With the baht strengthening against the US dollar, surpassing 31 to the greenback for the first time in almost five years, it should impact forward bookings for the next few months and during the low season, discouraging tourist spending.
Thaneth Tantipiriyakij, president of the Phuket Tourist Association, said travel agents have expressed concern about the strong baht, which has been an obstacle since last year for many markets, including the US, Russia, Europe and Japan.
Based on discussions with retail operators such as malls, restaurants and stores, foreign tourists are spending less on shopping during their trips to Thailand, said Mr Thaneth.
Hotels this high season have raised room rates by only around 5% year-on-year due to the strong baht and pressure from rising costs, he sa…
With the baht strengthening against the US dollar, surpassing 31 to the greenback for the first time in almost five years, it should impact forward bookings for the next few months and during the low season, discouraging tourist spending.
Thaneth Tantipiriyakij, president of the Phuket Tourist Association, said travel agents have expressed concern about the strong baht, which has been an obstacle since last year for many markets, including the US, Russia, Europe and Japan.
Based on discussions with retail operators such as malls, restaurants and stores, foreign tourists are spending less on shopping during their trips to Thailand, said Mr Thaneth.
Hotels this high season have raised room rates by only around 5% year-on-year due to the strong baht and pressure from rising costs, he said.
Mr Thaneth said the currency is not the sole problem this year, as geopolitical issues and intense competition from countries such as Vietnam and China have eaten into Thai tourism’s appeal during the upcoming low season.
Some visitors may reduce their stay in Phuket and add more days in neighbouring countries during their Southeast Asian trips, he said.
Phuket’s tourism revenue growth for 2026 is expected to slow from the typical gain of 8-10%, said Mr Thaneth.
Ratchaporn Poolsawadee, vice-president of the Tourism Council of Thailand, said the strong baht will likely hamper forward bookings in the upcoming months.
In terms of segments, it could impact business travel more than leisure groups.
He said meeting and business groups often have short lead times and tend to require 3-4 times the budget of leisure travel, making their visits more expensive with a strong baht.
For leisure tourists, even though they typically plan and allocate budget ahead and still have strong demand to visit Samui, they may shorten their length of stay from the average of 10-20 days, said Mr Ratchaporn.
Santi Sawangcharoen, executive director for the Americas, Middle East and Africa at the Tourism Authority of Thailand, said the agency is monitoring the currency issue and its impact on tourism.
He said Thailand still has high demand in the first quarter, with stable forward booking growth year-on-year. Bookings are unchanged for the European market, while they rose 11% year-on-year for the Middle East and declined 4% for the Americas.
"There is no sign of a severe drop in bookings yet," said Mr Santi.