As the US is considered a “super long-haul” source market with inherently higher travel costs, the weaker dollar, combined with a stronger baht, has reduced Americans’ purchasing power in Thailand. This has become a critical factor in the slowdown of arrivals.
In addition to currency effects, US tourists are also worried about their domestic economy. Consumer goods imported into the United States are expected to become more expensive once old stock is depleted and new shipments, subject to higher tariffs, arrive. Thailand is unlikely to be the only country affected, as the weaker dollar is reducing Americans’ outbound travel worldwide.
European markets resilient as Americans cut back; TAT revises targets
By contrast, European markets remain robust. Since April 2025, arrivals from the United Kingdom, France, Switzerland, Germany, Russia, Eastern Europe and Southern Europe have continued to grow, with some segments reporting double-digit monthly increases. Other key markets also appear largely unaffected, with the baht’s appreciation having no significant impact so far.
However, the TAT acknowledged that these shifts may lower overall tourism revenue from the government’s original target. The agency is reviewing its promotional strategies to boost incentives for inbound travel and mitigate the exchange-rate impact.
Meanwhile, outbound travel among Thais with higher purchasing power is on the rise. Many are choosing destinations where local currencies have weakened, reducing travel costs, notably Japan, Vietnam and China.
AloJapan.com