Baht surge makes Thailand pricey
The Thai baht has surged against the Chinese yuan, making Thailand 20% more expensive for Chinese travellers than last year. Many are now choosing the cheaper alternative: Vietnam, with modern infrastructure and lower costs.
Adith Chairattananon, Secretary-General of the Thai Travel Association (ATTA), admitted: “Restoring confidence will not happen overnight.” Safety concerns, long an issue in Thailand, are now hitting tourism hard, forcing operators to face a growing crisis.
Vietnam invests while Thailand lags
Vietnam has poured resources into five major tourist hubs: Hanoi, Ho Chi Minh City, Danang, Nha Trang, and Phu Quoc. Efficient airport-to-city transport links and modern facilities make the country increasingly appealing.
In contrast, only Bangkok in Thailand matches that level of infrastructure. Adith warns: “The combination of higher costs and infrastructure gaps makes competing with Vietnam extremely difficult.” China’s promotion of domestic tourism adds further pressure, meaning Thai travel providers must fight hard for every customer.
Hope remains for Thailand
All is not lost. China’s Premier forecasts the middle class to grow from 400 to 800 million by 2035. For this segment, travel is a lifestyle, with an average of five international trips per year.
Adith remains optimistic: “Thailand could attract 15–20 million Chinese tourists annually in the future.” The short five-hour flight is a huge advantage. But to capitalise, Thailand must control living costs and invest decisively in infrastructure.
What Thailand must do now
The path is clear: address safety concerns, keep prices competitive, expand infrastructure, and boost marketing. Without these measures, Vietnam may not just lead temporarily but could permanently overtake Thailand. Millions rely on Thailand’s tourism industry, which now faces a serious threat to its top ranking.