World-Beating Currency Is a Big, Big Headache for Thailand's Tourism

By Natnicha Chuwiruch

 

File photo

 

• New minister blames baht’s advance for a slowdown in arrivals
• Piphat aims for talks with the central bank, finance ministry

 

Thailand’s tourism minister has blamed a surge in the baht for sapping tourist arrivals into Southeast Asia’s second-largest economy and says he’ll take up the matter with the central bank, highlighting rising concern over the currency’s gains.

 

Arrivals have dropped because of the baht’s strength, Piphat Ratchakitprakarn, minister of tourism and sports, told reporters in Bangkok after he officially began his new role. Piphat said he’ll discuss with the Bank of Thailand and the finance minister what can be done to help support the industry.

 

Thailand’s currency is among the strongest in emerging markets over the past 12 months, and the jump has been a headwind for an economy that’s also being hurt by the fall-out from global trade tensions. The central bank has signaled its concern about the advance, and on Wednesday Governor Veerathai Santiprabhob said he’s tracking the currency closely and is prepared to act.

 

Full story: https://www.bloomberg.com/news/articles/2019-07-18/world-beating-baht-is-a-big-big-headache-for-thailand-s-tourism

 

-- Bloomberg 2019-07-19

They that sow the wind, shall reap the whirlwind....

Why not just stop screwing with the people.  TM30 must stop.  Only those who are legal here will use it.  Those on overstages and criminals are not going to use it.  It is a waste of immigration time and are time.  Also stop cheating the tourist and all foreigners in the country.

58 minutes ago, webfact said:

Thailand’s tourism minister has blamed a surge in the baht for sapping tourist arrivals

 

Sorry every tourist I know does not complain even at getting 30/1 USD

 

But what they do not like is the BS government the previous overthrow of a democratically elected government &

what they hate most of all? Corruption at almost every step of the way.

 

Tourist I know who made annual treks to Thailand have found greener pastures

They were very much in love with the Thailand of 10 years ago & still came yearly

 

But year after year they saw/felt the changes & finally said enough.

It is just not that nice of a place to visit anymore.

 

My wife & I we come every year of course as we have a country house & family to visit that will not change.

But folks we know without Thai ties that loved Thailand no longer vacation there & to be honest an improved exchange rate would not change their minds.

 

Sometime i get the funny feeling that Thailand for most part is kinda winging its fortunes and there isn't anyone there at the helm to really steer the ship, what the the old/new silly, futile, confusing and pointless immigration rules, the everyday edicts to harass and contain tourists and visitors to this country who are the cash cows of their GDP, and now with the appreciation of the baht for what means and ends no one really can tell of figure out...

I know very little about economics, and don't pretend to know what I don't know. What is the basis for the "strength" of the Baht currently?

33 minutes ago, nickstav said:

I know very little about economics, and don't pretend to know what I don't know. What is the basis for the "strength" of the Baht currently?

I’m not an economist either but the middle class has been booming in Thailand and Asia the past 5 years or so...

 

growing middle class means more money is circulated as more people  have more disposable income..

 

someone else mentioned thailand Also has gold reserves and gold trade which is strong at the moment.

 

other than this it’s anyone’s guess

 

 

5 minutes ago, onera1961 said:

huge piles of foreign currency reserve, high current account surplus, huge foreign direct investment. 

in other words it is being manipulated because it can be

 

the first sign of volatility and things could happen very quickly - like a solid $b company going into free fall over a few days 

37 minutes ago, nickstav said:

I know very little about economics, and don't pretend to know what I don't know. What is the basis for the "strength" of the Baht currently?

Strong Demand for Baht, and weak demand for other currencies.  Want to hold some Ringgit or Pounds?

6 minutes ago, smedly said:

in other words it is being manipulated because it can be

How it can be manipulated to make it strong? USA commerce department believes it is artificially kept low and they have  put Thailand in the watch list. In the last report it narrowly missed the criteria of currency manipulator to make it weak. 

Oh my Buddha someone in a government position has finally woken up Praise the Lord

2 hours ago, webfact said:

World-Beating Currency Is a Big, Big Headache for Thailand's Tourism

They must be tinking too mut!

1 hour ago, mania said:

 

Sorry every tourist I know does not complain even at getting 30/1 USD

 

But what they do not like is the BS government the previous overthrow of a democratically elected government &

what they hate most of all? Corruption at almost every step of the way.

