New Year spending edges up

New Year spending edges up

UTCC survey forecasts 5.6% rise to B112bn

New Year spending is expected to exceed 100 billion baht despite most Thais remaining cautious in light of political uncertainties and the unfavourable economic outlook, reported the annual survey by the University of the Thai Chamber of Commerce (UTCC).

Thanavath Phonvichai, UTCC's vice-president for research, said spending during New Year celebrations is forecast to grow by 5.6% to 111.75 billion baht, mainly for travelling and parties at home.

The growth rate is much lower than last year's increase of 15.6% to 105.82 billion baht, a record for the seven-year poll and the first time it surpassed 100 billion baht as respondents were confident about their future income, higher wages and the benefits of the government's controversial rice pledging project.

Based on a UTCC survey of 1,188 respondents from Dec 15-22, spending on domestic travelling is estimated at 50.61 billion baht, with 28.84 billion allotted for overseas travelling.

Bangkok residents are forecast to spend 53.98 billion baht, while those in the provinces are projected to spend 57.77 billion.

On average, Thais will spend 11,816 baht per person during the New Year festivities, up from 11,472 per person last year.

The poll found most consumers planned to spend money on the same things as last year: parties, merit-making and buying consumer goods, luxury goods and durable goods.

Popular New Year presents include fruit baskets, cash/cashier's cheques, gift baskets, food supplements and gift vouchers.

The majority of respondents still view the Thai economy as in poor condition and plan to be cautious about spending next year.

The poll also found most people plan to buy less durable goods including luxury items, apparel and footwear, as they expect higher prices.

Mr Thanavath noted one oddity as respondents indicated continued strong interest in purchasing vehicles, telling surveyers that cars are becoming more essential for transport.

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