Southeast Asia's 2nd largest economy dismisses claims of escalating travel costs

By Hoang Phong    February 14, 2026 | 11:00 pm PT
Southeast Asia's 2nd largest economy dismisses claims of escalating travel costs
Revelers play with water as they celebrate the Songkran holiday, which marks the Thai New Year, in Bangkok, Thailand, April 13, 2025. Photo by Reuters
Tourism authorities have rejected assertions that travel to Thailand, the second largest economy in Southeast Asia, has become prohibitively expensive, arguing that perceptions of rising costs stem largely from exchange rate volatility rather than domestic inflation.

Thailand's tourism sector has encountered mounting cost-related concerns from international travelers since the beginning of the year.

On travel forums, South Korean visitors, one of Thailand’s five largest source markets, said their budgets for everything from airfares and hotel stays to street food and traditional massages no longer stretch as far as anticipated, Hong Kong-based South China Morning Post reported.

"Our inflation rate is not that high. In fact, domestic prices in Thailand have not surged," said Sirigesanong Trirattanasongpol, executive director for the East Asia market at the Tourism Authority of Thailand, as quoted by the Korea JoongAng Daily.

"The cost of living remains stable. The main issue affecting travelers is the exchange rate," she added.

Thailand's strengthening baht has appreciated by roughly 1% against the U.S. dollar so far this year, following a 9% surge in 2025, a trend that risks eroding the tourism sector's price competitiveness, Bangkok Post reported.

Thailand’s headline inflation was negative for ‌a 10th straight month in January, driven by lower energy prices, data from the commerce ministry showed.

Tourism officials affirmed Thailand remained a low-cost destination for foreign tourists.

Thailand has set its target of welcoming 36.7 million foreign arrivals this year, a 13% increase from last year, and earning tourism revenue of 2.78 trillion baht (US$88.3 billion), up 7%.

With 32.9 million international arrivals in 2025, Thailand ranked as Southeast Asia's second most visited country after Malaysia, which received over 42 million, marking the second consecutive year the kingdom has relinquished its regional tourism crown.

The country recorded 4.1 million foreign arrivals from Jan. 1 to Feb. 8, down 10.77%.

 
 
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