New Year's spending to top Bt100bn, UTCC poll says
Year-end spending will exceed Bt100 billion this year, according to the annual survey by the University of the Thai Chamber of Commerce.
Compared to last year when flooding hit the economy hard, spending during the New Year’s celebrations will increase 15.6 per cent to Bt105.82 billion – a record for the seven-year-old poll and the first time it has surpassed Bt100 billion.
"As a result of higher spending, the tourism sector will largely benefit as people will travel more, both foreign and domestic. However, consumers are still worried about higher goods prices, the impact of the global economic slowdown and political stability next year," said Thanavath Phonvichai, director to the UTCC’s Economic and Business Forecasting Centre.
Based on a survey of 1,213 respondents from December 17 to 22, Thais will spend more during the festive season because of higher confidence in their future incomes following expected higher wages and the benefits of the government’s rice-pledging projects.
Thanavath said that New Year’s spending growth is normally twice as high as gross domestic product growth. This year’s GDP is expected to grow by 5.4 per cent leading to a 10 per cent increase in spending.
Last year, because of the flood disaster, spending rose only 2.78 per cent to Bt9.52 billion.
Yajai Chuwicha, head of the UTCC poll, said that most spending will go to New Year’s celebrations and travel.
On average, Thais will spend Bt11,472 per person during the New Year’s festivities.
The poll found most consumers planned to spend money on the same things they did during last year’s New Year’s festival – parties, merit-making and buying consumer goods, luxury goods and durable goods, respectively.
Popular New Year’s presents are gift baskets, fruit baskets, food supplements, greeting cards, gift vouchers, luxury items, durable goods, clothes, alcohol and One Tambon One Product items.
More travellers will go abroad than last year. Of the respondents who said they would travel, 10.9 per cent said they would go overseas, while 2.3 per cent went abroad last year.
Thais will spend Bt49.28 billion on domestic travel and Bt27.46 billion overseas. On a per capita basis, they will spend an average of Bt9,153 on domestic travel and Bt74,321 on overseas journeys over the New Year’s holiday.
UTCC president Saowanee Thairungroj pointed out that following strong economic growth and higher incomes reported by 65.6 per cent of respondents, the trend is for consumers to use more of their salaries for New Year’s spending, reflecting stable incomes and strong economic growth. About 24 per cent will use their savings for New Year’s spending; 10.4 per cent will use bonuses and special incomes.
As for New Year’s best wishes, most Thais are praying for the health of His Majesty the King and Her Majesty the Queen. Peace in the South, strong trade, unity in Thai society and economic growth are other wishes.
On the negative side, the poll showed worries about accidents, crime, traffic and higher prices of consumer goods during the New Year’s celebrations.
Foreign and Thai travellers during the holidays are expected to spend more than Bt13.1 billion, the Tourism Authority of Thailand said yesterday.
TAT governor Suraphon Svetasreni said it would organise activities to stimulate domestic tourism. The TAT’s estimate is good news compared to last year, when the TAT cancelled plans for many events because of the flood disaster.
From Saturday until January 2, the TAT estimates that 2.36 million tourists will head to the provinces, with hotel occupancy at more than 70 per cent.
