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Thai AirAsia launches new routes to welcome AEC
BANGKOK, Aug 6 – Thai AirAsia will launch more new
routes to welcome the formation of Asean Economic Cooperation (AEC) in
2015.
Thai AirAsia Chief Executive Officer Tassapon Bijleveld said on Monday
that the airline is trying to cover all routes which are not under
aviation patents.
It inaugurated flights to Mandalay in Myanmar today and increased the
number of flights to Yangon, the former capital and business centre, not
only to support the future AEC but also the potential for tourism in the
two cities.
In the coming years, Thai AirAsia will launch routes in neighbouring
countries with Thailand as a connecting base for such as Myanmar’s
capital Naypyidaw and historical Bagan, Da Nang in central Vietnam, and
Savannakhet in the Lao PDR.
Concerning progress on moving the airline’s operations base to Don
Mueang Airport, Mr Tassapon said the company is preparing for services
with Airports of Thailand (AoT). Half the process is done, and
everything has gone according to plan, he said.
Thai AirAsia will start operating at Bangkok’s second airport from Oct
1. The airline’s website states that all flights departing or arriving
the Thai capital from that date will be at Don Mueang Airport only.
(MCOT online news)
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The future of Thai fruit exports to China
Thai fruit exports appear to have a bright future in
the Chinese market, as the Asian Highway 3 (R3A), linking China, Laos
and Thailand, has bolstered Thailand's trades to its neighbours to the
north, particularly China.
Kunming in China’s Yunnan Province is a main export
destination of Thai fruits.
Thai fruit is delivered by road every afternoon to the city's largest
fruit market, 'Jin Ma Zheng Chang'.
The 1,100km R3A route, launched in April last year, has much facilitated
trade there, starting from Thailand's Chiang Khong in Chiang Rai
province to China's Kun Ming, passing through Laos' Houayxai in Bokeo
province and reaching China at Mohan in Yunnan.
Aiming to substantially raise economic prosperity in the region through
increased trade and investments, the Asian Highway route R3A, under the
Economic Quadrangle Project for Economic Cooperation among Upper Greater
Mekong Sub-region, has so far achieved its goal, for Thai fruit exports
using this road have grown considerably from Bt90 million in 2010 to
Bt700 million last year.
A Chinese fruit seller speaking to Thai News Agency
said that about 150 containers of Thai longans are imported annually
with each container representing 25 tonnes by his small shop at the
market. It takes only about one hour to finish selling one container of
the popular fruit, he said, reflecting the high regard for Thai fruits
among Chinese consumers.
The fruit seller said that Thai produce -- particularly durian, longans,
and mangosteens -- are popular due to their good qualities, taste, and
reasonable price compared to fruits imported from other countries.
To facilitate the process of gaining further exports,
Thammarat Wanglee, adviser to the Thai minister of agriculture and
cooperatives, said a cold storage distribution centre will be built at
Thailand's Chiang Khong border before sending Thai products on to Laos.
A customs system will also be set up there, he added.
The bright future of Thai fruit exports continues since the Thai and
Chinese private sectors have collaborated to set up a distribution
centre for Thai agricultural produce in Kunming in the next five years.
It will be one of the five centres planned for the Yunnan Region.
Meanwhile, in Bangkok, Thai Ambassador to Beijing
Wiboon Khusakul said at the Meeting of Thai Ambassadors and
Consuls-General in early August, that the government's policies
announced at the meeting requiring ambassadors to find more markets and
expand the value of Thai trade can be applied immediately, particularly
expanding agricultural exports.
The official visits of Thailand's prime minister to China and several
top Chinese officials to Bangkok resulted in more collaboration between
the two nations, especially on tax reduction, he said.
"The meeting took note of China as a large market,
and that Thailand could definitely penetrate it. Plans to develop higher
quality fruit markets in China supported by higher purchasing power will
add trade value," Mr Wiboon said.
Thailand will also have an advantage once the communication network in
the ASEAN region is complete, for it can transport fruit to China at
lower cost, while attracting Chinese travellers to spend more money in
Thailand is targeted in the tourism sector. (MCOT online news)
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Cabinet extends 7% VAT collection by 2 more years
BANGKOK, 8 August 2012 (NNT) – The Cabinet has
decided to postpone the planned increase in the country’s Value-Added
Tax (VAT) rate by a few more years to help boost the economy.
Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said on
Tuesday that the weekly Cabinet meeting has approved the proposal from
the Finance Ministry to maintain the current 7-percent VAT collection
for 2 more years.
The government initially planned to raise the VAT rate to 10 percent
from October 1st, 2012
Mr. Kittiratt stated that the current VAT rate is maintained for the
sales of all types of products and services as well as all imports,
occurred during October 1st, 2012 and September 30th, 2014.
After the aforementioned period expires, the VAT rate will be raised to
9 percent, according to the Deputy Prime Minister.
He added that the postponement of the VAT increase is intended to
stimulate public spending and the private sector’s investment, which are
all essential for the recovery of the Thai economy.
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Thailand planned new state-sponsored investment stimulus programs
BANGKOK, 8 August 2012 (NNT) – Thailand is set to
implement more investment stimulus programs to pave ways for the
development of the country.
Deputy government spokesman Chalitrat Chantharubeksa said that the
Cabinet on Tuesday agreed to endorse the minutes of the 5th Strategic
Committee for Reconstruction and Future Development (SCRF) meeting,
which called for the speeding up of 4 key investment plans in the
country.
Mr. Chalitrat said that, according to the SCRF, Thailand has been
missing out in the areas of infrastructure investment for more than 15
years, or since 1997.
Therefore, it is urging the government to plan a 5-10-year investment
policy, which focuses on domestic borrowing and the elevation of the
government-to-government collaboration in the development of the Dawei
deep-sea port project and the related industrial estate, which is
intended to connect Thailand’s west coast.
The SCRF also asked the government to speed up the construction of the
dual-track railway and the high-speed train system.
In addition, the committee stated that the government should quickly
disburse its financial aid to businesses, which were hit hard by last
year’s severe flood crisis, through the Bank of Thailand’s
low-interest-rate 300-billion-baht loan project, which will help SME
operators to be ready for future goods transport to other ASEAN markets
at lower logistics costs.
