9.4-Billion-Baht Spending Expected in Loy Krathong Festival

BANGKOK, Oct 28 (TNA) -- The Center for Economic and Business Forecasting (CEBF) of the University of the Thai Chamber of Commerce expects people to spend only 9.4 billion baht in this Loy Krathong festival, the lowest amount in nine years. Thanavath Phonvichai, president of the university and chief advisor to the center, said that the university based the estimation on its survey on 1,222 people who were asked about their planned spending in the Loy Krathong festival on Oct 31. Of all the respondents, 42.7% said they would join the festival and 36.3% would not because of economic problems, political demonstrations and the novel coronavirus. The percentage of potential festival goers plunged. The expected spending of 9.43 billion baht would fall by 1.5% year-on-year and be the lowest in nine years since 2012. Government measures to boost tourism, spending and shopping would not significantly stimulate the economy as people were thrifty. Therefore, the government would have to invest to put money in circulation in the economic system, Mr Thanavath said. He also said that political situations could postpone economic recovery from the end of the second quarter. CEBF expected the gross domestic product to decline by 7.5-8.5% this year and rise by 3.5-4.5% next year. According to Mr Thanavath, the most important economic factor is COVID-19, followed by tourism, political situations and liquidity. Of all surveyed operators, 28.33% foresaw business closure within 4.6 months. They needed loans to maintain their liquidity, more tourist arrivals, new markets and reduction in debt burdens. (TNA)