Thai tourism officials to monitor impact of SVB collapse

The Tourism Authority of Thailand (TAT) will monitor the long-term impact of the collapse of Silicon Valley Bank (SVB) on Thailand’s tourism. However, TAT believes that the situation is unlikely to cause an immediate slowdown in long-haul markets.

The bank’s closure last Friday raised concerns about possible economic turbulence, especially given the number of startups and tech companies it served. However, TAT said that demand is still driving travel, particularly among those who saved money during the pandemic and are now looking to take outbound trips.

Siripakorn Cheawsamoot, TAT’s deputy governor for Europe, Africa, the Middle East, and the Americas, said that the situation remains focused in the US. However, he said TAT is monitoring the impact on purchasing power in the long run, as digital nomads and remote workers in the tech industry are some of the main targets of Thai tourism.

Thanet Supornsahasrungsi, president of the Chon Buri Tourism Council, said that the situation may affect tourism in the region where the bank operates, but it should not directly impact Thailand or Asia. He added that attention should be focused on high airfares and limited flight capacity, which have only recently started to pick up.

Thanet said that the closure of banks in the US could have a long-term impact on certain countries’ tourist spending and economies, Bangkok Post reported.

Apart from tourism, the SVB collapse has triggered concerns about the safety of money in banks, with customers in Thailand wondering whether their cash is safe and whether they should withdraw it.

While Thailand’s Finance Minister Arkhom Termpittayapaisith insists that the troubles faced by some major US banks have had no impact on Thailand, people are still worried because a number of experts said that before the financial crisis in 2008.

According to reports, the collapse of SVB was caused by a bank run, where too many depositors tried to withdraw their money.