Weakening Russian Ruble not affecting Thai economy yet

BANGKOK, 19 December 2014 (NNT) - Prime Minister Prayut Chan-o-cha has instructed an economic team to monitor the Russian currency crisis for fear that it would affect the Thai economy.

General Prayut told members of the economic team to closely observe a possible impact of the weakening Russian Ruble on the Thai economy after the currency has collapsed around 45% against the US dollar so far this year.

The Prime Minister insisted that his government has taken a proactive approach in promoting economic growth while maintaining a global perspective.

General Prayut admitted he was concerned about the direction of the economy, politics and society next year. He added that as long as the situation in the country is stable and peaceful, the international community will have more confidence in Thailand.


-- NNT 2014-12-19

The General should suggest the Russian military stage a coup to protect the Ruble..

Edited December 19, 201411 yr by baboon

Looks like General Prayut is taking a page from the TAT playbook, where no matter what

happens in the world ,release a statement that Thai tourism will not be affected......

Of course Thailand will be affected, I can already see there are a lot less Russian tourists

in Pattaya.....

Looks like General Prayut is taking a page from the TAT playbook, where no matter what

happens in the world ,release a statement that Thai tourism will not be affected......

Of course Thailand will be affected, I can already see there are a lot less Russian tourists

in Pattaya.....

That's true but maybe he meant 'negatively' affected!

Shouldn't it be good news for Thailand? Great opportunity to start buying Russian military hardware...cheap as chips now.

Nothing can affect Thailand! (if you believe TAT and the top brass)

Hate to tell Prayut Chan - o - Cha that it is not affecting anyone else either, except Russia unless you are dealing in Rubles and have dropped the USD all currency trade in the Ruble is suspended, it really shouldn't effect Thailand just yet , what plays out in the next six months is another thing, also three weeks back you were spouting about trading pac with Russia , I would think again if I was you, China will give you enough grief.

I was with a business owner yesterday who said there seemed to still be quite a few Russian tourists, but that they weren't spending any money. She said it is a lot different than last year.

I'm fogged. The Thai apologists keep on yelling at us that Thailand doesn't need foreign tourism, yet this tale?

The other day on the BBC news they were interviewing people in Russia on the street about the effect the free falling rouble was having, and one women said she had cancelled her Thailand vacation.

really early to see a drop in Russian tourists because of the change in ruble value. Give it a few months and we'll see what happens.

But, when there is a large quick change, those who have their tickets will go, those who were thinking of going might not depending on their economic status.

Other than tourism, what imports/exports are exchanged with Russia from Thailand? Again, too early to tell I think.

For Joe "vodka", it is probably a very scary time in Russia.

Crimea is the new Pattaya ( without the bar girls!). Or, if its adventure you want try East Ukrainne (still no bar girls).

It is already affecting many businesses in the resorts where the majority of Russians stay because of reduced numbers and reduced spending. Now they will be prepaying as much as possible and the rest will be spent on alcohol at 7/11.

The big worry will be for the Condo developers - there must be 5,000 small condos being built in Jomtien of which some 40% have been sold to Russian on a deposit. How many will be able to make the next payment installments when the condo is now costs 40% more in Rubles, plus less likely to be able to rent them out as less Russians are travelling outside their country. ie much cheaper for them to holiday at home. Will the developers be able to continue building when lots start defaulting and there won't be new buyers for these shoebox sized condos 24-28sqm.

Luxury condos won't be affected because less Russians buy those, and most of them already have their money outside Russia in USD, EURO, Pounds

Weakening Russian Ruble not affecting Thai economy yet

I see they have used the word 'Yet' in the heading...

As reported elsewhere...

Sanpetch Suppabawonsathien, president of the Thai Hotels Association, said the Russian tourist market in Pattaya was slumping for the first time in 12 years.

"Hotel room reservations from the Russian have already dropped by 70% for this high season," he said

No the money is not coming to Thailand, it's going to a country where free investment and property ownership is legal irrespective of your nationality.

http://www.telegraph.co.uk/finance/economics/11299644/Russian-economic-meltdown-sparks-wave-of-panic-buying-London-homes.html

Edited December 19, 201411 yr by siampolee

Just yesterday or the day before there was an article that russina tourist numbers were way down year on year and the trend is expected to continue thru ths peak season, pretty sure this would negatively effect certain aspects of the ecnomy, then again I must be wrong as PM and TAT seem to think otherwose

Best news I've heard !!

The other day on the BBC news they were interviewing people in Russia on the street about the effect the free falling rouble was having, and one women said she had cancelled her Thailand vacation.

Yes, I saw that too and you have to think she won't be the only one.

Edited December 19, 201411 yr by NongKhaiKid

It is already affecting many businesses in the resorts where the majority of Russians stay because of reduced numbers and reduced spending. Now they will be prepaying as much as possible and the rest will be spent on alcohol at 7/11.

