Thai Prime Minister Anutin Charnvirakul stated on September 15, 2026, that the strength of the baht currency needs urgent attention and would be discussed that day. The baht has appreciated 7.9% against the U.S. dollar this year, making it the second-best performing currency in Asia, and recently hit a more than four-year high of 31.57 per U.S. dollar. This strength is posing a significant challenge to Thailand's exports and vital tourism sector, according to industry federations and analysts.
Businesses, including rice traders, the electronic parts industry, and the automotive sector, have expressed concerns. The strong baht reduces export and tourist revenue, making Thai goods less competitive and potentially prompting tourists to seek better value elsewhere. This comes at a critical time, with a 19% tariff imposed by the United States, Thailand's largest export market, further threatening export growth.
In an effort to counter the economic headwinds, Thailand is targeting more than 20 billion baht ($602 million) in additional tourism spending through a domestic travel stimulus. This plan involves subsidizing hotel stays by up to 2,000 baht per entitlement and providing co-payment vouchers of up to 2,000 baht for restaurants, spas, shops, and tourism activities. The government plans to spend approximately 4 billion baht on this package, covering one million entitlements, with the program scheduled to run from November 1 to December 15, and again from January 16 through February 2027. However, some observers question the timing and efficacy of the program, suggesting it might primarily subsidize existing travel plans rather than generate new demand.
