Connect with us


Thailand tourism faces uncertainty over Brexit fallout

Legacy Phuket Gazette



MARKETS across Asia are reeling after it became known this afternoon that Great Britain will exit the European Union.

Investors are fleeing to more stable currencies, such as the US dollar, the Swiss Franc and the Japanese Yen, causing major upheavals in Japan whose government has been trying to devalue the Yen in an effort to increase exports and stimulate economic activity.

The Stock Exchange of Thailand sloughed off 40 points after a day of heavy trading, as investors scramble to cope with the Brexit financial fallout. The SET fell below the 1,400 benchmark that economists predicted in a Brexit scenario.

With the London Stock Exchange just opening, the Pound sterling has already fallen to its lowest value since 1985.

On the other end of the see-saw, the price of gold jumped 60 dollars today as investors poured money into traditionally safe investments. Treasuries were also the subject of the frenzied exodus toward stability, as the yield of a US 10-year note fell more than 20 points to 1.45 per cent.

The shakeup in world markets could impact Thailand if the fallout stretches over an extended period. With European currencies at historic lows, tourism – a key driver of the Thai economy – may suffer in the short term. In the first four months of 2016, tourists from the EU and the UK generated 290 billion baht for Thailand’s economy, about 20 per cent of the total tourist income. At the same time, a stronger US dollar may encourage more American tourism to ‘The Land of Smiles.’

The Kingdom’s exports, which account for 65 per cent of GDP, are also in upheaval. Commodities markets remain a mixed bag, with the prices of rubber and rice dropping, while sugar continues to spasm and fluctuate.

Thailand’s computer manufacturing sector, which makes up 15 per cent – the largest share – of the country’s export market may also be in trouble if the trend in commodities persists. Copper, often considered a bellwether for the consumer electronics sector, suffered a three per cent drop today.

— Wes Martin


Get more from The Thaiger

📱 Download our app on Android or iOS
👋 Have your say on our Thailand forums
🔔 Subscribe to our daily email newsletter
📺 Subscribe / Join YouTube for daily shows
👍 Like/Follow us on Facebook
🐦 FOLLOW us on Twitter
📷 FOLLOW us on Instagram


Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Drugs1 hour ago

Meth busts yield 882,000 pills and 5.6kg of meth in Songkhla

Protests2 hours ago

Coup anniversary marked by car mob with over 1000 vehicles

Coronavirus (Covid-19)3 hours ago

Government speeds rollout with 152.9 million vaccines this year

Welcome back to Thailand!

Thaiger is getting behind local businesses for the restart of tourism in Thailand - up to 50% discounts across all advertising packages!

Phuket4 hours ago

Phuket domestic travel rules need streamlining, officials discuss

Politics4 hours ago

Nida Poll: PM Prayut shouldn’t take over PPRP or form new party

Thailand5 hours ago

Nakhon Si Thammarat prison sealed off as infections climb

Join the conversation on the Thaiger Talk forums today!
Coronavirus (Covid-19)5 hours ago

Covid-19: Detailed info on vaccinations, hospitalisations, and provinces

Thailand6 hours ago

Lack of migrant workers forces government to appeal to Thais to fill vacant jobs

Thailand7 hours ago

Songkhla motorcycle showroom catches on fire, no injuries reported

Phuket7 hours ago

Covid-19 prison death yesterday the second this week in Phuket

Thailand7 hours ago

Unemployed Bangkok chef arrested after allegedly trying to sell rare butterflies to undercover agents

Coronavirus (Covid-19)8 hours ago

Phuket Covid-19: 1 Phuket Prison death, 1 Sandbox infection

Central Thailand9 hours ago

Bovine attack kills forest ranger in Khao Yai National Park

Thailand10 hours ago

Korat Police allegedly use police van for trip to beach

Thailand10 hours ago

Kalasin man allegedly robs convenience store and then a gold shop the next day before being arrested

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14 | Thaiger
Thailand5 days ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand7 months ago

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

Tourism7 months ago

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

Phuket7 months ago

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

Tourism7 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand7 months ago

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

Tourism7 months ago

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

Thailand8 months ago

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

Thailand8 months ago

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

Thailand8 months ago

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

Thailand8 months ago

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

Thailand8 months ago

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

Thailand8 months ago

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

Thailand8 months ago

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

Thailand8 months ago

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