75% Of Business Entrepreneurs Have Cash-flow Problem

[george]

75% of business entrepreneurs have cash-flow problem

BANGKOK: -- The current economic downturn in Thailand has forced nearly three out of four entrepreneurs to suffer a cash-flow problem, according to a survey conducted recently by University of the Thai Chamber of Commerce (UTCC).

UTCC vice-rector Saowanee Thairungroj said the survey conducted on 400 business operators between December 11-16 found that the cash flow problem resulted from declines in purchasing orders, higher production costs, financial institutions not extending loans and buyers failed to settle payments on purchase orders as they did not have collateral to submit to financial institutions.

Up to 35 per cent of the respondents wanted more loans in order to boost liquidity while most financial institutions were reluctant to offer such, according to Mrs. Saowanee.

The government must extend support to them through reduced interest rates, easing the process of loan extensions, extending payment settlements, finding ways to boost exports, boosting investor and tourism confidence, and activating the domestic economy, she said.

Meanwhile, Thanawat Palavichai, UTCC Economic and Business Forecast Centre director, said Thailand's economy in the fourth quarter of 2008 may contract more than 2 per cent and the government must urgently jump start the economy.

There is a possibility that the economy would remain contracted during the first quarter of 2009, said Mr. Thanawat. "It is difficult to depend solely on exports next year as they are expected to retreat and tourism business is probably the only business which could boost economy."

The Centre still forecasts that the 2008 economy would grow between 3.5-4 per cent but the figures could be revised later, he said. Next year's growth is estimated at 3.5 per cent.

-- TNA 2008-12-25

[mrtoad]

75% of business entrepreneurs have cash-flow problem

BANGKOK: -- The current economic downturn in Thailand has forced nearly three out of four entrepreneurs to suffer a cash-flow problem, according to a survey conducted recently by University of the Thai Chamber of Commerce (UTCC).

UTCC vice-rector Saowanee Thairungroj said the survey conducted on 400 business operators between December 11-16 found that the cash flow problem resulted from declines in purchasing orders, higher production costs, financial institutions not extending loans and buyers failed to settle payments on purchase orders as they did not have collateral to submit to financial institutions.

Up to 35 per cent of the respondents wanted more loans in order to boost liquidity while most financial institutions were reluctant to offer such, according to Mrs. Saowanee.

The government must extend support to them through reduced interest rates, easing the process of loan extensions, extending payment settlements, finding ways to boost exports, boosting investor and tourism confidence, and activating the domestic economy, she said.

Meanwhile, Thanawat Palavichai, UTCC Economic and Business Forecast Centre director, said Thailand's economy in the fourth quarter of 2008 may contract more than 2 per cent and the government must urgently jump start the economy.

There is a possibility that the economy would remain contracted during the first quarter of 2009, said Mr. Thanawat. "It is difficult to depend solely on exports next year as they are expected to retreat and tourism business is probably the only business which could boost economy."The Centre still forecasts that the 2008 economy would grow between 3.5-4 per cent but the figures could be revised later, he said. Next year's growth is estimated at 3.5 per cent.

-- TNA 2008-12-25

All well and good, but how are they intending to do it?

The second part is hilarious, they fuc_k it up by closing the airport, and then expect to rely on the tourism. Amazing Kwailand.

[MyphuketLife]

All well and good, but how are they intending to do it?

The second part is hilarious, they fuc_k it up by closing the airport, and then expect to rely on the tourism. Amazing Kwailand.

Is amazing.... but TiT

[hardy1943]

They are really a joke LOL

[Martin]

If the best that this leader of this part of this "University" can come up with is the totally-misplaced, totally-inappropriate cliche of "jump start the economy", there is little hope for those whose jobs are threatened. You don't jump start a vehicle that is spluttering, because it is running out of gasoline, and beginning to slow down!

The whole report reeks of the clucking of headless chickens.

