CNY spending boom: Thailand poised for festive cash splash
Thailand’s economy is set to light up like a firecracker this Chinese New Year, with spending forecast to rise by over 3%, according to the Economic and Business Forecasting Centre at the University of the Thai Chamber of Commerce.
Buoyed by a recovering economy, government cash injections, and a surge of Chinese tourists, the festival promises to spark a celebratory spending spree, said Thanawat Phonwichai, President of the University of the Thai Chamber of Commerce.
“Judging from the new year festivities, the atmosphere was vibrant, with crowds gathering for countdowns and celebrations in major cities. We anticipate a similar lively scene for Chinese New Year.”
Spending during the recent new year festival hit 109.3 billion baht, a 3.2% increase year-on-year. Chinese New Year is expected to continue this trend, with a boost from government measures such as direct cash payments to farmers and seniors, and the Easy E-Receipt tax deduction scheme for purchases up to 50,000 baht.
Adding to the economic cheer, Chinese tourist numbers are climbing back to pre-Covid highs. Last year, nearly 7 million Chinese tourists visited Thailand, and this year could see as many as 10 million. This influx, paired with China’s efforts to stimulate its economy, is predicted to revitalise Thailand’s tourism and retail sectors.
Looking ahead, Thailand’s economy is projected to grow by 3% this year, provided there are no major disruptions such as trade wars or domestic instability. With a robust plan for economic stimulus, investment, and debt management, the government is optimistic about stronger growth in the latter half of the year, reported Money and Banking Online.
In related news, the outlook for the Chinese inbound market to Thailand this year is expected to remain steady, with projected arrivals hovering between seven to eight million, according to the Association of Thai Travel Agents (ATTA). This forecast arises amidst China’s persistent economic difficulties and the anticipated tariff hikes from the incoming Trump administration.
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