Thailand’s tourism industry is again feeling the drag of an overvalued baht – a familiar challenge last seen in 2019 and 2021.
Bangkok Post reported on December 24 that analysts are predicting the Thai baht to hit 30 to the dollar in the near term due to high correlation with gold prices.
At a recent Association of Thai Travel Agents (ATTA) meeting, Democrat Party leader and former prime minister Abhisit Vejjajiva – whose party has been consulting with the travel sector ahead of 2026 elections – warned that “the value of the Thai baht has been inordinately strong when compared to the competitiveness of the country”.
His comments echoed concerns voiced by the Tourism Authority of Thailand in September, which cautioned that the strong baht could shave 15 to 17 per cent off tourism revenue, especially from long-haul markets.
Thienprasit Chaiyapatranun, president of the Thai Hotels Association, warned: “Even if official figures show higher spending per head, that doesn’t mean tourists are actually purchasing more.”
ATTA secretary-general Adith Chairattananon added: “When our currency is too strong, we can’t compete with our neighbours, especially in destination loops.”
He also noted that the issue weighs most heavily on Thailand’s short-haul markets, which comprise 70 per cent of the country’s tourism.
However, some hoteliers regard the strengthening baht with optimism.
Jee Hoong Tan, hotel manager, Sindhorn Kempinski Hotel Bangkok, said Thailand increasingly competes not on low price but on value tied to wellness, cuisine, and cultural immersion.
“The new question to ask is that if you compare the Thai baht with Singapore dollars now, who gives us a better value?” he stated.