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Energy committee lowered gasohol-diesel sales contribution to Oil Fund
BANGKOK, 8 August 2012 (NNT) – The country’s energy
committee has decided to collect less contribution from local gasohol
and diesel sales to help shoulder the burden carried by consumers and
businesses.
Energy Minister Arak Chonlatanon said on Tuesday that
the National Energy Policy Committee meeting has agreed to lower gasohol
sales contribution to the State Oil Fund by 0.50 baht per liter.
At the same time, the Fund will subsidize 0.50 baht to each liter of
gasohol E30 and E85 in order to promote the use of alternative fuel in
the country.
Mr. Arak added that the Committee decided to lower diesel sales
contribution to the Oil Fund by 0.30 baht a liter in order to help ease
the burden of the public and the private sector, brought on by higher
inflation.
He stated that the adjustment of the Oil Fund collection will cost it 14
million baht per day in lost contribution.
Cabinet increased credit limits for flood-hit SME operators
BANGKOK, 8 August 2012 (NNT) – Thai SME operators,
who have been hit hard by the flood crisis in 2011, are in for more
financial help from the government.
Deputy government spokesman Chalitrat Chantharubeksa said on Tuesday
that this week’s Cabinet meeting resolved to increase the credit limit
for each flood-hit SME borrower, from 10 million baht to 30 million
baht.
The state-sponsored financial aid was originally designed with Thai
Credit Guarantee Corporation (TCG) as the guarantor and through all
members of the Thai Bankers’ Association.
The government has allocated 300 billion baht for the soft loan project,
which was intended to be lent out at low interest rate.
Mr. Chalitrat said that the latest Cabinet resolution also asked
commercial banks to relax the loan consideration process after their
disbursement has been comparatively lower than at state-run banks.
In addition, the Cabinet agreed to extend the loan application period
until December 31st, 2013, or until the entire budget has been depleted.
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FPO: Extended 7% VAT will help boost consumption & investment
BANGKOK, 8 August 2012 (NNT) – The Fiscal Policy
Office (FPO) is confident that the Cabinet’s decision to maintain the
current VAT rate for 2 more years will help boost the local economy
considerably.
FPO Director-General Somchai Sujjapongse said on Tuesday that the
Cabinet’s latest resolution to postpone the increase of VAT rate from 7
percent to 9 percent until late 2014 is in line with uncertainties
caused by the global economic turmoil.
Mr. Somchai stated that, under current circumstances, the Thai economy
is to rely more on domestic consumption and investment in order to
expand satisfactorily.
He said that an increase in VAT in October of this year will affect
consumption and investment in Thailand considerably while the pitfall
from the delayed VAT increase will highly likely offset the decrease in
Thai exports, caused by the Eurozone debt crisis.
The FPO chief went on to say that the postponement of the VAT increase
should not affect consumer spending because the state investment in
infrastructure will help boost the people’s income, which will
accordingly prepare all to be ready for a higher VAT rate.
However, he warns the country to continue monitoring both local and
overseas risks during the next 2 years, especially the recovery of the
European economy.
Regarding the state revenue collection, Mr. Somchai said that this
year’s target was set at 1.98 trillion baht.
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EGAT to build 4 more coal-fired power plants in the South
BANGKOK, 8 August 2012 (NNT) – The country’s power
producer has unveiled its plan to build more coal-fired power plants in
southern Thailand during the next 7 years.
Electricity Generating Authority of Thailand (EGAT)’s Deputy Governor –
Policy & Planning Mongkol Sakulkao revealed on Tuesday that EGAT is now
in the middle of field visits to the country’s southern region to meet
with locals and explain its plan to build more coal-fired power plants
there.
Mr. Mongkol said that 4 plants have been planned under the Thailand
Power Development Plan 2010 – 3rd amendment.
He stated that new plants are needed to help supply power in the South,
where energy demand is currently at 2,500 megawatts, with an estimated
annual increase of 6 percent; while the present production capacity is
only at 2,100 megawatts.
Until more power plants are operational, the EGAT will have to channel
the electricity generated in the central region to fulfill the demand.
The EGAT’s Deputy Governor said that the first new southern plant is to
be constructed in Krabi Province and is expected to be completed by
2019, while the construction for each of the rest will commence every 3
years.
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Kittiratt assures government’s “Rice Pledging Scheme” will continue
BANGKOK, 8 August 2012 (NNT) – Finance Minister
Kittiratt Na-Ranong has stated that the government’s rice pledging
scheme is incurring less loss than the price guarantee program of the
previous government. He has also assured that the government is
committed to maintaining the scheme.
Mr. Kittiratt has revealed that the government will forge ahead with its
rice pledging Scheme” to enable Thai farmers to earn more income and
improve their well-being, even though the scheme has incurred loss, the
amount of which is yet to be specified. However, the loss in the
pledging scheme” is far less than that incurred in the previous
government’s price guarantee program,” which posted a heavy loss of 50
billion baht during its two years in implementation. Moreover, the price
guarantee project also lowered the prices of farmers’ rice, whereas the
rice pledging scheme allows rice prices to move according to market
mechanism. The pledging scheme gives farmers 15,000 baht per ton for
paddy with the level of moisture within the standard limit.
As for the Opposition’s claim that the pledging scheme is rife with
corruption, Mr. Kittiratt said the issue is now under investigation by
the police and the Department of Special Investigation, or DSI. He also
urged all the people to report officials’ suspicion action to
authorities.
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BoT: Southern unrest only a slight impact on Thai economy
Bangkok, 8 August 2012 (NNT) – Bank of Thailand or
BoT has revealed that the southern border unrest is yet to have a major
impact on Thai economy and suggested that the government take control of
the situation.
The Bank of Thailand (BoT)’s Macro-Economy Division Director Songtham
Pinto has said the impact of the southern unrest has only slightly
affected Thai economy, while the tourism segment has not been affected
at all.
