According to the Federation of Thai Industries (FTI), an increase in the Thai Industries Sentiment Index (TISI) in March 2023 was brought on by more local tourism promotion initiatives and an increase in the number of foreign tourists.
Thailand’s industrial morale reached its highest point in a decade in March because to a rebound in domestic demand and tourism, but concerns remained about high prices, weak global growth, and currency volatility, according to the Federation of Thai Industries (FTI).
A comeback in local demand and tourism helped Thailand’s industrial confidence to its highest level in a decade in March 2023, but high costs, sluggish global growth, and currency volatility remained cause for concern.
From 96.8 points in February and 94.1 points in January, the Thailand Industry Sentiment Index (TISI) increased to 97.8 points in March. A number of greater than 100 denotes optimism, and a rating of less than 100 denotes pessimism. The recovery in the tourism industry and farmers’ increased purchasing power, as well as the government’s stimulus programs and vaccination deployment, were the key drivers of the improvement.
The ISI, however, continued to fall short of the 100-point mark that distinguishes contraction from expansion, showing that pre-pandemic levels of industrial sentiment were still being maintained. The FTI however cautioned that there were still numerous downside risks that may thwart the industrial recovery, including the introduction of new virus types, the poor pace of vaccine distribution, the heavy weight of family debt, the political unpredictability, and the tensions in international trade.
The FTI urged the government to move more quickly with the execution of its economic recovery plan, particularly with regard to the infrastructure and digital transformation projects. Small and medium-sized businesses (SMEs), which produce and employ more than 80% of all industrial workers, were also urged to receive more support. In addition, it recommended that the government support more high-value sectors and innovation in order to boost Thailand’s competitiveness on the world market.
Thailand is preparing for a tourist rebound in 2023 in the hopes of luring more foreign travelers following a decline brought on by the COVID-19 pandemic. After receiving 11.15 million visitors from abroad in 2018, the administration anticipates 25 to 30 million international visitors this year, compared to roughly 40 million in 2019.
China, which accounted for more than a quarter of Thailand’s overseas arrivals before to the outbreak, is one of the primary areas that Thailand is focusing on. The federation claims that while geopolitical and economic issues across the world continued to be a concern, China’s reopening will benefit Thai exports and tourism in the second half of the year.
