News Forum - Why Is Thailand So Cheap?

[Thaiger]

https://youtu.be/2kRDnypF9S4 Thailand is one of Asia’s most popular tourist destinations, thanks to its rich culture, delectable cuisine, and sun-kissed beaches. But, aside from the fascinating sights, another significant benefit draws visitors from all over the world. Thailand is also extremely reasonably priced! But why? We listed a few reasons. Why is Thailand so cheap? Thailand is reasonably priced for the average tourist. Living expenses and day-to-day purchases are significantly lower than in other Western countries. This means you can see sights, eat delicious food, and stay in friendly hotels for a fraction of the price of other popular tourist destinations. […]

The story Why Is Thailand So Cheap? as seen on Thaiger News.

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[Soidog]

Because it isn’t ! There are many “popular tourist spots” around the world that are cheaper. Hotels in Malaysia for example are cheaper and so is the food. Flights are expensive to Thailand. Decent high quality food is as expensive in Bangkok as London or New York. 

Like everywhere. Some things are cheap while others aren’t. Try buying a BMW in Thailand and compare that to the U.K.  one thing that is often seen as cheap in Thailand is golf. Well it maybe as a one off for a tourist but it’s certainly not if you are a long term stayed and play frequently. Cheaper in the U.K. 

[ExpatPattaya]

48 minutes ago, Soidog said:

Cheaper in the U.K. 

UK - 20% VAT, Thailand 7% VAT  is one reason Thailand is cheaper.  But I do not live here for fancy food, hotels, or golf.  Food, Utilities, and Rent very cheap compared to USA where I come from ... and health insurance..which most other countries you get for free, but not the USA 

[Poolie]

Exactly. You have to tailor your life to fit. Do the expensive things and anywhere is pricey. It's common sense.

[cowslip]

minimum wage of 300 baht per 8 hr day

Basically the average worker still earns next to nothing

A family of tenant rice farmers live off 3000 baht per month

Factory workers start at about 5000 per month

Police starting at about 6000 baht p/m earn an average below 15,000 baht p/m

All govt officials and teachers even earn a pittance - no wonder corruption is so rife.

Diesel subsidised - to just over 35 baht 

 

Look at the labour charges charged by workshops - until recently they didn't charge labour now its a couple of thousand part - many parts are stll fitted free - than see how much your local dealership at home charges.

Low property taxes and local taxes mean that housing and rentals are cheap. Properties can stand empty for nothing

 

[Grumpish]

For tourists, hotels are another big cost saving (althougn that goes for most of South East Asia). Ignoring the big multi-nationals, just compare what you can get for £50 a night in Thailand with what £50 a night would get you in the UK. 

[cowslip]

15 minutes ago, Grumpish said:

For tourists, hotels are another big cost saving (althougn that goes for most of South East Asia). Ignoring the big multi-nationals, just compare what you can get for £50 a night in Thailand with what £50 a night would get you in the UK. 

because the staff cost nothing.

[cowslip]

in UK the minimum wage is about £8 per hr, in Thailand it's about £8 per DAY

[Chaimai]

19 minutes ago, cowslip said:

in UK the minimum wage is about £8 per hr, in Thailand it's about £8 per DAY

 

Thailand 328 Baht a day.

 

UK going up to 450 Baht AN HOUR.

[PATRIQUE]

as a holiday maker ...... significantly lower costs than other destinations is not quite correct .

i spent 12 years until covid started in Thailand , and since than in various mediterranian EU destinations .

ec Turkey , Albania , Canary Islands , Maroque ......

same same

 

[yselmike]

It reads like it was written 10 years ago.

[Marc26]

6 hours ago, Soidog said:

Because it isn’t ! There are many “popular tourist spots” around the world that are cheaper. Hotels in Malaysia for example are cheaper and so is the food. Flights are expensive to Thailand. Decent high quality food is as expensive in Bangkok as London or New York. 

Like everywhere. Some things are cheap while others aren’t. Try buying a BMW in Thailand and compare that to the U.K.  one thing that is often seen as cheap in Thailand is golf. Well it maybe as a one off for a tourist but it’s certainly not if you are a long term stayed and play frequently. Cheaper in the U.K. 

Although I agree with all you say, I think the article point was that it can be cheaper if you budget accordingly 

[Marc26]

5 hours ago, Poolie said:

Exactly. You have to tailor your life to fit. Do the expensive things and anywhere is pricey. It's common sense.

