Thailand economic recovery supported by return of tourism

Thailand’s economic recovery will not be affected by a global slowdown due to a rebound in tourism, Finance Minister Arkhom Termpittayapaisith told reporters on Monday.

“Our economy depends on tourism, which is gradually recovering,” he said, adding that not every country is going through a slowdown and so the impact on Thailand’s tourism market will be limited.

“During the winter, European tourists want to escape the cold to Thailand,” Arkhom said.

Tourism is a key driver of Southeast Asia’s second-largest economy. In 2019, it welcomed nearly 40 million visitors, who spent 1.91 trillion baht.

The government previously said it expects tourism revenue to reach $64.5 billion this year from 10 million arrivals.

Arkhom also added that fiscal and monetary policy will be integrated to support recovery after the Bank of Thailand hiked policy rates by 25 basis points twice, in August and September.

“The Bank of Thailand has confirmed that interest rate hikes will examine many factors to ensure recovery,” he added.