The BOT estimates that 6 million foreign tourists will arrive this year and about three times that number next year, which will generate economic growth of 3.3 percent this year compared to 1.5 percent last year.
Political authorities have promised that fiscal and monetary measures will continue to support the emerging tourism recovery, but essential tourism is struggling without Chinese tourists who accounted for more than a quarter of the 40 million foreign visitors in 2019, before the pandemic. Chinese tourists are still unable to travel due to strict measures that prohibit foreign travel.
Unlike other global markets, Thailand’s capital markets remain in good shape, aided by high foreign exchange reserves and low external debt, which reduces any immediate pressure to match U.S. rate increases.
Furthermore, Thailand did not experience any net capital outflows in 2022 – on the contrary, its bond and stock markets attracted net inflows of 157 billion baht.
Politicians also assured that they were not worried too much by the low baht value, which the government said has been beneficial for the competitiveness of Thailand’s export sector.
