Thai central bank reports strong signs of recovery in 3 regions
The Bank of Thailand (BOT) has reported strong signs of economic recovery in September, crediting a tourism revival and subsidies to stimulate spending.
Reports from BOT offices in three regions showed the economy is rebounding fast from Covid-19, government spokeswoman Tipanan Sirichana said on Monday.
The northern office reported that a rebound in the tourism sector had boosted purchasing power and employment, mainly thanks to events such as King’s Cup football in Chiang Mai and the advent of the high season.
The report added that subsidies offered by the government had also shored up consumers’ confidence, prompting them to spend more.
The BOT’s northeastern office reported a rise in consumer spending driven by the subsidies, which had aided economic recovery. Employment rates also improved as MICE (Meetings, Incentives, Conferences, Exhibitions) tourism got back on track.
The Thailand Moto Grand Prix in Buri Ram on October 2 also boosted the local economy thanks to spending from domestic and foreign spectators, the report said. However, it added that the Northeast was now facing a labour shortage after workers returned to jobs in Bangkok.
The BOT’s office in the South reported that tourism continued to grow in September, adding momentum to economic recovery via government spending subsidies.
Foreign tourist continued to return in high numbers while more events were held. The high season had also boosted tourism employment in the region.
The report said government travel and accommodation subsidies had prompted an influx of visitors to tourism provinces in the South, also helping to boost economies of nearby provinces.
The government’s “We Travel Together” tourism subsidy pays 40 per cent of accommodation costs and 600 baht per night for food while its Khon La Kruen co-payment scheme offers 150 baht off daily shopping bills. Both have proved popular among Thais seeking relief from financial burdens triggered by the Covid-19 pandemic.
