Dual pricing (Thai price and farang price) has long been a subject of contention among the expat community.
While most holiday makers probably don't realise a dual economy exists, even though they may pay up to a third more than a Thai would on many items in tourist area, the large majority of expats grumble at paying more for goods and services than locals.
And this is totally understandable. I mean, once you’ve lived in a country for five or so years, you’d expect to be treated like a local, right?
Multiple (dual) pricing evolved from the barter economy. (Image Credit: Samuel John Roberts @ Flikr)
It isn’t just street stalls and local shops that operate a dual economy, either. Many museums and national heritage sites stipulate dual pricing on entry, which is never usually more than a hundred Baht’s difference, but enough of a difference to make one feel discriminated against.
However, the reality is that outside of the tourist hotspots, purchases from local markets are generally priced the same, unless you know the owner personally. But when it comes to museums, heritage sites and other attractions, foreigners are usually expected to pay more.
But before we spout off about Thais being racist and how unfair it is, it is important to understand why a dual economy exists, and how it is potentially beneficial to some Thais — even though we might lose out at times.
A Sprinkle of Historical Context
The first mistake Western critics tend to make is to compare the evolution of Thailand's economy side-by-side with that of the UK or US, for example.
Thailand's capitalist economy as it exists today is very immature, and is often referred to as a pseudo-capitalist economy that presents itself as such but operates quite differently in many pockets of the country.
In fact, many of the older generation still alive today will have grown up in a rural barter-type economy. Indeed, my wife's grandmother did.
She still talks of swapping goods in her childhood and people lending their skills to each other in exchange for food and household essentials.
Only one hundred odd years ago the majority of the male population in Siam (Thailand) was in the service of court officials, while their wives and daughters may have traded on a small scale in local markets. And only at the end of World War 2 did Thailand's economy truly begin to become globalised.
Also consider that Thailand has not experienced the immigration and subsequent “multi-culturalism” that Europe and the US has. In comparison, Thailand has very few foreigners, and trade laws and the buying of land and housing is still very restrictive for foreign nationals.
Thais still very much do things the “Thai way”, and in the way they see fit.
And yes, for many this means ‘preference pricing', which, by the way, is not restricted to foreigners. I for one get my fruit cheaper than other local Thais because I am friends with the seller. This is a friendship built over around five years. That's how things still work here. Communities are very much localised, even in a big city like Bangkok.
Money Vs. Feelings
The fact that the difference between the “Thai price” and the “farang price” is usually quite small — certainly for entry to heritage sites and museums — suggests the grumbling is more about feelings that money.
This is understandable. It is a feeling of being discriminated against, a feeling that no matter how long we’ve been in the country we will always be treated as, and identified as, foreigners (“farang”).
On the face of it, this differential treatment is prejudice, and I’ve even heard some liken it to 50s America and the preferential treatment of whites over blacks. But the reality is it’s nothing like that at all.
The dual economy is born out of simple economics. Nothing more. If you believe that the elimination of dual pricing would promote integration, and give expats more “status” as citizens of the country, you’re living in a alt-left dreamworld.
This might sound harsh, but if you think you’ll ever be anything more than a “farang” to most Thai people then you should go home now to avoid further disappointment.
In the same way immigrants are just immigrants to most in your home country, to the average earning Thai, you are just another farang with a fat wallet that allows him/her to live a privileged lifestyle in a poor country.
Thailand is a great place to live, but you and I know we’re never going to be considered citizens of the country in any way, even if we went through the hideously long process of obtaining residency.
Thailand is historically very insular. This has promoted a unity of deep national pride, patriotism and self-identification with flag and country. Anyone outside of that will always be “a farang”.
I point to the words of the Thai national anthem: The land of Thailand belongs to all the Thais, Their sovereignty has always long endured.
No matter how well I understand Thai, no matter how long I’ve had a Thai partner, no matter that my child is half-Thai and no matter how many Thai friends I have, I am, and always will be, a farang. And this is a classification I accept as part of being a foreigner living in a foreign country.
I can’t roll up to Doi Suthep temple in Chiang Mai and say, “Can I pay the Thai price to get in because my wife is Thai?” Or, “Can I pay the Thai price because I’ve poured countless pounds into the Thai economy over the last seven years”. No, because I am not Thai.