He added that the southern part of Thailand is the country's important
economic zone, of which major industries include those in tourism,
fishery, and agriculture. If the ongoing violence escalates and expands
to Songkla province, it will have a bigger influence on the Thai
economy. To prevent this happening, the government has to quickly rein
in the situation.
According to the survey from hotels and resorts in the Andaman Sea and
the Gulf of Thailand areas, the occupancy rate in the third quarter is
at the same level as that of the same period last year. The increasing
number of foreign visitors are those from China, Malaysia, and Korea.
Unevitably, the number of tourists in Songkla province has considerably
dropped as a result of the impact from the explosion at Lee Gardens
Plaza Hotel in Hatyai on March 31. The occupancy rate has dropped to
40-70 percent from the previous 70-90 percent.
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Thai ICT-related industries will be promoted in ASEAN
BANGKOK, 8 August 2012 (NNT) – The Information and
Communication Technology Ministry, or ICT, is supporting and encouraging
the Thai ICT-related industries for the advent of the AEC.
ICT Minister Anudith Nakornthap revealed that his ministry has drawn up
a plan to boost competitiveness of Thai ICT entrepreneurs in the
international market. The ICT Ministry has a specific strategy to create
new entrepreneurs in this field in order to prepare the country for the
upcoming ASEAN economic community. He added that specific strategy has
been laid down for many ICT industries, including software, animation,
games, computers, network services, and electronic industries. The
Ministry has compiled information regarding the value of ICT-related
industries, the number of entrepreneurs and personnel involved, growth
tendency, and technology trends. The information will be used in
formulating a policy and right-to-the-point work plans to upgrade the
ICT sector. The ministry is also set to help educate Thai entrepreneurs
about the AEC market, making it easier for them to find trade partners
in the region.
Towards that goal, the ICT Ministry will provide ICT courses to new and
existing ICT entrepreneurs. The courses will educate Thai businessmen
about marketing, finance, law, and accounting, so that they can start up
their businesses in the right way and reduce the risk of business
failure.
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DITP: Italian companies to invest in Thailand
Bangkok, 7 August 2012 (NNT) - The Department of
International Trade Promotion, or DITP, has revealed that a number of
Italian-based companies are interested in investing in Thailand’s food
and auto-part industries, given Thailand is a door to other ASEAN
countries.
According to Director General Department of International Trade
Promotion Nuntawan Sakuntanaga, a report from the DITP in Italy has
indicated that several Italian companies have expressed interest in
setting up their production bases inThailand, as they see Thailand as an
important gateway to the Asian region.
The DITP held a meeting in June with Koelnmesse Company, a German
exhibition organizer who in 2013 will organize Thailand International
Food Exhibition, or Thaifex; which over 100 Italian entrepreneurs are
expected to participate in. A lot of food products will be exhibited in
the event.
Additionally, the DITP also had a chance pay a visit to Union Trade
Company, a major Thai food products importer. The company imports rice,
frozen foods, canned foods, dry foods, seasoning sauces, fruit,
vegetables, and beverages from Thailand, and distributes them to other
European countries. Last year, its import of Thai products accounted for
20.7 percent of all imported goods, valued at 4.47 million Euros. The
Union Trade Company also has a plan to introduce Thai products to
“Coop”, Italy’s well-known supermarket chain. This is a good opportunity
for Thai exporters to expand its market range.
Meanwhile, the DITP has also held a meeting with 2 other Italian giant
companies: Brembo and Fiat ( MagnetiMarelli). Brembo is an auto-parts
producer, while Fiat is a world-renowned automaker. Ms. Nuntawan said
the 2 companies are also interested in setting up manufacturing bases in
Thailand for export reason.
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BoT believes Greece will remain European Union member
Bangkok, 7 August 2012 (NNT) – Bank of Thailand or
BoT is confident that Greece will remain as one of the European Union
members. In any case,The BoT has assured that it has drawn up a plan to
cope with the world’s economic impact on Thailand.
Paiboon Kittisrikangwan, Assistant Governor Bank of
Thailand, stated that the Monetary Policy Committee (MPC) has already
assessed the situation and the tendency of 2013 world’s economy. If
Greece continues to be in the European Union, trading between European
members is expected to see a 5.1 percent growth. However, if it is
expelled from the block, the anticipated growth within the region will
drop to 2.2 percent; which will have an impact on Thailand's economic
growth, resulting in the expansion of only 2.5 percent.
However, the Thai private sectors and people should be on a lookout and
prepared for the economic impact that may come. Mr. Paiboon has assured
that the BoT has a specific monetary policy to cope with the effect of
world’s economic crisis. Additionally, Thailand’s public debt level is
still low and the economy has been continuously driven by the Thai
government
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Thai Oil: Retail oil prices may be adjusted this week
BANGKOK, 6 August 2012 (NNT) – Thaioil Public Company
Limited( PTT) has warned that local retail oil prices may be adjusted
upward this week, after the global oil price shot up 3-4 US dollars per
barrel on Friday.
The PTT reported that the crude oil price for delivery in September at
West Texas Intermediate (WTI) increased by 4.27 dollars, hovering at
91.40 dollars per barrel; while the price in Brent rose 3.04 dollars to
108.94 dollars per barrel.
The energy giant also predicted the Brent oil price movement this week
to be around 102 -112 dollars per barrel, while the price at West Texas
should be 85 - 95 dollars per barrel.
The PTT expects domestic benzene retail prices to go up this week.
Meanwhile, Energy Minister Arak Chonlatanon said the government will
continue to keep the diesel price under 30 baht per liter. He explained
that it will use the Oil Fund reserve to help maintain the diesel price,
reasoning that when it is above 30 baht, manufacturers will be forced to
adjust their product and service prices upward.
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Thai diplomats seek markets for local products overseas
BANGKOK, Aug 6 -- Thai diplomats abroad are being
asked to help find new international markets for locally-produced Thai
products, a new strategy to boost sales of Thai local products in other
countries.
Prime Minister Yingluck Shinawatra on Monday launched
the new project jointly supported by the ministry of foreign affairs and
the interior ministry at the annual meeting of ambassadors and consuls
general and the OTOP (One Tambon One Product) fair.
