Retail business expects a 20-30% sales increase from the government’s launch of several packages aimed at boosting public spendings in the New Year season.
But one of the state’s notable think tanks says the packages will not have a significant impact on the economic growth of the country.
Central Pattana Pcl’s vice president for marketing Nattakrit Tangpoonsinthana, said that the government’s ‘Shop to Help the Country’ campaign which serves as a New Year gifts to the public will help to increase consumer spendings in the remain month of this year.
The campaign was similar to the one that was launched late last year, he said and expects the company’s sales to increase by 20-30 %.
He said as a whole, business would improve, but under the present atmosphere that the government has wisely allowed tax exemptions for purchases during the campaign.
Not taking into account the contributions from the tourism sector, this will greatly help increase consumer spending such as it did in the previous year, he said.
He also said as it is the national mourning period for His Majesty King Bhumibol Adulyadej, the New Year’s countdown celebrations which are normally organized in a big way at the plaza in front of the Central World shopping center would be toned down.
But decoration of 10 million light bulbs and a commemorative ceremony for His Majesty have been planned instead of the previous years’ pomp and revelry which accompanies every Central New Year celebrations, he said.
Research Director for International Research and Advisory Service with the Thailand Development Research Institute (TDRI) Ms Kirida Bhaopichitr, meanwhile, stated that government’s campaign to increase domestic spending will no doubt be effective most, particularly its measures to allow tax exemptions on purchases.
However she felt that the effort will not have a significant impact on the economic growth of the country, though laudable.
She said the value of the tax deductions do not account for much, only around 15,000 – 30,000 baht.
Another factor that must be considered is the fact that many consumers regularly plan their yearend shopping during this period anyway.
Taking aside tourism, the campaign only helps to drive consumer spending during the short period in the latter months of the year similar to the previous year, she added.
