Songkran Spending Slump: Earthquake, Economics Hit Hard

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Picture courtesy of NamuWiki

 

The Thai Restaurant Association anticipates a dip in spending during this year’s Songkran festival, as financial strains from a recent earthquake and economic uncertainty weigh heavily.

 

On March 28, a 7.7-magnitude quake rocked Myanmar and Thailand, leaving lasting effects on the Thai restaurant sector, especially those in high-rise buildings, according to Association President Thaniwan Kulmongkol.

 

Some establishments in Bangkok remain closed, with foot traffic significantly reduced, affecting eateries situated within these structures.

 

Thaniwan believes Songkran travel plans remain largely untouched, despite the tremors. Nonetheless, the aftermath of the quake, combined with a sluggish economy, has caused many Thais to tighten their purse strings.

 

Families burdened with home repairs post-earthquake are likely to cut back on travel spend compared to 2024. Looking beyond Songkran, cautious spending is expected to prevail amidst ongoing economic uncertainties.

 

 

 

Meanwhile, the southern restaurant sector, notably in Krabi, has been less rattled by the earthquake's impact. According to the Krabi Restaurant Association’s President, Supphachai Rodthong, bookings have seen minimal cancellations.

 

However, despite a healthy influx of European tourists, Thai visitor numbers remain below pre-pandemic levels, partly due to soaring airfares. Spending projections for Songkran in Krabi suggest a recovery, yet not to the levels seen before Covid-19 struck.

 

Rising costs present further challenges, as exemplified by the hike in banana shrimp prices from 300 to 360 baht per kilogramme. Concerns linger that Krabi’s tourism this year could resemble the downturns seen last year, with fewer visitors during the low season from May to September.

 

Supphachai calls on the government to maintain reasonable airfares, possibly through subsidies in off-peak times, to bolster domestic tourism.

 

In conclusion, the Thai restaurant industry faces an uncertain Songkran season with financial caution in the air. The combination of earthquake aftermath, rising costs, and unchanged travel plans paints a complex picture for businesses.

 

The industry remains hopeful, however, that government interventions may aid in stabilising tourism and associated sectors as they navigate these challenging times.

 

Based on a story by Bangkok Post

 

-- 2025-04-09

 

 

[ikke1959]

Of course all kind of reasons why Songkran will give less economic results, but they forget that everything is getting more expensive and the salaries stay low and the same... except for the ones in charge.. Besides How many holidays have there been the last months and how many are there to come in the coming weeks?? You only can spend your money once

[StayinThailand2much]

Didn't the TAT just recently announce an anticipated spending bonanza? Seems, that the Thai Restaurant Association has a much more realistic view on consumer spending (unless, of course, Thais have stopped eating out)... 😆 

[Tropicalevo]

Not likely if most Thais are like our staff.

They usually get paid on the 15th of the month.

They have already asked to be paid on the 12th.

There will be no holding back on the spending.

Zero interest loans will be provided on the 20something until the next payday at the end of the month.

(This happens every year.)

[impulse]

2 hours ago, ikke1959 said:

and the salaries stay low and the same

 

Someone catch me up.  Is the minimum wage still 300 baht?  I keep reading about proposals to increase it, but they never seem to go through.

 

Or am I missing something?

 

[Nigeone]

Here you go …
On December 27, 2024, a new minimum daily wage rate in Thailand was published in the Government Gazette, taking effect on January 1, 2025. With these changes, the minimum daily wage in 2025 ranges from THB 337 to THB 400, up from the previous THB 330 to THB 370, depending on the province.