She praised the two ministries working together to find market for Thai
local products. Foreign Minister Surapong Tovichakchaikul said he hoped
that Thai diplomats would work proactively and in an in-depth manner.
"The project is another dimension of diplomatic
mission to work with governors in an attempt to strengthen the Thai
economy in line with the government’s policy," the minister said.
At the OTOP event, 25 products from 19 provinces were selected to
showcase.The products will be improved, adding value by changing
packaging, for instance.
Among the highlighted products are herbal skin care compounds, Mud Mee
hand-woven Thai silk, stingray skin bags, leather shoes, cut gems and
jewellery. (MCOT online news)
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BMA to consider doubling flood preparation budget
BANGKOK, 6 August 2012 (NNT) – The Bangkok
Metropolitan Administration (BMA) is preparing to amend its budget
policy for flood prevention across Bangkok, aiming to increase the
budget by twofold.
Bangkok Governor M.R. Sukhumbhand Paribatra revealed after a visit to
Saen Saeb Canal that the canal’s capacity to drain water is currently at
a good level. There is only a small amount of water hyacinth and weeds
in the canal. The Rama 9 Pumping Station, which drains water from
Ladprao and Saen Saeb Canals into the Chao Phraya River, is also in good
condition and ready for operation.
Deputy Bangkok Governor Teerachon Manomaiphibul stated that many areas
in Bangkok were heavily affected during the flood crisis in 2011.
Therefore, he revealed that during the upcoming consideration of the
2013 budget, the BMA will ask the government to double the budget for
flood prevention in all 50 districts of Bangkok from 75.1 million to
150.2 million baht.
According to the proposal, 18 districts will receive a budget of 2.4
million baht instead of 1.2 million baht, including Phra Nakhon, Pom
Prap Sattru Phai, Samphanthawong, Bang Rak, Pathum Wan, Yan Nawa, Huai
Khwang, Phra Khanong, Khlong San, Bangkok Yai, Rat Burana, Sathon,
Ratchathewi, Khan Na Yao, Saphan Sung, Watthana, Thawi Watthana, and
Phaya Thai.
3 million baht, instead of 1.5 million baht, will be given to 21 others,
including Dusit, Bang Kapi, Min Buri, Thon Buri, Bangkok Noi, Taling
Chan, Phasi Charoen, Nong Khaem, Lat Phrao, Bueng Kum, Bang Kho Laem,
Khlong Toei, Prawet, Bang Phlat, Din Daeng, Suan Luang, Lak Si, Wang
Thonglang, Bang Na, Bang Bon, and Thung Khru.
Meanwhile, the other 11 districts severely hit by last year’s flood will
receive 4 million instead of 2 million baht. They comprise Lat Krabang,
Chatuchak, Bang Sue, Bang Khun Thian, Bang Khae, Khlong Sam Wa, Sai Mai,
Don Mueang, Chom Thong, and Nong Chok.
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UTCC backs Govt on LPG-diesel price restructuring policy
BANGKOK, 6 August 2012 (NNT) – The University of the
Thai Chamber of Commerce (UTCC) has expressed support for the
government’s plan to float the prices of liquefied petroleum gas (LPG)
and diesel late this year.
UTCC’s Center for Economic and Business Forecasting (CEBF) Director Dr
Thanawat Polvichai has revealed that he agrees with the government’s
fuel price restructuring policy, which is aimed at making the prices
move in line with the market mechanism. He reasoned that the policy
could help encourage Thai motorists to consume less energy as well as
prepare Thailand for the upcoming formation of the ASEAN Economic
Community (AEC).
The CEBF Director added that the government should increase the fuel
prices in a gradual manner. According to him, the LPG price should be
adjusted by only 1-2 baht per kilogram in the fourth quarter of this
year, when the Thai economy is expected to start to recover.
At the same time, Dr Thanawat noted that the diesel excise tax should
also be raised by only 50 satang per liter because the inflation rate is
still low. If the adjustment is made next year, when the Thai economy
has recovered and oil prices in the world market have risen, it might
have an impact on consumers’ sentiment. He also urged the government to
formulate measures and regulations to stabilize product prices as well
as production costs for business operators.
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Thailand's GDP growth to fall to 5-5.%: UTCC
BANGKOK, Aug 2 - The University of Thai Chamber of
Commerce (UTCC) will lower its Gross Domestic Product (GDP) growth
prediction for Thailand to 5-5.5 per cent next week, Economic and
Business Forecasting Center director Dr Thanawat Polwichai said.
The official announcement will be made on Aug 9, he
noted.
The adjustment is lower than previously expected at 5.6 per cent due to
the world economic slowdown as a result of Europe's debt crisis and the
downward US economy that has affected world trade and exports.
Dr Thanawat said the UTCC will also lower its prediction for Thailand's
export growth rate from 10-15 per cent to only 5.8 per cent.
There is a 30 per cent possibility the country's economic growth will
expand less than 5 per cent, he warned, due to the government's unclear
investment plans, particularly regarding flood prevention measures
resulting in unexpected capital flow, slower-than-expected
rehabilitation of the industrial sector after last year's flood, and the
worsened eurozone debt crisis. (MCOT online news)
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Thailand's Consumer Confidence Index on present economy increases for 8th consecutive month
BANGKOK, Aug 3 - Thailand's Consumer Confidence Index
(CCI) ‘on the present economy’ has increased for the 8th consecutive
month from 56.8 in June to 57.3 in July, reflecting an improved Thai
economy after last year's flood, a professor of the University of Thai
Chamber of Commerce (UTCC) Centre for Economic and Business Forecast
said today.
Wachira Khuntaweetep noted, however, the CCI to the
overall economy last month lowered slightly from 68.5 to 68.2, for
consumers lacked confidence on the country's economic situation due to
internal politics and fluctuations of the world economy.
The July CCI regarding the economy in the next six months, meanwhile,
was downgraded from 80.2 to 79.1, reflecting consumers' views on
possible risks of the Thai and world economies, particularly influenced
by political instability and the eurozone debt crisis, respectively. The
cost of living tended to continue at a high level.
Meanwhile, Centre for Economic and Business Forecast director Thanawat
Polvichai commented that the overall confidence index for July would
result in lower confidence among consumers in the future, meaning a dull
Thai economy.
