Connect with us

Economy

Deputy PM says 2 years until Thailand’s economy is back to normal

Caitlin Ashworth

Published 

 on 

Deputy PM says 2 years until Thailand’s economy is back to normal | Thaiger
PHOTO: MGR Online

It’s going to be another 2 years until Thailand’s economy is back on track, according to Deputy PM Supattanapong Punmeechaow. At least that’s the amount of time he expects it will take to get the economy back to “normal levels” from before the coronavirus pandemic.

The coronavirus crisis crippled economies across the globe. The Covid-19 pandemic is already the worst global crisis since World War II, according to a report by the UN. Thailand’s tourism-dependant economy has been struggling since the country shut it’s doors to international travel. Krungthai Bank also predicts it will take about 2 to 3 years for Thailand’s economy to recover and the Finance Ministry predicts Thailand’s economy will contract by a record of 8.5% this year.

Almost 800 billion baht has gone into supporting the economy, Supattanapong says, adding that the government plans to do more stimulus perks to help boost the economy. The government is working on a 1.9 trillion baht response package with a 1 trillion baht borrowing plan.

Supattanapong’s guesses are based on the pandemic situation not getting any worse, whilst the world’s Covid cases, in many part of the world, including many of Thailand’s feeder markets, are suffering a new spike in cases. His assumptions would also have to include an immediate return to high profit of the country’s tourism industry – not likely to happen any time soon.

“I think the economy should get back to normal levels within two years… But if we can manage it very well, we may see that late next year.”

While Thailand’s economy as a whole might take just 2 years to get back to normal, the country’s tourism revenue is expected to take even longer. Krungthai COMPASS Research Centre predicts it will be at least 3 to 4 years until tourism revenue is back to normal. Thailand’s tourism revenue is expected to shrink by 70% by the end of this year, making only 9.1 billion baht compared to the 3.02 trillion baht tourism brought in last year.

SOURCE: Bangkok Post

Catch up with the latest daily “Thailand News Today” here on The Thaiger.

Keep in contact with Thaiger by following our Facebook page.

Never miss out on future posts by following Thaiger.

16 Comments

16 Comments

  1. Avatar

    murika

    Friday, September 25, 2020 at 5:47 pm

    Deputy PM Supattanapong Punmeechaow today’s work was to throw a dice, get a 2, announce the public that it will take 2 years for economy to be back to normal, then go online and buy golden watches, well done ! you deserve a salary rise !

  2. Avatar

    Graham White

    Friday, September 25, 2020 at 7:01 pm

    It would be nice to hear from the finance minister on the subject. Oh, I forgot, one was fired and the next one ran away. I’m sure we will have one soon though because our great leader promised.

  3. Avatar

    lou

    Friday, September 25, 2020 at 7:30 pm

    Now I know the guy whom has stollen my crystal ball….I go and report to the Police

  4. Avatar

    Patrick Robert Marcel nouvel

    Friday, September 25, 2020 at 7:49 pm

    lets try to sort out a figure
    Tourism represent about 25% of the GDP including side involved supporting biz
    20% of it from nationals so 20% GDP related roughly to foreign tourism incomes
    Say 3 months at beg year were fine so 9 months fully lost with about 0 foreign tourist means 15% of GDP Lost ?
    Other sectors are under a domino game due lack of general incomes and international contraction country will lose some 5 to 8% further GDP, Am I right of wrong to thing more about 20% contraction rather than 8 or 9 ? I might be wrong please tell me since other figures showing 17 Trillions bath GDP 2019, foreign tourism revenues 2019 = 1,9 trillion X 75% = 1,4 TRILLIONS LOST, so less that 10% GDP but on its own.

  5. Avatar

    rinky stingpiece

    Friday, September 25, 2020 at 8:49 pm

    His guesstimate seems reasonable. 2021 looks like a write-off too, at least until next October. It seems unrealistic to expect tourism to return to pre-COVID levels, maybe they can work their way towards 25% of that, and gradually reach 50%, but boomtime seems over.

