PATTAYA, Thailand – The government says it is weighing new measures to manage the strength of the baht, but many residents, long-term visitors, and business operators are unconvinced — arguing that the damage has already been done.
Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas warned that every one-baht appreciation could shave up to 0.2 percentage points off GDP, hurting exports, tourism, and overall growth. The baht’s strength has been driven by a weaker U.S. dollar, a large current-account surplus, and speculative capital inflows.
Yet among Pattaya Mail readers, the response has been blunt.
“Don’t bother,” one reader commented.
“It’s way too late,” another added.
“Surrounding countries are much cheaper now.”
For many in Pattaya’s tourism-dependent economy, these are not abstract macroeconomic concerns. A strong baht means higher hotel prices, more expensive meals, and reduced spending power for visitors — especially those from Europe, Australia, and neighboring ASEAN countries. Several readers say tourists are still coming, but they are spending less and staying shorter periods.
Officials say they are reviewing ways to curb speculative flows, particularly those linked to gold trading, which has added volatility to the currency. However, any new tax measures would need approval from a future government, limiting what can be done in the short term.
Ekniti suggested that interest rate cuts could be considered and that currency management would require a mix of fiscal and monetary tools. The government is also pushing foreign direct investment to boost imports and ease upward pressure on the baht. Investment applications through the Board of Investment surged 93% last year to around US$14 billion, supported by a new “BOI Fast Pass” for sectors such as EVs, smart electronics, agri-tech, and wellness.
But readers remain skeptical that investment figures translate into relief for tourism hubs like Pattaya.
“Rhetoric without action,” one commenter wrote.
“Yak yak yak.”
Household debt is another pressure point. The Finance Ministry is buying non-performing loans from low-income borrowers via the Financial Institutions Development Fund, covering around 2 million people. While officials say the program promotes financial discipline and recovery, critics question whether it addresses deeper structural issues like stagnant wages and rising living costs.
Thailand’s economy is expected to grow about 2% this year — below last year’s pace and well under its estimated potential of 3%. Demographic challenges, weak consumption, and global trade headwinds continue to weigh on growth.
For many Pattaya Mail readers, however, the concern is simpler and more immediate: Thailand is losing its price advantage.
As one reader summed it up, “People don’t compare Thailand to what it used to be — they compare it to Vietnam, Cambodia, Indonesia. And Thailand is no longer the cheap option.”
Whether new policies can reverse that perception remains an open question. For now, the prevailing mood among readers is clear: action needs to be fast, visible, and real — or the strong baht will keep pushing visitors, and their spending, elsewhere.
