Govt spending and tourism boom, reasons for optimism in Thai private sector

[webfact]

Govt spending and tourism boom, reasons for optimism in Thai private sector

BANGKOK, 5 May 2016 (NNT) - Despite the recent move by the International Monetary Fund (IMF) to lower its global economic forecast for this year to 3.2 percent from 3.4 percent, in addition to downgrading Thailand's economic growth this year to 3 percent, the country’s private sector still projects a growth rate for 2016 of 3-3.5 percent due to government disbursements and an expanding tourism sector.

President of the Federation of Thai Industries Chen Namchaisiri revealed that the Joint Standing Committee on Commerce, Industry and Banking reported that the Thai economy faces risks from the global economy, but many begin to see signs of recovery driven especially by government investments, with disbursements in the first half of 2016 accounting for 31.9 percent of the total investment budget, coupled with strong growth in the tourism sector.

The Federation had therefore maintained its growth forecast for the Thai economy in 2016 of 3-3.5 percent and export growth this year approaching 2 percent. The Federation warns an appreciating Baht could negatively affect the earnings of exporters.

Meanwhile, Isara Vongkusolkit, Chairman of the Board of Trade of Thailand, said Thailand's consumption trends have started to rise in the second quarter of the year, partly due to growth in the tourism sector, while purchasing power is expected to bounce back after the drought.


-- NNT 2016-05-05

[Nicolas32]

More like they are trying plug the holes in a sinking ship ..

[NongKhaiKid]

Tourism boom ?

Yes of course, couldn't be anything else.

[ScotBkk]

Tourism boom ?

Yes of course, couldn't be anything else.

You mean .....

Tourist : Boom - Doom your dead !!

Edited May 4, 2016 by ScotBkk

[kandi]

"National News Bureau of Thailand"

Enough said.

[carstenp]

Tourism boom ?

Yes of course, couldn't be anything else.

Maybe TAT is Right on this. Was myself on the nong khai border Yesterday and i have been using this border for years now, and i must admit, i have never ever seen so Many crossing the border before and it was foreigner not Laos people, and in Vientiane there was foreigner everywhere. I was waiting more than 2 hours to cross. They was using 4 officer to stamp and the place where your normally get the stamp for car, was open to handle all the foreigner there want to cross. Edited May 4, 2016 by carstenp

[jerojero]

Yes, celebrate government spending and the trillion baht deficit..

[simon43]

i have never ever seen so Many crossing the border before and it was foreigner

Going which way? Fleeing the sinking ship??

[shirtless]

I dont expect the truth in any government statements in LOS

[Plutojames88]

If your communist Chinese masters flooding the country prior to annexing it in future , is called a Tourist Boom , old luck with that.

[carstenp]

i have never ever seen so Many crossing the border before and it was foreigner

Going which way? Fleeing the sinking ship??

Good one but crossing to Thailand. Btw was very informative to talk to many of this people.

Edit: One more thing. Not all Americans vote for Donald trump. We are not doomed

Edited May 4, 2016 by carstenp

[phoenixdoglover]

The headline for the article could have been "Private Sector Sees Continued Economic Stagnation".

The projected growth in GDP is disappointing, given past years in Thailand and the better performance of other ASEAN economies.

The growth in exports of 2% is a meager rebound from the 2015 decline of 5.6%.

I would love to see the government investment quantified; then it would be possible to gauge its magnitude relative to GDP.

As it is, may I point out that spending 32% of the budget in the first half of the fiscal year is not a great example of an aggressive investment program.

[gandalf12]

What exactly is the "expanding tourism sector" can anyone enlighten me?

[carstenp]

What exactly is the "expanding tourism sector" can anyone enlighten me?

Well today Somkid says TAT has reported foreign visitors in the first quarter totaled 9.03 million, up 15.5% year-on-year, generating 455 billion baht in income, up 18%.

And for the second quarter the TAT forecasts foreign visitors of 7.87 million, up 13%, creating 375 billion baht in income.