  6. Avatar

    EdwardV

    Friday, September 25, 2020 at 9:32 pm

    What is considered “normal”, surely its not 100% of pre-Covid level. More likely something in the 70-80% range? My real wonder is how to get to normal in 2 years when it will take 3-4 years to do so with tourism which makes up some 25% of GDP?

  7. Avatar

    Maag

    Saturday, September 26, 2020 at 9:05 am

    Dream , dream , dream……

  8. Avatar

    Svcoquette

    Saturday, September 26, 2020 at 9:13 am

    It will rake much longer for the international community to forget how you have hassled and treated the foreign tourists stuck here during this crises. The yachts who come here every year and spend much to have boat work done will not forget. Word is spreading fast among the yachtie community and websites.

  9. Avatar

    Svcoquette

    Saturday, September 26, 2020 at 9:18 am

    Don’t be surprised if 1 15 marina out of Singapore cancels it’s plan to build a new marina near Phuket town.

    • The Thaiger & The Nation

      The Thaiger & The Nation

      Saturday, September 26, 2020 at 9:27 am

      If you have some inside info, send us an email to info.thethaiger@gmail.com

      • Avatar

        Svcoquette

        Saturday, September 26, 2020 at 9:49 am

        No inside info. Google “ONE°15 marina plans to build new marina in Phuket”. Project announced in Feb, several meetings held since then with Thai government. Thai yachting industry will suffer for many years to come due the current feeling among yachts here.

  10. Avatar

    TS

    Saturday, September 26, 2020 at 9:23 am

    Dear Mr. Deputy dick-tater. What hat do you pull these projections out of? dream on. Normal is never coming back. Tourists will come but nowhere near the numbers of the gravy train years to support Thailand’s 25% reliance on tourism. One could see the arrival numbers dropping before covid arrived. Tourist industry employees: go back up country and re-hone your agriculture skills. Re-hone those fishing and aqua culture skills. Thats your future now. Hope and pray for partial export rebound even with your over valued local currency. Yes, its grim but it’s reality. Your dick-tater will pull your strings.

    • Avatar

      Patrick Robert Marcel nouvel

      Saturday, September 26, 2020 at 10:01 am

      true !!! as a resort we saw drop of 30% revenues during the last semester of 2019 already against the previous years, mainly due to the high rate of the Bath then deeper and larger coming up competitions over tourism by the neighboring countries, not to forget and addition of the xenophobia and racist approaches to the farangs by the Thai government responsibles at the highest level…goodbye Thailand has already been registered and will deepen in near future Covid or not covid.

  11. Avatar

    Toby Andrews

    Saturday, September 26, 2020 at 9:38 am

    Foreigners has lost trust in Thailand due to the way they have been treated.
    The government has no credibility, and even if this government was removed it is likely to be replaced by another just as bad.
    Foreign owned property will be unloaded.
    Business will flee Thailand.
    Investment will be cancelled.
    Bar girls will be kissed goodbye.
    Well perhaps not the last one.

  12. Avatar

    Billy B

    Sunday, September 27, 2020 at 9:48 am

    My prediction may sound naive, but I predict as soon as flights are allowed back in with no quarantine, tourism will return to normal-ish levels within a few months. I am a frequent tourist who happened to be there during various crises: red and yellow shirt uprising (I was at the airport the night it got closed by yellow shirts), the floods, coups, bombings and the day after the king passed away. In the states, people (like myself) can’t wait to come back. Every time, Thailand always made a swift recovery.
    For the US tourists, first the media need to shut up about the Covid (after the election)
    Second, the curve needs to be lowered more (it is heading down)
    Third, Thailand needs to realize the economic disaster is more of a collective hardship than Covid

    I find the Special Tourist Visa to be kind of absurd. One has to go through the two week quarantine and have to stay at least 90 days? I suppose they have statistics about the rich folks and stay that long but most of them would never want the 14-day quarantine.

