Currency vs. tourism – With the baht opening at 32.93/USD, operators warn that unchecked appreciation could further damage Thailand’s fragile tourism recovery. PATTAYA, Thailand – Tourism businesses in Pattaya are facing intensified pressure as the Thai baht continues to strengthen, making Thailand a more expensive destination compared to its regional neighbors. On May 6, the baht opened the market at 32.93 per US dollar, appreciating from the previous close of 33.05. The current trading range for the week is expected between 32.75–33.35. This appreciation, driven by uncertainty over global trade negotiations and a rebound in gold prices, comes at a time when Thailand’s tourism sector is already struggling. Visitors are increasingly choosing more cost-effective alternatives like Vietnam, Indonesia, and Cambodia, where their currencies stretch further, hotel rates are lower, and meals and experiences come at a fraction of Thai prices. Small businesses in Pattaya—especially budget accommodations, street food vendors, beer bars, and English breakfast cafés—are feeling the pinch. “Everything is more expensive for our customers now,” says one café owner in Pattaya. “Some are just skipping Thailand altogether.” The U.S. dollar has remained strong against the Vietnamese dong in recent months, hovering around 25,000 VND per 1 USD, a level not seen in years. This trend has made Vietnam increasingly attractive to foreign tourists and digital nomads, as their dollars now stretch further in local economies. Baht blues in Pattaya – Local tourism businesses struggle as the strong Thai currency drives away budget-conscious tourists. For American travelers, everything from hotel stays to street food feels cheaper compared to destinations like Thailand, where a strengthening baht is driving up relative costs. The favorable exchange rate is one reason Vietnam—particularly cities like Da Nang, Hoi An, and Hanoi—is emerging as a budget-friendly alternative in Southeast Asia. According to Krungthai GLOBAL MARKETS, the baht’s strength is also influenced by global economic signals, including better-than-expected U.S. job and service sector data, and a rebound in global gold prices surpassing $100 per ounce. While the baht may face short-term corrections, the broader trend remains unfavorable for Thai tourism competitiveness. Tourism operators warn that unless currency fluctuations are managed and regional marketing strategies adjusted, Thailand risks losing its mid-market visitors to cheaper, fast-growing destinations across Southeast Asia. Strong U.S. dollar boosts Vietnam’s appeal to tourists and digital nomads, with 1 USD stretching to 25,000 VND. (Photo – A nightclub in Ho Chi Minh, Vietnam)