenue Drop Amid Tourism Decline
Restaurants along Bangkok's Banthat Thong Road are grappling with a steep revenue decline of 40-50%, primarily due to weak domestic spending and a significant drop in foreign tourists, especially from China. According to Sittichan Vuttipornkul, adviser to the Bantadthong Association, the slow growth in consumer spending is not keeping pace with rising operational costs, which increase by about 5% annually.
The decline in the Chinese tourism market has notably impacted restaurant operators, as foreign visitors typically make up 20-30% of daily patrons, with a majority being Chinese nationals. Domestic travelers have also tightened their dining budgets, leading to a noticeable sales drop since the beginning of 2025. Some establishments report a staggering decline of up to 70% compared to the same period last year.
Adding to the challenges, negative online reviews have surfaced, with some customers criticizing the quality and pricing of food. Despite these setbacks, many restaurant operators benefit from relatively lower rental costs in the area, averaging 350 baht per square meter, compared to 700-1,000 baht in shopping malls and 600-800 baht in retail spaces at petrol stations. Approximately 80-90% of the businesses lease directly from Chulalongkorn University, which helps keep costs manageable.
While the closure rate for restaurants on Banthat Thong is only 2-3%, indicating ongoing demand, the association is aware of the need for some new establishments to achieve quick returns. Plans are underway to enhance the street's reputation as a premier destination for street food and lifestyle experiences. The association intends to organize more activities to attract a broader demographic, moving beyond the current focus on younger customers with limited budgets.
Sittichan emphasized the importance of avoiding price wars among restaurants, which could further harm overall performance. Banthat Thong, recognized as the 14th coolest street in the world by Time Out magazine last year, is home to over 300 restaurants, including both established names and newer entrants like Haab, a popular Thai egg pastry shop. In 2024, the street is expected to attract between 10,000 and 30,000 visitors daily, reflecting its potential as a vibrant culinary hub.
