Lack of tourism hits Thai baht

Published on : Monday, July 26, 2021

The Thai baht was once the strongest-performing currency in Asia before the pandemic; however, it has been steadily declining in 2021 and is the worst-hit currency in the region this year.


The Thai baht declined more than 10% against the U.S. dollar year-to-date, as of Monday morning, as per Refinitiv Eikon data.


In 2021, Thailand’s currency is the weakest-performing compared to other major Asia Pacific currencies, according to Refinitiv.


In 2019, before the Covid pandemic, there were concerns about the strengthening Thai baht, which was supported by its large trade surplus. A stronger currency makes a country’s exports more expensive, making them less attractive in global markets.


The sharp decline in tourism numbers has, in fact, multiplied the “Covid devastation” on Thailand’s economy.
As of May this year, Thailand had only 34,000 tourists compared to more than 39 million in 2019, according to its tourism ministry data as well as the World Bank.


The Southeast Asian nation relies a lot on tourism dollars for economic growth. Tourist spending accounted for about 11% of Thai GDP in 2019, before the pandemic. Lesser number of tourists also signifies lower demand for the Thai baht.


Thailand’s over-reliance on tourism is going to be “very challenging” for the country as it reopens for tourists while still battling with the pandemic, said Nomura’s Chief ASEAN Economist Euben Paracuelles.

Related Posts

Tags:

Leave a Reply

Your email address will not be published. Required fields are marked *

arrow2Follow TTW
 
facebook-logo  twitter-logo  LinkedIn_logo  rss_logo 
ttw_blogger_logo  ttw_blogger_logo

ADVERTISEMENT

  • 03 ITB Asia 2021
  • 08 iitm 2021
  • 12 ttfotm 2021
  • 15 SATTE 2021
  • 18 globalwellnesssummit  21
  • 30 PATA

TRAVEL INDUSTRY EVENTS

    1. AHIC

      September 20 - September 22
    2. ARABIAN HOSPITALITY INVESTMENT FORUM 2021

      September 20 - September 22
    3. AFRICA HOSPITALITY INVESTMENT FORUM 2021

      September 20 - September 22
    4. TTF Ahmedabad

      September 23 - September 25
    5. TTF Mumbai

      September 29 - October 1