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Strong Baht is driving tourists to neighbouring countries.

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Strong Baht is driving tourists to neighbouring countries.

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As travel to Thailand becomes more expensive due to an appreciating Thai baht, tourism tra8c is shifting to neighbouring countries, according to operators in Thailand, Laos, Cambodia and Myanmar.

“The Thai baht peaked within the last four months and is now contributing to higher costs and expenses. International visitors will avoid visiting Thailand and look to other destinations instead,” said travel consultant Luang Prabang

Compared to the last three or four months, the average total cost of travel for Europeans visiting Vietnam (including flights, hotels, meals, activities, etc) now costs 10 per cent less than to Thailand.

Cost of travel to Seam Reap in Cambodia and Luang Prabang in Laos seem relatively unchanged but prices for both destinations become more attractive as travelling expenses in Thailand go up.

Om Pharin, chairman and CEO of Charming Cambodia Tours, said more foreigners flocked into Cambodia this year, with arrivals expected to keep growing thanks to competitive prices.

“The political situation in Cambodia is very stable and its currency has not changed much so tourists have (little reservations about coming here),” he remarked.

Furthermore, Cambodia has been promoting more attractions including beaches and islands along with expanding airports and major roads across the country.

Khaing Khin Thar, representative of Myanmar Tourism Federation, said Myanmar should take advantage of its more competitive prices as cost of travel to South-east Asia’s most popular destination continues to rise.

“The stronger baht and higher cost of travel may force many tourists to shift to other countries, not only Myanmar but also to Laos, Cambodia and Vietnam,” she added.

According to Amy Poulton, marketing specialist for Wayfairer Travel in the UK, many European customers continue to travel to Thailand and elsewhere in South-east Asia.

Despite the region’s rising cost of travel, it is still more affordable to travel to South-east Asia compared to the US or within Europe, she explained.

On the other hand, a strong Thai baht may not entirely benefit other South-east Asian countries, Padej suggested.

A decline in the number of tourists to Thailand could also impact businesses in neighbouring destinations, as many tourists start their trips from Thailand as the main gateway into the region.

Even before the baht peaked, Thailand’s tourism faced difficulties arising from the smog crisis in the first quarter of the year.

The Ministry of Tourism and Sports reported that Thailand received 13.9 million foreign tourists during first four months, up 2.1 per cent from the same period last year.

Despite China remaining the top source market, its growth rate dropped 3.4 per cent. Meanwhile, the entire Middle East dropped 8.7 per cent and overall Europe arrivals dipped by 1.6 per cent. – TTG Asia

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Best I ever got was around 32.5 to the Oz $. Last trip 27. Now more like 21. There is no way I will be coming until we get a massive upturn. I realise this may not happen for a while.

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55 minutes ago, Lantern said:

Best I ever got was around 32.5 to the Oz $. Last trip 27. Now more like 21. There is no way I will be coming until we get a massive upturn. I realise this may not happen for a while.

 

Those were the days post GFC when the little Aussie battler soared like an eagle (wedge-tailed of course). Long gone now.

 

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1 hour ago, fygjam said:

 

Those were the days post GFC when the little Aussie battler soared like an eagle (wedge-tailed of course). Long gone now.

 

Those were the days when the Chinese were raping and pillaging Western Australia of all its minerals and artificially blowing up the Aussie $. Took awhile for you dudes to catch on, but you did and China just moved on over to Africa as they were much easier to rape and pillage for natural resources than Aussie turned out to be.

Collateral damage was the Aussie $ went back to the historical levels from the few years China made it look good. But, good for Aussie.

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The Chinese might have been doing the pillaging but the US (Chevron for one) didn't mind a spot of raping.

Actually it was and still is, the reserve Bank of Australia which is forcing the little Aussie battler down.

 

 

Edited by fygjam
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lol its NOT the Thai Baht thats strong (its been sat in the 31-33 trading range for a LONG time).....its the weakness of our own currencies against the Greenback on the other side of the pairings that is savaging Sterling, Euro Nations and the Aussies

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3 hours ago, RR007 said:

lol its NOT the Thai Baht thats strong (its been sat in the 31-33 trading range for a LONG time).....its the weakness of our own currencies against the Greenback on the other side of the pairings that is savaging Sterling, Euro Nations and the Aussies

Surely it's the BoT's policy of linking the THB to the USD which is the problem.

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7 hours ago, RR007 said:

lol its NOT the Thai Baht thats strong (its been sat in the 31-33 trading range for a LONG time).....its the weakness of our own currencies against the Greenback on the other side of the pairings that is savaging Sterling, Euro Nations and the Aussies

 

2 hours ago, Thai Spice said:

THB is now only very partly linked with USD.

If both these statements are correct, "partly" must mean a substantial part. 

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3 hours ago, Bazle said:

Surely it's the BoT's policy of linking the THB to the USD which is the problem.

It doesnt work like that....the US Dollar has a direct exchange rate with every currency in the world. Its because its the world "reserve" currency...Its the only country with that "privilege".....BOT nothing to do with them

Whether we like it or not for every single visitor coming to Thailand from whatever nationality (except the Americans) that Dollar/Baht fix calculated 24/7 forms one side of the currency pairings.....the other side for Brits is obviously Sterling/Dollar

No exchange rate can be calculated without the US Dollar being part of it.  Will that ever change ??  Who knows but highly highly unlikely whilst they remain the worlds Police force

All you/we have to remember is that Thailand has over $200 billion of foreign reserves. If they want to weaken the Baht they sell it on international forex markets....if they want to strengthen it they buy it on forex markets using all those billions in foreign reserves its a simple as that.....for a long time its been between 31-33 to the $

People get a little bogged down with baskets of currencies.....the only 2 pairs that any board member are interested in is Dollar/Baht and then Euro/Dollar Sterling/Dollar AUD/Dollar and so on.....doesnt matter what else is happening thats the only pairs that matter covering probably 95% of BMs here

Edited by RR007
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31 minutes ago, RR007 said:

It doesnt work like that....the US Dollar has a direct exchange rate with every currency in the world. Its because its the world "reserve" currency...Its the only country with that "privilege".....BOT nothing to do with them

All you/we have to remember is that Thailand has over $200 billion of foreign reserves. If they want to weaken the Baht they sell it on international forex markets....if they want to strengthen it they buy it on forex markets using all those billions in foreign reserves its a simple as that.....for a long time its been between 31-33 to the $

OK, thanks.

So let me re-phrase: surely it's the BoT's policy of keeping the THB in the 31 - 35 range which is the problem?

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11 hours ago, Bazle said:

OK, thanks.

So let me re-phrase: surely it's the BoT's policy of keeping the THB in the 31 - 35 range which is the problem?

 

It's only a problem for those who hold weaker currencies.

Get the Bank of England to strengthen the pound.

 

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