Spending during the forthcoming Songkran festival is forecast to see the lowest growth in the four years from 2011 as the domestic economic slowdown prompts local holidaymakers to count on loans and their savings to party during the water-splashing season.
Prasit Chiaranaisakun (right), vicepresident of the Khao San Road Business Association, announces the organisation will host the Songkran festival in Bangkok’s backpacker haven. WISIT
Spending was forecast at 117 billion baht, up by only 2.36% from last year, according to a survey by the University of the Thai Chamber of Commerce (UTCC).
The figures were based on a UTTC survey of 1,233 respondents conducted between March 27 and April 4.
"Normally, spending should grow by 7-10% during this festive season," said Thanavath Phonvichai, the UTCC's vice-president for research.
"But the prolonged protests and unfavourable economy have weakened people's purchasing sentiment."
Songkran this year will include an extra day, running from April 13-16.
The survey also found the number of travellers heading abroad has dropped, to 5.9% this year from 18.9% last year.
According to the survey, 40% of respondents said their spending plan is unchanged, with 32% intending to spend less.
"What's worrying is most respondents said they would rely on savings and loans to spend during the season," Mr Thanavath said.
"That reflects the sluggish economy and higher household debt, as people lack sufficient funds to spend, particularly low-income earners."
However, Mr Thanavath said people are in a festive mood and want to take a break from political problems.
In a related development, another UTCC survey conducted this past Sunday and Monday among 1,200 respondents found most of them were increasingly concerned about the political impasse.
Up to 36% of the respondents said they feared escalating violence was anticipated after Songkran, which would affect people's spending.