Spending growth during the forthcoming Songkran festival is expected to be the lowest in five years, as people remain concerned about economic prospects and cautious with their budgets.
According to the latest survey by the University of the Thai Chamber of Commerce (UTCC), Thais' Songkran spending is forecast to rise by just 2.01% this year to 119 billion baht.
Spending last year rose by 2.36% to 117 billion baht after growth of 10.42% in 2013, 7.1% in 2012 and 3.41% in 2011.
The survey found this year, people plan to spend more on parties and alcohol than on merit-making, travelling and buying goods, indicating that Thais are now in a state of emotional tension.
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"Thus it's a must that state authorities pay special attention to safe travel this year," said Thanavath Phonvichai, vice-president for research.
The survey said the number of travellers both at home and abroad has dropped, reflecting concerns about the country's economic prospects, high household debt, falling farm prices, drought and the rising cost of living.
A recent UTCC survey found consumer confidence had fallen for a third straight month in March, hitting a nine-month low, as the stagnant economy and higher cost of living trumped stabler politics.
People are feeling dejected over farm prices that have yet to show signs of recovery and the negative information that is continuously reported, be it the bearish outlook for exports, government attempts to raise taxes or the higher cost of living.
Moreover, several agencies have painted negative prospects for the Thai economy, weakening consumer confidence.
The central bank recently cut its economic growth forecast for the year to 3.8% from 4%, while Kasikorn Research Center slashed its outlook to 2.8% from 4% based on an assumption of flat export growth.
Mr Thanavath earlier predicted the economy might grow by 3% to 3.5% this year, down from an earlier projection of 3.5% to 4%, with exports to see flat or 1% growth instead of the 1-2% previously forecast.
UTCC is due to unveil its latest economic forecast next Thursday.
"Based on the survey, this is considered an unusual circumstance," Mr Thanavath said.
"The government thus must step up as quickly as possible its budget disbursement, infrastructure development spending and job creation."
Somchai Pornrattanacharoen, president of the Thai Retailers and Wholesalers Association, said the key factor causing sluggish spending this year was falling farm prices.
"However, spending is not that bad this year, as many people are preparing to return home, while the overall shopping climate remains in good shape," he said.