The strengthening of the baht is beginning to weigh on Thailand's tourism sector, already plagued by recurring security problems.
Many travelers feel that their tours are not worth the cost.
This Thursday, August 14 at 9:00 a.m. (Thailand time) 1 euro is worth 37.78 Thai baht and 1 US dollar is worth 32.27 baht.
See: Thai Baht THB exchange rate
A baht too strong which discourages travelers
Western tourists in Bangkok. Photo: TTC Asia
The private sector has called for efforts to restore confidence before the peak season.
The Ministry of Tourism and Sports announced this week that foreign tourism revenue between January 1 and August 10 amounted to 938 billion baht.
At the current rate, the annual target of 1.77 trillion baht will not be met.
As of August 10, the number of foreign visitors reached 20 million, a decrease of more than 6% compared to the same period last year.
Thanet Supornsahasrungsi, President of the Chonburi Tourism Federation Association said:
"The baht has appreciated by 5 to 6 percent against the US dollar this year, which is a negative factor that is already affecting short-haul markets, such as China."
Many Chinese tourists are now flocking to Japan because of the weak yen, he added.
Chinese tourist arrivals to Thailand have fallen by almost a third since the beginning of the year.
See: Thailand: Tourism collapses as Chinese visitors fall
Asian markets turn away from Thailand
Chinese tourists in Pattaya. Photo: South China Morning Post
Mr. Thanet said that although Thailand has seen more long-haul arrivals over the past seven months, if tourists perceive the country as unattractive in terms of value for money, they may turn to other destinations.
"We have constantly felt the impact of the global economy, which has prompted tourists from many countries to reduce their travel spending abroad, seek out countries where their currencies have appreciated, or choose to stay at home," Mr. Thanet said.
He added that the government should react more quickly to remove current obstacles, especially security issues, which are at the heart of the problem.
Insecurity, an additional obstacle to tourism in Thailand
Rescuers provide first aid to a Malaysian man injured after he was doused with paint thinner and set on fire by a Thai man outside a shopping mall in the Ratchadamri district of Bangkok on August 7, 2025.
Since two recent incidents in Bangkok, a shooting that left six dead at the Or Tor Kor market last month and two Malaysian tourists set on fire last week , the government has done little to improve tourist confidence, Mr. Thanet said.
Given the low arrivals from China and South Korea, he said Pattaya were now relying on weekends or long holidays to boost occupancy rates with local travelers.
A domestic market that does not compensate for losses
A tourist drinks a drink in front of Wat Arun in Bangkok.
Mother's Day long weekend , which lasted four days for many, the average occupancy rate in Pattaya climbed to 80-90%, but fell to 30-40% during the week.
See: Tourism in Thailand: record attendance expected for Mother's Day
Mr Thanet said:
“We may not immediately feel the effects of the latest case involving Malaysian tourists, as this period coincides with school holidays in China, where tourists have already booked their trips and are continuing to travel as planned.
Which translates to 5% growth this month.
We are more concerned about future bookings if the government does not try to restore confidence."
Poorly distributed aid penalizes small hoteliers
Hotel in Phuket. Photo: Hoyastyle.
Mr Thanet added:
"The co-payment subsidy program aimed at promoting domestic travel has helped to some extent in stimulating the local market, but small and medium-sized hoteliers have not benefited as much as large hotels due to the delay in budget allocation."
Already in the first month of the program, in July, many small hotels had to withdraw because they had not received government subsidies as expected and had to bear the costs of welcoming these guests in advance.
With privileges granted to major destinations, including Pattaya, having been fully used, tourism operators have urged the government to switch to the more efficient Pao Tang app, operated by Krungthai Bank, Mr. Thanet said.
See also: Thailand: Subsidy to boost domestic tourism flops
This request was rejected, the government arguing that KTB was no longer a public bank and that using only this bank would constitute discrimination against other private banks.
Value for money is eroding, as is the feeling of security
Tourists indicate their destination to a tuk tuk driver. Photo: Itsskin.
Beyond the appreciation of the baht, which reduces Thailand's price advantage over its regional competitors, it is the destination's overall image that is suffering.
Travelers are now comparing prices more and are more willing to choose countries where their vacation budget offers more comfort, activities, or services.
Added to this are growing security concerns, fueled by high-profile incidents, which are weighing heavily on tourist confidence.
If the government fails to quickly restore the perception of good value for money and a safe environment, the peak season could see a further decline in arrivals, in favor of destinations deemed more attractive and reassuring.
See also:
Thailand: Rising baht threatens exports and tourism
Cannabis, motorbikes, thefts: Phuket under pressure to save its tourism
Thailand: Tourism collapses due to conflict with Cambodia
Thailand postpones tourist tax due to drop in tourism
Source: Bangkok Post
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8 comments
Asking Thai people to question themselves is a bit like asking them to commit suicide.
