Festive spending to surge but politics a worry
Spending during the Loy Krathong festival next Wednesday will exceed Bt10 billion for the first time, reflecting rising consumer confidence, a study suggests. However, some concern about the recurrence of political turmoil late this month could dent confi
A report by the University of the Thai Chamber of Commerce (UTCC) released yesterday said spending during the festival was expected to grow significantly, by 27.2 per cent year on year, to Bt10.3 billion. This is the highest expansion in seven years.
The higher confidence was attributed to positive sentiment on economic growth driven by year-end celebrations and the peak tourism season.
Thanavath Phonvichai, director of the UTCC’s Economic and Business Forecasting Centre, said the expected surge in consumer spending during this year’s Loy Krathong would be a major turnaround from last year, when expenditures dropped by 16.5 per cent because of the flood disaster.
"People will feel more confidence to spend money, travel, and go out for entertainment, which will greatly enhance spending. However, there are still some concerns that political activism by the anti-government Pitak Siam group will affect confidence. Spending could dip below Bt10 billion if there is any turmoil," Thanavath said.
In a survey of 1,213 respondents, Saowanee Thairungroj, president of the UTCC, said more than 90 per cent believed this weekend’s rally by Pitak Siam would affect tourism, mainly in Bangkok and nearby provinces, during Loy Krathong. More than half said that if the activism were prolonged, it would affect their spending.
Problems that respondents wanted the government to solve soon included the economy, unstable politics, higher costs of raw materialsm, confidence among enterprises and investors, and rising prices of consumer goods.