This is the start of a long-expected transition from unsustainable consumerism-driven 'growth' of a Grossly Delusional Parameter (GDP) towards whatsoever new paradigm homo sapiens adopts.

Myopic individuals like the ones quoted here contribute mere irrelevant noise. Monetary-capital nostrums like lowering interest rates are going to be as effective at sustaining the economically-unsustainable as pushing on a string.

Fortunately for Thailand, out in its rural ares, there is still a lot of the basic social capital upon which pre-industrial societies were based. Leadership in developing the new paradigm could feasibly come from that small area of Earth that comprises the Mekong and Chao Phraya basins, if it can cope with the drag of inheritance of that hyperurban primate city called Bangkok and its denizens, such as those quoted here, who will have to be 're-educated'.

The thing to do with headless chickens is to pluck and draw them, put them in the pot, and get on with the job whilst they stew.

Just the two penn'orth of an irascible old git!

[OlRedEyes]

If the best that this leader of this part of this "University" can come up with is the totally-misplaced, totally-inappropriate cliche of "jump start the economy", there is little hope for those whose jobs are threatened. You don't jump start a vehicle that is spluttering, because it is running out of gasoline, and beginning to slow down!

The whole report reeks of the clucking of headless chickens.

This is the start of a long-expected transition from unsustainable consumerism-driven 'growth' of a Grossly Delusional Parameter (GDP) towards whatsoever new paradigm homo sapiens adopts.

Myopic individuals like the ones quoted here contribute mere irrelevant noise. Monetary-capital nostrums like lowering interest rates are going to be as effective at sustaining the economically-unsustainable as pushing on a string.

Fortunately for Thailand, out in its rural ares, there is still a lot of the basic social capital upon which pre-industrial societies were based. Leadership in developing the new paradigm could feasibly come from that small area of Earth that comprises the Mekong and Chao Phraya basins, if it can cope with the drag of inheritance of that hyperurban primate city called Bangkok and its denizens, such as those quoted here, who will have to be 're-educated'.

The thing to do with headless chickens is to pluck and draw them, put them in the pot, and get on with the job whilst they stew.

Just the two penn'orth of an irascible old git!

You may be right. The only thing thailand seems to be good at is going backwards. Finding a new way forward will have to be left to others.

[AussieFarang]

The other 25% are connected to those currently in power.

[brahmburgers]

Saying that "tourism business is probably the only business which could boost economy" is not ridiculous.

Tourism and farang residents (thru dowries, real estate, support for families of their wives/g.f's, other under-the-table purchases, etc) have been the lifeblood of the Thai economy for many years already. It's certainly Thailand's largest revenue generator of outside money. Granted, tourism revenue will weaken in 2009, partly due to the airport closing. However, the dip in tourist money will arguably be more attributable to:

>>>> worldwide recession

>>>> Thailand's diminishing allure: compared to other countries which offer comparable attractions.

>>>> strong baht

What's the Arabian saying, "death by a thousand cuts"? ....some of those little knife 'cuts' are such things as: two-tiered pricing (for parks, for air-fares, etc.) - crappy attitudes by a portion of tourist-industry workers - overpricing and mandatory tips - safety concerns - to name a few.

The shut down of the airports lasted one week. It was significant, but the downturn in tourism was already starting - for various other reasons.

Even so, tourism will indeed continue to be the engine that drives what's left of the Thai economy - which doesn't say a whole lot of good things for other business sectors within Thailand.

Edited December 26, 2008 by brahmburgers

[Seneque]

Even so, tourism will indeed continue to be the engine that drives what's left of the Thai economy - which doesn't say a whole lot of good things for other business sectors within Thailand.

But it was said in other reports that tourism represents only 3 to 5 per cent of the gross domestic product ... how can this percentage become the main driving force of the economy is open to speculation ...

Help exporters : ... drive the baht down and you become competitive (China devalued its currency several times these last months ...

[mrtoad]

Even so, tourism will indeed continue to be the engine that drives what's left of the Thai economy - which doesn't say a whole lot of good things for other business sectors within Thailand.

