If you are from a first-world country, you will likely be surprised about how cheap most things are in Thailand. The country is so cheap that it is considered one of the most affordable holiday destinations in the world. But you should know that there are some reasons behind the cheapness of everything in Thailand.
Generally, everything is so cheap in Thailand because the average cost of living in the country is relatively low. Most importantly, labor is cheap in Thailand when compared to many other countries around the globe. As a consequence of this, things have to be cheap or else lots of individuals will not be able to afford them.
Although most things are cheap in Thailand, several imported items come at exorbitant prices. So, if you want to buy any of such things, you should be more than ready to shell out lots of money. Nevertheless, we will describe some important things that can shape your perspective about how things are cheap in Thailand.
How cheap is Thailand?
Food, local drinks, Thai clothing items, transportation, etc. are all cheaper in Thailand than in most other developed countries. With 300 Thai Baht (9 USD), you can eat a three-course meal in a good restaurant in Bangkok. Even in some other places in the country, the price will be relatively lower. When compared to many other countries, the price for a three-course meal in a decent restaurant will be much higher.
Also, hotel accommodation and house rent are significantly cheaper in Thailand than in the US, the UK, Australia, New Zealand, Norway, and other first-world countries. Although rent can be quite expensive in the choicest areas in Bangkok, it still doesn’t compare to rent in the choicest areas in many other nations.
Nonetheless, imported items are usually pricey in Thailand. To buy imported beer, gasoline, new vehicles, and other imported items, you have to spend lots of money. In most cases, an imported item will be expensive in Thailand than in other countries. This is because of high taxes on imported goods in the Land of Smiles. Similarly, electricity is not cheap in Thailand. Check out Thai Visa to learn more about this.
Overall, if you want to live a relatively good life in Thailand, you can survive on $50/day. In fact, several expats live in Thailand on around 600 to 1,000 USD every month. Lots of Thais survive on a much lower amount.
All these sets of information point to the fact that most things are so cheap in Thailand.
Your perspective of affordability is not the same with many locals
Before learning why everything is so cheap in Thailand, you need to understand that your reality isn’t the same as an average Thai. If you live in the US, the UK, Canada, Germany, Australia, and other countries with high average earnings, you may feel Thailand is cheap. But lots of Thais will disagree with you because the average income in the country is low.
Despite the assumed cheapness of things in Thailand, lots of unskilled and semi-skilled laborers still struggle with living decently in the country. Some people still cramp up in a small room in Bangkok and other industrialized areas where they work. This is because each person cannot afford to rent a room. So, this tells you that some Thais or other residents from nearby Southeast Asian countries may not consider things to be cheap in Thailand.
Why are things cheap in Thailand?
Now, let’s go to the crux of the matter. Here are the possible reasons why everything is so cheap in Thailand:
- Cheap labor
The #1 factor for the cheapness of things in Thailand is cheap labor. Most workers are ready to accept low-paying jobs to survive. Therefore, employers are taking advantage of them to pay them stipends for their services. This cheap labor cuts across different industries including services, transportation, agriculture, and energy sectors. According to Bangkok Post, the minimum daily wage for unskilled workers in Thailand was only increased to 313 to 336 Thai Baht at the end of 2019.
A typical construction worker only makes around 350 Thai baht (about 10.5 USD). Some field and farm workers don’t even make as much as this amount. Several government workers don’t make up to 500 USD per month.
This factor has a ripple effect on different things. Foremost, it ensures that the typical production costs of goods and services in Thailand are lower than in other countries. Also, if the prices of items are expensive, it will be almost impossible for many Thais to be able to afford to live in the country.
- Affordable land
Land is another essential element that affects the cost of production and the eventual selling price of a good. Fortunately, land is relatively affordable in Thailand. As a result of this, house rent and other things in the country don’t necessarily come at exorbitant costs.
- Many items are copies
When you buy an item in Thailand, you should bear in mind that it is likely not the original. Most items in Thailand are copied versions of the original ones made outside of the country. Although they may look like the imported ones, they don’t carry the same price. Hence, such items are cheap.
- Thais tend to be comfortable with a little profit
Most Thais are not greedy when selling items. They tend to prefer making a little profit quickly to waiting for a long period before earning a large profit. As a result of this, lots of Thais are more than willing to sell their wares at cheap prices.
In a nutshell, everything is cheap in Thailand if you are coming from a first-world country with higher earnings. Rent, transportation, food, clothes, and other essentials are cheaper in Thailand than in the UK, the US, Australia, Canada, and so on. However, numerous Thais may not agree that things are cheap as their incomes are comparatively lower than what they need to live a decent life.