  13. Avatar

    Crispy Fruitcake

    Sunday, September 27, 2020 at 10:48 am

    A mature, confident and outward-looking government and people would accept the covid setback as-is, but take it as a pause in which to rethink and renew itself and build a new to-be.
    The government is much to focused on holding its people in check. It needs to share its power and wealth for a deep and widespread rejuvenation. It encourages petty racism to distract attention but how does this help an economy 25% reliant on tourism? The people want to break out and go somewhere.
    It is a time to spend the massive foreign reserves and borrow and amazingly low interest rates.
    Invest in basic infrastructure, in the tourist industry, in education of the people as a basic crying-out need, in the health of the nation.
    Plan too for a shrinking and aging population. This means attracting young people from other ASEAN countries to make Thailand their home – who else will pay the taxes and pensions?
    So lots to think about and do. Is the government capable of rising to the challenge? Regroup, rethink, relax, open up. Let go. Open up.

Leave a Reply

Your email address will not be published. Required fields are marked *



Read more headlines, reports & breaking news in Thailand. Or catch up on your Thailand news.

Caitlin Ashworth is a writer from the United States who has lived in Thailand since 2018. She graduated from the University of South Florida St. Petersburg with a bachelor’s degree in journalism and media studies in 2016. She was a reporter for the Daily Hampshire Gazette In Massachusetts. She also interned at the Richmond Times-Dispatch in Virginia and Sarasota Herald-Tribune in Florida.

Pattaya

Unemployed elephants walk 500 kilometres from Pattaya to Surin

Avatar

Published

on

Unemployed elephants walk 500 kilometres from Pattaya to Surin | Thaiger
PHOTO: Elephants walking down the road because their car is in the shop.

A group of 5 elephants and their owners began the long walk today from Pattaya to Surin after giving up on the return of tourism anytime soon. The 500 kilometre journey has to be done on foot as they couldn’t afford to hire trucks large enough to carry each elephant.

After waiting a year for the Chinese tourists that make up a majority of their customer base to return, the families decided to embark on the long journey with the 5 elephants to their home in the northeastern province of Surin. As they walk they’re protected on both sides by pickup trucks to keep them safe from cars.

5 years ago Napalai Mai-ngam came with her relatives to work in an elephant resort in Tambon Lam Huay Yai of Bang Lamung near Pattaya with their 5 elephants. They told the Bangkok Post that their earned a good living, about 75,000 baht (15,000 per elephant) plus tips from the tourists to ride elephants on nature trails, each month.

But with the borders closed due to the Covid-19 pandemic the tourists from China who usually flocked to elephant activities, were stuck back in China and Napalai’s boss had to cut their pay. Even with vaccinations finally underway, tourists in numbers, enough to sustain activities like elephant camps, may not be back anytime soon. The families finally had to surrender to the reality and start the long walk home.

They avoid the blistering Thai sun by walking early mornings while the weather was still cool, and hope the roadways out of Pattaya would provide snacking opportunities for the elephants to graze. They expect the journey to take about 2 weeks. The families have turned down offers of cash donations for fear that their long walk will be viewed as a publicity stunt.

That said, the families have expressed gratitude to the locals in towns they pass who have donated drinking water, food and fruit to the entourage of people and elephants. If you would like to donate resources you can contact them on phone number 093 335 7062.

SOURCE: Bangkok Post

Keep in contact with Thaiger by following our Facebook page.

Never miss out on future posts by following Thaiger.

Continue Reading

Economy

Southern Thai people turn from tourism to gold panning

Avatar

Published

on

Southern Thai people turn from tourism to gold panning | Thaiger
PHOTO: Traditional panning for gold replaces tourism for income in Southern Thailand

Thars gold in dem hills!

