Strong Thai baht makes U.S. dollar-dependent Cambodia a more predictable and affordable tourism option
Strong Thai baht makes U.S. dollar-dependent Cambodia a more predictable and affordable tourism option
PATTAYA, Thailand – The recent appreciation of the Thai baht against the U.S. dollar is proving to be an unexpected advantage for Cambodia’s tourism industry, according to Cambodian media reports on May 9. As Cambodia continues to rely heavily on the U.S. dollar, the stronger baht is making the country a more cost-effective destination for travelers in the region.
On Friday, the exchange rate opened at 32.65 baht to the U.S. dollar, strengthening from 33.05 the day before. Analysts predict the trading range for the week will hover between 32.75 and 33.35. The strengthening baht, driven by global uncertainty, rising gold prices, and ongoing trade tensions, poses challenges for Thailand’s tourism competitiveness within ASEAN, particularly against countries like Vietnam, Malaysia, Indonesia, and Singapore.
Experts note that Cambodia now offers significant advantages. With tourism products priced in U.S. dollars and inflation relatively under control, Cambodia becomes a more predictable and affordable option compared to neighboring countries where prices are rising and local currencies are used.
The strengthening baht is causing Thai travel packages to become more expensive, potentially steering price-conscious travelers toward Cambodia, where tour prices have remained stable. Meanwhile, the new international airport in Phnom Penh is expected to further boost Cambodia’s connectivity and its post-pandemic tourism recovery.
However, the situation is not without drawbacks. Cambodian travelers planning trips to Thailand face higher conversion costs, as both the Cambodian riel and U.S. dollar weaken against the baht. At the same time, reports from Thailand indicate that local businesses, including budget accommodations, food stalls, beer bars, and cafés, are beginning to feel the impact of reduced tourist spending due to the baht’s strength.
Source: Pattaya Mail
