Rising Costs and Strong Baht May Cut Tourism Revenue by Up to 17%
Rising Costs and Strong Baht May Cut Tourism Revenue by Up to 17%
BANGKOK, April 1, 2026 — Thailand’s tourism sector is facing mounting pressure as a strengthening baht and rising travel costs threaten to reduce competitiveness and visitor demand.
The Thai currency is currently trading between 30 and 32 per U.S. dollar, having appreciated around 9% in 2025 and continuing its upward trend into 2026, according to market data cited by local media.
Yuthasak Supasorn, chairman of the Industrial Estate Authority of Thailand and former governor of the Tourism Authority of Thailand, warned that further currency appreciation could cut tourism revenue by 15–17%.
A stronger baht makes Thailand more expensive for foreign visitors, particularly long-haul travelers, while regional tourists may shift to more affordable destinations such as Vietnam, the Philippines and Indonesia, he said.
Industry indicators are already showing signs of strain. The Thai Hotels Association expects hotel bookings during the upcoming holiday to fall by 5–10% compared with last year, citing higher travel costs and softer demand.
Despite the challenges, Thailand continues to attract higher-spending tourists, and officials say the current exchange rate has not yet significantly undermined its overall appeal.
Analysts suggest the country may need to pivot toward premium tourism segments — including wellness travel, business events and digital nomads — to offset potential declines in mass-market arrivals.
