Bangkok (VNA) – The March 28 earthquake will further slow the already sluggish recovery of the property sector and impact foreign tourist arrivals in Thailand, according to the Bank of Thailand (BOT).
Sakkapop Panyanukul, assistant governor for the Bank of Thailand (BOT)'s monetary policy group, said that the central bank's initial assessment suggested that the tragic event would affect economic activities across three key sectors – property, tourism and domestic consumption.
He cited that due to the disaster, the BOT expected that rentals and purchases of high-rise condominium projects will slow down amid the already weak recovery of the property sector and the existing high supply of residential units.
Regarding the tourism sector, Sakkapop said media coverage of the earthquake could affect foreign tourists' confidence in travelling to Thailand. Some international travellers will delay or cancel their trips. However, the rate of cancellations and delays is expected to be minimal, in line with the short-term shock of the disaster, he said.
However, based on past disasters in Thailand, Sakkapop said that foreign travellers have generally returned within a short period. However, the speed of recovery will depend on how well all relevant parties work to restore tourist confidence.
Additionally, the disaster is expected to impact domestic consumption, as affected residents may prioritise repairing their homes, potentially leading to reduced overall spending.
However, insurance claims, government assistance measures, and aid from financial institutions are expected to help ease the burden.
In a related development, the central bank has released economic data for February, which showed that Thai economic activity softened compared to the previous month. This decline was particularly evident in the service sector related to tourism, as both the number of foreign tourists and their spending fell.
In February, the number of foreign tourists and their total revenue, after seasonal adjustment, declined by 13.9% month-on-month, while the tourist receipt index dropped by 9.4%, according to Pranee Sutthasri, senior director of the bank’s macroeconomic department.
The drop in foreign tourist arrivals was primarily due to a decline in visitors from China and Malaysia following a surge during the Lunar New Year festival. Concerns over safety, particularly among Chinese tourists, also contributed to the decrease. However, arrivals from other countries, including Japan, India and Russia, continued to increase./.
