Deadly
bomb blast in Bangkok this week hit the last pillar of growth in
Thailand with the travel warnings and the cancellation of the visit, to
the more pressing local authority to restore confidence and stimulate
the economy.
The weakening of the tourism sector in two or three quarters ahead will likely interfere with Thailand's economic growth and the bomb blast could impact long against the number of arrivals compared to previous incidents in the last decade, said Standard Poor's &, Tuesday (18/8). The tourism sector shrank the most in Tuesday, while approaching the lowest level the baht since April 2009.
Tourism
is the engine of economic growth that is fully functioning most
recently in Thailand, "said Santitarn Sathirathai, Economist at Credit
Suisse Group AG based in Singapore. "Growth in the second half of this
year could be weakened because of tourists, particularly from China,
will react quickly," he said noting that Government Thailand need to
disclose a significant fiscal stimulus.
Nearly 25 million foreign tourists visited Thailand last year due to its white sand beaches and its ancient temples, and their spending in that country helped shore up growth while the manufacturing sector and its export decreased.
Now, tourism accounted for about 10% of the economy of the country,
threatened after a bomb blast in the District of Bangkok shopping center
Monday (6/8), which killed at least 20 people and forcing it does
discernment visiting from Hong Kong, the United States and the United
Kingdom.
The
tourism sector could be down 10% in the short term, "said Adithep
Vanabriksha, head of investment at Aberdeen Asset Management Co. in
Bangkok. Bureau-travel agency in Hong Kong agreed to cancel the entire
package trip to Bangkok until the end of August with security reasons,
said Joseph Tung, Executive Director of the Hong Kong Travel Industry
Council.
Bomb
blast at night it happened a few hours after a report showed slow growth expansion to 2.8% last quarter yesterday from a year earlier,
with the national economic and social development lower GDP growth and
export. Sales abroad down to record his third year.
The second blast Tuesday (18/8) just ejects the water into the air in Bangkok's busy ship pier, but no injuries were reported. https://www.mql5.com/en/signals/120434