The big worry will be for the Condo developers - there must be 5,000 small condos being built in Jomtien of which some 40% have been sold to Russian on a deposit. How many will be able to make the next payment installments when the condo is now costs 40% more in Rubles, plus less likely to be able to rent them out as less Russians are travelling outside their country. ie much cheaper for them to holiday at home. Will the developers be able to continue building when lots start defaulting and there won't be new buyers for these shoebox sized condos 24-28sqm.

Luxury condos won't be affected because less Russians buy those, and most of them already have their money outside Russia in USD, EURO, Pounds

The big worry for the developers is in my opinion that the ruskies will try to flip their "condo contracts" and exchange back in Ruble (lol). In that case they, the ruskies will make nice cash. While it will be very hard for the developer to sell their own inventory.

Edited December 19, 201411 yr by BkkLifeA

Looks like General Prayut is taking a page from the TAT playbook, where no matter what

happens in the world ,release a statement that Thai tourism will not be affected......

Of course Thailand will be affected, I can already see there are a lot less Russian tourists

in Pattaya.....

Just put on the rose-colored glasses worn by govt officials and you will see Thailand is not affected.

Thailand will be badly affected. Not only the decline in inbound tourists but also the matter of what Russia can afford to import from Thailand ( presuming Thailand in ignoring sanctions). The pesky strength of the baht means the only people doing well in Thailand are those with USD or Thai Baht income. Good luck to them but the Baht MUST depreciate against the other majors if there is to be a strong rebound in the economy, IMHO.

What people forget here is sanctions . *(what hurt them)

Yes Russian Tourists numbers do in fact hurt Thailand's bottom line.

Brave faces in media and lies people eat at breakfast won't save Thailand from a similar fate.

Recent events of claiming western compliance has offended some MPs in this country and i am sure others.

The truth is LM laws are unpopular in the west and lies spoke will have a toll.

Eventually , sanctions will befall this Nation if its leader can't tell the truth about us.

If it threatens our citizens , arrests them for what is normal in opinion questions.

If it stops democratic means .

Crushes the populace from its daily lives/

It can lie and cheat so much but when it pretends we approve we might slap tariffs on all things Thai

Edited December 19, 201411 yr by Fred Flinstone

Soon it will be very good for the economy as many buses will get on the second hand market !

Looks like General Prayut is taking a page from the TAT playbook, where no matter what

happens in the world ,release a statement that Thai tourism will not be affected......

Of course Thailand will be affected, I can already see there are a lot less Russian tourists

in Pattaya.....

Just put on the rose-colored glasses worn by govt officials and you will see Thailand is not affected.

Heard part of Putin's State of the Nation speech and the only difference between him and the general is the language they speak.

All is really ok and where it isn't it's somebody else's fault !

Nothing affects thai economy.

Financial crisis in US did not affect thai economy

Financial crisis in EU did not affect thai economy

Floods did not affect Thai economy

Airport closure, martial law, protests did not affect Thai economy

Slump in auto sales and high debt does not affect Thai economy

Billion baht losses in rice scam did not affect Thai economy

The rest of the world must be envious of such strong and well run country and economy

This is all the newest press release on the power of the economic war machines of the US, GB, and France.

Russia and China are tired of the West's monopoly of economic power, and have started joint military exercises as a rude gesture, a symbolic gesture IMHO. As a reply toward stability, the US is fielding no carrier groups in the Pacific right now or in the immediate future. Concurrently, all concerned NATO parties are considering whether to approve Japan's desire to change its military power from strictly defensive to multi-task focii.

It seems some undisclosed agreement has been reached, but remains speculative. It's like shadow boxing with someone else's shadow, but it is interesting and entertaining to connect the dots and intuit, and admit such opinions are only speculation (even if supported with anecdotal datum).

It's great to be alive and aware (one without the other would suck).

.

>>The Prime Minister insisted that his government has taken a proactive approach in promoting economic growth while maintaining a global perspective<< quote

Impressive words, what a shame that the PM doesn't understand them!!

I have little grasp of International Economics so could someone explain why every time the authorities do something daft here and someone remarks along the lines of: "there's another nail in the coffin of the Thai Tourist Industry" the Apologists come out in their droves in an outrage proclaiming adamantly that the "Thai economy doesn't need tourism" as though we Westerners are having the temerity to be blowing up our own importance to the economy of the country, yet the problems with the Rouble which affects just one sector of that industry seems to have the powers in a real kerfuffle.

Is it just that these apologist types have the rose tinted glasses too firmly attached to their eyes that the real issues escape them?

Common sense suggests a lot of people in Russia will not be vacationing in Thailand because of the fall in the rouble. When the Australian dollar crashed against the US dollar a few years ago, Australian tourism to the US dropped noticeably. The last couple of years when the $A was surging, tourism to the US increased again along with online shopping purchases. If I were Russian I would be stockpiling any products I thought were going to rise in price before I worried about my Thailand vacation. Trips to Thailand for many people will be replaced by holidays within Russia. That said, the huge number of Chinese tourists I saw at the airport last week seem a ready replacement...

The Prime Minister insisted ......

To whom?