A weak baht is not enough to offset the other negative factors affecting Thailand’s tourism industry, as most Asian currencies are facing similar declines following news of US tariff increases, say travel agents.
After US President Donald Trump announced sweeping tariffs on imports from Thailand and other Asian markets, the baht plunged on Thursday to a three-month low. While it recovered to around 34.15 to the US dollar on Friday, forecasters expect it to remain relatively weak over the next few months.
But given that other currencies in Asia have also plunged, a weak baht might not make much of a difference to prospective visitors, said Adith Chairattananon, honorary secretary-general of the Association of Thai Travel Agents.
He said foreign tourists continued to flock to Japan, which has a strong reputation for safety and attractiveness, and the tourism market has been boosted by the weak yen since last year.
However, the same situation might not apply to Thailand if the margin of other currencies compared to the baht remains unchanged, particularly among Asian countries, which are the main sources for the low season.
Mr Adith said that while the US policy has sparked fears of a recession, which could impact the global economy and tourism sentiment further in the short term, the Thai government should urgently negotiate with the US to mitigate the possible impact.
“What is more worrying than economic issues and currency fluctuations is the declining confidence in safety in Thailand,” he said.
Many Chinese tourists still have concerns about visiting Thailand, due to the recent earthquake and widespread publicity about scams, said Mr Adith.
Even though some provinces, such as Phuket, did not face any impact from last week’s natural disaster, the tourism industry may still be affected.
Suksit Suvunditkul, president of the southern chapter of the Thai Hotels Association (THA), said the baht’s decline would not significantly boost tourism, as it is now the low season.
In Phuket, forward bookings for April and May remain low without long-haul tourists, he said.
Only some beachfront hotels are still recording high occupancy rate, while other city hotels targeting Asian guests are starting to feel the quiet period.
Mr Suksit said global economic uncertainty due to Trump’s policies could hamper the US market.
However, the situation is expected to have a minimal impact since Phuket has already diversified its market post-pandemic, rather than relying on a single market as in the past.
According to a survey by the THA on April 3, hotels in main destinations, such as Bangkok, Phuket and Chiang Mai, have seen bookings drop by nearly 25% year-on-year for the Songkran holiday period from April 11-17.
