The Songkran festival is expected to drive restaurant sales in the second quarter amidst a stagnant economy, even exceeding the level recorded prior to the pandemic, says a trade group.
"The second quarter is a low season for the Thai restaurant business, but the Songkran festival should help drive sales," said Thaniwan Kulmongkol, president of the Thai Restaurant Association.
Thailand's sluggish economy is a major risk factor that should be monitored, said Ms Thaniwan.
She said the government is trying to boost the economy by organising various activities and events, which she believes would help stimulate the country's tourism.
The government launched Maha Songkran World Water Festival 2024, featuring featuring 20 grand processions along with cultural performances by over 1,000 performers across the country, which runs from April 1-21.
Ms Thaniwan said the restaurant business would benefit from an increasing number of foreign tourists during the Songkran festival.
When combined with local consumption, she predicts that this year's sales would exceed the level recorded before the pandemic in 2019.
Thailand received more than 9.3 million foreign tourists in this year's first quarter.
China was the top source market for foreign visitors to Thailand, followed by Malaysia and Russia, according to the Economics Tourism and Sports Division.
The government expects to welcome 35-40 million foreign tourists this year.
"I think, for the whole year, Thailand will receive 36 million foreign tourists. This would add an extra income to restaurant operators, from food carts to high-end restaurants," Ms Thaniwan said.
Ms Thaniwan said the estimated value of Thailand's restaurant market this year is 500 billion baht, a 25% jump from roughly 400 billion baht in 2019. The estimate does not include revenue from foreign tourists.
However, the increase in market value is partly attributed to rising food prices.
"Five years ago with the same 100 baht, you could buy two or three dishes, but now you can only buy one or two," Ms Thaniwan noted.
