Thailand seeks solutions to promote consumer spending

The Tourism Council of Thailand (TCT) is urging the government to boost domestic spending by raising the starting salary of new public servants to 25,000 THB (about 750 USD) per month and offering 1,000 THB in digital currency to foreign tourists who visit certain parts of the country.

According to a recent TCT survey, 85% of Thais have cut household expenses, with 83% reducing budgets for travel and entertainment.

TCT chairman Chamnan Srisawat suggests the salary increase for new government employees as a key solution, along with limiting new hires to reduce public spending in the long term. He also proposed raising the minimum wage based on skill level to encourage workers to upgrade their skills.

The TCT expressed concern over weakening consumer confidence, with Thailand’s tourism confidence index at just 80 for the last quarter of this year. The council predicts 35.5 million international visitors in 2024, generating 1.8 trillion THB in revenue, 11% lower than 2019 levels.

To attract more tourists, the TCT recommends providing foreign visitors with 1,000 THB in digital currency to spend in underdeveloped areas, which will help counter the negative impact of the strong baht on foreign purchasing power. They also suggest offering interest-free loans to locals to stimulate local economies.