Negative factors leading to a lowered future consumer confidence index
included the Bank of Thailand (BoT)'s adjusted prediction of the
country's economic growth this year to 5.7 per cent, from the previously
expected 6, and on next year's growth at 5 per cent, from the earlier
forecast of 5.8 per cent.
Other factors covered included a worsening European debt crisis, causing
negative performance figures for Thai exporters, internal political
instability, higher oil prices, concerns on likely flood situations, and
unsatisfactory prices for agricultural produce. (MCOT online news)
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Thailand's 2012 economic growth projection drops to 5.7% from previously forecast 6%: BoT
BANGKOK, Aug 3 – The Bank of Thailand (BoT) lowered
its projection for the country’s economic performance this year to 5.7
per cent from its previously forecast 6 per cent, Ass’t Gov Paiboon
Kittisrikangwan said Friday.
The adjustment dropped because the economy in the
second quarter expanded only 3.5 per cent compared to the same period
last year, and only 3.3 per cent compared to this year's first quarter.
However, Mr Paiboon said the third quarter will grow 3.2 per cent, but
expand to 16.4 per cent in the fourth quarter. Such high growth of more
than 10 per cent would compare to the same period last year when the
country was facing difficult flood situations.
Meanwhile, the bank sees the country's Gross Domestic Product (GDP) next
year growing by only 5 per cent, from earlier forecast at 5.8 per cent.
The downgrade was based on the government's slow management of finances
such as budget spending and flood prevention measures, resulting in a
lowered GDP of 0.3 per cent, while the stagnant growth of the Thai
export sector has affected 0.4 per cent of the lowered GDP.
According to Mr Paitoon, trade with Thailand's partners will decline
from 4.8 per cent to 4.5 per cent, while the country's overall exports
will grow only 7 per cent from an earlier prediction at 8 per cent.
He said the BoT must monitor the higher risks of the weakening world
economy in the second half of 2012, which will affect the country's
export sector and lessen consumption, while domestic stimulants to the
economy are also slowing down.
However, the slowed economy tended to lower inflation rates, both
headline inflation and core inflation, Mr Paiboon noted. (MCOT online
news)
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EGAT believes AEC is an opportunity for Thailand to access new electricity sources
BANGKOK, 5 August 2012 (NNT) - Mr. Suthep Chimklai,
Assistant Governor of Planning of the Electricity Generating Authority
of Thailand, or EGAT, spoke on preparations to ready the electricity
industry for entering the Asean Economic Community (AEC). He stated that
the AEC would provide a good opportunity for Thailand to access new
sources of electricity, because in the future, domestic energy sources
are likely to be depleted. This would enable the kingdom to increase the
purchase of electricity from foreign countries. At present, Thailand
primarily purchases electricity from Laos.
The AEC will also help realize plans for connecting the electricity
systems of all ASEAN countries in the future. This will help create an
energy security within the region.
EGAT has readied Thailand’s electricity system ahead of entering the AEC
by improving the system to be compatible with those of neighboring
countries. There are also measures in place to allow future connections,
to meet with future increased electricity demands.
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EPPO invites applications for biogas production
BANGKOK, 5 August 2012 (NNT) - Mr. Suthep
Liumsirijarern, Director-General of the Energy Policy and Planning
Office (EPPO), Ministry of Energy, revealed that his office is accepting
applications seeking financial support to biogas production that is
based on wastewater or industrial waste. The move is in line with the
government’s policy to promote use of biogas technology in industrial
factories.
The applications are being accepted in August, the second time this year
after EPPO once called for similar applications during March to July.
EPPO has set a goal to sponsor 114 proposals this year, producing a
total of 190 million cubic meters of biogas per year, with a supporting
budget of over THB1.06 billion.
Interested parties must be engaged in the energy industry, and have
invested in the design of a biogas production plant based on wastewater,
waste, or energy-rich agricultural by-products. The project hopes to see
338 participants throughout the 5-year project.
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ICT to make free wifi service available at 200,000 more spots nationwide
BANGKOK, 4 August 2012 (NNT) – The Ministry of
Information and Communication Technology (ICT) is set to make its free
wifi service more widely available across the country.
Prime Minister Yingluck Shinawatra said that the government-initiated
ICT Free wifi service has been implemented to enable more Thais
nationwide to make use of the Internet, narrow the gap between those who
have and do not have such access and further improve the distance
learning project for people in remote areas.
The PM said that more than 200,000 ICT Free wifi service spots in all 77
provinces will be made available soon, at such public locations as
hospitals, gas stations, city halls and tourist destinations.
ICT Minister Anudith Nakornthap added that the ICT Free wifi was first
commenced in 2011 to raise Thai people’s internet access level while
promoting self-learning by Thai students.
He said that the ICT has joined the National Broadcasting and
Telecommunication Commission (NBTC) and all telecom service providers in
realizing the project.
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BoT: Thai economy managed to recover from 2011 flood crisis during H1-2012
BANGKOK, 4 August 2012 (NNT) – The Thai central bank
has stated that, during the first half of 2012, the local economy
managed to recover markedly from last year’s severe flood crisis.
Bank of Thailand (BoT)’s Assistant Governor Paiboon Kittisrikangwan said
on Friday that Thai economy has been doing well and making a
considerable post-flood recovery during the first half of 2012.
However, Mr. Paiboon forecasted that the expansion will slow down during
the second half of the year, due to the impact of the weak global
economic conditions.
He added that the Thai manufacturing sector has also continued to return
to normal, while it is predicted that the sector will still be expanding
despite the problem of labor shortage and the fallout from the global
economic slowdown.
The BoT’s Assistant Governor went on to say that the country’s exports
sector is yet to fully recover because of weak global demand,
particularly for goods. He noted that Thai service exports appeared
rosier, due to the continued expansion in the tourism industry.
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IEAT to spend more on dike project after finding of possible delays
BANGKOK, 2 August 2012 (NNT) – The Industrial Estate
Authority of Thailand (IEAT) is set to spend more on the construction of
dikes around key industrial estates, following reports of a possible
delay in the initial project.
