Thailand: Finance Ministry approves stimulus package to spur tourism
BANGKOK: The Finance Ministry has now approved a stimulus package for the last three months of the year to boost Thailand’s tourism sector. The aim is achieve a 3% growth rate.
The Thai Tourism and Sports permanent secretary Chote Trachu says the purpose is to increase the total tourist arrivals for the second half of the year to 20 million, with the aim to reach the year-start projections of more than 40 million tourists to Thailand for 2019.
Tourist arrivals for the first eight months of the year totalled 26.5 million, generating 1.3 trillion baht of revenue, according to official figures from the Ministry of Tourism and Sport. For the remaining four months of the year, Mr. Chote said there would likely be another 13 million tourist arrivals, with expected revenue of 750 billion baht.
Tourism Authority of Thailand governor Yutthasak Supasorn says that events have been planned to boost tourism for the final months of 2019 including World Cannabis Festival, Super GT, a Tour de France cycling competition and concerts featuring famous bands such as Tomorrow Land and EDC.
Meanwhile, last Thursday, the World Bank slashed Thailand’s economic growth projection for 2019 to 2.7%, down from an earlier 3.5%, because of the contraction of the country’s exports.
In its latest “East Asia and Pacific Economic Update”, the World Bank said today the 2.7% GDP forecast for Thailand is the lowest among ASEAN’s developing countries. The Washington-based institution also cut Thailand’s GDP growth forecast for 2020 to 2.9% from 3.6%.
The World Bank’s report attributes the lower GDP growth outlook to an export slump in the first half of the year, the global economic slowdown and fallout from the US-China trade tensions. The World Bank also says “the Bank of Thailand has limited scope to tackle the baht’s strength, but the currency’s climb is a sign of investor confidence in the country’s economic fundamentals”.