Strong Thai Baht Pushes Tourists Toward Cambodia

[geovalin]

 

Cambodia’s tourism sector may be in for a surprise boost as the Thai baht strengthens against the US dollar, raising costs for travellers heading to Thailand and prompting many to seek more affordable options next door.

 

With the baht opening at 32.65 to the dollar on 7 May, its appreciation from the previous 33.05 has sparked fresh concerns in Thailand’s tourism industry, which is already under pressure from fierce competition across Southeast Asia. Cambodia, by contrast, looks set to benefit—thanks to its dollarised economy and stable pricing.

 

“Cambodia is finally getting its moment,” said tourism consultant Vivian Goh, speaking to Khmer Times from Singapore. “With the baht climbing, Cambodia is now the most cost-effective option in the region. Its tourism sector offers dollar-based pricing, which makes it especially attractive to international visitors.”

 

Goh added that inflation has been better contained in Cambodia than in neighbouring Vietnam, Malaysia and Indonesia. “Thailand’s strong currency is now its biggest weakness,” she said, adding that Cambodia’s new Phnom Penh airport and efforts to diversify tourism beyond Angkor Wat could help the country seize the moment.

 

Jitender Singh Rathore of Asian Trails Cambodia agreed the currency shift is reshaping travel plans across the region. “For cost-conscious travellers, Thailand is becoming less appealing,” he said. “Cambodia, with stable tour prices, is increasingly attractive.”

 

However, he noted a downside: the same exchange rates are making it more expensive for Cambodians to holiday in Thailand. “Converting riel or US dollars into baht now means higher costs for Cambodians,” Rathore added, highlighting a potential dip in outbound tourism.

 

In Thailand, small tourism-reliant businesses—budget hotels, street vendors, and cafés—are reportedly already feeling the impact, as foreign visitors cut back on spending.

 

While currency fluctuations alone won’t reshape Southeast Asia’s travel market overnight, the current trend marks a rare window of opportunity for Cambodia—if it can scale up fast enough to meet growing demand.

 

-2025-05-09