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An Ethical But Contentious Reason for the “Thai Price”
The reality is that dual pricing has evolved with Thailand; its existence is a natural one that evolved from the market/bartering culture — as it has done in numerous Asian and Middle-Eastern countries. Friends, family and regulars tend to pay less. It's quite simple.
The same is true in some countries of Europe. Ever been to Italy? Go to the market with a local and I guarantee you will get that handbag much, much cheaper! See Greece for reference too.
Where entry to attractions and heritage sites is concerned, it has to be considered that the pricing is based on economics and not prejudice. The average wage is less than 10,000 Baht a month, and most Thais are earning little more than 300-400 Baht a day.
So, let's say I want to take my wife and daughter to a museum on the weekend, and an average earning Thai guy wants to take his family too. If I earn 150,000 Baht a month, and he earns 15,000 Baht, and the entry fee is 300 Baht for adults, he needs to spend more than a day's wages for an outing that every father can easily afford for his family.
In short, I don't mind if his and his wife's entry is subsidised by the government and that they only pay 100 Baht each to get in.
Who would have a problem with that?
Who would have a problem with paying a little more than someone else because they earn 10x more, if it meant their family could enjoy the same social outing?
If I am asked to pay more than the average Thai for entry to certain places because I earn more then I don't mind — if that little bit more is kept at a reasonable ratio.
I am privileged to be able to afford to live here and consistently enjoy myself in nice hotels and swim in the waters of beautiful beaches, and to visit amazing temples and see wonderful landscapes.
The majority of Thais will never be able to take such a holiday in a foreign land. In fact, the majority of Thais have never visited the beautiful islands and wonderful corners of their own country.
So I don’t mind that I pay 100 Baht more for entry to a museum, or 50 Baht more for a t-shirt at the market by the beach.
As a resident (I don’t have official residency) I am privileged to live in a nice apartment, and to be able to afford to eat in lovely restaurants and enjoy all the city has to offer. Again, way above and beyond the means of the average Thai person.
When I say the average Thai, I am referring to the 17 million Thais who earn under ten thousand Baht per month, most of whom, according to a recent bank survey, are in debt to the tune of an average of 150,000 Baht; debt that continues to grow at between 6-20% depending on the mood of the debtor’s loan shark.
Even the lowest paid expat jobs in Thailand massively outweigh the average Thai wage; so should we continue to grumble and begrudge those with very low salaries access to museums and local attractions at a discounted rate?
When we complain how unfair it is that a dual economy exists, we should think for a moment: do we want museums and places of cultural interest to solely be accessible to foreigners and middle/upper class Thais by there being one price for all?
Are we happy to stop the kids of an average earning Thai family going to the places we like to visit just because we feel discriminated against?
Or do we want it the other way around, where everyone pays the “Thai price”. That way, we, along with the Thai middle and upper classes, get to clasp even tighter onto our purse strings, a solution which would no doubt contribute to lowering the wages of those working for state-run museums, national parks and other places of interest.
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But What About Foreigners Who Earn Low Wages & Rich Thais Who Get Thai Price?
The big problem with the above is that there are lots of well-off Thai people who get the Thai price when they can clearly afford to pay more than the average foreigner.
But then we can’t dismiss 17 million other people on that basis, can we?
So there has to be a better way.
In a country with such huge inequality, there are sectors of society who do need a discounted rate on goods and service.
Most families can't even afford a trip to the cinema, or a take-away pizza. There is no social welfare system to speak of — no food stamps, no child benefit. Though there is a good 30-Baht health scheme.
It is also problematic for those foreign nationals who earn very little too. I was shocked to see that some of the agencies on my job board were offering such low wages to Filipino teachers. They too, like most Thais, would struggle to live on such wages in Thailand.
So that begs the question: Could this whole dual pricing thing be solved with a simple card scheme?
For example: If you earn under x, you get a card that entitles you to y at a discounted rate. y being entry to national parks, museums and other places of entertainment run by private companies that could sign up to the scheme too.
Thoughts Going Forward…
I have never bought into the notion that dual pricing is a prejudicial war on foreigners. It is something that has been evolved and become outdated. In rural communities and market trading circles it has historical roots in the barter economy — as it does in many other countries.
Things have levelled out somewhat over the past few years, though, and vendors often make a point of telling customers (Thais included) that it's “same price” for all.
