The ongoing Covid-19 outbreak will cause a setback to the state's plan to reopen Phuket to foreign tourists as 2021 GDP growth is likely to decrease by 1.5–3%, the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) predicts.
The third wave will further affect the tourism industry, which had earlier been earmarked to make some recovery when the government announced plans to allow vaccinated foreigners to travel to the resort island without quarantine starting on July 1.
Like other provinces, Phuket has not escaped the rapid spread of transmissions amid the third wave after recording 242 new cases since April 1.
JSCCIB expects the reopening plan to be delayed as the daily infection rate of more than 1,000 cases across the country shows no sign of abating.
JSCCIB chairman, Supant Mongkolsuthree, called on the government to speed up the administering of Covid-19 vaccines because they are necessary tools to rebuild business confidence and help Thailand restore its economy.
Several thousand factories affiliated with the Federation of Thai Industries (FTI) said they are willing to pay for imported vaccines and give them to workers. The private sector expects to procure 10-15 million doses, he said, adding the final numbers will be calculated by JSCCIB.
The vaccination drive must be carried out in tandem with new economic stimulus measures.
"To drive the economy forward, the government must also spend around 200 billion baht worth of state budget to rehabilitate and stimulate economic activities," said Mr Supant, also FTI chairman.
Uncertainties during the outbreak caused JSCCIB to downgrade its GDP growth forecast of 1.5-3% this year. However, it expects better international trade and a higher inflation rate, with export expanding by 4-6% and an inflation rate between 1 to 1.2%.
Earlier, the group estimated the country's GDP would grow by 1.5-3.5% this year with exports expanding by 3-5% and an inflation rate of 0.8-1%.
"If the government doesn't spend 200 billion baht and does not provide new economic stimulus measures, we expect zero GDP growth this year," said Mr Supant.