But it was said in other reports that tourism represents only 3 to 5 per cent of the gross domestic product ... how can this percentage become the main driving force of the economy is open to speculation ...

Help exporters : ... drive the baht down and you become competitive (China devalued its currency several times these last months ...

My thoughts exactly. It appears that they have no idea what to do, so they are just saying lots of different things in the hope that a) they might get it right it may make people feel better 3) misinformation to quell unrest 4) the real impact of tourism in this country is far greater than what they want to admit.

I agree, they need to look at devaluing the baht at some point.

[Gravelrash]

The other 25% are connected to those currently in power.

Yes nothing keeps the cash flowing like getting the snout in the public trough. There still will be plenty of smiles around regardless how dire the economy becomes. A few names in particular come to mind...

[brahmburgers]

Even so, tourism will indeed continue to be the engine that drives what's left of the Thai economy - which doesn't say a whole lot of good things for other business sectors within Thailand.

But it was said in other reports that tourism represents only 3 to 5 per cent of the gross domestic product ... how can this percentage become the main driving force of the economy is open to speculation ...

Help exporters : ... drive the baht down and you become competitive (China devalued its currency several times these last months ...

Five minutes after accounting was invented, there came the invention of 'tweaking the numbers.' (an original concept quote from BB).

Tourism does appear to be the biggest source of outside revenue for Thailand - by a wide margin.

If someone can name another sector, let us know. When I say 'tourism' I include farang residents, including long-timers. A significant portion of farang spending is off the books. For example, when a dowry is paid or when large payments go to a partner's parents - is that tallied by accountants? How about significant amounts of money spent weekly on streetwalkers - is that on the books? I seriously doubt it.

As far as outside revenue: rice exports from Thailand are significant, but it's doubtful they bring in as much revenue as tourists and farang residents combined.

[Koo82]

they fuc_k it up by closing the airport, and then expect to rely on the tourism. Amazing Kwailand.

One who helped closed airports is now foreign minister.

So amazing!

[Heng]

...Which is why cash is king and folks who don't pay attention to their cash flow in a way 'deserve' to be shaken out.

[Loaded]

they fuc_k it up by closing the airport, and then expect to rely on the tourism. Amazing Kwailand.

One who helped closed airports is now foreign minister.

So amazing!

and they brought in a mamasan as commerce minister! still under Thaksin we had a sports and tourism minister who was the son of the most notorious mafia godfather in Thailand - kamnan Poh (convicted of murder but leading a very nice life next to the sea in Chonburi - police can't find him apparently)

[animatic]

Even so, tourism will indeed continue to be the engine that drives what's left of the Thai economy - which doesn't say a whole lot of good things for other business sectors within Thailand.

But it was said in other reports that tourism represents only 3 to 5 per cent of the gross domestic product ... how can this percentage become the main driving force of the economy is open to speculation ...

Help exporters : ... drive the baht down and you become competitive (China devalued its currency several times these last months ...

Five minutes after accounting was invented, there came the invention of 'tweaking the numbers.' (an original concept quote from BB).

Tourism does appear to be the biggest source of outside revenue for Thailand - by a wide margin.

If someone can name another sector, let us know. When I say 'tourism' I include farang residents, including long-timers. A significant portion of farang spending is off the books. For example, when a dowry is paid or when large payments go to a partner's parents - is that tallied by accountants? How about significant amounts of money spent weekly on streetwalkers - is that on the books? I seriously doubt it.

As far as outside revenue: rice exports from Thailand are significant, but it's doubtful they bring in as much revenue as tourists and farang residents combined.

I think tweaking the numbers started before numbers were invented...

Say around the time the SACK was invented.

One for you, one for me, one for you, one for me,

oops didn't mention the 5th one in the sack you didn't see,

one more for ME!