This is about 10-15 % expanding tourism sector

Edited May 5, 2016 by carstenp

[trainman34014]

Thaitanic sails on....and the Iceberg looms ever larger !

[GAZZPA]

Goodness me, are they serious, the economy is on its arse. The sad point is it shouldn't be, it should be growing at a healthy rate such as Vietnam and the Philippines. Sure the economic climate effects all countries that have strong exports but it's the internal issues that are the problem.

I spoke to a local Thai business man last week, he said to me things are very difficult. His words "the current people in power believe 2+2 =3, there is not chance until we get a newly elected government"

I am cautious about getting involved in these discussions, particularly with a local Thai, however I think he is right and his view seem to be echoed by almost every news agency across the world.

It makes me sad to see such things in the press, pretending everything is ok when it is not ok.

Lets hope that things change soon for the Thailand and the people...

[gandalf12]

What exactly is the "expanding tourism sector" can anyone enlighten me?

Well today Somkid says TAT has reported foreign visitors in the first quarter totaled 9.03 million, up 15.5% year-on-year, generating 455 billion baht in income, up 18%.

And for the second quarter the TAT forecasts foreign visitors of 7.87 million, up 13%, creating 375 billion baht in income.

This is about 10-15 % expanding tourism sector

That is just an increase. When I read "expanding" I assume, wrongly and I should know this, that new areas of tourism are being brought online

[Lupatria]

Tourism boom ?

Yes of course, couldn't be anything else.

Looks like some people here are a little too enthusiastic in their belief violent youth gangs, taxi scammers and technical support teams for balcony-bungee will take a time out to support tourism...

[elgordo38]

More like they are trying plug the holes in a sinking ship ..

Throw the trained seal a fish.

[elgordo38]

Most tourism is plastic card tourism. The bills are yet to come. There is no free lunch in life well at least not in mine but the younger generation seem to have no problem getting "holiday" loans from their friendly banker.

[Squeegee]

Tourist Authority... The Press... this has nothing to do with them.

The National News Bureau of Thailand is pretty much our friends the NCPO.

They're also under your bed and snitching on you by the mom & pop shop.

[baboon]

What exactly is the "expanding tourism sector" can anyone enlighten me?

Well today Somkid says TAT has reported foreign visitors in the first quarter totaled 9.03 million, up 15.5% year-on-year, generating 455 billion baht in income, up 18%.

And for the second quarter the TAT forecasts foreign visitors of 7.87 million, up 13%, creating 375 billion baht in income.

This is about 10-15 % expanding tourism sector

I can't argue with your figures - not least because maths is not my strong point - but I can attest to be being snarled at at places such as Hualampong when you politely decline offers of help in purchasing tickets and such from those polite non SRT employees who suddenly aren't polite anymore. This cannot be for no reason.

The arrivals may be there. The income may be there, but I have a feeling a lot of people are hurting badly.

Anecdotal? Of course it is, but I would tend to believe the evidence of my own eyes and of what people I encounter tell me - Thai and Farang - than desperately upbeat sounding statistics.

[Watchful]

There are two issues that would concern me about Thailand's economy:

1. government investments - even in a democracy this always ends badly. Just look at Solyndra! Half a billion $'s and NOTHING to show for it. In a dictatorship, the investments tend to flow not to worthy endeavors, but to "friends" of the government.

​2. personal debt and government debt - both are growing at an alarming rate in Thailand. The "standard" solution is to inflate your way out of the mess. That is, devalue the currency so that you pay back loans with cheaper, less valuable THB. Notice that doing this will also stimulate tourism by making everything cheaper in terms of Euros and US$'s. There is, however, a downside. All US$ denominated debt becomes very, very difficult to repay.

[graemeaylward]

8 letters, begins with bo and ends with ks !!

[JAG]

8 letters, begins with bo and ends with ks !!

You forgot "Yah"!

☺

[JAG]

8 letters, begins with bo and ends with ks !!

You forgot "Yah"!

☺