What: Thailand is pivoting from mass tourism to high-spending visitors, while Japanese department stores have offset a more than 50% drop in Chinese arrivals by courting Korean and Southeast Asian shoppers.

Why it is important: In both markets, tourist-dependent retail now hinges on who the visitors are rather than how many, rewarding operators that build distinctive local assortments and spread their exposure across source markets.

Thailand has halved its visa-free entry allowance to 30 days for visitors from 93 countries as it seeks higher-spending tourists drawn to culture and wellness rather than beaches and bars. International arrivals fell a further 7% in 2025 and remain below pre-Covid levels, while Malaysia and Vietnam gain ground in mass-market tourism.

The Amazing Thailand Grand Sale 2026, backed by Central Retail, Big C, Siam Piwat and CP Axtra, promotes Thai brands and craftsmanship over discounting and is set to run until the end of August, with the Tourism Authority of Thailand projecting a modest 700 million baht (US$22 million) in revenue. Retailers are urged to prioritise Thai design, silk, gemstones and T-beauty, experiential stores with multilingual staff, and better payment acceptance, since most 7-Eleven stores do not yet take QR payments and VAT refunds are handled mainly at airports. Weak infrastructure outside Bangkok remains a barrier for time-poor affluent travellers.

In Japan, Chinese arrivals have fallen more than 50% this year amid the dispute over Taiwan. A weak yen has drawn Korean and Southeast Asian shoppers, and retailers have turned to country-specific social media and a stronger emphasis on "Japan-ness", with Takashimaya largely maintaining duty-free sales.

IADS Notes: Thailand's bid for higher-spending visitors builds on moves already under way in its malls: Siam Piwat's alliance with four global luxury groups aims to draw high-net-worth tourists to experiential flagships that pair international standards with local cultural relevance (The Bangkok Insight, June 2026), while Bangkok's shopping centres have been repositioning as mixed-use destinations where wellness, food and culture sit alongside retail, with Central Pattana growing despite weak tourism (Monocle, July 2026). Japan shows what a sudden change in the visitor mix means for department stores. The Chinese boycott exposed their dependence on a single source market for luxury and duty-free sales (Financial Times, March 2026), yet duty-free sales were recovering by March, up 6.9% at Takashimaya and 10.3% at Daimaru Matsuzakaya, as South Korean and US visitors filled part of the gap (Japan Times, April 2026). Department stores have since broadened assortments and courted South Korean, Taiwanese and Southeast Asian shoppers alongside domestic customers (Inside Retail, June 2026).

Thailand pivots to the "high value" tourist