For all those who visit Phuket in Thailand, an obvious point of concern is how things will cost. Thailand has always been a relatively cheap holiday. As a destination, Phuket is favored by everyone from British to the Israelis. But the global economic crisis coupled with the effects of negative media coverage on the fact that Thailand has less people visiting the country. Yet perhaps the biggest problem is today’s exchange rate.
When I arrived in Thailand, four years ago, the pound sterling has been a change to 75 baht. It was a decent exchange rate and this meant that my money goes, whether in Bangkok or Phuket. Now I find myself watching Phuket exchange rate that defies belief. The pound is now trading at 52 baht. This is down nearly one third in recent years.
The prices in Thailand have not changed much during this period. Expatriates living in the country would certainly not notice much difference, but for people who visit the United Kingdom, with a third less to spend than usual is a big change.
It is not, however, that the baht has become particularly strong. What happens is that the book is incredibly low. He is so weak that for the moment is trading for about one with the euro, making European travel unattractive to British citizens. The British are staying home. Money is tight enough that it is without the exchange rate working against people.
The Americans are in a similar situation. The dollar has generally been trading at about 35 baht in recent years. Currently, there is one to 22 baht. Again, this is a decrease of about one third. Ultimately, people will travel to Thailand independently political unrest and infighting. But these people do not have to travel if they have no money to do so.
With it being so close to 50 baht to the pound, change money from sterling to baht is almost financial suicide. Conversely, it is not a bad time for Britain to be paid in baht. For example, I recently wired a large sum of baht in the United Kingdom at an exchange rate of 52 baht to the pound. That’s about as low as it will have, and it is difficult to trust the baht in the long term, while the pound sterling is a traditionally strong currency.
For all of us in Phuket and the rest of Thailand, we can hope that 2009 brings more favorable exchange rates against the baht. The pound sterling and the dollar have taken some very big hits this year and he could not have come at a worse time. The tourism industry in Phuket needs all the help it can get right now, but some things are beyond the control of the island and its people.
