For the first time in many years, the baht is becoming stronger, already having strengthened by 6% since March. In many ways the strengthening of the Baht will have a positive impact on Thailand. Essential materials will become significantly cheaper as will medicine, meaning that people can afford health care more easily and their general standard of living will improve.
However, this means that the exchange rate for foreign currency has plummeted, with US$ now down to now to 34.02. Tourists travelling to Thailand in search of a cheap holiday are now finding that they get significantly less for their money, and foreign manufacturers are starting to look elsewhere.
Many of Thailand’s chief tourist destinations are being heavily affected, including the picturesque island of Krabi.
However, as Central Bank governor Tarisa Watanagase said in an interview with the Bangkok Post “The baht has not appreciated unduly. It moved from 35 to a dollar at the beginning of the year to 33 and to 34 to the dollar now. The baht has not caused Thai exporters to lose competitiveness.”
The good news for tourists is that there are some great deals available on hotels and flights, meaning that Thailand is still a great destination for budget tourism.
– TN
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