Thailand growing more expensive for expats

According to Employment Conditions Abroad, Bangkok and Chiang Mai are among the 30 most expensive cities for expats in Asia. The capital of Turkmenistan might not spring to mind when with considering the priciest cities, but according to ECA International it ranks first on both the global and Asian tables, a 5 point rise up the rankings due to an ongoing economic crisis, food shortages and the resulting hyperinflation.

The survey is performed in March and September every year, based on a basket of items such as rents and utility fees. Car prices and school fees are not included.

In Asia, Bangkok ranks 28th, just above Chiang Mai, according to the latest ECA International survey on the cost of living for expatriates. But it dropped out of the top 50 global rankings from the report released in December 2019. In global rankings, Bangkok is now at 60 and Chiang Mai at 142. Bangkok has lost a good deal of its former appeal for budget-conscious travellers and expatriates, rising 64 places over the past 5 years, according to the survey.

ECA says a rapidly expanding economy and increased foreign investment, at least, prior to the Covid-19 pandemic, made Thailand more expensive, fuelled by the strengthening baht.

“The baht has strengthened considerably, making the country more expensive for expatriates and tourists. However, this trend has slowed over the past year, partly in response to government attempts to weaken the baht in order to keep the country competitive.”

Hong Kong is the second most expensive city in Asia after Ashgabat (Turkmenistan), but ahead of Tokyo and Singapore. Singapore is rated the most expensive place for expats in Southeast Asia and has led that ranking for many years.

Hong Kong remains sixth in the global standings, 1 place ahead of the Japanese capital. Singapore was fourteenth in Asia, dropping 2 notches from the previous survey.

Ashgabat’s sudden rise to the top of the is largely attributable to the economic dilemmas of Turkmenistan’s government, according to ECA. The energy-rich Central Asian nation faces severe inflation, and a black market for foreign currencies has caused the cost of imports to rise. Both factors have sparked a large increase in the costs visitors pay.

The ECA says Chinese cities fell across the board due to signs of a weakening economy and poorly performing currency, even before Covid-19 began taking its toll.

SOURCE: Bangkok Post