Thai Tourism Giants Say Business Will Continue Regardless of PM's Fate
Industry leaders express concern over political instability but insist operations remain unaffected by Paetongtarn audio controversy
- Major Thai tourism and industry leaders state that business will continue largely unaffected regardless of whether the Prime Minister is removed from office, citing the country's history of frequent leadership changes.
- While the Prime Minister's fate is not a primary concern, leaders emphasize that political stability is crucial and warn that violence or excessive protests would harm the economy.
- An industry representative noted that a change in leadership is still undesirable at this time due to existing economic challenges, including low GDP growth and concerns over investor confidence.
- The main call from business leaders is for the government to stop internal fighting and focus on national unity and addressing economic issues like declining purchasing power.
Major Thai tourism and industry leaders have stated that business operations will continue largely unaffected regardless of whether Prime Minister Paetongtarn Shinawatra remains in office, following an audio clip controversy that has led to a Constitutional Court case.
Yuthachai Charanachitta, chief executive of Italian-Thai Group and founder of ONYX Hospitality Group, said the audio clip scandal involving the Prime Minister would have minimal impact on business operations in the short term.
"Whether the Prime Minister stays or goes doesn't make much difference," he explained. "Business must continue as usual, particularly given Thailand's history of frequent changes in leadership."
However, Yuthachai emphasised the importance of avoiding violence or excessive protests, calling on the government to "stop fighting amongst themselves and focus on national unity, moving forward, and addressing people's livelihoods."
He highlighted the strain on both workers and business owners due to declining purchasing power across the economy.
The Constitutional Court is set to rule on 29th August regarding the Prime Minister's case, which centres on an audio clip of conversations with former Cambodian Prime Minister Hun Sen.
Isares Rattanadilok Na Phuket, vice-chairman of the Federation of Thai Industries (FTI), told Thansettakij newspaper that Thailand requires full-time leadership given current economic conditions and investor confidence challenges.
"A change in Prime Minister at this time is undesirable," Isares stated. "If there must be change, it should come through political mechanisms—whether resignation or replacement—but not for other reasons. We particularly don't want any pressure on the Constitutional Court's decision."
He expressed concern about the remaining Prime Ministerial candidates, describing them as "worrying options that aren't particularly suitable for the current situation."
Thailand's economy faces multiple challenges, with GDP growth below 1.8% and exports under 2%. Political instability could further damage economic recovery, Isares warned.
Budget disbursement has also been problematic, with only 370.33 billion baht (39.8%) of the total investment budget spent in the first nine months of the fiscal year, well below the 80% target.
Regarding tourism prospects, Yuthachai indicated that 2025's target of 35 million visitors appears unlikely to be met.
For 2026, he expects tourism numbers to stabilise rather than surge, with visitors continuing to come from traditional markets.
"Global business isn't performing well, people's purchasing power has declined, and Thais are exhausted—whether traders, merchants, or businesses generally," he observed.
Several companies across various sectors began reducing staff in the third quarter of 2025, with budget planning for 2026 also including workforce reductions.
The current climate requires businesses to tighten belts and manage fixed costs carefully due to uncertain future revenues.
The hotel industry has largely avoided layoffs as skilled service workers remain essential for tourism. However, the government's decision to raise minimum wages to 400 baht nationwide has prompted businesses to adapt by having existing staff take on multiple roles rather than hiring new workers.
The recent departure of Cambodian workers due to diplomatic tensions with Thailand hasn't significantly impacted the overall labour situation, as most affected workers were in construction.
The service sector primarily relies on Myanmar workers, who are more numerous and established.
Meanwhile, Thailand faces increasing competition in tourism, particularly from Vietnam, which has rapidly developed man-made attractions and entertainment complexes.
Yuthachai noted that Thailand cannot match Vietnam's implementation speed due to different administrative approaches.
Several planned Thai entertainment complexes remain in development limbo. Despite this, he believes Vietnamese tourism cannot yet match Thailand's service quality, natural beauty, and overall standards.
The tourism industry continues to call for political stability and reduced violence to maintain Thailand's competitive position in the regional market.
