Low spending tourists and slowing export growth but ‘intact’ economic recovery stays on track say officials

[webfact]

 

by Joseph O' Connor

A volatile currency market, a slowing world economy amid war in Europe and raised geopolitical tensions as well as a brush this week with political uncertainty means that Thai policymakers must be constantly on guard even to achieve the paltry 3% to 3.5% growth that is being pursued this year. A very comfortable foreign exchange reserve level has, so far, protected the kingdom but even this has been falling since March.

Amid turmoil at Government House in Thailand this week with the suspension of Prime Minister Prayut Chan ocha and Deputy Prime Minister Prawit Wongsuwan taking the reins as caretaker PM, officials were anxious to underscore that the kingdom’s economic recovery remains intact and on course for growth of between 3% and 3.5% for 2022. However, there are causes for concern such as a slowdown in export growth and significantly, lower expenditure per capita among incoming tourists as the country still appears to be running a current account deficit.

 

Figures released on Friday show that the rate of growth of Thai exports slowed dramatically in July from the month before from 11.9% in June to 4.3%.

 

Full story: https://www.thaiexaminer.com/thai-news-foreigners/2022/08/27/low-tourist-spend-slowing-export-growth-economic-recovery-intact/

 

-- © Copyright Thai Examiner 2022-08-29

 

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[blazes]

2 hours ago, webfact said:

and significantly, lower expenditure per capita among incoming tourists

So, looks like Indians and backpackers are the main "tourists" at the moment....

[sammieuk1]

The ever mysterious comfortable foreign exchange reserve comes to the rescue if only it could be used in an emergency like now ???? 

[Iamfalang]

Nothing is worse than a "low spending tourist'!!!  I spent only 2000 yesterday and I'm an expat. I took 4000 just in case, and I'm sure there was some "low spender" falang in the store with 40 baht and trying to get a discount for the last 11 hours.  OMG, come on "low spenders"!!!  .  Every tourist needs a T-shirt with a barcode that is linked to their bank account.    

 

Come on "high spending tourists," this country needs you!!!

 

I say raise all prices in Pattaya by 100%........

 

Sexpat Spenders!!!    This is what we need....

[stoner]

i don't get it. according to TAT over the last few months the average tourist was supposed to spend the equivalent of the thai gdp per visitor.

[RichardColeman]

What do you expect , when the baht has 'unexpectedly' gained 5% in value in months. 

[rwill]

So much for the 'quality' tourist theory.

[jacko45k]

18 minutes ago, RichardColeman said:

What do you expect , when the baht has 'unexpectedly' gained 5% in value in months. 

No it hasn't.....it is pretty much where it was a month ago, take it back 2 months and it has  lost value v USD. We did have a baht strengthening at the beginning of the month which might have been Thailand using it's foreign reserves to buy Baht cheaply, along with a weakening of USD at that time. If you are comparing to Sterling it is the weakness in that currency that is to blame....it is below 1.17 USD, lowest since about 1985.

[Isaan sailor]

24 minutes ago, jacko45k said:

No it hasn't.....it is pretty much where it was a month ago, take it back 2 months and it has  lost value v USD. We did have a baht strengthening at the beginning of the month which might have been Thailand using it's foreign reserves to buy Baht cheaply, along with a weakening of USD at that time. If you are comparing to Sterling it is the weakness in that currency that is to blame....it is below 1.17 USD, lowest since about 1985.

Probably the best explanation I've read for the recent Baht fluctuations.

[swm59nj]

I don’t think the majority of the tourists that visit Thailand are extravagant spenders to begin with. 

[ozz1]

A lot of tourists come here for a good exchange rate and more bang for your buck but tat doesn't see it that way they just want your money and you can go home now but the government can't see that  people are going to Bali because it's reasonably cheap one day they will wake up

[petermik]

14 minutes ago, ozz1 said:

 people are going to Bali because it's reasonably cheap one day they will wake up

Wake up...when living in cloud cuckoo land waking up is never an option.

[realfunster]

4 hours ago, webfact said:

lower expenditure per capita among incoming tourists

How is the the 'quality tourist' strategy working out for you TAT ? Still, you managed to get your 2022 departmental budget filled on this pipe dream and that's what really matters. 

 

I doubt anyone will challenge you next year when you make a switch back to targeting Chinese tour groups,  as it's the path of least resistance...