With tourism in Thailand struggling due to Covid-19, and an economy needing some help, some people in the southern Thai region of the country have found income in an unusual source: panning for gold. The Sukhirin region close to the Malaysian border is known for gold deposits in the Sai Buri River and surrounding mountains. Villagers who made money before with tourism have now returned to panning for gold using old-fashioned manual techniques their ancestors used, without the aid of any machinery. Well, just an old pan.

Locals had previously made money selling food to passing tourists or acting as a tour guide to take people around the area, where travellers seeking to get away from the crowded and overdeveloped tourist areas that attract the most foreigners find many unique activities. Kayaking was a popular local activity with up to 150 people a day sailing down the rivers that are now filled with locals panning for gold. The prospectors are now making their income from the gold they collect which sells for 1,500 baht per gram. Families that work together can often collect at least one gram a day.

Thai Gold prices have reached record highs over the last 2 years and many Thai people have traditionally used gold and gold jewellery as a form of savings and investment, pawning their gold rings and bracelets in times of financial emergencies. The gold collected from these Southern villages will be used to make jewellery in Bangkok.

The region had invested in expanding into ecotourism but the pandemic put all their construction plans on hold. A cable car was being built to transport people up to the tops of the mountains to beautiful temples. The area’s unique history attracted people to their annual Rocket Festival, typically a north-eastern celebration.

In 1932, France was granted a 25 year mining contract in the jungles. They extracted almost 2000 kg of gold before World War II forced closure. The mining tunnels still exist and sometimes attracted adventurous tourists, but now sit vacant aside from snakes. In the 1960s the Thai government incentivised northerners with 18 rai of land each to move to the region. As a result, the area stands out in the Muslim region with 90% of the population being Buddhist, and most still speaking Isan dialects.

SOURCE: France 24

Keep in contact with Thaiger by following our Facebook page.

Never miss out on future posts by following Thaiger.

Continue Reading

Economy

Thai baht performs worst of all Southeast Asian currencies

Avatar

Published

on

Thai baht performs worst of all Southeast Asian currencies | Thaiger
Photo by Peter Hellberg for flickr

Among common currencies in Southeast Asia, the Thai baht was the worst performing in the first quarter of 2021, mostly due to Covid-19’s effect on tourism in Thailand.

This week the baht hit its lowest point in half a year, falling 4% against the US dollar to 31.24. The decline was the sharpest in all of the Southeast Asian nations. The Indonesian rupiah fell 3.4% and the Malaysian ringgit fell 3.1%, while the Philippine peso and Singapore dollar dropped 1% and the Vietnamese dong basically held steady. Kyats, the Burmese currency did plummet further, 5.6%, following the military coup in Myanmar on February 1, but it’s not considered a common currency.

Thailand’s depreciation is heavily due to the economic downturn as a result of the pandemic which has all but killed Thailand’s tourist-heavy economy. With borders closed, the drop in foreign tourism pumping money into the economy has left a glaring hole. Before Covid-19, in the third quarter of 2019, Thailand held a surplus of US$11.5 billion baht. By the third quarter of 2020, the surplus had fallen to $6.6 billion, and by the end of the year, it had slid to a deficit of $1.4 billion.

Thailand had been bolstered by the surplus and by the constant influx of tourist spending supporting the economy. Tourism money fell to $742 million due to the pandemic border closure, just 5% of the equivalent period last year. The government is hoping to restart the tourism economy and pump more Thai baht into the country with a variety of actions to shorten quarantine, reopen key tourist locations like Phuket, and eventually allow in vaccinated travellers without any quarantine.

Many are still unsure of Thailand’s stability, with investors, importers and exporters still having doubts. The Finance Minister believes there’s no need to panic, as he was expecting a backlash when the Thai baht hit a 7 year high. They have acted by increasing investment limits to US$5 million for Thais to buy foreign securities, up from US$200,000 and loosened restrictions on foreign currency deposits.

