Thai economy to grow 4.0pc in 2023 thanks to tourism

Dhaka: Thailand's economy could grow as much as 4.0 per cent in 2023, which would be the fastest rate in five years, fueled by a rebound in the tourism sector and increased domestic consumption, a deputy prime minister said on February 1.

Anticipated new investment will also help, Supattanapong Punmeechaow, who is in charge of economic affairs, said at a seminar.

"The economy will definitely be better than last year... despite some impact from energy prices," he said.

"Today the economic situation is in recovery and will soon return to normal," he added.

In 2023, the government is expecting 25 million international visitors, including at least five million from China, Thailand's biggest source market before the pandemic.

China's reopening is expected to further boost Thailand's vital tourism, which before the pandemic accounted for about 12 per cent of gross domestic product in Southeast Asia's second-largest economy.

Thailand's economic recovery has lagged that of other Southeast Asian nations, with the crucial tourism sector just starting to rebound last year with 11.15 million foreign tourist arrivals, as per reports.

Thailand received 11.15 million foreign visitors in 2022, a surge from just about 428,000 of 2021 when broad travel curbs were in place, tourism ministry data showed on January 24.

The figures, which beat the government's target, reflect a solid turnaround as Thailand's tries to revive its important tourism industry, which bore the brunt of its strict entry and quarantine policies during the pandemic.

In December 2022, there were 2.24 million foreign tourists, compared with 230,497 in the same period of 2021.

Pre-pandemic 2019 saw a record of nearly 40 million foreign tourists for the full year.

Malaysia, India and Singapore were Thailand's top three source markets in 2022, the ministry said.