In the first two months of this year, Thailand's tourism sector faced a wave of cost concerns from international visitors. On tourism forums, South Korean travelers—a key market that contributed 1.55 million arrivals to Thailand in 2025—reported that budgets for services, from airfares and hotel rooms to street food and massage, were no longer as affordable as expected.

This concern stems from the significant depreciation of the won or USD when converted to baht. This creates a perception of inflated prices, even though local service rates remain unchanged, directly impacting Thailand's appeal in the budget tourism segment.

The Tourism Authority of Thailand (TAT) refuted reports of increasingly expensive holidays in the Land of Smiles during a press conference held in Yongsan district, central Seoul, on 11/2. The agency affirmed Thailand remains a top destination for premium resorts at reasonable costs.

According to Sirigesanong Trirattanasongpol, TAT's executive director for the East Asia market, the feeling of "wallet pressure" reported by some tourists, particularly South Koreans, is a result of foreign exchange fluctuations.

"Our inflation rate is not high, domestic goods prices have not actually surged, and the cost of living in Thailand remains very stable," Sirigesanong said.

South Korean tourists in Bangkok, Thailand. Photo: SCMP

Data from the Thai Ministry of Commerce supports this argument, as prices for essential goods in the country decreased for 10 consecutive months through 1/2026, primarily due to effective energy price control policies.

However, Southeast Asia's second-largest economy faces challenges from the strengthening baht. After increasing 9% in 2025, the baht has risen by another 1% against the USD since the start of this year, directly pressuring international tourists' budgets and reducing the tourism industry's competitiveness.

To maintain its appeal, Vachirachai Sirisumpan, another TAT official, stated that Thailand is launching a campaign focused on the concept of "healing" for mind, body, and soul. This strategy aims to win over customers from countries with fast-paced, high-pressure industrial lifestyles, such as the South Korean market.

Instead of scattered independent trips, the market now shows a trend towards premium package tours or customized holidays in lesser-known destinations. To capitalize on this trend, Thailand is actively promoting cultural experiences such as learning massage and pottery making.

Beyond cost, the Thai government also prioritizes security following incidents involving foreign tourists near border areas last year. The "Trusted Thailand" certification system has been implemented for accommodations, restaurants, and entertainment venues. Increased installation of surveillance cameras (CCTV) in hotels also demonstrates Thailand's effort to affirm itself as a safe, friendly, and reliable destination.

In 2025, Thailand welcomed 32.9 million international visitors, a 7.23% decrease from 2024. The government expects to attract 36 million visitors this year, despite exchange rate barriers.

Mai Phuong (According to SCMP)