SOURCE: Nikkei Asia

Keep in contact with Thaiger by following our Facebook page.

Never miss out on future posts by following Thaiger.

Continue Reading
Tourism officials slash Songkran travel expectations by half | Thaiger
Chiang Mai1 day ago

Tourism officials slash Songkran travel expectations by half

Thai Airways cuts another 4,250 staff, offering them early retirement | Thaiger
Transport2 days ago

Thai Airways cuts another 4,250 staff, offering them early retirement

Thailand News Today | Bangkok nightspot Covid clusters, Tesco/CP merger goes to court | April 5 | Thaiger
Thailand6 days ago

Thailand News Today | Bangkok nightspot Covid clusters, Tesco/CP merger goes to court | April 5

Immigration police arrest Frenchman on drug charges, 3 other foreigners for overstay | Thaiger
Crime3 days ago

Immigration police arrest Frenchman on drug charges, 3 other foreigners for overstay

Police chief orders staff to work from home after 42 officers test positive | Thaiger
Coronavirus (Covid-19)3 days ago

Police chief orders staff to work from home after 42 officers test positive

Weekend party event in Phuket reports positive Covid attendee | Thaiger
Events5 days ago

Weekend party event in Phuket reports positive Covid attendee

Thailand allows entry to 11 groups of travellers, cuts quarantine down for those vaccinated | Thaiger
Thailand7 days ago

Thailand allows entry to 11 groups of travellers, cuts quarantine down for those vaccinated

Labour union angry over changes to Thai Airways staff contracts under rehab plan | Thaiger
Business6 days ago

Labour union angry over changes to Thai Airways staff contracts under rehab plan

Leading Thai virologist warns of third wave, says herd immunity will take 2 years at current vaccination rate | Thaiger
Coronavirus (Covid-19)5 days ago

Leading Thai virologist warns of third wave, says herd immunity will take 2 years at current vaccination rate

Nightlife shut down in 3 Bangkok districts following rise in Covid numbers | Thaiger
Coronavirus (Covid-19)6 days ago

Nightlife shut down in 3 Bangkok districts following rise in Covid numbers

Some Bangkok international schools close following rise of Covid-19 cases in the area | Thaiger
Coronavirus (Covid-19)6 days ago

Some Bangkok international schools close following rise of Covid-19 cases in the area

Bangkok prepares to open field hospital as officials warn of a rapid rise in infections | Thaiger
Coronavirus (Covid-19)4 days ago

Bangkok prepares to open field hospital as officials warn of a rapid rise in infections

Thai Health Minister pictured without mask, sitting next to infected Transport Minister | Thaiger
Coronavirus (Covid-19)4 days ago

Thai Health Minister pictured without mask, sitting next to infected Transport Minister

Khon Kaen hospital’s 2 Covid-19 infected doctors limit services | Thaiger
Coronavirus (Covid-19)6 days ago

Khon Kaen hospital’s 2 Covid-19 infected doctors limit services

Condolences from Thailand to UK on Prince Philip’s death | Thaiger
Hot News10 hours ago

Condolences from Thailand to UK on Prince Philip’s death

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4 | Thaiger
Thailand1 month ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO | Thaiger
Tourism1 month ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2 | Thaiger
Phuket1 month ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Phuket Thai food treats you need to try | VIDEO | Thaiger
Tourism2 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23 | Thaiger
Thailand2 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

In search of Cat & Dog Cafés in Phuket Town | VIDEO | Thaiger
Tourism2 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21 | Thaiger
Thailand3 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19 | Thaiger
Thailand3 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18 | Thaiger
Thailand3 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15 | Thaiger
Thailand3 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14 | Thaiger
Thailand3 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13 | Thaiger
Thailand3 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12 | Thaiger
Thailand3 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11 | Thaiger
Thailand3 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8 | Thaiger
Thailand3 months ago

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8

Follow Thaiger by email:

Trending