Spending during the New Year’s holidays is expected to hit a three-year high amid Thailand’s full reopening and recovering tourism sectors. The University of the Thai Chamber of Commerce (UTCC) anticipates more than 100 billion baht going into circulation during the holiday period. The university’s Center for Economic and Business Forecasting (CEBF) said this reflects how the pandemic is no longer of particular concern for the public.
The CEBF surveyed spending behaviors of 1,345 consumers nationwide and found that most people no longer view the pandemic situation as having an effect on their New Year’s spending. They therefore plan to engage in more activities, including social gatherings.
People are expected to spend an average of about 3,800 baht during the festive period on social events and eating out. 880 baht on average is meanwhile likely to be spent on merit-making and 4,900 baht on durable goods such as electrical appliances.
For luxury items such as jewelry and gold, each consumer is expected to spend just over 15,000 baht, while gift basket spending is likely to average 1,000 baht. When it comes to travel, respondents expect to spend around 10,000 baht on domestic tourism and about 27,000 baht on international tourism.
The CEBF says it projects spending of 103.039 billion baht during the festive period for a 20.1% expansion from last year. This would be the biggest expansion in 17 years of the surveys.
UTCC President Dr Thanavath Phonvichai also said New Year spending would exceed 100 billion baht for the first time in three years. He noted that this illustrates how the pandemic is essentially over for the Thai economy. The government’s “New Year’s gifts” to the public will meanwhile stimulate the activity in the first quarter of next year.
Dr Thanavath added that first quarter GDP growth should expand by at least 3.5%. No signs of further economic woes have so far been observed and the Thai economy is expected to continue its recovery in the second half of 2023. (NNT)
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