The recent strengthening of the baht against the US dollar—rising above 31 to the dollar for the first time in nearly five years—is expected to affect forward travel bookings in the coming months and during the low season, potentially dampening tourist spending.
Thaneth Tantipiriyakij, president of the Phuket Tourist Association, said travel agents have raised concerns about the strong baht, which has posed challenges since last year for several key markets, including the United States, Russia, Europe and Japan.
Discussions with retail operators such as shopping malls, restaurants and stores indicate that foreign visitors are spending less on shopping during their trips to Thailand, Mr Thaneth said.
During the current high season, hotels have increased room rates by only about 5% year-on-year, constrained by the strong currency and rising operating costs, he added.
Mr Thaneth noted that currency strength is not the only challenge facing Thai tourism this year. Geopolitical tensions and intensifying competition from destinations such as Vietnam and China are also weighing on Thailand’s appeal during the upcoming low season.
As a result, some travellers may shorten their stays in Phuket and allocate more time to neighbouring countries as part of broader Southeast Asia itineraries, he said.
Phuket’s tourism revenue growth in 2026 is expected to slow from its typical annual increase of 8–10%, Mr Thaneth added.
Ratchaporn Poolsawadee, vice-president of the Tourism Council of Thailand, said the strong baht is likely to weigh on forward bookings in the months ahead, particularly in the business travel segment.
He said corporate and meetings-related travel often has shorter planning cycles and budgets that are three to four times higher than leisure travel, making such trips more expensive when the baht is strong.
Leisure travellers, while still showing strong interest in destinations such as Koh Samui, may reduce the length of their stays from the usual 10–20 days, Mr Ratchaporn said.
Santi Sawangcharoen, executive director for the Americas, Middle East and Africa at the Tourism Authority of Thailand, said the agency is closely monitoring currency movements and their impact on tourism.
He noted that demand remains strong in the first quarter, with forward bookings broadly stable year-on-year. Bookings from Europe are unchanged, while arrivals from the Middle East have risen 11% and those from the Americas have declined 4%.
“There is no sign of a sharp drop in bookings at this stage,” Mr Santi said.