Thailand Chamber of Commerce Calls for Government Economic Measures
On January 13, 2025, Mr. Sanan, President of the Thailand Chamber of Commerce, revealed that the Thai economy is expected to grow by 2.4-2.9% in 2025, with exports increasing by 1.5-2.5%. Inflation is projected to be in the range of 0.8-1.2%, remaining at a relatively low level. In particular, the economy in the first half of 2025 is expected to continue the growth trend from late 2024, driven by countries rushing to import goods before the U.S. imposes additional tariffs, which will keep export growth strong in the first half. However, the economic outlook for the second half of the year is concerning, and the government must urgently increase revenues to stabilize the economy.
He also emphasized the need to give significant attention and accelerate the promotion of the tourism industry, especially due to the loss of tourist confidence following the disappearance of Chinese actor "Xing Xing" at the border. This incident has had a significant impact on Chinese tourists, who represent a major market for Thailand. Additionally, measures should be explored to boost the number of Indian tourists visiting Thailand.
Regarding political stability, there are reports suggesting a cabinet reshuffle in April this year. However, such reshuffles are normal, and it is believed that the government will maintain stability and continue to govern effectively. Building confidence both domestically and internationally is crucial. During the reshuffle, cabinet work will continue and is expected to have little impact.
Furthermore, he added that concerning the concerns about foreign investors and the influx of substandard goods, the Thailand Chamber of Commerce is actively researching solutions. This involves trade measures among ASEAN countries, which will serve as guidelines for the government to handle and protect international trade. It is expected that the research will be completed in February.
Thailand’s Tourism Industry Faces Black Swan Event
Let’s first examine the structure of Thailand’s economy. In 2023, agriculture accounted for only 6% of the GDP, industry accounted for 33%, while the services sector made up a staggering 61%. Within the services sector, tourism is the most important part.
According to data from Thailand’s Ministry of Tourism and Sports, in 2023, Thailand welcomed over 28 million foreign tourists, generating tourism revenue of 2 trillion Thai baht, which is equivalent to 418 billion RMB. Tourism accounted for about 18% of Thailand’s GDP.
In 2024, the number of tourists visiting Thailand reached a new high. From January 1 to December 29, 35.32 million foreign tourists visited Thailand.
It can be said that tourism has become an important pillar of Thailand’s economy. However, as the new year of 2025 began, the situation started to change.
Recently, an incident involving Chinese actor Wang Xing being scammed by a film crew in Thailand caused a stir in China. Although he was eventually rescued by Thai police and safely returned to China, this event caused many people to lose confidence in Thailand’s tourism industry. Many people began canceling their travel plans to Thailand.
It is reported that the ticket cancellation rate for flights to Thailand during the Chinese New Year has exceeded 10%. Even with high cancellation fees, people are willing to cancel their tickets, as safety is the top priority.
As the situation continues to unfold, more people are expected to temporarily avoid Thailand.
Even more absurdly, a concert by singer Eason Chan, originally scheduled for February 22 in Bangkok, was directly canceled due to safety concerns.
How Will Thailand Find New Growth Drivers for Its Economy?
The development of the gambling industry in places like Macau and Singapore has made Thailand realize the huge business opportunity it represents. Thailand is also reluctant to miss out on the opportunity to develop a gambling industry, attempting to make it a new growth engine for the country.
On January 13, 2025, Thai media reported that Prime Minister Prayut, after a cabinet meeting, revealed that after listening to the public and relevant departments, and modifying the proposal, the cabinet passed a bill to legalize gambling and casinos on the same day.
According to the government’s plan, the law will allow gambling in large entertainment venues. Prayut stated that this move is aimed at promoting Thailand’s tourism industry, employment, and investment.
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