IEAT Governor Verapong Chaiperm revealed on Wednesday
that the construction of dikes at all 6 industrial estates, with a total
distance of 60 kilometers, under the IEAT supervision, will likely be
delayed and fail to complete before the estimated seasonal flood flows
downstream.
As a result, the IEAT is considering the purchase of ready-for-use flood
barriers from UK-based HESCO, which have an active life of 5 years, to
ensure that the flood prevention system will be in place at all
industrial estates in time.
Mr. Verapong said that the purchase proposal, which is expected to cost
180 million baht, will be submitted to the IEAT Board for consideration
by mid-August.
He stated that HESCO’s barriers allow for faster installation, when
compared with other producers’ offers, with only a few workers to set up
a 100-meter barrier within 20 minutes.
The IEAT Governor stated that the same type of flood barriers has been
installed once during last year’s flood crisis at the Din Daeng-Donmuang
Tollway ramps.
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Government assured Thai economy remains strong while eyeing to further boost tourism revenue
BANGKOK, 2 August 2012 (NNT) – The government has
assured that the local economy remains sound and strong, while
expressing confidence in boosting tourism revenue further.
Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said that
the Economic Cabinet meeting, chaired by Prime Minister Yingluck
Shinawatra on Wednesday, agreed that the outlook of Thai economy remains
strong and stable, despite persisting threats from inside and outside
the country.
Mr. Kittiratt said the meeting noted that the government will step up
its boost for the tourism industry. And after tourist arrivals during
the first 7 months of this year totaled 12.9 million, he is confident
that the total number of tourist arrivals in 2012 will exceed the
initial target of 21 million.
He went on to say that, after the Donmuang Airport is fully operational
in October, the crowdedness at the Suvarnabhumi Airport will be eased,
especially after it reached its capacity in July during which it boasted
1.2 million arrivals and departures.
The Deputy PM has also expressed confidence that the tourism sector will
continue to be a major engine to drive the Thai economy forward and
bring in more income for Thailand.
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BOI extended tax exempt on imported machinery for flood-hit businesses
BANGKOK, 2 August 2012 (NNT) – The Board of
Investment (BOI) has agreed to extend tax privileges for flood-affected
business until the end of the year.
Industry Minister Pongsvas Svastiwat said on Wednesday that the latest
BOI meeting, chaired by Deputy Prime Minister and Finance Minister
Kittiratt Na-Ranong, resolved to extend the expiration of tax exempt on
imported machinery for flood-hit entrepreneurs, from the original date
of June 30th to December 31st, 2012.
Mr. Pongsvas said that the deadline extension is needed as a number of
business operators are in the middle of preparation for the import of
new machinery to replace the damaged ones or are deciding whether they
should apply for some tax privileges from the BOI.
According to BOI data, more than 150 projects located in Ayutthaya and
Pathum Thani are preparing all documents to apply for tax incentives.
As of June 30th, 490 projects have imported machinery worth 108.65
billion baht to replace those that were submerged late last year.
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Thai CPI went up during first 7 months of 2012
BANGKOK, 2 August 2012 (NNT) – The Commerce Ministry
has revealed that the country’s consumer prices have gone up slightly
during the first 7 months of 2012.
Permanent Secretary to Commerce Ministry Yanyong Phuangrach said on
Wednesday that Thai inflation rose 2.73 percent in July, while the rate
for the first 7 months of the year went up 2.92 percent.
The Commerce Ministry initially forecast the 2012 inflation target at
3.30-3.80 percent, with the impact of the word economic problems,
natural disasters and foreign exchange volatility considered risk
factors for consumer prices.
When compared with the preceding month, July inflation showed a small
increase of 0.35 percent.
Mr. Yanyong also predicted that the inflation in the fourth quarter will
go further up to 3.1-3.3 percent.
He added that if the country’s Fuel Tariff (FT) on electricity charge
goes up by 0.30 baht per unit during September and December, the
consumer index will be directly hit by 0.082 percent.
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Thailand’s fuel production capacity to reduce in 10 years time
BANGKOK, 2 August 2012 (NNT) – According to the
Ministry of Energy, Thailand will be able to produce natural gas and oil
at only 18 percent of the demand of 2.6 million barrels per day in the
next decade.
Director-General of the Department of Mineral Fuels, Ministry of Energy,
Songpope Polachan has revealed that currently Thailand demands 1.9
million barrels of fuel per day while it can produce fuel at only 44
percent of the demand. Based on the assumption that the domestic fuel
demand increases 3 percent each year, by 2022 the demand should have
risen to 2.6 million barrels per day. And if Thailand does not develop
alternative fuel sources, its production capacity will go down to 18
percent of the demand in the next decade. As a result, Mr. Songpope is
suggesting that the opening of new bids for petroleum concessions is
crucial in order to stabilize Thailand’s fuel production level and
reduce foreign energy imports.
Mr. Songpope went on to say that if there is a progress in joint efforts
between Thailand and Myanmar as well as Cambodia in developing petroleum
sources in overlapping continental shelf areas, it would benefit
Thailand’s energy security. However, Thailand should rely not only on
imports, but also on itself by opening more petroleum concessions in
order to strengthen the country’s fuel production capacity.
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Hospitality business set to blossom at the prospect of AEC
BANGKOK, 2 August 2012 (NNT)-M.L. Suravut Thongtham,
Senior Vice President - Sales of ONYX Hospitality Group, has disclosed
that the tourism industry and attractive investment opportunities in the
ASEAN region will prevail significantly in the anticipation of the ASEAN
Economic Community (AEC) in 2015.
He cited the Board of Investment’s recent figures, which revealed a
total investment of 250 billion baht in Thailand at the prospect of AEC.
The statistics also showed that 70% of the investors are Japanese. The
Senior Vice President explained that the higher number of foreign
investments in Thailand is the result of new investment opportunities in
Myanmar and Cambodia.
Given investment chances and the government’s desire to transform
Thailand into a transportation hub, he said, more businessmen are
expected to settle down in the Kingdom. Moreover, the hospitality
business will begin to grow exponentially given a higher number of
tourists in medical tourism and the AEC.
