A new study has revealed stark contrasts in the cost of international travel for 2025, ranking Iceland as the most expensive country to visit, whereas Thailand continues to offer some of the best value for global tourists. The findings carry major implications for travelers from Thailand and Southeast Asia, highlighting the continued importance of currency trends and inflation in shaping vacation budgets worldwide.
According to the latest research released by The Forex Complex and shared with Travel + Leisure, Iceland outranks all other major tourism destinations in terms of cost, with the average traveler needing to spend more than $400 per day to visit the Nordic island nation. The analysis, which evaluated 19 popular countries, factored in core travel expenses like accommodations, transport, and meals, as well as local inflation rates and year-to-year shifts in currency strength against the US dollar (Travel + Leisure). For Iceland, a 5.5% inflation rate has led to noticeable jumps in the prices of hotels, food, and transit—exacerbating the financial challenges for American and other international tourists, even before considering airfare.
The report’s spokesperson underscored the dynamic nature of global travel costs: “Currency fluctuations can significantly reshape travel costs, even in countries with stable local prices. While daily expenses tend to dominate perceptions of affordability, shifts in exchange rates can quietly make or break a vacation budget for American tourists. In 2025, travelers who overlook currency trends might be in for a costlier summer than expected.” This is particularly relevant for Thai and Asian travelers as the Thai baht’s performance and broader global monetary trends can impact not just inbound, but outbound tourism activity as well.
Following Iceland, Australia was identified as the second most expensive destination, with an average daily cost of roughly $280, despite a relatively modest inflation rate of 2.4%. Meanwhile, Mexico emerged as the third priciest country for international tourists, driven largely by a 6.4% surge in the Mexican peso against the US dollar, offsetting the country’s typically affordable local prices. European favorites for both American and Thai tourists—including the United Kingdom, Germany, and Italy—remained within the top 10 most expensive destinations, although favorable exchange rates have slightly eased costs for foreign visitors.
The study’s methodology brings together three critical dimensions: average per-day tourism spending in USD, local inflation rates, and the destination’s currency performance over the past year. The granular break-down of costs provides unique insights for travel planning, especially for budget-conscious Thai travelers and outbound tourists.
In contrast to these high costs, Thailand is recognized as the least expensive destination in the study. With an average spend of just $81.87 per day, Thailand offers unbeatable value for international tourists, especially when coupled with the recent weakening of the Thai baht against key global currencies. The report also notes Indonesia as a close contender for affordability, with an average daily cost of $70.23. However, Indonesia faces a slightly higher inflation rate of 1.95%, which affects the price of core services.
For Thailand’s policymakers, travel operators, and the hospitality sector, this distinction is significant in several ways. The resilience of Thailand’s tourism competitiveness, even as other destinations become pricier or struggle with inflationary shocks, underscores the country’s continued appeal for international arrivals. This low-cost reputation not only boosts Thailand’s attractiveness for Western tourists wary of expensive vacations elsewhere, but also establishes it as a hub for regional and intra-Asian travelers seeking affordable yet high-quality experiences.
A senior executive from the Tourism Authority of Thailand (TAT) recently commented that, “Thailand’s ability to deliver outstanding value for money is an essential element in our global tourism brand. Despite ongoing economic headwinds and shifts in global travel patterns, our country remains an accessible destination with welcoming service, diverse attractions, and year-round appeal.” This sentiment is echoed by industry analysts and international travel influencers who highlight Thailand’s diverse offerings—from urban culture in Bangkok to serene islands in the south and rich heritage in the north—all at prices far below Western and even some Asian destinations.
Despite the current currency advantage, experts urge caution. As a senior financial analyst from a major Thai bank explained, “Foreign exchange rates are inherently volatile. While a weaker baht supports inbound tourism and positions Thailand favorably in global rankings, it can also impact outbound Thai travelers, making trips to Europe, North America, or Oceania increasingly expensive. It’s vital that both tourists and tourism planners monitor FX trends and adjust expectations accordingly.”
Thailand’s historic role as a cost-effective backpacking and luxury travel destination is deeply ingrained in popular culture. The nation’s famed night markets, street food, and affordable beach resorts have become international icons, often featured in global travel publications, films, and online reviews. Today, the country continues to evolve, offering everything from five-star hotels to eco-tourism adventures and wellness retreats—catering to a vast range of budgets and interests.
Looking ahead, the travel industry is bracing for potential volatility. With global inflation uneven, some countries will see travel costs escalate rapidly, while others may gain competitive advantage due to currency shifts or economic reforms. Exchange rates are expected to remain a major factor, especially as emerging economies like Thailand and Indonesia face pressures from global interest rate adjustments and capital flows.
Thai tourism operators are advised to keep pace with digital trends and traveler preferences, ensuring they continue to offer unique value propositions. At the same time, Thai outbound travelers planning to visit high-cost countries such as Iceland or Australia should carefully monitor exchange rates, lock in prices for major expenses where possible, and consider leveraging budget accommodation or local experiences to offset higher daily costs.
For Thai readers, the report offers several practical takeaways. First, travelers seeking overseas adventures should plan itineraries with an eye on both headline prices and currency trends, as these can dramatically alter the real cost of travel. Those arriving in Thailand from abroad can continue to expect outstanding value for their money, especially in popular tourist regions ranging from Chiang Mai to Phuket. Lastly, the travel sector—including small businesses, guides, and tour operators—should continue emphasizing the country’s affordability and diverse offerings, leveraging this competitive edge as the global tourism landscape evolves.
Full details of the research, including the complete ranking of 19 destinations and assessment methodology, can be found in the original Travel + Leisure article.