Thailand air traffic may have peaked: Report

ASEAN BUSINESS STAFF

 

 

THAILAND’S air traffic may have reached its peak, on a slump in domestic passengers and volatile Chinese visitor arrivals, UOB Kay Hian analyst K Ajith has said.

 

Tourism has been making an outsized contribution to the Thai economy of late, with Maybank Kim Eng economists Chua Hak Bin and Lee Ju Ye noting that the industry’s boost to private consumption in October was “driven by the continued boom in Chinese and Indian tourists”.

 

Meanwhile, Citi analyst Nalin Chutchotitham wrote that “tourism remains a bright spot... even if partly due to a lower base” for arrivals growth. She pointed to stimulus measures such as government subsidies for local travel promotion deals meant to spur year-end spending.

 

But, in a review of state-linked enterprise Airports Of Thailand’s earnings for the year to Sept 30, 2019, Mr Ajith cited a management remark on “low-cost airlines reaching a saturation point”.

 

Full story: https://www.businesstimes.com.sg/asean-business/thailand-air-traffic-may-have-peaked-report

 

-- THE BUSINESS TIMES 2019-12-04

Saddly gimmicks like Eat shop spend, will piggyback worn out old Thailand into the 21st century and beyond,becuase catchy slogans and heartfelt promises,are what is really important,not results that require hard work and changes,like clean air,beaches and safe roads...

Slump and diving, good news week.

I guess moneyed tourists won’t waste their time in the 3rd world country with the 1st world prices...

The whole thing only starts to unravel.

 

Wait until spring, maybe summer next year to see real panic. A number different factors - strong baht, slowing industry, rising unemployment, shrinking tourist sector, bloated real estate prices, crazy levels of personal debt - are coming to a confluence and it is not going to be pretty.

Blame the TAT and this hapless administration, for the constant and incessant obsession with rising arrival numbers. Sheer quantity does not make a healthy industry. Any industry, much less tourism. 

 

Anytime you deliberately seek out the bottom of the barrel, you are in real trouble. 

We live in hope.

 

14 hours ago, webfact said:

She pointed to stimulus measures such as government subsidies for local travel promotion deals meant to spur year-end spending.

Which is only generally applied and not specific to air flight travel.

One need only drive to the next province for an overnighter - has no relevance to air traffic.

14 hours ago, webfact said:

Tourism has been making an outsized contribution to the Thai economy of late

Latest report was 17% of GDP!

Compared to about 10% in 2013 that would seem an insane increase.

But then considering exports Total Exports dropped 10.4 % YoY in Oct 2019 alone, insanity isn't enough.