[Priceless]

Even so, tourism will indeed continue to be the engine that drives what's left of the Thai economy - which doesn't say a whole lot of good things for other business sectors within Thailand.

But it was said in other reports that tourism represents only 3 to 5 per cent of the gross domestic product ... how can this percentage become the main driving force of the economy is open to speculation ...

Help exporters : ... drive the baht down and you become competitive (China devalued its currency several times these last months ...

Five minutes after accounting was invented, there came the invention of 'tweaking the numbers.' (an original concept quote from BB).

Tourism does appear to be the biggest source of outside revenue for Thailand - by a wide margin.

If someone can name another sector, let us know. When I say 'tourism' I include farang residents, including long-timers. A significant portion of farang spending is off the books. For example, when a dowry is paid or when large payments go to a partner's parents - is that tallied by accountants? How about significant amounts of money spent weekly on streetwalkers - is that on the books? I seriously doubt it.

As far as outside revenue: rice exports from Thailand are significant, but it's doubtful they bring in as much revenue as tourists and farang residents combined.

The first statement marked in red above shoud probably be labelled "Out of touch with reality". Tourism accounts for approx. 6-7% of GDP, to be compared with Exports at 60-70% of GDP.

The second statement marked in red is, however, correct. I haven't during a brief search found any figures for rice, but total agricultural products exports account for only ~8% of total exports (7.8% in 2007, according to Bank of Thailand statistics), i.e. ~5% of GDP. Manufactured products (e.g. electronic and electric products, automotive products etc.) totally dominate Thai exports with ~134 billion USD out of total exports of 152 billion USD.

I would be the first one to admit that official Thai statistics are sometimes dodgy, but not by an order of magnitude.

/ Priceless

Edited December 27, 2008 by Priceless

[yongli]

Even so, tourism will indeed continue to be the engine that drives what's left of the Thai economy - which doesn't say a whole lot of good things for other business sectors within Thailand.

But it was said in other reports that tourism represents only 3 to 5 per cent of the gross domestic product ... how can this percentage become the main driving force of the economy is open to speculation ...

Help exporters : ... drive the baht down and you become competitive (China devalued its currency several times these last months ...

Five minutes after accounting was invented, there came the invention of 'tweaking the numbers.' (an original concept quote from BB).

Tourism does appear to be the biggest source of outside revenue for Thailand - by a wide margin.

If someone can name another sector, let us know. When I say 'tourism' I include farang residents, including long-timers. A significant portion of farang spending is off the books. For example, when a dowry is paid or when large payments go to a partner's parents - is that tallied by accountants? How about significant amounts of money spent weekly on streetwalkers - is that on the books? I seriously doubt it.

As far as outside revenue: rice exports from Thailand are significant, but it's doubtful they bring in as much revenue as tourists and farang residents combined.

The first statement marked in red above shoud probably be labelled "Out of touch with reality". Tourism accounts for approx. 6-7% of GDP, to be compared with Exports at 60-70% of GDP.

The second statement marked in red is, however, correct. I haven't during a brief search found any figures for rice, but total agricultural products exports account for only ~8% of total exports (7.8% in 2007, according to Bank of Thailand statistics), i.e. ~5% of GDP. Manufactured products (e.g. electronic and electric products, automotive products etc.) totally dominate Thai exports with ~134 billion USD out of total exports of 152 billion USD.

I would be the first one to admit that official Thai statistics are sometimes dodgy, but not by an order of magnitude.

/ Priceless

@Priceless: Electronic and Electric products are a big source of exports, agreed, but are all exports created equal?

The electronics industry is a very competive industry, yes, people are being employed (but really that many more than in tourism?) and how much is Thailand keeping of the profits? How much has to be imported to get those 152 billion of exports?

Tourism is a source, where Thailand can basically participate in the whole value chain.

And then we have huge parts of tourism business unaccounted for.....

