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Thailand’s tourism industry gets jitters after currency surges, visitor numbers from China fall
- Chinese tourists account for more than a quarter of all foreign visitors, but their numbers were down by 5 per cent in the first six months of the year
- At the same time, over the past year the Thai baht has appreciated 12 per cent against China’s yuan – dissuading those who are price-sensitive
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Thailand’s tourism authorities are growing increasingly concerned that the country is losing its reputation as one of the most affordable destinations in Southeast Asia for Chinese tourists as its currency surges against the yuan.
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Chinese tourists account for more than a quarter of all foreign visitors to Thailand, but their numbers were down by 5 per cent annually in the first six months of the year – from 5.9 million to 5.6 million – after a tour boat accident off the island of Phuket last July that left 47 Chinese visitors dead.
Pipat Ratchakitprakarn, the newly installed minister of tourism and sports, has blamed the country’s surging currency for deterring tourists, with the Thai baht reaching a six-year high against the US dollar earlier this month.
“The baht has appreciated 12 per cent against the yuan in a year,” said Narit Stapoldecha, an analyst at Thai economic think tank TMB Analytics. “Thailand is [geographically] close to China, which makes it easy for Chinese tourists to cancel their planned trip and go to another destination.”
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The Bank of Thailand recently introduced several measures to prevent baht speculation, including a 200-million baht cap on deposits in accounts held by non residents.
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