Photo courtesy of Bangkok Post

 

The recent appreciation of the Thai baht is raising concerns about its potential impact on tourism and associated businesses, as cautioned by the Federation of Thai Industries (FTI). The baht's strengthening could result in Thailand missing its target of 40 million foreign tourists this year, diminishing the economic benefits derived from their expenditures. A stronger baht means foreign visitors need to spend more for goods and services, making Thailand comparatively more expensive.

 

In 2023, the baht appreciated to 31.8 against the US dollar as per the Bank of Thailand's data from September 19, marking it as the strongest currency in Southeast Asia. Consequently, destinations like Vietnam are becoming more attractive, with Vietnam experiencing a 21% rise in tourist arrivals year-on-year. Vietnam’s competitive edge is bolstered by increased direct flights and favorable travel policies.

 

FTI chairman, Kriengkrai Thiennukul, indicated that the increased travel costs in Thailand could lead tourists to spend less, directly affecting hotels, restaurants, and other tourism-related enterprises. The potential downturn in tourism could also stall new investment initiatives within the sector, such as hotel developments.

 

The FTI has urged the Bank of Thailand to reconsider the baht's current valuation to stabilize it between 34-35 baht to the dollar. This adjustment is viewed as beneficial, potentially restoring Thailand's competitiveness and alleviating pressures on exporters and tourists alike. A stronger baht detracts from Thailand's allure as a tourist destination, while also hampering exporters by reducing their global market competitiveness.

 

As Thailand grapples with these challenges, maintaining its tourism influx is crucial, particularly in the face of regional competition and the evolving global economic landscape. The call for a strategic approach to exchange rate management is gaining urgency, requiring decisive action to safeguard economic interests in tourism and exports.

 

Key Takeaways

• The baht's appreciation makes Thailand costlier for tourists, risking missed targets.
• Vietnam’s tourism benefits from new flights and favorable policies luring travelers.
• FTI suggests baht devaluation to balance economic competitiveness and appeal.

 

Related Stories

Baht Surge Linked to 500bn Baht Money-Laundering Inflows

Baht Surge Makes Thailand Costlier Than Vietnam for Chinese

 

  Adapted by ASEAN Now from Bangkok Post 2025-09-23

 

 

2 hours ago, snoop1130 said:

In 2023, the baht appreciated to 31.8 against the US dollar as per the Bank of Thailand's data from September 19, marking it as the strongest currency in Southeast Asia (...)

 

Once more, Thailand is 'ahead of time', providing interesting historical data... 😆 

Probably too late now most people have already booked for the high season but they think  that their country is better mealwhile vietnam is cheaper and more apealling they should have done something aboutthe baht sooner

13 hours ago, snoop1130 said:

The FTI has urged the Bank of Thailand to reconsider the baht's current valuation to stabilize it between 34-35 baht to the dollar.

This is where it needs to be. Curretnly at 31.8 i am losing more than 10,000 baht monthly. 

And they found out just now, but Thailand is too expensive already for several years.. and tourists unless Thai people are planning and booking their holidays months ahead, as the Western tourists have a job and must arrange holidays too... Thai people only do things last minute

The Thai baht changed dramatically 6-8 weeks after the coup. When Yingluck was PM I was getting 33.5 baht per Aussie dollar, now I'm lucky if I get 21 baht. Of course foreign currencies fluctuate but there is no apparent reason why overseas currencies dropped 30%. When I was getting 33.5 I'm sure the UK pound was 84 and the US dollar was 40 plus.

13 hours ago, ozz1 said:

Probably too late now most people have already booked for the high season but they think  that their country is better mealwhile vietnam is cheaper and more apealling they should have done something aboutthe baht sooner

This is increasing gunga profits ,coincidence that it's happening under someone's watch 

Would be nice for us retirees, but too late for most international travelers. When will they learn?

38 minutes ago, Mason45 said:

The Thai baht changed dramatically 6-8 weeks after the coup. When Yingluck was PM I was getting 33.5 baht per Aussie dollar, now I'm lucky if I get 21 baht. Of course foreign currencies fluctuate but there is no apparent reason why overseas currencies dropped 30%. When I was getting 33.5 I'm sure the UK pound was 84 and the US dollar was 40 plus.

That is more because of the AUD.

AUD has been tanking against most major currencies.

In that period I sold all my AUD and NZD's because they were 

peaking in euro too.

13 hours ago, ozz1 said:

Probably too late now most people have already booked for the high season but they think  that their country is better mealwhile vietnam is cheaper and more apealling they should have done something aboutthe baht sooner

since tey have been saying this for months, one would think that they would do somehting about it other than just complain.  Since all sectors seem to agree on it, just devalue the baht by 10-15 percent and then they would be at what some of them say is the optimum to best help the country.  I wouldn't mind that at all!