[poskat]

they just need to set up a station just past the immigration station where every tourist has to buy their "tourist bucks", the amount of which is determined by the number of days they stay and tat's required per day spending.

 

These are of course non-refundable and stamped with an expiration date based on your length of stay.

[alien365]

The article said that each tourist this year spent on average just over 30,000 baht (in comparison to 50k in 2019). It didn't state the average length of stay, but 30k per tourist doesn't sound that low spending if it were for a 1 week holiday. To me it just means they are not suckers buying the overpriced brands in the big shopping malls that they can get cheaper at home.

[Gknrd]

I came back after a few years elsewhere .. Got off the plane and immediately remembered why I left...

What a polluted mess.  Reality is anyone retiring here would have to be pretty hard up.

[aussiexpat]

How do they know how much we spend? Does the copying passport at exchange booth actually get reported somewhere? Even then I changed lots and put it in my Thai bank account so not spent

 

Just a usual TAT random dart predicting how much we all spend

 

[mikeymike100]

Wait till the Chinese quality tourists come back later this year, TAT will be very happy!????

[RafPinto]

I spent last weekend in Chanthaburi.

Not a lot of tourists but in my hotel, quite a few Indians sniffing around.
Probably looking for business opportunities to attract their Indian mates.
Same happening in Pattaya.

A friend of mine, bank manager said, that a few Indians were applying for a bank loan to take over a hotel they want to use for their "Indian" business.

[RafPinto]

9 minutes ago, mikeymike100 said:

Wait till the Chinese quality tourists come back later this year, TAT will be very happy!????

And a few million more Arab, motorbike racing drivers.

[peterfranks]

4 hours ago, RichardColeman said:

What do you expect , when the baht has 'unexpectedly' gained 5% in value in months. 

I guess you mean when the pound has decreased 5% in value.

 

Boris, the gift that keeps giving.

[tomacht8]

No one knows exactly how the tourists' expenses are calculated here. For example, if a total of 500,000+ day or weekend tourists have come since Malaysia opened its border, the statistical average of tourist spending as a whole will be lower. The bare division: expenses/tourists= average expenses per tourist, is simply far too undifferentiated and not suitable for making well-founded decisions.

[hotchilli]

8 hours ago, webfact said:

However, there are causes for concern such as a slowdown in export growth and significantly, lower expenditure per capita among incoming tourists as the country still appears to be running a current account deficit.

The millionaires didn't come to bail-out Thailand then?

[Cake Monster]

9 hours ago, webfact said:

Figures released on Friday show that the rate of growth of Thai exports slowed dramatically in July from the month before from 11.9% in June to 4.3%.

Also slowing dramatically, is the number of Hours the staff are working in their Factories.

And when the Electricity increases at the end of the Month, we are going to see an even bigger slow down in Exports, and dare I say it, some Job lay offs, as Companies who are already under the cost cosh, will be no longer able to compete

[MrJ2U]

6 hours ago, sammieuk1 said:

The ever mysterious comfortable foreign exchange reserve comes to the rescue if only it could be used in an emergency like now ???? 

... Or a pandemic. 

[Gknrd]

1 hour ago, hotchilli said:

The millionaires didn't come to bail-out Thailand then?

People that fall for the Thai scams are people that Thailand wants. They will be parted with their money.

People with a few pennies know Thailand is only fluff and mirrors. Also people with a few bucks are smart enough to hold on to it. 

[Baron Samedi]

This is what you get after 30 years of neoliberalism.

[hotchilli]

15 hours ago, Gknrd said:

People that fall for the Thai scams are people that Thailand wants. They will be parted with their money.

People with a few pennies know Thailand is only fluff and mirrors. Also people with a few bucks are smart enough to hold on to it. 

Fluff and mirrors sums up the go-go bars nicely.

That's all Thailands got to offer tourists in the beach resorts.

[zzaa09]

Remember the good old days when we were satisfied with droves of backpacking scum to fill our wallets.

[RafPinto]

22 hours ago, Cake Monster said:

Also slowing dramatically, is the number of Hours the staff are working in their Factories.

And when the Electricity increases at the end of the Month, we are going to see an even bigger slow down in Exports, and dare I say it, some Job lay offs, as Companies who are already under the cost cosh, will be no longer able to compete

And the 5% increase in minimum wages.