My train of thoughts would be somehow like this (just points me to assuming that the impact of tourism might actually be comparable to that of the large exporting industries):

(from CIA world fact book)

2007 exports 151 billion USD

2007 imports 125.2 billion USD

net exports: 25.9 billion USD

GDP can be calculated as: consumption + gross imvestment + government spending + (exports-imports)

Thai GDP (est 2007) $245.7 billion

-> 25.9 billion net exports, roughly 10.5% of GDP

Tourism (2007): around 548 billion baht (from http://www2.tat.or.th/stat/web/static_index.php)

Average exchange rate (2007): 1 USD = 32.53 THB

-> 16.84 billion USD (not including any services that officially don't exist in Thailand)

Now, If we just doubled that number, we would be looking at

-> 33 billion dollar.

We would be looking at about 14% of GDP

Of course, part of the imports are also neccessary to sponsor tourism. However few imports for all the services provided, few imports for the food sold, park entrance fees, entertainment fees of various sorts...

I know, this analysis is far from precise and I am happy for any corrections, just meant as a discussion input.

Yongli

[Thai at Heart]

Yongli,

You have hit the nail on the head.

Many of Thailand's exports require assembly of finished parts requiring importation first. They are also thus massively exchange rate sensitive and are often transfer priced out of the country thus not leaving the requisite level of revenue, profit (or tax take) in the country.

Tourism is the purest of revenue streams for FX that Thailand has. I don't know the numbers but it would be very interesting to know how many people are directly or indirectly employed in the tourist industry. This would be closely followed by agriculture which would but would require importation of raw materials for fertilisers.

However, doubling the amount to catch extra curricular payments misses the point that most of this money would be spent in Thailand so would generate earnings elsewhere. Unless of course the cash gets spent in Hong Kong in the Xmas sales.

[Khun Jean]

The Thai's could always ask Bernanke to jumpstart their economy by throwing 1000 baht notes from a helicopter. But he is still not free from loading up the banks in his own country with digital money. Would not work anyway, it is just blowing the bubble bigger and bigger.

Thailand as other economies of the world will have to suffer because of the screwup of the current economic experiment. Nothing can be done about that. Just prepare for it and make sure you have some food. Something the Thais are better at than many other countries, especially in the west where a honest days work is something they have heard about from their grandparents.

Sufficiency economic will be looked at differently shortly.

Edited December 28, 2008 by Khun Jean

[Priceless]

@Priceless: Electronic and Electric products are a big source of exports, agreed, but are all exports created equal?

The electronics industry is a very competive industry, yes, people are being employed (but really that many more than in tourism?) and how much is Thailand keeping of the profits? How much has to be imported to get those 152 billion of exports?

Tourism is a source, where Thailand can basically participate in the whole value chain.

And then we have huge parts of tourism business unaccounted for.....

My train of thoughts would be somehow like this (just points me to assuming that the impact of tourism might actually be comparable to that of the large exporting industries):

(from CIA world fact book)

2007 exports 151 billion USD

2007 imports 125.2 billion USD

net exports: 25.9 billion USD

GDP can be calculated as: consumption + gross imvestment + government spending + (exports-imports)

Thai GDP (est 2007) $245.7 billion

-> 25.9 billion net exports, roughly 10.5% of GDP

Tourism (2007): around 548 billion baht (from http://www2.tat.or.th/stat/web/static_index.php)

Average exchange rate (2007): 1 USD = 32.53 THB

-> 16.84 billion USD (not including any services that officially don't exist in Thailand)

Now, If we just doubled that number, we would be looking at

-> 33 billion dollar.

We would be looking at about 14% of GDP

Of course, part of the imports are also neccessary to sponsor tourism. However few imports for all the services provided, few imports for the food sold, park entrance fees, entertainment fees of various sorts...

I know, this analysis is far from precise and I am happy for any corrections, just meant as a discussion input.

Yongli

An interesting discussion! From an employment point of view, I am sure that you are right in that agriculture dominates completely. (And this is of course of paramount importance for the Thai people.)

