Set in a particularly picturesque valley north of Chiang Mai, Pai is a predominantly tourism-oriented town, offering a relaxed atmosphere with a broad tourist and backpacker scene. The town's permanent residents are a seemingly harmonious mix of Western hippies, Thai rastas, and muslims (there is a big mosque in the center of town) which gives the place a unique vibe which may be appealing to some, even if it isn't traditional.
A sudden boom in guest house and bar construction from 2006 onwards has resulted in a great deal of spare capacity in the off-season.— There has been a large increase in Thai people visiting after Pai was featured in a romantic Thai film, Pai in Love [[1]] It can be hard to find a room during the busy season (Oct-Feb). There are now around 350 guest houses and hotels in Pai, and the city centre has transformed into a tourist centre containing Western-style restaurants, souvenir shops, live music venues, tattoo parlours, and bars that cater largely to the now significant influx of tourists and package tours.
While the growth of Pai has been rapid and more or less every farm in the valley seems to rent bungalows, development so far has been largely tasteful and the town remains relatively serene during low-season.