Tourism

Weak Thai baht to help tourism recover amid lack of Chinese tourists

Fiscal and monetary conditions will continue to support the nascent recovery as vital tourism lags behind without Chinese tourists, while the government has reassured that it is not overly concerned about the weak baht, which it noted has been very helpful to the competitiveness of Thailand’s massive export sector and tourism. industries.

The Bank of Thailand is forecasting 6 million foreign tourists this year and 19 million next year as pandemic-era restrictions ease. He also predicts economic growth of 3.3% this year after growing 1.5% last year.

Politicians have vowed that fiscal and monetary conditions will continue to support the nascent recovery as vital tourism lags behind without Chinese tourists unable to come due to strict travel restrictions barring outbound travel.

China accounted for more than a quarter of the 40 million foreign visitors in pre-pandemic 2019.

Unlike past global tightening cycles, Thailand’s capital markets remain in good shape with much higher foreign exchange reserves and low external debt, easing any immediate pressure from US rate hikes.

Thailand has not seen a net capital outflow this year – instead, its bond and equity markets received a net inflow of 157 billion baht.

The government also assured that it was not overly concerned about the weak baht, which it noted was very beneficial to the competitiveness of Thailand’s large export sector and tourism industry.(HNT)


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