Strong baht may crimp bookings

With the baht strengthening against the US dollar, surpassing 31 to the greenback for the first time in almost five years, it should impact forward bookings for the next few months and during the low season, discouraging tourist spending.

- MOLPASORN SHOOWONG

Thaneth Tantipiriyakij, president of the Phuket Tourist Association, said travel agents have expressed concern about the strong baht, which has been an obstacle since last year for many markets, including the US, Russia, Europe and Japan.

Based on discussions with retail operators such as malls, restaurants and stores, foreign tourists are spending less on shopping during their trips to Thailand, said Mr Thaneth.

Hotels this high season have raised room rates by only around 5% year-on-year due to the strong baht and pressure from rising costs, he said.