Thais are expected to spend around 5.2 billion baht this year during Makha Bucha Day and Valentine’s Day, according to a recent survey by the University of the Thai Chamber of Commerce (UTCC).
Thanavath Phonvichai, president of the UTCC, said while spending is expected to increase, consumers remain cautious about outlays because of rising product prices.
The survey found spending for Makha Bucha Day should increase by 2.8% year-on-year, reaching 2.5 billion baht.
This marks the highest amount in four years, though it lags spending during the Lunar New Year celebrations, partly because Makha Bucha Day is mid-week and not a long holiday like last year.
On average, individuals are expected to spend around 1,590 baht this year.
For Valentine’s Day, the UTCC estimated spending will rise by 7.2% year-on-year to 2.7 billion baht.
In terms of spending for loved ones, Gen X individuals lead the way with an average spend of 1,669 baht each, while Gen Y and Gen Z are expected to spend 1,238 baht and 617 baht respectively.
The top five sectors likely to benefit from these celebrations are gift and flower shops, restaurants and cafes, hotels and accommodation, wine and beverage retailers, and chocolate and dessert shops.
The total spending value for the two festivals is 5.2 billion baht, which is expected to stimulate GDP by 0.025% to 0.045%, said Mr Thanavath.
He said while spending is expected to rise during these celebrations, Thais are still being careful with their finances amid higher product prices.
Government stimulus measures have not yet enhanced public confidence in an expanding economy that will improve and grow sustainably in the future, according to the survey.
Meanwhile, businesses have a more positive outlook, believing the economy is recovering based on the revenue generated by past festivals.
The UTCC is confident the Thai economy in the first half of this year will continue to grow, gradually improving in the first two quarters.
Mr Thanavath said the second quarter will clearly indicate the state of the Thai economy, and a clearer assessment will be made.
At this stage, he believes that the Thai economy has the potential to grow by around 3% in 2025 as it is expected that a full-scale trade war will not occur in the first half of the year and there will be no impact from the US tariff issues.
However, he said the situation must be closely monitored and assessed again in the second half of the year.