How Japan, South Korea, India, the Philippines, Laos, and Vietnam Are Beating Thailand and Singapore as the Cheapest Travel Destinations in Asia: New Report You Need to Know

In 2025, a growing group of Asian countries—Japan, South Korea, India, the Philippines, Laos, and Vietnam—are beating Thailand and Singapore as the region’s cheapest travel destinations by offering far greater value for money amid shifting currency dynamics and rising global travel costs. With weaker local currencies, lower day-to-day expenses, and increasingly competitive tourism offerings, these destinations have surged ahead in attracting budget-conscious travelers who are now bypassing the once-dominant hubs of Thailand and Singapore in favor of more affordable and equally enriching alternatives.

Currency Strengths Reshape Travel Affordability

Exchange rates play a pivotal role in travel planning, especially for international visitors who often set their budgets based on how far their currency will stretch. As of early May 2025, the following exchange rates against the US dollar clearly demonstrate the cost advantage offered by many Asian nations:

• 1 USD = 25,961.48 Vietnamese Dong
• 1 USD = 21,616.15 Laotian Kip
• 1 USD = 147.70 Japanese Yen
• 1 USD = 1,414.27 South Korean Won
• 1 USD = 85.13 Indian Rupees
• 1 USD = 55.78 Philippine Peso
• 1 USD = 33.28 Thai Baht
• 1 USD = 1.30 Singapore Dollar

Among these, Vietnam and Laos stand out with exceptionally high exchange rates, allowing tourists to receive significantly more local currency for each dollar spent. Even Japan and South Korea, once considered moderately expensive, have become relatively affordable due to weakening currencies. In contrast, Singapore and Thailand maintain relatively stronger currencies, placing them on the more expensive end of the regional tourism spectrum.

Vietnam and Laos: Asia’s Budget Travel Titans

Vietnam and Laos are fast becoming synonymous with budget-friendly travel in Southeast Asia. Vietnam’s robust hospitality sector, cheap street food, and low-cost accommodations are attracting more backpackers, digital nomads, and holidaymakers than ever before. With 1 USD equaling nearly 26,000 dong, travelers are able to stretch their budgets comfortably across experiences ranging from beach resorts to cultural excursions.

Laos, though less commercialized, is gaining popularity for its untouched landscapes and slow-travel appeal. Its favorable 21,616 kip per USD rate makes it one of the cheapest destinations in Asia, beating not only Thailand but even other competitors like Malaysia or Cambodia in terms of value-for-money.

India and the Philippines: Expansive and Economical

India continues to be a giant in value-driven tourism. With 1 USD fetching over 85 rupees, the cost of transportation, accommodation, food, and even internal flights remains among the lowest in the world. Tourists enjoy a wide range of travel experiences—from Himalayan treks to luxury palace stays—without exhausting their travel budgets.

Meanwhile, the Philippines, with 1 USD equal to 55.78 pesos, is becoming increasingly attractive for beach lovers and eco-tourism seekers. Compared to Thailand’s now-costlier coastal resorts, the Philippines offers equally beautiful destinations such as Palawan and Siargao at a fraction of the cost.

Japan and South Korea: A New Era of Affordability

Once considered pricey, Japan and South Korea have entered a new chapter as affordable destinations thanks to currency depreciation. Japan’s yen sits at 147.70 to the dollar, its weakest in decades. This shift has significantly lowered the price of hotels, meals, and attractions for international visitors. Tourism boards in Tokyo and Kyoto are actively promoting extended stays and cultural tourism, capitalizing on this affordability.

In South Korea, the won’s decline to 1,414.27 per USD makes travel notably cheaper for foreigners. With affordable transportation, competitive hotel rates, and free cultural sites, South Korea is drawing in a new wave of travelers who previously leaned toward destinations like Singapore or Bangkok.

Thailand and Singapore: Losing the Budget Travel Crown

Once famed for offering exotic holidays at affordable prices, Thailand is seeing its reputation shift due to the strengthening of the Thai baht and increased local costs. The 33.28 baht to USD rate has made everything from accommodation to local food more expensive for international visitors.

This change is especially noticeable in cities like Pattaya, where tourism businesses report a slowdown in bookings and rising concerns over reduced affordability. Local enterprises, especially those dependent on international tourism, fear a rollback of their post-pandemic recovery as travelers seek cheaper options elsewhere.

Singapore, already one of Asia’s most expensive cities, has become less competitive in attracting budget travelers. With the Singapore dollar trading at 1.30 per USD, it maintains a strong position that favors business and luxury travelers, but leaves price-sensitive tourists looking elsewhere.

Changing Traveler Behavior and Preferences

Travelers are increasingly cost-conscious in 2025. After years of “revenge travel” post-COVID, economic uncertainties, inflation, and geopolitical shifts have recalibrated travel priorities. Tourists now favor destinations that offer better value over those with premium pricing, even if that means skipping long-time favorites like Thailand or Singapore.

In Pattaya, for instance, business owners report that tourists from Europe, the UK, and Russia are reducing trip durations, canceling bookings, or choosing nearby countries with weaker currencies and lower price tags. Countries like Vietnam and India are directly benefiting from this trend.

Currency Volatility Adds to Thailand’s Challenges

According to Kasikorn Research, the Thai baht is expected to fluctuate between 32.80 and 33.80 against the US dollar through early May 2025. This volatility is influenced by:

• The US Federal Reserve meeting on May 6–7, 2025
• The Bank of England’s meeting on May 8, 2025
• Ongoing US-China trade uncertainty
• Shifting gold prices, which affect the baht’s value
• Capital market movements and Thailand’s April 2025 inflation data

Such uncertainty makes it harder for travelers to predict costs, further weakening Thailand’s appeal as a reliable budget destination.

Southeast Asia’s Budget Travel Realignment

This emerging trend signals a broader regional shift. Where Thailand and Singapore once dominated Southeast Asia’s tourism charts, they are now being outpaced by a coalition of affordable and diverse destinations. Countries like Vietnam, India, Laos, the Philippines, Japan, and South Korea are tapping into the new wave of travelers looking for value-first experiences.

These destinations offer not just affordability, but also rich cultural heritage, natural beauty, and improving tourism infrastructure—making them attractive alternatives for global tourists navigating tighter budgets and economic unpredictability.

Japan, South Korea, India, the Philippines, Laos, and Vietnam are beating Thailand and Singapore as Asia’s cheapest travel destinations due to weaker currencies and significantly lower travel costs. As prices rise in Thailand and Singapore, budget-conscious tourists are shifting to more affordable alternatives across the region.

A New Budget Travel Order in Asia

The numbers and the traveler behavior are clear—Japan, South Korea, India, the Philippines, Laos, and Vietnam are beating Thailand and Singapore in the evolving contest for Asia’s cheapest and most value-packed travel experiences. While Thailand and Singapore still draw millions of visitors annually, their rising costs are prompting travelers to reconsider where their money goes further.

For global travelers in 2025, the choice is increasingly shifting toward destinations that offer rich experiences without the premium price tag—and six Asian countries are leading that change.