 

Tourist I know who made annual treks to Thailand have found greener pastures

They were very much in love with the Thailand of 10 years ago & still came yearly

 

But year after year they saw/felt the changes & finally said enough.

It is just not that nice of a place to visit anymore.

 

My wife & I we come every year of course as we have a country house & family to visit that will not change.

But folks we know without Thai ties that loved Thailand no longer vacation there & to be honest an improved exchange rate would not change their minds.

 

I would agree with most of what you said, but I don't think the average tourist gives a rat's ass about the political situation here, and whereas they don't like getting what they feel as "being ripped off" that's not attributable to corruption within the government itself.

21 minutes ago, nickstav said:

I would agree with most of what you said, but I don't think the average tourist gives a rat's ass about the political situation here, and whereas they don't like getting what they feel as "being ripped off" that's not attributable to corruption within the government itself.

Some care, but doubt that is large percentage. I had a visa to go to Myanmar back in 97, but didn't go because Aung San said don't support corrupt military. Now I won't go because she is in (partial) power.

Rip offs + lack of safety = fewer tourists. "I'm dying to go to Thailand".... wait til you get there

1 hour ago, onera1961 said:

USA commerce department believes it is artificially kept low and they have  put Thailand in the watch list. In the last report it narrowly missed the criteria of currency manipulator to make it weak. 

True, little hope of it being devalued with current US pressure, regardless of the damage to Thai exports and tourism. Not to mention those in charge here are making a mint off the back of the current situation. 

When we reach 1 EUR = 1 THB I will also come to work illegally to clean hotel floors for 10k THB monthly ????

Until then, Immigration does not need to make themselves a fool to believe people would want to work here so much.

Funny !

they said other day exchange rate makes little difference and tourist numbers still good ????

Reality is high baht and tourism small issue, export the big one on currency rate .

As for tourist baht rate just one of many reasons that hitting tourism ...

If you spend a lot of money to see plastic rubbish evetywhere, you wont come back.

3 hours ago, Mango Bob said:

Why not just stop screwing with the people.  TM30 must stop.  Only those who are legal here will use it.  Those on overstages and criminals are not going to use it.  It is a waste of immigration time and are time.  Also stop cheating the tourist and all foreigners in the country.

I thought this was about tourism ?

I don't think the central bank will do anything, an overvalued currency like the Baht at the moment is a source of income for all the rich who have enough money to speculate and certainly also for the banks!
Who cares about the poor who have to fight daily for a handful of rice!

“Interest rates alone can’t fix all problems,”

But it is the first step you have to do as soon as possible. Next year it's "game over".

3 hours ago, Mango Bob said:

Why not just stop screwing with the people.  TM30 must stop.  Only those who are legal here will use it.  Those on overstages and criminals are not going to use it.  It is a waste of immigration time and are time.  Also stop cheating the tourist and all foreigners in the country.

That will certainly sort of the inflated Baht, now won't it? 

4 minutes ago, 30la said:

Who cares about the poor who have to fight daily for a handful of rice!

I learn something new every day - the poor (who deal only in baht) have to fight daily for a handful of rice (which is grown in Thailand and not imported - in fact there's a glut of rice for export) because of the strong baht

Tired of reading posts from Thai Baht apologists.  Get real.  Baht is unacceptably high, and BoT doesn’t give a rat’s a$$ about tourism or exports.  Let the recession begin...

Great, hopefully they can lower the baht.

1 hour ago, lamyai3 said:

True, little hope of it being devalued with current US pressure, regardless of the damage to Thai exports and tourism. Not to mention those in charge here are making a mint off the back of the current situation. 

Think that sums it up completely, those in charge are making a mint (in overseas currencies) of the back of the current situation. 

Every tourist turned away - for whatever reason - will not come back. 

The real estate industry is very busy selling extremely overpriced unsold units to Chinese against foreign exchange inward remittances which - not all - have seen the tax office. It is anyone's guess who is doing the cut here; the tourists better shut up and stay quiet while the oligarch elite is minting money as if there is no tomorrow. 

1 AUD = 22 baht !!!!!!!!!!!!!!

crappy exchange rate.

i have no idea why it’s gone there but it sucks.

3 hours ago, nickstav said:

I know very little about economics, and don't pretend to know what I don't know. What is the basis for the "strength" of the Baht currently?

 

Corruption money going offshore...something like that.

 

 

It's not the currency stupid. 2 weeks tourists don't care or would notice the strength of the B. It does however affect the expats trying to reside here. There are just too many issues to discuss.