Thailand no longer a bargain as baht hits two-year high, pushing UK winter-sun travel to cheaper rivals
Stronger currency pushes up costs for British tourists; Southeast Asia options gain appeal as visitors seek value
Thailand's currency, the baht, has surged to a two-year high, eroding the country’s long-running appeal as a low-cost winter sun destination for British travelers. The baht was trading around 43 to the pound this week after a surge in July, and it has risen roughly 7% against the pound since 2020, making holidays in Thailand noticeably more expensive for UK visitors.
Prices in popular destinations such as Phuket, Pattaya and Bangkok have climbed as the currency strengthens. A widely circulated anecdote on a travel forum described a meal for two costing about 7,000 baht, around £162. Even staple dishes like pad thai have become pricier, with street meals in major beach towns commonly around 300 baht, about £7. In Pattaya, a resort that has long drawn budget travelers, hotel bookings and overall tourist numbers have fallen about 7% year on year. With the peak season between November and February approaching, many travelers are likely to shop elsewhere for value.
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Analysts at Kasikornbank said the baht’s strength comes at a bad time ahead of the peak tourist season, likely prompting travelers to seek better value elsewhere.
As a result, some travelers are looking at cheaper Southeast Asian alternatives. The Vietnamese dong has weakened, making Vietnam a more affordable winter sun option for UK visitors, while Cambodia, Indonesia (including Bali) and the Philippines are also viewed as cost-effective alternatives. InterNations, a global expat guide, named Vietnam the cheapest country to be an expat for a third consecutive year.
Among those adjusting their travel plans are Britons who say Thailand still feels cheaper than staying at home, even as prices rise. A Sheffield couple, Josh and Katie, who sold their UK home to travel with their two children, say they are living on roughly £35 a day and spending about £500 a month on accommodation while en route through Southeast Asia, and they say life in Thailand remains cheaper than back in the UK. They are weighing options such as Hanoi as an alternative for continued travel.
Meanwhile, in Vietnam, the dong’s weakness has translated into a more forgiving price environment for winter-sun travelers, reinforcing the appeal of destinations such as Hanoi for those seeking affordability.
With peak season around November to February, the shift in currency dynamics could reshape regional tourism patterns as travelers seek value. The shift also matters for local hotels, tour operators and airlines that rely on European travelers, who have historically been a large slice of tourism income in Thailand and neighboring markets.