The appreciating Thai baht challenges tourism and exports by increasing production costs, reducing competitiveness, and diminishing tourists’ purchasing power, prompting calls for government intervention to stabilize the currency and economy.
Impact of Baht Appreciation on Economy
The rapid appreciation of the Thai baht is creating significant challenges for Thailand’s tourism and export sectors. This strengthening currency diminishes the competitiveness of Thai goods on the global market, increases production costs, and negatively affects tourists’ purchasing power. As a result, the tourism sector could struggle to meet its targets, hampering the government’s economic stimulus efforts.
Industry leaders like Kriengkrai Thiennukul, chairman of the Federation of Thai Industries, have voiced concerns over how this currency strength escalates production costs for local businesses, especially with the influx of cheap imports from China. Such economic pressures threaten both industrial competitiveness and long-term stability, highlighting the urgent need for a more stable baht.
Additionally, Surawat Akaraworamat, vice president of the Tourism Council of Thailand, warned that a stronger baht could lead to decreased spending by foreign tourists due to higher costs of goods and services. This scenario emphasizes the delicate balance needed in currency management to support a prosperous economic environment, essential for both local businesses and the tourism sector.
Source : Rapid appreciation of the baht is affecting Thailand’s tourism and export sectors