As I said above, I think the article is trying to point out "it can be cheaper"

 

Which I certainly agree with 

 

But I think a lot of people assume everyone wants to live cheaper

 

I've never come to Thailand as a budget traveller or when I lived there

I went to Thailand the 1st time when I started making money 

 

So although some things were cheaper a lot were as expensive or more expensive 

[Marc26]

I think the best affordable aspect of Thailand is accommodations

 

Hotel and living 

 

I think you can get a completely adequate and decent hotel for $30usd

 

And I think you can stay in a 5 star hotel for 1/3 of what it would be in the US 

 

Also if you are renting a place

Now I think the higher end places are too pricey for the build quality 

 

If you want to "downsize" you can get a completely adequate place from $500-1000usd

[cowslip]

5 hours ago, Chaimai said:

Thailand 328 Baht a day.

UK going up to 450 Baht AN HOUR.

 

The Thai minimum wage varies from province to province - set by the governors.

the Tory govt in UK will rise the minimum wage to just over £10 in April 2023. Thesis slightly less than current inflation.

However the point is not the last couple of baht or pounds, it is that countries like EU and the West in general have wages between 8 and 10 times higher than in Thailand which has one of  the highest rich/poor divides in the world. variations next April are not really pertinent, the fact is that for the last 3 decades Thailand has kept the cost of  labour as low as possible to make exports and tourism as attractive as possible to foreign currency.

That's why I always find those aims for "high-end" customers so risible.

 

 

 

Edited November 26, 2022 by cowslip

[Soidog]

3 hours ago, Marc26 said:

Although I agree with all you say, I think the article point was that it can be cheaper if you budget accordingly 

Not what the headlines say. That’s what people remember 

[Marc26]

39 minutes ago, Soidog said:

Not what the headlines say. That’s what people remember 

Yeah the headline didn't match what they were trying to say

 

Thailand hasn't been all that cheap for me

 

But it can be if you want

 

Good example

 

A couple of my Aussie friends had big homes( and big bills) at home

 

Both live in decent 1 bedroom houses

 

Now they don't compare to their houses at home but they don't need a big home 

 

I've said often if you compare apples to apples.....Thailand is more expensive a lot of tunes

 

But I think you can get by more happy in Thailand budgeting vs in West

[TheDirtyDurian]

For me Thailand is cheaper for gas, hotels, houses, utilities, eating out, taxis, brickweed, labour 

Food costs are probably higher. 

It's all relative though. By thai standards I earn a fortune. For most Thai people the stuff I mentioned would eat a lot of their salary. 

[HiuMak]

19 hours ago, Thaiger said:

https://youtu.be/2kRDnypF9S4 Thailand is one of Asia’s most popular tourist destinations, thanks to its rich culture, delectable cuisine, and sun-kissed beaches. But, aside from the fascinating sights, another significant benefit draws visitors from all over the world. Thailand is also extremely reasonably priced! But why? We listed a few reasons. Why is Thailand so cheap? Thailand is reasonably priced for the average tourist. Living expenses and day-to-day purchases are significantly lower than in other Western countries. This means you can see sights, eat delicious food, and stay in friendly hotels for a fraction of the price of other popular tourist destinations. […]

The story Why Is Thailand So Cheap? as seen on Thaiger News.

Read the full story

That's why cheap tourists come here.

[PQBC]

The article lists (quite accurately) the prices of many goods and services in Thailand. Indeed they are cheap compared to many places.

However the headline asks "WHY is Thailand so cheap?" Nowhere is this question answered by this article.

[Soidog]

25 minutes ago, PQBC said:

However the headline asks "WHY is Thailand so cheap?" Nowhere is this question answered by this article.

Good point. I’ll have a stab at answering it:

It’s because labour is so cheap as many people are poorly paid by their employers. As labour costs are a major contributor to many products and services then it has a massive impact on price. Perhaps many people who take advantage of these rates don’t realise this?

The other issue is taxation rates and government subsidies on things like energy and food prices. Both of these sound great, but it’s a fine balance of lower prices and less money to invest in the economy by the government. My own view on this is that it’s no bad thing in Thailand. If more tax meant higher government spending, half of it would be lost to corruption. You need to sort out endemic corruption before raising taxes and government spending.