However, the point that I brought up was concerned with exports in value terms. The poster that my earlier comment was directed at seemed to think that rice constituted the major part of Thai exports. In fact, Thai rice exports (in 2007) were valued at ~3.5 billion USD, out of total exports of ~152 billion, i.e. 2.3%!

Your point about net exports is however very interesting. It would be fascinating to know the import proportion of the export value of different types of products. There are of course import components in e.g. rice exports, even though some might not be that obvious. Fertilisers (or rather raw materials for their production) probably rank as obvious, but how about fuel, machinery, electricity and so on. The automotive industry is very much Thai based, the vast majority of inputs (though not design) are produced in Thailand. The export value of Thai automotive parts is actually roughly the same as that of rice (or, oddly enough, air conditioners).

Tourism is of course very labour intensive, but what percentage of tourism value comes from labour? I would guess that the higher you go in the tourist market (e.g. 4 and 5 star hotels and restaurants), the more important (often foreign) capital would be? This might lead one to woder about the TAT's ever re-occurring attempts to attract "high value" tourists. Back packers are obviously low spenders, but what about the mid-market family tourists that dominate among e.g. Scandinavians? Might they not create a high percentage of revenue that actually stays in the country?

I don't have many good answers, but I feel this discussion is very worthwhile. Are there any professional economists out there who could contribute to it?

/ Priceless

[dumball]

Look at the tourism input in my un-economists way , I contributed into the local economy each month B80,000 and I was a low scale spender , 1,000 similar lowenders will have contributed B80,000,000 . How many tourists a month on the lowend scale visit Thailand ? One million ? That would be B80,000,000,000 , add in all the others and what do you come up with , a whole wad of income at the low end of the population .

[Johpa]

Sufficiency economic will be looked at differently shortly.

You got that right. Just wait until next week, after the holidays, when massive layoffs wills sweep the US and to a slightly lesser degree in Europe in the retail and service sectors. There is no sufficiency economy for those folks to fall back upon, and in the US, the government is too busy giving aid and succor to the wealthy political donor class, forgetting the real anthem of the French Revolution "Il n'y a pas de pain". The problem facing Thailand is that the urban lumpen proletariat is now too large and too long removed from rural life to be re-absorbed completely into the rural landscape.

Edited December 29, 2008 by Johpa

[astral]

This is not just a Thai problem..............

[davejonesbkk]

Yeah I always find this talk of 'self sufficiency' and 'being absorbed back into the rural community' hilarious, from what I've seen in my 6 years here is that Thais like to spend and they also like everything new and shiny. Everywhere I look I see people with expensive mobile phones (I see the new iphone all over the place now, doesnt that thing cost about 25k???), top of the range cameras, condos and houses that cost more than in the UK (BEFORE the credit crisis I might add) and everyone seems to drive new cars, my Dad also commented on this last time he was here.

So I am looking forward to seeing all these people just drop their usual way of life and go back to hoeing.......

[Ricardo]

The problem facing Thailand is that the urban lumpen proletariat is now too large and too long removed from rural life to be re-absorbed completely into the rural landscape.

My figure is somewhat pear-shaped, does that make me a member of the lumpy-proletariat too, where do I sign-up ?

[yongli]

Yongli,

You have hit the nail on the head.

Many of Thailand's exports require assembly of finished parts requiring importation first. They are also thus massively exchange rate sensitive and are often transfer priced out of the country thus not leaving the requisite level of revenue, profit (or tax take) in the country.

Tourism is the purest of revenue streams for FX that Thailand has. I don't know the numbers but it would be very interesting to know how many people are directly or indirectly employed in the tourist industry. This would be closely followed by agriculture which would but would require importation of raw materials for fertilisers.

However, doubling the amount to catch extra curricular payments misses the point that most of this money would be spend in Thailand so would generate earnings elsewhere. Unless of course the cash gets spent in Hong Kong in the Xmas sales.

