Is Thailand Now More Expensive Than Spain or Greece?
New pricing data has revealed staying in a Thai beach resort costs the same as - or more than - those in Spain, Greece, Italy, Turkey and Egypt.
Thailand travel specialist Diethelm regularly shares its pricing data with holiday website Skift, who used it to write an article showing how much more expensive Thailand has become in recent years.
While Thailand was once a great place to grab a five-star hotel bargain, today such a room costs around $500 in Koh Samui, Koh Phangan and Koh Samet - inclusive of American breakfast. It costs a similar amount in Greece, Italy and Spain, but is more expensive than in Turkey or Egypt - where a five-star stay costs about $350.
The story surrounding four-star hotels is similar. They cost about $350 in Thai resorts, around the same as they do in Greece, Italy and Spain. That figure is considerably higher than in Turkey or Egypt ($200), and is even higher than in Germany, Austria or Switzerland, where a four star hotel costs $300.
Why has Thailand become more expensive?
The US dollar now buys 30% fewer baht than it did five years ago. For euros, this equates to a 40 per cent fall. Looking at the same five year span, the British pound buys 20% fewer baht, although there has been a more precipitous fall between the EU Referendum and now.
Continued inflation has also played a role - prices have been climbing steadily for years. Tax hikes on alcohol have also made Thailand trips more costly than they once were.
Travel agents interviewed in the Skift article say that it's not just about a strong baht and rising prices, though. They say many Thai resorts - such as Phuket and Koh Samui - have become overdeveloped, to the degree that they aren't as attractive as they once were. There's also a 'been there, done that' attitude from some Western travellers who have visited such resorts many times already and are looking for fresh destinations.
But as the article makes clear, other countries are also experiencing extreme overdevelopment in their resorts, with Sihanoukville in Cambodia (whose casinos are a favourite with Chinese tourists) being a notable example. Vietnam too has seen a huge boom in hotel construction.
Shifting focus towards China
The tourist market in Thailand and other Southeast Asian countries has changed dramatically in recent years, with a huge influx of Chinese tourists seeking affordable package breaks. The article points out that, as a result, some high-end European travellers no longer stay in some five-star hotels due to changes in those establishments' “atmosphere”.
This shift also impacts other aspects of the tourist economy. For example, Chinese tourists tend not to indulge in nightlife as much as Western visitors, which results in lower takings for bars and nightclubs. They also travel in large groups, which can change the dynamic of many tourist hotspots.
UK arrivals similar to last year
Yet despite the strong baht and rising prices - not to mention Brexit - the Tourism Authority of Thailand forecasts 950,000 Britons will visit the country in 2019, down only slightly from 954,000 in 2018.
Thailand on a budget
While high-end accommodation may be more costly in Thailand, it is still possible to grab affordable mid-range and budget rooms - as well as special deals on four and five star stays. Equally, there are many lesser known, quieter places to visit in Thailand: away from Phuket, Samui and Pattaya are scores of secluded beaches - both on the mainland and on less-visited islands.
Opting for street food and public transport can also drive costs down for those on a budget.
However, for some Western visitors, European resorts are starting to look better value than ever, especially since air fares to reach them cost far less.
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