From local reforms to global risks: Why Pattaya can’t catch a break. (Photo – Jomtien Beach, Thailand) PATTAYA, Thailand – Despite sustained efforts to clean up long-standing internal issues, from taxi scams to beach cleanliness and visa reforms, Thailand—particularly tourist hotspots like Pattaya—continues to face external economic pressures that are far harder to manage. Among them, the volatile Thai baht and global financial uncertainty are quietly but steadily impacting the country’s tourism recovery. While government and private sectors are doing their part in restoring confidence through regulation and infrastructure improvements, foreign arrivals and spending are being dragged by global headwinds—especially exchange rates that make Thailand slightly less of a bargain than it once was. The Thai baht (USD/THB) began Monday, May 26, at 32.57 per US dollar, showing slight appreciation from the previous week’s close at 32.62. The currency has been fluctuating in a sideways pattern between 32.45–32.64, with intermittent strengthening as the US dollar weakened and gold prices surged. Gold briefly topped $3,350/oz, bolstering the baht before retreating due to profit-taking. However, any gains are met with renewed pressure. Dividend payments to foreign investors and speculative buying of US dollars around key resistance levels (such as 32.50 THB/USD) are tempering the baht’s appreciation. This uncertainty contributes to “two-way volatility” in the market, which is particularly sensitive to Asian currency movements and gold price trends. Meanwhile, investors continue to digest recent better-than-expected US economic data, but growing concern over U.S. fiscal stability has led to a 2% weakening of the dollar last week, under the “Sell US Assets” trend. This narrative, however, could shift depending on upcoming speeches from Federal Reserve officials, including Chair Jerome Powell, and new economic indicators from the U.S. All this may sound distant from the streets of Pattaya, but the effect is felt by hotel operators, small businesses, and tourists alike. With exchange rate fluctuations nudging costs up and down, many long-haul visitors from Europe, North America, and Australia are finding their purchasing power slightly reduced compared to past years. Local businesses note that while foot traffic is back in many areas, spending per tourist appears more cautious. “We see people walking, but they spend less,” said a beachfront vendor in Pattaya. “Some complain things are more expensive than before—not because we raised prices, but because their money doesn’t go as far.” Despite these challenges, analysts remain cautiously optimistic. The baht may strengthen if global confidence in Thai stability continues and if U.S. economic risks grow. Still, this path is unclear. If the baht breaks below 32.50, foreign investors might step up selling of Thai assets, adding pressure on the tourism sector.