M.L. Suravut predicted that the number of hotel rooms would increase by
approximately 35%, or around 9,000; 3,500 of which will be five-star
rooms. He also expressed his belief that the Thai economy will gradually
expand due to its transport system and conference facilities, which will
surely attract many investors.
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MEA launches the first electric vehicle charging station in Thailand
BANGKOK, 2 August 2012 (NNT) - Metropolitan
Electricity Authority (MEA) yesterday unveiled Thailand's first electric
vehicle (EV) charging station for the public, with a total of 10
stations expected to be launched by the end of this year.
According to MEA Governor Atorn Sinsawat, the agency supports the use of
environmentally-friendly electric cars, as the vehicles run on clean
energy. The first EV station is now open for use at the MEA’s
headquarters, with nine more to be built before the end of December.
The agency also plans to order 20 electric cars for its own use within
the next four years.
The Governor added that the total cost of the station construction is
estimated at 600,000 baht. Each station offers a 30-minute charge, which
allows the vehicle to run for approximately 80 kilometers.
Members of the public can use the station’s services for free until July
31, 2013.
Thai Cambodian border crowded with holidaymakers
SRISAKET, 2 August 2012 (NNT)-The atmosphere on the
Thai-Cambodian border in Phusing district, Srisaket province has been
electrifying as many Cambodian nationals are making their way across the
border to shop for alms giving items on the occasion of Buddhist Lent
Celebration tomorrow.
According to the report, the weekend market is the main attraction for
Thai and Cambodian residents around the border. A group of 31 Harley
drivers, also known as Big Bike, have also gotten together to embark on
a trip to Cambodia this morning; their final destination is Nakorn Wat
temple.
Their journey is hoped to help promote Thai and Cambodian relations.
They will also meet with Cambodian bike lovers. According to one tour
agent, after the troops have been withdrawn on both sides of the border,
local tourism has now returned to its glorious days again.
He added later that the long weekend has drawn many holidaymakers from
Thailand to cross over to Cambodia to visit Nakorn Wat temple; vice
versa, many Cambodians have also entered Thailand to shop for items
needed for the Buddhist holidays.
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Thailand sees potential as regional hub with future hi-speed train
BANGKOK, July 31 - Thailand has the potential to be
South East Asia's most important economic hub when its future high-speed
train is in place, due to the country's oceanic geography linking Laos
and China through Singapore, a study conducted by the Thailand
Development Research Institute (TDRI) said.
TDRI Distinguished Fellow Chalongphob Sussangkarn on
Tuesday spoke at a seminar in the capital on the institute’s research
study on benefits deriving from Thailand's future high-speed train
linking neighbouring countries and encouraging Thailand itself as the
region's centre of economy and tourism.
According to TDRI's research, Thailand's high-speed construction will
tend to help increase the country's trade with neighbouring nations via
land transportation links.
Thailand's trade with Laos is expected to significantly rise, in
particular at the Nong Khai border checkpoint, while the trade with
southern China through Thailand's Chiang Saen border is estimated to be
valued at over Bt30 billion in 2021, with transportation costs to
decrease up to 20 per cent in this same year.
Tourism in the north and northeastern was expected to rise as a result
of the high-speed train, Mr Chalongphob said.
However, TDRI advised the Thai government to conduct a long-term study
of up to 30 years on the entire high-speed train system, particularly
connecting routes from China to countries in the Association of South
East Asian Nations (ASEAN), while noting that such routes will cover the
logistics system of the Mekong Framework Collaboration and the ASEAN
Economic Cooperation (AEC), which will greatly benefit trade.
As problems still occur on routes connecting China and Laos, both
countries and Thailand should discuss investment and benefits to
determine solutions.
The government should also study how the country's industrial sector can
benefit from the high-speed train investment. For instance, as Thailand
is an important manufacturing base for auto parts, the government should
support the industry's foundations to add value to and make the most of
the high-speed train.
The Thai government is to build four high-speed rail lines --
Bangkok-Chiang Mai at 745km (costing Bt229 billion), Bangkok-Nongkhai at
615km (Bt201 billion), Bangkok-Rayong at 221km (Bt72 billion), and
Bangkok-Padang Besar at 982km (Bt297 billion). (MCOT online news)
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2012 exports projected to grow at 5.8%, lowest rate in 3 years
BANGKOK, July 31 - Thai exports this year are
projected to grow at 5.8 per cent, valued at US$242 billion, the lowest
growth in three years thanks to signs of slowing Thai exports from
overseas factors, according to an analysis released by the Centre for
International Trade Studies of the University of Thai Chamber of
Commerce (UTCC).
Centre Director Asst Prof Dr Aat Pisanwanich released
the study on the impacts of the euro zone crisis on Thai exports, saying
it is likely to impact Thailand’s key trading partners both directly and
indirectly including China, the US, India, Japan and ASEAN countries.
Thailand’s exports to these countries altogether amount to half of all
Thai exports.
The crisis is likely to expand worldwide and goods prices in the global
market are likely to fall sharply. Index of farm produces’ prices is
projected to drop 7.8 per cent this year. Food and beverage prices will
likely drop 2.7 and 19.3 per cent respectively while raw materials
prices are expected to fall 14.3 per cent.
The European market is likely to shrink 4.5 per cent and exports of
electric appliances, computers, and machinery to European Union markets
are likely to be impacted. Indirect impacts could be seen in ASEAN
markets, which are likely to expand 10.3 per cent, dropping from 21.2
per cent last year.
Chinese and Indian markets are projected to grow 8.3 per cent and 4.4
per cent respectively this year, decreasing from 27.6 per cent and 17.9
per cent, recorded last year.
Mr Aat advised that if Thailand wants to achieve its export target at 15
per cent in the second half of this year, it must push for exports in
each month to surpass US$25 billion. However, entrepreneurs are advised
to exercise their rights under the Free Trade Agreements.
So far, only 60 per cent of them have used FTA privileges. Border trade
should be increased and commodity prices should be adjusted in
accordance with declining purchasing power. The government should also
help them cut their production costs. (MCOT online news)
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Government agreed to raise credit limits for flood-affected entrepreneurs
BANGKOK, 1 August 2012 (NNT) – The government is
ready to raise credit limits for business operators who have been hit
hard by last year’s severe flood crisis.
