Thailand’s Baht Surge Shakes Up Tourism With Japan
A surging baht is transforming travel between Thailand and Japan, creating winners and losers on both sides of the tourism equation.
Baht Strength Drives Thais to Japan, Keeps Japanese Away
While the baht appears weak against the euro, it has soared against the yen, with one baht now fetching around 4.61 yen—up nearly 30% since 2019. This shift means Japanese travellers must spend far more yen for a holiday in Thailand, while Thai tourists enjoy unprecedented purchasing power in Japan.
The result? Thai holidaymakers are flocking to Japan in record numbers, but Japanese arrivals in Thailand are lagging. “The strength of the baht against the yen has weakened Thailand’s competitiveness in the Japanese market,” says Thapanee Kiatphaibool, governor of the Tourism Authority of Thailand (TAT).
TAT Warns of Exchange Rate Trap
TAT is sounding the alarm over the baht’s impact on tourism. Thapanee points to the strong baht, global economic uncertainty, safety concerns, and recent border tensions with Cambodia as key challenges.
The baht has also risen 7% against the US dollar and 4% against the Chinese yuan this year, making Thailand a pricier destination for multiple markets. “The exchange rate is not the only reason, but it sharpens our competitive disadvantage,” Thapanee adds.
Japanese Market Sensitive to Safety and Cost
Mathurot Watanakomen, TAT’s Osaka office director, notes that Japanese travellers are especially sensitive to safety. After a March earthquake and border clashes in June and July, bookings dropped sharply. “Once worries ease, the market usually recovers quickly,” she says.
Despite a promising start to 2024 with a 15–18% rise in Japanese arrivals in Q1, growth soon stalled. Thailand now ranks only fourth among Japanese outbound destinations, behind South Korea, the US, and Taiwan.
New Strategies Target Young Japanese
TAT is shifting focus to younger Japanese travellers—Millennials, Gen Z, students, and “Oshi-katsu” fans of Thai pop culture. “This group travels for emotional experiences, not just beaches,” says Pattaraanong Na Chiangmai, TAT’s deputy governor for international markets.
Initiatives include study programs, cultural exchanges, and tailored campaigns for sports tourists, women, and active seniors. The goal: embed Thai culture in the minds of Japan’s next generation.
Competition and Quality Over Quantity
Thailand faces stiff competition from Vietnam, South Korea, and Taiwan, all offering attractive prices or strong marketing. TAT’s new mantra is “quality over quantity,” promoting eco-friendly travel and unique cultural experiences.
At the Tourism Expo Japan in Nagoya, Thailand showcased 20 low-carbon travel routes and traditional crafts, with a budget of 978,280 baht. The message: Thailand is more than just sun and sand.
Expo 2025 in Osaka: Thailand’s Big Opportunity
The upcoming World Expo 2025 in Osaka is seen as a turning point. Thailand’s pavilion, managed by the Health Ministry, has already drawn 1.5 million visitors in five months. TAT plans a special “20 Green Ways Through Thailand” exhibition to highlight sustainable tourism.
Looking ahead, Thailand aims to repeat its success at the next Expo in Riyadh, targeting the Middle Eastern market.
Thais Flock to Japan as Yen Weakens
While Japanese hesitate, Thais are seizing the moment. The weak yen makes Japan a bargain for Thai travellers, with airlines like Thai AirAsia X adding new routes to meet demand.
For Thais, Japan is a shopper’s paradise. For Japanese, Thailand has become an expensive luxury. The baht surge continues to reshape the region’s tourism map.