Thailand feels the pinch of lower tourism earnings as second ex-minister queries economic data

[webfact]

Former cabinet minister within the government of Prime Minister Prayut Chan ocha, Dr Narumon Pinyosinwat, has raised questions about the country’s economic outlook and data by highlighting a deterioration in the country’s trading account in July and August which saw imports substantially exceed exports.

 

by Carla Boonkong & Pranee O' Connor

Former Deputy Minister of Labour warns that a continuation of the current trend with twin deficits would be bad news for the kingdom. Thailand’s Foreign Currency Reserves dipped again on Friday 21st October with the Bank of Thailand, on Saturday, issuing a statement in which it said it was monitoring volatile movements of the baht carefully. The government led by Prime Minister Prayut Chan ocha and Minister of Finance Arkhom Termpittayapaisith, meanwhile is highlighting the country’s expected growth rate of 3% to 3.5% for 2022, inward investment and rising numbers of foreign tourists returning to the country aided by a lower priced baht.

A former cabinet minister has become the second ministerial official who served in the government of Prayut Chan ocha to raise concerns about Thai economic data as the country battles to attract more foreign tourism income to offset what is now a more pronounced pattern of both a trade deficit due to inflated imports and a deficit in the service sector caused by far lower foreign tourism earnings, which are driving a lower valued baht.

Former Deputy Minister of Labour Dr Narumon Pinyosinwat has said that a new pattern of trade deficits, as well as service deficits, is emerging this year as the country struggles against a current account deficit with consistent service sector deficits and now, since July, a trade sector deficit. The country is losing trillions of baht per annum in lost income since its foreign tourism industry collapsed in 2020 under the weight of government-ordered restrictions and closures.

 

Full story: https://www.thaiexaminer.com/thai-news-foreigners/2022/10/24/second-ex-minister-queries-economic-data/

 

-- © Copyright Thai Examiner 2022-10-25

 

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[ukrules]

A 45 day stamp for a couple of months (nothing but a gimmick) and a rigorous questioning on arrival if you've ever been to Thailand before just isn't going to do the job.

 

They're picking up right where they left off before the pandemic - things were deteriorating rapidly, they had a chance to make changes but by the looks of it they didn't bother.

 

Why are BA not flying to Bangkok?

All their flights seem to be via Qatar if you take a look, something like this doesn't happen without a very good reason.

[2baht]

1 hour ago, webfact said:

Dr Narumon Pinyosinwat, has raised questions about the country’s economic outlook and data

Up one day, down the next, someone is stretching the truth! ???? 

[ozz1]

The  value of the baht really is only against the us dollar  if it was lower against other currencies things might get better as they want more overseas tourists and export more I can't see it getting any better until something happens

[Andycoops]

The Thais had 2 years to make tourism more attractive and overhaul the multiple ludicrous visa rules but as usual they did nothing.

Inertia rules the Kingdom as no one has any vision or strategy to modernize because the status quo allows the corrupt to flourish at the expense of everyone else.

[Dialemco]

Thailand must realise that many economies are suffering substantial down turn and that there are many potential tourists who just cannot afford holidays especially the high air fares many triple pre pandemic levels. Added to this is the appalling treatment of some tourists during the pandemic.

[terryofcrete]

8 minutes ago, Dialemco said:

Added to this is the appalling treatment of some tourists during the pandemic.

Payback time ... and well deserved . 

[Isaan sailor]

1 hour ago, ozz1 said:

The  value of the baht really is only against the us dollar  if it was lower against other currencies things might get better as they want more overseas tourists and export more I can't see it getting any better until something happens

To your point, it’s curious how the government frets about a high USD, but when the Pound, Euro or any western currency tops out—they don’t have too many concerns.

[RichardColeman]

10 minutes ago, Andycoops said:

The Thais had 2 years to make tourism more attractive and overhaul the multiple ludicrous visa rules but as usual they did nothing.

That's just because in their blinkered money grabbing eyes they thought the world would just come running back. These people have absolutely no clue how to run a country , let alone tourism.  People will not come in mass for about another 5-10 years - they are ignorant of the effects of long haul tourism and covid fears, they ignore inflation, they ignore the mad baht , and totally ignorant of best buddy china's lunatic covid policies. Now they are showing themselves as who they really are by not voting against Russia just for tourism purposes

[jacko45k]

1 minute ago, Isaan sailor said:

To your point, it’s curious how the government frets about a high USD, but when the Pound, Euro or ant western currency tops out—they don’t have any concerns.

All main currencies are struggling against the USD, it is the accepted benchmark. Is it perhaps the failings of these countries that their currencies cannot keep up?

[morrobay]

Another linked article on this.https://www.thaiexaminer.com/thai-news-foreigners/2022/10/06/warning-on-foreign-exchange-reserves/

[ikke1959]

On this forum many expats expressed their concerns about the Thai tourism for years already. By several laws and regulations the Government has managed to ruined this industry and now it is succesful they complain....Tourists will always come to Thailand, but the golden years are over 

[soi3eddie]

3 hours ago, ukrules said:

Why are BA not flying to Bangkok?

Apparently it's because the route does not raise enough revenue from high fare passengers in business class (not sure they had/have many first class cabins on their planes). After retiring all their 747s during the pandemic, BA are using more of their bigger planes on more profitable routes. Why isn't Bangkok as profitable to BA? Probably due to lack of high paying business travellers doing trade deals here in the Kingdom. Likely, not many "high quality" tourists too to pay for biz class. BA are set to review restarting the route at end of March 2023.

