Strong Baht, Weak Signal – Tourists feel the pinch as Thailand’s currency stays firm, driving them toward cheaper regional alternatives. PATTAYA, Thailand – Thailand, once considered the gold standard of Southeast Asian tourism, is facing increasing headwinds as its currency strengthens and neighboring countries grow more aggressive in luring travelers with competitive pricing, friendlier visa policies, and fresh experiences. Foreign visitors and tourism industry insiders are beginning to take note — and not always in a good way. As of May 8, the Thai baht opened at 32.87 against the U.S. dollar, a slight depreciation from the previous day’s close of 32.70. Despite the weakening, the baht remains relatively strong compared to regional currencies, which has a direct effect on tourists’ wallets. A more expensive baht means Thailand no longer offers the same “value for money” appeal it once did, especially when neighboring nations like Vietnam, Cambodia, and the Philippines offer similar experiences at lower costs. The baht’s recent movement followed comments from U.S. Federal Reserve Chair Jerome Powell, who maintained a wait-and-see approach on interest rate cuts. The Fed’s stance, coupled with increased concerns about stagflation — a mix of slowing growth and stubborn inflation — has supported the U.S. dollar’s rebound. As a result, the baht has fluctuated between 32.66 and 32.93 per dollar, with resistance expected around the 33.00 mark. Some analysts suggest that while the baht’s weakness may temporarily help Thai exports and inbound tourism, the broader currency environment and mixed investor sentiment — including foreign dividend outflows — may limit any significant depreciation. Simultaneously, factors such as the launch of ESG-focused Thai investment funds could offer limited support to the baht, though inflows into Thai bonds may slow as investors begin to take profits and reevaluate long-baht positions. All of this is happening against a backdrop of intensified competition in the region. Vietnam, for example, has recently attracted global headlines with its push to increase visa-free entry and position itself as a calmer, more culturally rich alternative to Thailand. Many travelers now praise Vietnam for its affordability and “better-behaved” tourists, a not-so-subtle jab at the often chaotic scenes in places like Pattaya and Phuket. While Thailand still enjoys strong global brand recognition, the tide may be shifting. If the baht remains strong and the tourism offerings stay stagnant, the Land of Smiles could risk losing its competitive edge — not only to neighbors offering similar tropical beauty and street food delights, but also to countries that are perceived as safer, better value, and less commercialized.