Strengthening Baht Adds to Troubles for Thai Tourism Sector
The rising baht is weakening Thailand’s tourism competitiveness, with revenues and arrival growth falling short amid currency appreciation and safety concerns.
The strengthening Thai baht is emerging as a fresh challenge for Thailand’s tourism industry, struggling to recover amid security worries and shifting travel patterns.
Tourism receipts from January first to August tenth totalled 938 billion baht, placing the four-year target of 1.77 trillion baht out of reach.
Foreign arrivals over that period reached twenty million, down more than six percent from the same period last year.
The baht has appreciated by five to six percent against the US dollar this year, diminishing the value of Thailand as a destination—especially for short-haul markets like China, where arrivals have dropped by nearly a third.
In response, tourism operators in Pattaya said they rely heavily on weekend and holiday traffic to sustain occupancy, which dipped to thirty to forty percent on weekdays despite surges during public holidays.
Meanwhile, small and medium-sized hoteliers reported delays in receiving subsidy payments under the domestic travel co-payment scheme, affecting their ability to participate effectively.
Industry groups are pressing the government for clearer measures to restore tourist confidence.
Separately, the Bank of Thailand lowered its policy interest rate to one point five percent—its lowest level in more than two years—in part to support sectors including tourism amid subdued economic indicators like falling inflation and rising household debt.
Tourism receipts from January first to August tenth totalled 938 billion baht, placing the four-year target of 1.77 trillion baht out of reach.
Foreign arrivals over that period reached twenty million, down more than six percent from the same period last year.
The baht has appreciated by five to six percent against the US dollar this year, diminishing the value of Thailand as a destination—especially for short-haul markets like China, where arrivals have dropped by nearly a third.
In response, tourism operators in Pattaya said they rely heavily on weekend and holiday traffic to sustain occupancy, which dipped to thirty to forty percent on weekdays despite surges during public holidays.
Meanwhile, small and medium-sized hoteliers reported delays in receiving subsidy payments under the domestic travel co-payment scheme, affecting their ability to participate effectively.
Industry groups are pressing the government for clearer measures to restore tourist confidence.
Separately, the Bank of Thailand lowered its policy interest rate to one point five percent—its lowest level in more than two years—in part to support sectors including tourism amid subdued economic indicators like falling inflation and rising household debt.
