The appreciation of the baht, which has reached its highest level in four years, could affect inbound tourism during the upcoming high season.
But the attractive room rates and cheaper international flights are expected to continue to attract visitors to Thailand.
This Wednesday, September 10, at 9:22 (Thai time) 1 euro is worth 37.19 baht and 1 US dollar is worth 31.75 baht.
See: Thai Baht THB exchange rate
The strength of the baht worries Thai hotel operators
Royal Rattanakosin Hotel in Bangkok
A stronger baht could discourage independent travelers who have not yet booked their foreign vacations, said Udom Srimahachota, Vice President of the Western Section of the Thai Hotel Association (THA).
Undecided travelers may opt for more affordable destinations such as Vietnam or Japan, which has experienced a weak yen for years, he said.
However, Mr. Udom stated that Thailand, including Hua Hin and Cha-am, still expected a significant increase in long-haul tourists in the fourth quarter.
Many have already booked their trip with travel agencies thanks to lower accommodation prices under contractual rates.
See: Decline of tourism in Thailand: hotels forced to lower their rates
Cheaper international flights and competitive hotels
An airplane flying over tourists on a Phuket beach.
He added that the strength of the baht should also be offset by other factors, such as cheaper international flights compared to last year, with airlines having increased their capacity to meet demand.
In recent years, said Mr. Udom, direct flights linking Europe to Thailand could cost between 70,000 and 80,000 bahts (1,882 and 2,151 euros), but prices have now fallen between 50,000 and 60,000 bahts (1,344 and 1,613 euros).
Hotel room rates are not expected to rise sharply during this peak season, as operators compete to attract customers in a context of high hotel supply and declining inbound tourism, he said.
Hua Hin and Cha-am expect 80% occupancy
Hua Hin beach.
In the fourth quarter, Hua Hin and Cha-am expect an average occupancy rate of 70 to 80%, while the daily room rate is expected to increase by only 15 to 20% compared to the low season.
This represents a level that is practically unchanged from last year, according to the THA.
Mr. Udom stated that Thailand should continue to attract foreign tourists, as it is renowned for its value for money.
Hua Hin and Cha-am offer a wide range of accommodations, ranging from small, affordable three-star hotels to luxury hotels, which could help attract some domestic tourists who were considering traveling abroad, he said.
The majority of visitors to Hua Hin and Cha-am during this high season are expected to come from European markets, such as the UK, Scandinavia, Russia, Switzerland and Germany.
Unless the baht appreciates beyond 31 per dollar, it should not have a significant impact on tourism, said Mr. Udom.
To alleviate concerns, the new government and central bank should take measures to manage the exchange rate in the most advantageous way for the economy, he said.
See: The Bank of Thailand to tackle the impact of gold on the baht
Foreign tourism is declining despite 22.3 million arrivals
Tourists in Phuket's old town. Photo: The Nation Thailand
As of September 7, Thailand had welcomed 22.3 million foreign tourists in 2025, a decrease of 7.1% compared to the previous year.
The Chinese market contributed the largest share with 3.16 million arrivals, but this figure is down by about a third compared to last year.
See: Thailand: tourism is collapsing due to the decline in Chinese visitors
Measures awaited to revive the tourism sector
Tourists in a Thai airport. Photo: The Nation Thailand
Mr. Udom stated that he hoped the new government's Tourism Minister, Anutin Charnvirakul, would propose quick-acting measures to revive the sector, including:
- A domestic travel co-payment program
- The introduction of security buffers for operators to guarantee traveler confidence
Operators hope that attractive hotel rates and cheaper flights will enable Thailand to remain competitive despite a strong baht.
See also:
Thailand: tourism giants revise their ambitions downward
Thailand: tourism opens up to cryptocurrency payments
Thailand: decline in foreign tourism with a 7% drop since January
Thailand: a baht too strong and insecurity weigh on tourism
Source : Bangkok Post
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4 comments
I'm not sure if the Bank of Thailand's desire to regulate the baht's parity against the constant rise in gold (see article “Bank of Thailand to tackle gold's impact on baht”) has already (in less than 48 hours) reacted to the stock markets and that this rise in the value of the baht, which is already not ideal for tourism and exports, is the result of this announcement, but it doesn't suit the exporting industries, the service sector and all sectors directly or indirectly dependent on international tourism…
If this is how the Central Bank envisages a rebalancing of value between gold and the baht, it is likely that the Thai currency will continue to become more and more expensive on the foreign exchange market, with all the consequences and concerns that are already manifesting in the economic sectors that will be affected by this policy…
As the article highlights, the Central Bank will be pressured by economic and industrial players to intervene to lower the key interest rate, but once again, even if the Bank decides to cut the key rate by half a point (the usual practice is a quarter of a point), this will only bring the baht back to the exchange rate of a few weeks ago, when it was trading around 37.60 / 1 euro, well below a favorable average and ideal rate that I consider to be between 38.50 and 40 baht / 1 euro.
If the central bank had decided to lower its key rate just a week ago, when the baht was around 37.80 to 1 euro, one could have hoped that the Thai currency would be cheaper and exchange above the 38 baht mark!
Too late, it's missed once again, due to a lack of realism and decision-making on the part of the Thai financial authorities.
It's not with a strong baht that Thailand will leave the orange zone of its stagnant economy and tourism in constant decline since the end of 2024, even, as the article recalls, hotel room prices are declining, as well as international flights, which always make up 65 to 70% of a long-haul tourist's vacation budget.
Meanwhile, Gold is soaring, having almost doubled in value in 4 years (+ 97%), a 150 grs / 23K gold bar, bought in 2021 for 280,000 baht is worth 542,000 baht today !!!
And that's why the rich are always getting richer and the poor, poorer…
Another one who's lost his marbles, Mr. Udon.
Which airline is lowering its prices to Thailand: Air Corbeau?
Because I took my ticket last year with a Middle Eastern airline and now I see that on the same dates, it's 1,500 euros more per person (in business, it's true).
I've looked at other companies and it's the same phenomenon, including Thai Airways.
So stop talking nonsense.
And then reassure you, sir, by telling you that travelers have booked their trip through agencies because it only concerns the Chinese.
The French, for example, prefer to go to Japan because of this baht.
This is the first year that more French people are going to Japan than Japanese people going to France!
There are really clowns on every floor in this government.
“In recent years, said Mr. Udom, direct flights between Europe and Thailand could cost between 70,000 and 80,000 bahts (1,882 and 2,151 euros), but prices have now fallen to between 50,000 and 60,000 bahts (1,344 and 1,613 euros).”
This Mr. UDOM seems to ignore that the bulk of tourists travel in economy class, and prices are much lower than those he quotes…
To be verified >> Hasn't the tax on plane tickets collected in France gone up to €40?
In economy class for long haul flights.