Thailand no longer a bargain for UK travelers as baht strengthens, pushing winter-sun seekers to Southeast Asia

Thailand’s winter-sun appeal is facing a sharp price shift as the baht continues to strengthen against the British pound, making holidays in the country notably more expensive for UK travelers than five years ago. The baht hovered around 43 per £1, the strongest in the region, and has risen roughly 7% against the pound since 2020, according to market data cited by analysts. The trend comes as peak-season demand tightens budgets for travelers and as Thai prices on lodging, meals and activities edge higher. Analysts say the move could temper inbound numbers just ahead of the November-to-February peak travel period, prompting some would-be visitors to weigh alternatives where costs go further.

In a signal of what the shift means on the ground, Pattaya — once a magnet for budget travelers — has seen a roughly 7% year-on-year drop in tourist numbers and hotel bookings this year. Even staples are catching up with visitors; a Reddit thread this summer recounted a meal for two at a midrange restaurant costing around 7,000 baht, roughly £162, while a plate of pad thai in major beach destinations runs about 300 baht, or around £7. Such price pressures are leaving some travelers weighing whether Thailand remains a good value option as the dry-season rush approaches.

The effect has rippled across the region, with travelers increasingly considering cheaper winter-sun options in nearby Southeast Asia. Vietnam’s dong has weakened in recent months, contributing to a generally lower cost of living and making destinations like Hanoi and Ho Chi Minh City attractive as alternatives. In a broader regional comparison, Vietnam was named the cheapest country to be an expat for the third year in a row by InterNations, a finding often echoed by travelers seeking value. A sizable share of would-be expatriates and travelers point to lower wages and a softer price base for essentials such as groceries, dining and transportation as key reasons to look east.

Meanwhile, a small but telling anecdote from the United Kingdom underscored the shifting calculus. Sheffield couple Josh and Katie, both 33, have opted to sell their home and travel with their children, aged seven and three. They are currently living in Thailand and reporting that their daily costs are manageable on roughly £35 a day for four, plus around £500 a month for accommodation, raising questions about whether similar lifestyles could be replicated more cheaply elsewhere in the region. The couple said they value the chance to spend more time with their children and to simplify routines while traveling, a sentiment echoed by many families drawn to Southeast Asia’s perceived affordability.

Experts note that the Thai baht’s strength is a factor in price competitiveness that also includes neighboring currencies and local inflation indicators. The head of Capital Markets Research at Kasikornbank, Kobsidthi Silpachai, told Reuters this week that the baht’s resilience comes at a challenging time for the industry as the peak season approaches, with potential knock-on effects on hotel bookings and domestic travel spending. Travelers continuing to monitor exchange rates may find that the gap between Thailand and some regional rivals narrows in the coming weeks, depending on currency moves and local inflation.

If the trend persists, tourism operators say visitors could diversify their itineraries, swapping longer stays in Thai beach resorts for shorter trips across the region, or choosing destinations where overall costs for accommodation, meals and activities are viewed as more favorable. In Bali, the Philippines, Cambodia and parts of Indonesia, including Nusa Dua and the lesser-visited corners of Java, travelers can often stretch hard-earned funds further, a prospect appealing as families plan winter escapes.

The broader picture remains nuanced: while the Thai capital and resort belts have long offered a mix of luxury and value, price pressures are eroding some of the traditional bargains that defined the Thai travel experience for UK visitors over generations. For many travelers, the question is no longer whether Thailand is affordable, but whether the added cost aligns with the experience and weather they seek during the UK winter. As winter nears, travel agents and bloggers alike are cataloguing price changes, booking windows, and currency forecasts to help travelers decide where to turn for the best combination of sun, culture and value.