Strong Baht Poses Challenge to Thailand‘s Tourism Sector
BANGKOK – A robust Thai baht is presenting a potential hurdle for the nation’s tourism industry, despite Thailand remaining a competitively priced travel destination, according to recent assessments. While the country continues to attract visitors, particularly from Europe, a strengthening baht against currencies like the US dollar and the Euro could impact affordability and potentially divert travelers to alternative destinations.
As of September 7, 2025, Thailand had welcomed 22.3 million foreign visitors, a 7.1 percent decrease compared to the previous year. The Chinese market, traditionally the largest source of tourists with 3.16 million arrivals, has experienced a significant decline of approximately one-third year-on-year. Udom, a tourism analyst, cautioned that a baht exchange rate falling below $31 could negatively impact tourism, urging the new government under Prime Minister Anutin Charnvirakul and the central bank to manage the exchange rate to benefit the overall economy.
Despite the currency fluctuations,regions like Hua Hin and Cha-Am are highlighted as offering a diverse range of accommodations,from budget-friendly options to luxury resorts,potentially attracting both international and domestic tourists. Udom emphasized Thailand’s continued value proposition, noting its favorable price-performance ratio.
To bolster the industry, suggestions include a co-payment program for domestic travel and the implementation of “Safe Travel Stamps” to enhance traveler confidence. The expectation remains that the high season will primarily draw visitors from Europe, including the United Kingdom, Scandinavia, Russia, Switzerland, and Germany.