The Thai economy remains on track to post strong economic growth
for the full 2010 calendar year, despite protests and a period of
political unrest earlier in the year.
Economy
Thailand's economic growth slowed in the third quarter of 2010
after recovering well from the political unrest that rocked the
country earlier this year.
The economy is expected to grow steadily throughout the
remainder of 2010 and 2011, albeit at a slower rate than previously
expected.
According to the Bank of Thailand, the Thai economy in 2010 is
forecast to remain strong at around 7%, despite heavy flooding in
three main regions of Thailand and political unrest last May
and June. The economy has
been buoyed by a swift recovery in inbound
tourist numbers and continued growth in exports.
The Thai Government has undergone a coalition
administration restructure in early December with PM Abhisit
remaining in position with some new Ministers. The national
election is expected to take place in late 2011.
Key Indicators
Sources:
www.economist.com (GDP Growth)
www.reuters.com (Exchange rates)
| Exchange Rate vs NZD |
THB10 = NZD0.436 (20 Dec 10) |
| Expected GDP Growth |
+7% for 2010
+4% for 2010
(Nov 10 est.) |
Outbound Travel
Outbound travel from Thailand has increased this year after a
slow period in 2009 caused by the global economic downturn and
Influenza A H1N1 (Swine Flu).
New Zealand is still faring well for Free Independent Travel
(FIT), as well as for incentive and technical travel groups. In the
first quarter of 2011, incentive groups will include visitors from
Krungthai Bank Card, visiting the South Island, and Agel Thailand,
visiting the North Island.
Forward bookings to New Zealand during November and
December were generally down from last year, especially for
collective group tours, due to the strong NZD and weakened European
and US dollars. While Thai Baht has risen to a record high against
the USD & Euro (+15%), it has slightly weakened against NZD (-5
-7%). This makes Europe and USA very attractive.
Airline Update
Thai Airways increased its services between Bangkok and Auckland
to five non-stop 777-300 flights ach week, from August 2010.
Singapore Airlines and Qantas are continuing to operate
Bangkok to Auckland and Bangkok to Christchurch direct
routes, while Emirates continues to fly daily Bangkok to
Christchurch services via Sydney.
Air Asia X's launch of KL-CHC-KL services from 1 April 2011 is
expected to stimulate more traffic from Thailand to New Zealand's
South Island.
Thailand is one of Air Asia X's key target markets
and competition with Singapore
Airlines and Emirates on the route will be favourable for
New Zealand in view of more air capacity and increase in visitor
arrivals. The South Island has always been a destination
of interest for Thai visitor's but lack of air capacity has been
the key challenge in the past.
Competitor Activity
Melbourne and Sydney Convention Bureaus organised a MICE product
workshop and cocktail for local industry senior executives on 9
November to present their incentive tourism highlights and leverage
support from the market.
Tourism Australia announced the opening of a new self-drive
route 'Indian Ocean Road' between Lancelin and Cervantes to the
local trade. Tourism Australia is sponsoring a Thai film crew to
film reality show in Australia to be aired by end 2010.
Tourism Malaysia organizes Asian Food Festival in Kuala Lumpur
throughout November to showcase the country's diverse cultures.
Singapore Tourism Board announced its plan to target incentive
groups from Thailand with four new attractions and facilities. The
incentive market represents 30 per cent of Singapore arrivals and
45 per cent of total spending.