@Thai At Heart:

Yes, the money earned from the payments supplied to the "informal economy", would to a large extend be spent in Thailand. And yes, as far as it is spent here it is accounted for under the consumption part of the GDP calculation. So yes, in the GDP it would be included, but not in the official figures of 548 billion baht (16.84 billion USD) the TAT reports (or do they somehow account for it?)

I doubled the amount officially reported, to account for the impact the whole tourist industry, including the informal economy really has on the GDP figures. Maybe doubling the number overstates it a bit.

But maybe I am missing sth here? Is the TAT including the informal tourist economy somehow in its figures?

Edited December 30, 2008 by yongli

[dumball]

I have no doubt TAT is juggling figures , just think how bad it would look for them if TOTAL TOURISM INPUT from ALL sources were declared in an honest fashion . Can you imagine just the Pataya revenue collectively amassed by exteranious workers that I feel sure is not currently allocated to tourism . Add to that huge sums paid to families in Issan for sure most do not declare , the houses constructed by foriegners is also tourism related , land purchase and development , oh so many purchases from tourism or expat money , all outside funds .

[rockyysdt]

I'm not an economist, but I suspect the Thai Baht against other currencies is way too strong, putting a dampener on exports and affecting tourism.

The down turn in world demand for automobiles and manufactured goods is made even worse with the strong Baht making Thailands exports expensive.

Travelors also postpone luxuries such as overseas travel during recessionary times.

Add to this a drop in spending power due to a strong Baht (the Aussie Dollar alone has taken a 33% hit since October 08), the outlook appears bleak.

In order to stimulate exports and revitalise the tourist industry, Thailand needs a devalued Baht.

Perhaps something out of the Governments control if their currency is free floating and affected by world markets.

Japan is another nation in dire straights due to a very strong Yen severely affecting exports and tourism.

Thais must tread wearily as a strong Baht also encourages spending on imported luxuries contributing towards a trade deficit.

Expectations are out of control with flashy consumer goods and 16k cell phones.

Edited January 1, 2009 by rockyysdt

[Thai at Heart]

Yongli,

You have hit the nail on the head.

Many of Thailand's exports require assembly of finished parts requiring importation first. They are also thus massively exchange rate sensitive and are often transfer priced out of the country thus not leaving the requisite level of revenue, profit (or tax take) in the country.

Tourism is the purest of revenue streams for FX that Thailand has. I don't know the numbers but it would be very interesting to know how many people are directly or indirectly employed in the tourist industry. This would be closely followed by agriculture which would but would require importation of raw materials for fertilisers.

However, doubling the amount to catch extra curricular payments misses the point that most of this money would be spend in Thailand so would generate earnings elsewhere. Unless of course the cash gets spent in Hong Kong in the Xmas sales.

@Thai At Heart:

Yes, the money earned from the payments supplied to the "informal economy", would to a large extend be spent in Thailand. And yes, as far as it is spent here it is accounted for under the consumption part of the GDP calculation. So yes, in the GDP it would be included, but not in the official figures of 548 billion baht (16.84 billion USD) the TAT reports (or do they somehow account for it?)

I doubled the amount officially reported, to account for the impact the whole tourist industry, including the informal economy really has on the GDP figures. Maybe doubling the number overstates it a bit.

But maybe I am missing sth here? Is the TAT including the informal tourist economy somehow in its figures?

I can hardly believe that TAT can try to guesstimate the value of these figures. It should be caught in the GDP numbers, but fleshing it out to get an accurate number since it is virtually all cash in hand would be impossible. Doubling it, might be fair enough but might me too high. I would imagine the TAT figures under calculate the total value of tourism in Thailand. The night market business and dodgy 24 hour delivery suits alone might be significant enough to add to 16 bn.

How they manage to get an accurate GDP number in the first place is beyond me anyway with so much business done cash in hand which slips virtually under the radar.

It would be very interesting to see how TAT generates these figures. I wonder if there is a general accepted way within the tourism industry?