 

[sammieuk1]

By coincidence I had a look at many webcams last night dotted around tourist areas and wow there aren't any people yet alone tourists and with ticket prices to get here at least doubling its looking like a low high season for sure well done Prayut ???? 

[Iamfalang]

When the entire world is experiencing 100000000% inflation, who has money for Pattaya?????!!?!?!?!

 

First do a Buy one - Get one in Pattaya, people like that here.    Then free rooms if you do this special.    Beer at 20 baht and the ability to do a short-term marriage with a bar girl for up to one year (STB visa).   

 

The whole world is crying about wasting money as companies get super, super rich, so it's hard to then just waste more money coming to LOS.  

 

No money for food, rent, and car this month.........wait, I'll go to Pattaya!!!

 

I mean, that's what I did................but I'm not really normal.  

[JimmyJ]

27 minutes ago, sammieuk1 said:

By coincidence I had a look at many webcams last night dotted around tourist areas and wow there aren't any people yet alone tourists and with ticket prices to get here at least doubling its looking like a low high season for sure well done Prayut ???? 

Is there a link or website to view these cameras?

[CygnusX1]

After more than 2 years of no travel, I have more money than ever, but sorry mask lovers, I now decide where to go based on whether face masks are ubiquitous or not. I know they’re not technically required in Thailand outside of health care settings, but with just about all Thais apparently still wearing them, I don’t care to be disrespectful. That means Italy, Croatia, Rio, Hawaii, maybe Tahiti next year, but not Thailand or any other Asian country, and that’s despite the fact that I own a condo in Thailand and have an elite visa.

[mikebell]

Even the Government have stopped believing TAT's fanciful figures.

[thurien]

why the government does not take the nice figures from their agency T.A.T., would be very helpful to at once paint an extremely rosy future: T.A.T. are well-known to stretch expectancies by the zillion and they are totally de- coupled from reality = a good governmental forecaster!

[NorthernRyland]

During COVID while stuck back in the US I started watching travel vlogs and found out there's a lot of other places around the world that look nicer than where I found in Thailand. Less busy, cheaper, better weather etc... I bet many others did the same and won't be back anytime soon.

[soi3eddie]

Right on this very page, there's an advert for Emirates. Clicking on the link took me to a page for November dates. The prices are virtually double pre-pandemic. Few are going to be paying that during these hard times. Not neccessarily Thailand's fault but this is a global situation. Little chance of any real upturn in economies for the foreseeable future. In the UK for sure so many people are struggling to pay rent, mortgages and bills to even contemplate travel to anywhere.

 

   

 

[JoePai]

1 hour ago, Isaan sailor said:

To your point, it’s curious how the government frets about a high USD, but when the Pound, Euro or any western currency tops out—they don’t have too many concerns.

One reason is that many imports are bought in USD e.g. Oil

[Elkski]

So how are hotel prices for tourists compared to ore COVID?  Lower?

[Canadian Snowbird]

Thailand is not going to help recover their tourism industry with their new process and requirements for single and multiple entry tourist visas. The information requirements are confusing and really over the top. All they are doing is creating more work for themselves and more frustration for the visa applicants. I'm about ready to ditch Thailand as my winter destination and go elsewhere. 

[DUNROAMIN]

21 minutes ago, CygnusX1 said:

After more than 2 years of no travel, I have more money than ever, but sorry mask lovers, I now decide where to go based on whether face masks are ubiquitous or not. I know they’re not technically required in Thailand outside of health care settings, but with just about all Thais apparently still wearing them, I don’t care to be disrespectful. That means Italy, Croatia, Rio, Hawaii, maybe Tahiti next year, but not Thailand or any other Asian country, and that’s despite the fact that I own a condo in Thailand and have an elite visa.

Travelled to Australia and a good part of Europe this year, hard to find any one wearing masks, yet. Thais seem to be obsessed with wearing them. I laugh everytime I see a sushi train restaruant packed shoulder to shoulder with Thais eating and touching the same utensils with no masks. Appearantly, covid free inside. Go figure.

[10baht]

1 hour ago, terryofcrete said:

Added to this is the appalling treatment of some tourists during the pandemic.

And to those locked out even with a valid visa. And while locked out the visa expired, no emergency extension until lockdown was lifted. BUT all the "tourists" in country got to stay.  They really don't understand who is buttering their bread.

[10baht]

1 hour ago, soi3eddie said:

Why are BA not flying to Bangkok?

I wonder why the are flying anywhere with the poor service they provide.

[10baht]

20 minutes ago, DUNROAMIN said:

Thais seem to be obsessed with wearing them.

Have you looked at Japan or china? Not just Thailand.

[Bangkok Barry]

1 hour ago, Dialemco said:

Thailand must realise that many economies are suffering substantial down turn and that there are many potential tourists who just cannot afford holidays especially the high air fares many triple pre pandemic levels. Added to this is the appalling treatment of some tourists during the pandemic.

Just this morning I saw someone on UK news lamenting that no-one was buying from her clothes store now as people simply don't want to spend in uncertain financial times. Yet Thailand keeps burying its head in the sand, believing that millions upon millions are queuing up to jump on planes to fly across the world to visit paradise. They aren't coming, this year or next. Live with it.

[Bangkok Barry]

28 minutes ago, Elkski said:

So how are hotel prices for tourists compared to ore COVID?  Lower?

A place I stay at has tripled its prices since August.