UTCC: Festival spending veers to 14-year low among Thais

Festive spending during the New Year holiday is expected to increase only 1.9% this year, the lowest rate in the 14 years the survey has been conducted, as Thais remain cautious about their spending because of the poor economy.

According to the latest survey by the University of the Thai Chamber of Commerce (UTCC), Thais’ spending is estimated to reach 138 billion baht this year.

Some 60.4 billion baht is projected to be spent on tourism at home, with 35.8 billion on overseas trips, 17.4 billion on consumer goods purchases, 11 billion on parties, 9.6 billion on merit-making and 1.16 billion on luxury goods.

“People are still fretting about economic conditions, which have yet to recover. They are being very careful about spending, even during the festive season,” said Thanavath Phonvichai, vice-president for research at the UTCC.

Edibles are the most popular New

Year’s gift, followed by electrical appliances, energy drinks, hampers, jewellery and gold, garments and parties.

When people were asked what they want from the government in the year to come, Mr Thanavath said most want household debt to be tackled by controlling the prices of goods that are essential to daily life as well as offering low-interest funding sources.

The government is being urged to speed up upgrading the educational system, take care of the cost of living, improve access to funding sources and loans, and create new jobs.

People also want the government to rein in the baht, speed up public and private investment as well as budget disbursement in fiscal 2020 to build up political stability.

Kalin Sarasin, chairman of the Thai Chamber of Commerce, said he recently proposed to Deputy Prime Minister Somkid Jatusripitak that the government cut corporate and personal income tax for those who install innovative equipment that helps save energy and protects the environment.

He also proposed the government expand value-added tax refund centres downtown for foreign tourists and reduce excise taxes for restaurants that are open after midnight.

They are being very careful about spending, even during the festive season.

THANAVATH PHONVICHAI Vice-president for research, UTCC