Industry Minister M.R.Phongsawat Svastiwat said that the government’s
Economic Affairs Screening Committee, which is chaired by Deputy Prime
Minister and Finance Minister Kittiratt Na-Ranong, has approved the
revision of the state-sponsored soft loan program for flood-hit
entrepreneurs.
The review, especially for the 100-billion-baht budget allocated for SME
operators, resulted in the increase of each borrower’s credit limit from
10 million baht to 30 million baht.
M.R.Phongsawat expects an increase in the number of flood-hit SME
borrowers from the current 25 percent of all operators, after the
revision has been made.
In addition, the Economic Affairs Screening Committee also agreed to
extend the loan application period for SME borrowers from October 31st
to December 31st, 2012. The resolution will accordingly be submitted for
Cabinet approval, said the Industry Minister.
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Thai jewelry industry hurt considerably by Eurozone debt and US crises
BANGKOK, 1 August 2012 (NNT) – The Eurozone debt
crisis and the problems in the US economy have hurt Thailand’s jewelry
export sector considerably.
The Gem and Jewelry Institute of Thailand (GIT)’s Executive Director
Kritcharat Hirunyasiri said on Tuesday that the economic crisis in
Europe has led the Thai jewelry export industry to slow down, while the
US crisis also plunged the export growth to shrink 9 percent during the
past 5 months.
In order to counterbalance the contraction, Thai jewelry exporters have
been forced to expand into other more viable markets, such as Hong Kong,
Japan, Russia and the Middle East.
Mr. Kritcharat, however, affirmed that Thailand’s jewelry business
operators still possess high export potential, especially those who
produce silver accessories.
Finance Ministry: State-initiated debt moratorium to be reviewed
BANGKOK, 1 August 2012 (NNT) – The Finance Ministry
revealed that the state-initiated debt moratorium project is being
reviewed to offer both lenders and borrowers a win-win situation.
Deputy Finance Minister Tanusak Lek-uthai said on Tuesday that the
Finance Ministry is reviewing the criteria of the debt moratorium for
quality borrowers with the maximum debt of 500,000 baht per household.
Mr. Tanusak said that the review is intended to allow the public a fair
chance to enjoy the state assistance.
He added that each borrow will also be entitled to an automatic
reduction interest rate for 3 years, if he/she decided not to
participate in the moratorium program.
The Deputy Finance Minister has reassured that lenders will not be
affected much by the revised criteria, while stating that all related
agencies, including the Fiscal Policy Office and the Permanent Secretary
to the Finance Ministry, will make sure that the review does not go
against the Cabinet resolution previously reached. He said that the
conclusion on the issue is expected before August 20th.
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TDRI: Populist policies create more public debts and corruptions
BANGKOK, 1 August 2012 (NNT) – The Thailand
Development Research Institute (TDRI) has advised the government to
reconsider its populist policies as they create more public debts and
open chances for more corruption activities.
TDRI Research Director for Macro-economic Development and Income
Distribution Somchai Jitsuchon stated that even if the Thai GDP growth
this year is 7%, he would not consider it a high growth because the
economy last year was slow. He suggested a five-year economic outlook
should be able to tell the real growth. He said that the government’s
populist policies are obstructing the economic growth as they show lack
of spending discipline, affecting the nation’s finance and pave the way
for more corruption activities.
Meanwhile, Federation of Thai Industries (FTI) Chairman Payungsak
Chartsutthipol said corruption is among the biggest problems hindering
the country’s growth, especially when the government has many projects
planned.
Executive Vice President of Bangkok Bank PCL Kobsak pootrakool
speculated that the economic growth this year will be only 5-6%. He said
the last quarter in particular will experience high growth compared to
the same period last year, when the nation was hit by the devastating
flood. He added the European economic crisis will also have impacts over
the Thai economy, especially in the export sector.
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UTCC: Thai export to expand by only 5.8%
BANGKOK, 1 August 2012 (NNT) – The University of Thai
Chamber of Commerce (UTCC) has reported that the European economic
crisis will continue to impact the Thai export sector, adding that this
year' export volume will increase by only 5.8%.
UTCC Director of the International Trade center, Att Pisarnvanich,
revealed the analysis on the indices that influence Thai export. He said
the indices showed clear signs of slowing down from the impacts from
other countries, particularly European.
Mr Att speculated that the European economy is likely to contract by 4.5
this year, which will have detrimental impacts over the Thai export
sector, forcing it to expand by only 5.8% compared to the previous
year's. The UTCC earlier predicted that the export would increase by up
to 13%.
The Director further elaborated that Thai products suffering the
heaviest blows from the EU debt crisis are electrical appliances, food,
jewelry, textile, and para-rubber.
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Tourism industry continues to expand despite Eurozone debt crisis
BANGKOK, 1 August 2012 (NNT) – The central bank has
assured that the tourism industry has continued to expand despite the
financial crisis in Europe.
The Bank of Thailand (BoT)’s Senior Director for Macroeconomic and
Monetary Policy Department Mathee Supapongse said on Tuesday that the
travel and hotel sectors recorded constant growth in June, when about
160,000 foreign holiday-makers visited the country. The number
represented a 10.1-percent on-year growth.
Mr. Mathee said that visitor numbers to every region of Thailand have
increased, with Chinese and Vietnamese visitors on top of the list.
He credited the continued growth of Asian economy for the buoyant
situation in the travel sector.
Concerning the country’s hotel occupancy rate, Mr. Mathee said that the
number was 53.5 percent in June, up from 49.7 percent from the same time
of last year.
For the second quarter of 2012, around 4.9 million overseas travellers
landed in Thailand, an on-year increase of 9.2 percent, with most
visitors coming from within the Southeast Asian region. This is in spite
of the bombings in Hat Yai and earthquake scares in the South, in March
and April, respectively.
The BoT’s Senior Director has also affirmed that the debt crisis in
Eurozone has not affected Thailand’s major money-spinner much, so far.
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