But where market shopping in tourist areas is concerned, a deal can usually be struck outside of the given price on most things. And would we want that aspect of tiered pricing to disappear? Many tourists enjoy this aspect of holidaying in Thailand.
In the immediate term, if you live in Thailand and want to avoid paying more than the locals, you should definitely learn to speak Thai so that you can engage with sellers in their native language.
By making a little effort to learn the language, you’ll be able to bridge the gap and integrate more with the local community. You’ll be able to strike up a conversation and ask for “Laka con Thai” (Thai price).
Think how you feel about foreigners who don't bother to learn the language in your home country. If you live in Thailand but speak no Thai, how can you expect to be perceived as anything else other than “just another foreigner” enjoying the fruits of the country but with no interest in learning the language?
Back to the main point of disgruntlement though: Prices have been creeping up for foreigners over the past few years, with entry to some historical sites at least 2-3 times the Thai price. This has to stop; simply because it creates ill-feeling, and because not all foreigners earn 2-3 times that of the average earning Thai.
I suggest that the authorities get rid of dual pricing and look at creating a scheme where access to museums, national heritage sites, local attractions and some other goods and services are provided cheaper to those below a certain income threshold.
This will enable poorer families, both Thai and foreign, to have more freedom; to take the kids out to events and activities on the weekend.
It would also enable poorer families to save more money. And who knows, one day they may be able to start a pension, send the kids to university, or at the very least enjoy a holiday to the beach in their own country, or a trip to the cinema once in a while.
Updated: September 2017.
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Kent says
If there was dual pricing in Australia for rich foreigners there would be outrage. Not from foreigners but from the people who live here.
Another point you say is the immigrates aren't truly accept as nationals in other countries is wrong. Yes, racism does exist in Australia but no where near to the same extent as Thailand. Here if you call yourself Australian then you are Australian, no matter where you were born. I personally have many friend who were not born in Australia but are just as Aussie as me, if not more.
I love Thailand but due to its ultra-nationalism (and endemic corruption) I don't think I could ever live there. It is also the ultra-nationalism and endemic corruption which continues to stifle the nation's economy. Keeping the rich Thai rich and the poor Thai very poor.
But in the end of the day when I am there if I don't want to pay the asking price I don't. I just walk away.
May 19, 2016 at 6:30 pm
Ken says
By the way, if you want to live in a place where Asians TRULY hate White people then try living in Hawaii for a while. They usually keep these feelings bottled up for the sake of the tourist dollars but many of the so-called “locals” harbor an intense hatred of Whites, and White mainlanders in particular. Although hopefully things have changed in the past 20 years.
As for Westerners not being able to attain full Thai citizenship this also has nothing to do with racism. The problem is, people who grew up in a heterogeneous society, such as that of the USA, tend to take it for grated that everyone who is born here is automatically granted citizenship, regardless of race. But this is not at all the norm in homogeneous countries like Japan and Thailand. In these places race is an integral part of nationality and citizenship and always has been. Their way is not “wrong” it’s just different. And it’s certainly not racist.
I think I have told this story before but I have a friend in Japan who has a Korean father and a Japanese mother. And because of this - and despite the fact that she was born and raised in Japan - she has to carry a Korean passport (a country she has never even been to), and is not considered to be a Japanese citizen. This may sound outrageously unfair to most westerners but this is just how things are done over there. Incidentally, just because the government of a particular country does not consider expats of a different race to be full fledged citizens does not mean that the people of that country do not accept them with open arms in many cases.
Of course human beings are very irrational and insecure creatures and whenever they find themselves to suddenly be part of a minority these insecurities get kicked into overdrive. For example when I was living in Japan I constantly had to listen to my fellow expats bellyache about being “discriminated” against and looked down upon by the Japanese. They even somehow convinced themselves that the word “Gaijin” is a derogatory term, which of course it is not. In fact this argument became so contentious back in the 90’s that a popular bilingual magazine, Hiragana Times, had the brilliant idea to stop using the word Gaijin in their articles and replace it with the term “NJ” (Non-Japanese). I have never heard of anything more absurdly ridiculous in my life. The problem is we have become so insanely politically correct here in the USA that we are constantly deciding that this or that word has somehow become “offensive” and so we change it to something else, which means the exact same thing. And then a few years down the road we will decide that this new word is now offensive and must of course be changed yet again. And I guess its only natural that we would try to export this insanity to other countries like Japan.
