#TAT

Portugal’s remarkable transformation of abandoned rural villages into thriving hospitality destinations offers compelling lessons for Thailand’s efforts to revitalize declining rural communities while creating sustainable tourism opportunities that preserve cultural heritage and support local economies. The Portuguese model demonstrates how thoughtful restoration projects can breathe new life into forgotten places while respecting architectural traditions and community values.

This innovative approach carries profound relevance for Thailand, where rural-to-urban migration has left many traditional villages struggling with population decline, economic stagnation, and cultural erosion. By adapting Portugal’s village hotel concept to Thai contexts, the kingdom could develop unique tourism products that celebrate its rich rural heritage while creating meaningful economic opportunities for communities throughout the country.

Portugal has turned ruined villages into working hotels that revive local life and culture. (Forbes)
The trend mirrors Italy’s albergo diffuso model and offers lessons for Thailand. (Forbes)

The Portuguese model restores old houses into guest rooms. (Forbes)
The model keeps buildings in their original places. (Wikipedia)

The projects add small services like bakeries and restaurants. (Forbes)
They keep local crafts and food at the centre of the guest experience. (Forbes)

Thailand’s tourism industry, long reliant on a steady influx of Chinese travellers, is now undergoing a major strategic shift as arrivals from China continue to disappoint, prompting the kingdom to intensify efforts to attract visitors from Southeast Asia and the Middle East. Recent statements from the Tourism Authority of Thailand (TAT) reveal that the agency has lowered its 2025 forecast for foreign arrivals to 35 million—a significant drop from the previous target of 40 million—due primarily to the underwhelming recovery of the Chinese market. This new reality is reshaping both marketing and investment priorities for Thailand’s second-largest economic sector, with implications for businesses, workers, and communities nationwide (South China Morning Post; Bloomberg).