As the article points out, Thai politicians do not seem to be interested or concerned about this situation and the tourism crisis that is looming for Thailand in 2025... Cool, Raoooul!!!
You shouldn't come crying on the banks of the Chao Praya and implore Buddha while beating your breast at the end of January, when the tourism accounts for the year 2025 will have to be done!!!
We can already predict a year of decline compared to the forecasts made in January 2025 which predicted an exponential year reaching 40 million international tourists!!!
We will be far from the mark, we can already predict it, as the high season, from mid-November to the end of January, is already shaping up to be the worst in 10 years in terms of arrivals, leisure activities, quality of reception and security...
Hotels are short of money to maintain and renovate their infrastructure, domestic travel and tour agencies are waging a price war to grab what market share they have left, political, economic and tourism authorities are running out of ideas to revive a sector that has never been in such bad shape and the police are no longer able, in some districts, to simply enforce the law and carry out preventive and repressive actions to put an end to general security problems in urban areas with high tourist density.
Under these conditions, already observed today, it is not surprising that Thailand has lost its splendor and no longer attracts foreign tourists.
I fear that from being a privileged destination and paradise for tourists looking for a change of scenery and unusual discoveries, attracting backpackers on a limited budget as well as lovers of beaches and islands unlike any other in the world, enjoying exotic cocktails and seafood on the terraces of restaurants "feet in the sand", Thailand has now become synonymous with cheap, expensive holidays, attracting singles looking for sex, outcasts looking for artificial paradises and other "uncles who shoot" who have come to take refuge to escape the justice of their mother country!!!
I fear, unfortunately, that this is the slippery slope that Thailand is busy sliding down at an ever-increasing speed, on a layer of black soap fed every day, every week by news items that only confirm the poor health of the sick "Thailand".
And the doctors who come to her bedside seem powerless to get her back on her feet...
Even a long and painful convalescence does not seem to be within reach, as incompetence, laxity and fatalistic resignation seem to be the primary qualities of the country's leaders!!!
Could a reader please explain to me why the baht is so high?
The Bank of Thailand's key interest rate is one of the lowest in Asia (only Japan, with 0.5%, I think, is doing better) and tourism and exports are in decline.
So yes, the dollar is weaker, but the baht has gained 10% over the past year, which is huge.
The central bank lowers its key interest rate by 0.25 points and the baht remains unchanged!
But who is buying baht at this level to keep the currency so high and why?
Thank you for your explanations.
I agree with you, Caius...
The baht is a priori “artificially” maintained by political will (I suppose) at a rate above its real value…
I would also like to have the opinion of a specialist in Asian stock markets, a reliable trader who could explain to us on the one hand this volatility of a strong baht which goes from 35.70 to 37.80 over the weeks and months, and on the other hand this "blockage" which prevents the baht from regularly passing and maintaining itself at an ideal rate for the economy both domestically and internationally which I would personally estimate between 38.80 and 39.50 THB/1 euro...
Is there a specialist in the room???
How could it be otherwise…
Potential tourists to Thailand are now forced to pay for exorbitantly expensive plane tickets. (In 4 years, plane tickets have more than doubled and the baht has appreciated in value)...
This is the first factor in rejecting trips to Thailand.
Same, I don't understand the strength of this currency.
Everyone complains, but no one does anything to ease it.
Between a strong currency and prices that have been increasing for some time, it is ending up costing us dearly.
No more cheap Thailand.
The government must do something to weaken it, tourism and exports would be facilitated.
It's either this or the situation will remain as it is.
I remember that in 2008 the baht was at 49.6, currently it is at 37.90, a strange difference, isn't it?
Among the tourists, there are also the "resident tourists" (of which I am one) who do not come back as much so as not to spend more than 6 months in Thailand and be taxable.
There are those who, like me, have had their bank account blocked.
They charged me 33,000 baht for health insurance, explaining that it was the only way to keep the account active.
1 week later (early July), account blocked and nothing to do.
I'll see when I arrive in a week, but I'm not an isolated case.
It's for all tourists.
This will put off the desires of a good number of regulars.
I have an American friend, in a legal situation (retired visa) who had his money transfer from the US blocked for more than 2 weeks in July before being available in his Bangkok Bank account.
Without ever having any explanations from management.
I am also surprised that here there is news for every news item, but not for this sensitive subject.
It's quite funny to see that they are trying hard to keep the workforce from a country with which they are (or were) at war (and who send their miserable wages home), but at the same time, they are driving away the wealthy people who bring in fresh currency.