Back to insecurities though, this is the reason people are often absolutely “sure” they are being discriminated against when in fact they are not 95% of the time. If a person is insecure about his weight then every time he doesn’t get the job he interviewed for, or when he feels he is not being treated right, he will attribute this to being overweight. And if he is a minority he will be sure that every time things don’t go his way its because of his race. That not to say that this occasionally won’t actually be the case but the point is that whether it is or not he will always be "certain" that it is. And when people move to a foreign country they often become very insecure in their surroundings and this causes them to imagine that they are being treated badly due to their race or nationality.
Another issue I think is that many Whites from places like the USA have just became very spoiled and have this huge sense of entitlement these days. So when they move to a place where they are no longer the top dogs they just can’t handle it and they tend to throw temper tantrums when they feel they are being treated like second class citizens. I think of them kind of like a small child trying to get in with a new group of friends. And when it doesn’t work out he says to himself: “How dare these other kids not make me a full fledged member of their club when I am such a totally awesome person and when I was one of the cool kids in my old group back home.
All I can say is, its time to grow up, boys and girls, and loose the crappy attitudes and righteous indignation if you want to live in another country.
May 21, 2016 at 2:17 pm
Michael Lennie says
Apr 15, 2016 at 6:26 pm
Phil says
Original Article is Full of Liberal Rethoric But cant manage to justify what is Shocking Buddhist Greed and Obvious Discrimination based on National Origin. I cant stand Hypocrisy and Scam Artists , even when they display a Big Smile !!!
Japan is much more Fair, Honest and Respectable in my Opinion based on Multiple Trips to Tokyo, Kyoto and Okinawa.
May 16, 2016 at 12:49 pm
David says
Now, if it's a situation where you negotiate and they want to charge you more, I accept that. I've had that happen so many times. I ask the price, 150 baht. I walk away and ask my Japanese gf to ask, 80 baht.
Mar 24, 2016 at 12:17 am
Ken says
By the way, I did not mind in the least paying more for my entrance fee. My girlfriend on the other hand went ballistic on the guy when he ask if she was Thai, as if this innocent and necessary question were some sort of insult or something. I swear, I’ve known ladyboys who were less prone to mood swings than this girl.
Apr 18, 2016 at 12:26 pm
David Carroway says
Asian faces do NOT pay the over-charge.
Sep 29, 2016 at 1:25 pm
Hofat d'Amato says
Aug 01, 2017 at 7:11 am
Talley says
Jan 12, 2016 at 12:02 pm
TheThailandLife says
Jan 12, 2016 at 4:35 pm
John Cody says
Apr 17, 2016 at 9:40 pm
TheThailandLife says
Apr 17, 2016 at 10:30 pm
David Carroway says
Sep 29, 2016 at 1:27 pm
john says
Oct 21, 2015 at 10:58 am
David Carroway says
Sep 29, 2016 at 1:27 pm
Arthur Hay says
May 21, 2015 at 8:40 am
TheThailandLife says
May 21, 2015 at 11:54 am
John Cody says
Although literally a "farang" is someone from France, the origins of the word comes from the Persian "feranghi" and later became a word to describe westerners. So in a sense, the term "farang" is perhaps even a little less specific when it comes to race or ethnicity than "kon piu khao" but due to it's overuse at times it can appear to have negative connotations even if it normally isn't intended. As you have already pointed out, this will depend on the context. Referring to a western stranger as a farang is not bad, but a westerner who's name is known, now that's just discrimination.
Equally, I wouldn't necessarily use the word "ชาวต่างชาติ" (chao dtang chaat) or similar to refer to a westerner because what happens when said westerner is actually a Thai citizen? A term which although it's more formal actually literally means "foreigner" would be more discriminatory when used inappropriately than the term "farang" or "piu kao". Another alternative would be westerner, which is "ชาวตะวันตก" (chao tawan dtok). Obviously, it would be contradictory to refer to a westerner who is a Thai citizen as being a "chao dtang chaat" and therefore, referring to them as "farang" would be better.
In short, there are "farang" who are Thais, but there are no "chao dtang chaat" who are Thais.