On the other hand , it keeps import prices lower , especially

for energy which Thailand has not that much of.

 

So the fund to support lower diesel prices is not depleted.

Just as an info, that it's (not always) about the dollar bill:

 

in %:

              1 year           2 years          5 years       10 years

Euro      +2.97           -1.63              +2.5             - 7.00 

GBP       -1.84           -2.29             +7.14             -21.52

CHF      +3.72           +1.68             +18.49          +9.16

USD      -3.05           -11.69             +1.07            -11.71

AUS      -6.08           -8.98              -4.78           -16.74

Many folks can handle the overvalued baht. But not going to put up with this endless unnecessary bogus beach "improvements " construction projects . And parking garages on nice parks.Does Vietnam do this in Da Nang and Nha Trang??

Here we go again, the currency wars. How about focusing on providing better services than artificially making services cheaper by means of devaluation.

15 hours ago, ozz1 said:

Probably too late now most people have already booked for the high season but they think  that their country is better mealwhile vietnam is cheaper and more apealling they should have done something aboutthe baht sooner

Someone in high shoes just keeps it rolling in 

Most tourists as all ready mentioned have booked their holidays well in advance cost  of air fares  and hotels probably already paid for

So they wont be to worried about spending money or exchange rates when they arrive Ie 2 - 4 weeks stay 

But expats retired in Thailand a different story  as their costs will be higher 😉 

 

1 hour ago, Schoggibueb said:

Just as an info, that it's (not always) about the dollar bill:

 

in %:

              1 year           2 years          5 years       10 years

Euro      +2.97           -1.63              +2.5             - 7.00 

GBP       -1.84           -2.29             +7.14             -21.52

CHF      +3.72           +1.68             +18.49          +9.16

USD      -3.05           -11.69             +1.07            -11.71

AUS      -6.08           -8.98              -4.78           -16.74

As most of my money sits in Switzerland these numbers make me happy 🙂

The coming high season may not be as lucrative as the Thai government seems to think it will be with the Thai baht currently just under 32 baht to the USD.  

Finally the penny has dropped 

How's the baht doing against the ruble? That's more relevant with the current tourism demographic!

2 minutes ago, madmitch said:

How's the baht doing against the ruble? That's more relevant with the current tourism demographic!

I will still stick to the CHF...

 

in %:

              1 year           2 years          5 years       10 years

 

RUB      +6.11            +0.22            -5.51            -30.84

 

Euro      +2.97           -1.63              +2.5             - 7.00 

GBP       -1.84           -2.29             +7.14             -21.52

CHF      +3.72           +1.68             +18.49          +9.16

USD      -3.05           -11.69             +1.07            -11.71

AUS      -6.08           -8.98              -4.78           -16.74

 

What goes up, being the Thai Baht, will eventually come down and maybe come down hard. Be patient as it will eventually occur.

2 hours ago, kiwikeith said:

Someone in high shoes just keeps it rolling in 

Sadly, an inept government has opened the door to all manner of illegal activity. The Thai economy is suffering. It will reach a point where the corruption actually works against them. Then maybe they will take action. (them, they - we know who they are )

18 minutes ago, Des1 said:

Sadly, an inept government has opened the door to all manner of illegal activity. The Thai economy is suffering. It will reach a point where the corruption actually works against them. Then maybe they will take action. (them, they - we know who they are )

 

 

"Them/they" is ALL of them.

Another factor for TAT should consider is the cost of living affecting countries where tourists come from. For instance inflation has affected the UK, Germany and France , the top three tourists from Europe which has seen airfares increase along with food and utility services. Inevitably when people are worried about spending money holidays are one of the first things people adjust to save money. 

Crypto money is the answer why this has happened. 

12 hours ago, shackleton said:

Most tourists as all ready mentioned have booked their holidays well in advance cost  of air fares  and hotels probably already paid for

So they wont be to worried about spending money or exchange rates when they arrive Ie 2 - 4 weeks stay 

But expats retired in Thailand a different story  as their costs will be higher 😉 

 

 

TAT can do nothing about the currency, not sure why some are referring to them. 

 

The Brits for one ruined their currency through racism which led to Brexit. However, despite being worst off, racism takes precedence. 

14 hours ago, morrobay said:

Many folks can handle the overvalued baht. But not going to put up with this endless unnecessary bogus beach "improvements " construction projects . And parking garages on nice parks.Does Vietnam do this in Da Nang and Nha Trang??

The Thai's are always fixing something. It's never fixed. Always around fixing something and making noise. The reason for this is that they fix it incorrectly so it has to keep getting fixed again.

I do not care about the Baht.

 

I only spend it, when required.

 

A nation's economy is not based on tourism alone.

Why do you persist in thinking that tourism should be the country's main source of income?