New Year's spending expected to jump a record 6.4%, survey finds

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New Year's spending expected to jump a record 6.4%, survey finds
PETCHANET PRATRUANGKRAI
THE NATION

BANGKOK: -- YEAR-END spending will exceed Bt125 billion this year, marking the highest increase in three years, according to an annual survey by the University of the Thai Chamber of Commerce (UTCC).

Compared with last year, spending during the New Year's celebrations will increase by 6.4 per cent to Bt125.01 billion - a record for the 10-year-old poll, and double the rate of economic growth.

"As a result of higher spending, tourism-related businesses such as hotels, restaurants, transport companies and petrol stations will benefit as people travel more. However, consumers are still worried about higher goods prices and the economic recovery," said Thanavath Phonvichai, director of the UTCC's Economic and Business Forecasting Centre.

Based on a survey of 1,200 respondents from December 14 to 20, Thais will spend more during the festive season because of a positive outlook on the future economic growth of the country after the government's stimulus measures for rural areas and investment projects that should help drive business growth.

Thanavath said New Year spending growth was normally twice as high as that of gross domestic product. This year's GDP is expected to grow by 3 per cent, reflecting a positive outlook. Saowanee Thairungroj, president of the UTCC, said most spending would go to New Year's celebrations and travel.

On average, Thais will spend Bt13,926 per person during the New Year festivities. For domestic travel they will spend Bt12,332, while for overseas travel they will spend Bt90,247 per person during the New Year's holiday.

The poll found most consumers planned to spend money on the same things they did during last year's festival - parties, merit-making, and purchases of consumer, luxury and durable goods, in that order.

More travellers will go abroad than last year. Of the respondents who said they would travel, 19.5 per cent said they would go overseas, while only 15.7 per cent went abroad last year. Umakamol Sunthornsurat, a lecturer at the centre, said that because of expectations of strong economic growth and higher incomes, the trend is for consumers to use more of their incomes for New Year's spending - about 53.4 per cent will use their salaries. About 23.2 per cent will use their savings for New Year's spending, and 22.3 per cent will use bonuses and special incomes.

As for New Year's wishes, most Thais are praying for the health of His Majesty the King and Her Majesty the Queen, better economic growth, the country's safety from natural disasters, peace in the South, strong trade, and unity in Thai society.

Meanwhile, the UTCC gave a score of 7 out of 10 for the government's work during the past year, since the military-led regime has confronted many negative factors.

Thanavath said the government has performed quite well during the past year while the economy was hit by such factors as falling prices of crops and oil.

Thanavath expects next year's economy to grow by 3.5 per cent, an improvement from this year's 3 per cent.

Source: http://www.nationmultimedia.com/business/New-Years-spending-expected-to-jump-a-record-6-4-s-30275486.html


-- The Nation 2015-12-23

[emilymat]

I read in the article that this ludicrous figure of 'spending' is based on the responses that indicated a view of 'positive economic growth'.

The I read later that Thai's will be 'praying' for better economic growth.

[Bluespunk]

Hmm, if, as we are led to believe, that household debt is sky high, should excessive new year spending be celebrated?

Especially if it is based upon optimism for the future rather than certainties.

[Nobb]

Only reason spending is up is because the Thai government is buying a railway system from China.