Apr 17, 2016 at 9:50 pm
chris Stark says
Apr 06, 2015 at 8:36 pm
John Cody says
Apr 17, 2016 at 9:53 pm
DS Farang says
In the ocean world underneath Siam square for instance, the fixed cost of operation is very high (penguins etc), but the additional cost of letting each new customer come in is very low. They also have a huge price difference for Farang and Thai, 1500 to 500 Bht I believe. (!! Whoa totally unfair right!!)
Say the fixed cost of operation for ocean world is 10,000,000 B over period x. The marginal cost of each customer they let in the door may be something like 100B (for the labor cost of the cashier, security, maintenance etc.)
Now they wouldn’t be profitable if they charged everyone 500B, (10,000,000 of fixed cost is a lot to pay for), but if they didn’t have a lower Thai price, then they would lose those customers altogether- who are paying 300-400 B above the additional cost that their presence imposes on the business.
So instead of 2000 Thai customers paying 500B and 2000 farang customers paying 1500B every week to cover the costs, there'd be only the Farang and a few Thais. That could mean that the farang price actually gets higher- not lower- because there are fewer customers overall covering the same fixed cost.
As for the gov't imposed dual pricing at parks etc., makes perfect sense. Many farang, even those who work here, are fair weather friends. Come to thailand when they're young, leave if there is conflict, or if they have a medical emergency, or just want to 'get more serious' about life back home. So heck yes they're charged more for attractions. Spot on.
Mar 06, 2015 at 3:59 pm
TheThailandLife says
Mar 06, 2015 at 5:25 pm
Jacob says
Jan 16, 2016 at 11:31 pm
John Cody says
When you have an entrance price of 300 Baht for Thais and 450 for foreigners for example, that's just greed.
If the fixed costs of operating were say 1 million Baht a month and 1000 Thais came but just 3 foreigners came (yes, that's what usually happens in most places in Thailand) then they would receive 300 x 1000 = 300,000 a month + 3 x 450 = 1350 => 300,000 + 1,350 = 301,350. If however, everyone paid 300 then it would simply be 1003 x 300 = 300,900. So foregoing that extra 450 Baht (150 Baht extra per person) really isn't going to make a difference is it?
But when you consider that say another 10 foreigners have been put off visiting because they know about the higher price, then the actual extra income they could have earned that is now foregone is 10 x 300 = 3,000 - 1,350 = 1,650.
I know that's a simplistic example but I think you can see what I'm getting at.
Also, I think if middle class Thais can afford to pay 300 they can probably also afford to pay 400. They aren't that poor. They definitely own a car, probably a condo or house in a moo baan, a smartphone, they just had lunch at Sizzler, so why do they need to pay 150 Baht less than some dreadlocked backpacker with no shoes, a torn shirt, no car, who just spent 60 Baht eating lunch at the food court to save money and only 1000 Baht in his wallet?
Apr 17, 2016 at 10:03 pm
David Carroway says
Sep 29, 2016 at 1:32 pm
Bak Sida says
To clarify a bit - it isn't actually Thailand's history or culture itself I have a problem with. Indeed as you say l know very little of it, and most Thais know little more as far as I can tell. Rather it's modern Thailand's treatment of it which seems lacking.
We had these "cultural awareness" evenings at my company and they always featured the same awkward dance by people in traditional clothes, then a meal. No one was ever really able to explain anything about the significance of any of it.
Not that I really expect very much of these things anyway, some sort of a back story would be nice!
Most of the museums and so forth I visited were the same story and no one seemed able or interested in explaining anything else. Just selling souvenirs.
Again I expect an element of that but it seemed very hard to get past it because generally the people don't know and are not interested.
Where I am in the UK at the moment there are at least 3 castles within about 20 minutes drive, a large countrt house owned by a Victorian industrialist and a botanical garden all of which are open to the public with one price and information about their history. There's also 2 local craft breweries, which is nice. And that's just a little speck on the map in a county that most people wouldn't have heard of.
Nov 03, 2014 at 4:06 pm
TheThailandLife says
Each part of the country draws on different influences: Be it Malay in the South, Laotian/Southern Chinese in the Northeast or the Burmese tribes in the far North, the country is stooped in rich history.
Multiple religious influences make Thai culture very unique; the same goes for Thai cuisine.
And then there's the kingdoms to study, not to mention some exceptional artists and poets, and of course the colourful people...
Nov 03, 2014 at 1:37 pm