Soon thereafter, servicemen from all over Southeast Asia, including the United States Air Force base at U-Tapao in neighbouring Rayong province began using the area for "rest and recreation", causing a huge boom in prostitution.

When the Americans left following the end of the Vietnam War, the city fell into a crisis.  However, modern mass tourism, particularly single men looking for companionship, brought a new lease of life to Pattaya.

The rapid growth of tourism brought about many negative consequences, such as pollution and petty crime. In 1976, the Pattaya City Act was passed by the Thai legislature, making Pattaya a self-administrating municipality governed by a Council-manager government.