PATTAYA, Thailand – Thailand’s rapidly strengthening baht is raising concerns among economists, businesses, and tourism operators, prompting calls for swift government intervention to prevent long-term economic damage.
According to Krungthai GLOBAL MARKETS, the Thai baht opened at 31.75 per U.S. dollar on September 15, hovering in a narrow range of 31.70–31.79 since last week. Analysts predict the baht could fluctuate between 31.35–32.10 per dollar this week as markets await the U.S. Federal Reserve’s September FOMC meeting on September 18.
The sharp appreciation of the baht, driven by short-term capital inflows and a weakening U.S. dollar, has raised concerns that Thai exports may shrink in the fourth quarter. “If the baht continues to strengthen, export-driven sectors could face contraction, and this will ripple across the broader economy,” noted market analysts.
The tourism industry, particularly in Pattaya, is also at risk. Long-term foreign visitors are becoming increasingly sensitive to exchange rates. A stronger baht reduces the purchasing power of international tourists, potentially decreasing hotel bookings, restaurant revenues, and leisure spending. Pattaya, which relies heavily on both short-term visitors and long-term residents, may face lower tourist arrivals and spending if the trend persists.
Krungthai GLOBAL MARKETS highlighted additional pressures from international markets, including potential U.S. interest rate cuts and uncertainties in France and Japan, which could further influence the baht’s volatility. Analysts caution that without timely fiscal and monetary interventions, the baht’s rapid appreciation could destabilize both exports and the tourism sector.
Experts are urging the Thai government to take decisive steps to slow the baht’s rise, including strategic public spending, targeted stimulus measures, and interest rate adjustments. These measures aim to maintain export competitiveness, stabilize tourism-dependent economies like Pattaya, and mitigate the broader risk of an economic slowdown.
“Without government action, a prolonged strong baht could erode the advantages Thailand has built in tourism and trade,” said one economist. “Intervention is necessary to maintain economic balance and protect livelihoods in high-tourism provinces.”
With Thailand’s economy closely tied to exports and tourism, stakeholders are watching closely. Pattaya hotels, restaurants, and small businesses hope for policy measures that can sustain tourist arrivals and cushion the effects of currency swings.
