Thai tourism hit by baht and airfares

KUALA LUMPUR, 22 JULY 2026 —

Thailand's tourism industry faces a double hit from volatile exchange rates and rising airfares, with foreign arrivals expected to reach only 30-32 million in 2026, according to the Association of Thai Travel Agents (ATTA).

The fluctuating baht has already affected spending by foreign tourists, said Sisdivachr Cheewarattanaporn, honorary president and senior adviser to ATTA.

The prolonged Middle East conflict has pushed global oil prices higher, making air tickets more expensive, he added.

Overall spending by foreign tourists has changed, with shopping declining compared to the pre-Covid-19 period, according to Sisdivachr.

Chinese tourists are now more selective, buying only consumer products not available in China, while Asean tourists still shop for Thai products and European tourists focus on travel, he said.

The tourism sector faces a double impact from baht volatility and the Middle East conflict, which has raised the overall cost of each trip, Sisdivachr said.

Airlines have announced temporary route cancellations or flight reductions, and those that continue to operate have raised fares due to higher fuel costs, he added.

Thailand's tourism outlook has become extremely difficult to assess, said Sisdivachr, but if the situation returns to normal, tourism could recover quickly.

The Tourism Authority of Thailand expects foreign arrivals to reach 30-34 million, down 18% from its previous target of 36.7 million, based on the assumption that the Middle East situation will ease within one to three months, according to the TAT.