The Impact of Falling Tourism Industry Caused by Covid-19 on Thai Currency and the Thai Baht’s Prospects

Zhicheng He

doi:10.54097/hbem.v3i.4638

Authors

Zhicheng He

DOI:

https://doi.org/10.54097/hbem.v3i.4638

Keywords:

Thai Baht; Thailand; Tourism Industry; Thai Economy; Exchange Rate.

Abstract

The purpose of this paper is to analyze the influence of the severe drop in the tourism industry caused by the pandemic in Thailand on the US dollar/Thai baht exchange rate over the last two years. In order to provide an explanation for the recent devaluation of the Thai baht, this article discusses the significance of tourism to the economy of Thailand, as well as the potential effects a drop in tourism could have on interest rates, inflation, and other aspects of the Thai economy. The article predicts that the Thai tourism industry will soon revive, given the Thai government's current tourism promotion measures and the successes already achieved by these programs. By investigating the impact of tourism fluctuations on the Thai baht's exchange rate, the report forecasts a gradual appreciation of the baht over the next few years.

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