Bangkok (VNA) - The baht's appreciation is threatening the Thai tourism sector and causing ripple effects on businesses, which are struggling to deal with the sluggish economy, according to the Federation of Thai Industries (FTI).
The strengthening of the currency could cause foreign tourist arrivals to miss this year's target of 40 million, resulting in Thailand losing an opportunity to benefit from their spending during their time in the country.
Foreign travellers' demand for the baht would also decrease as they have to spend more to purchase goods and use services.
FTI Chairman Kriengkrai Thiennukul stressed that Thailand is becoming a more expensive tourist destination, compared with other countries.
A slowdown in the tourism industry could also affect new investment projects in this sector, including plans to build new hotels, he added.
According to the Bank of Thailand, the weighted-average interbank exchange rate stood at 31.8 baht to the US dollar as of September 19.
This is not good for the Thai tourism industry as many foreign tourists have opted to travel to Vietnam, which saw its annual foreign arrival number soar by 21% year-on-year to nearly 14 million last month, said Kriengkrai.
Vietnam has also increased the number of direct flights to the country, implemented a visa policy that facilitates travel, launched new travel campaigns and promoted various types of tourism, including cultural and adventure tourism. But Thailand has no new tourist destinations to attract them, he noted.
The FTI has called on the central bank to look into the baht's value after it appreciated by 8% to become the strongest currency in Southeast Asia./.
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