Tourism invigorate a boost in TISI after three months of decline

Editorial Staff

Tourism invigorate a boost in TISI after three months of decline

FTI recommends the government to  increase the number of flights and prepare to mitigate the effects of the El Nino drought.

The chairman of the Federation of Thai Industries (FTI), Mr. Kriengkrai Thiennukul, and the vice chairman, Mr. Montri Mahaplerkpong, revealed that the Thailand Industry Sentiment Index (TISI) for June 2023 has accrued to 94.1, up from 92.5 in May 2023. This marks the first increase in three months. After thorough consideration, the sentiment index shows a rise in all index elements, including overall purchasing orders, sales, production volume, production costs, and turnover.

Mr. Kriengkrai Thiennukul

This increase is due to several positive factors, such as continued growth in domestic demand, especially in private consumption and tourism. Additionally, the construction sector has expanded significantly in the areas of real estate and government projects. The depreciation of the Thai Baht and the reduction in ship freight rates have also contributed to the growth of exports.

Nonetheless, Thai entrepreneurs are worried about several issues, which include the household debt crisis that limits domestic purchasing power. The export sector has consistently decelerated due to weakened global market demand, particularly in the United States, Japan, ASEAN, and European countries. In addition, the global price of energy and commodities has been affected by the geopolitical conflict between Russia and Ukraine. Meanwhile, the tendency of rising Fed interest rates also remains a concern for the global financial economy.

TISI forecasting for the next three months is 102.1, decreasing from 104.3 in May 2023, since Thai entrepreneurs have been concerned about the political situation and explicitness of the government team formation, the worldwide economic deceleration, and the unpredictability of the Chinese economy. The topic concerns also include the impact of the El Nino drought on agricultural and industrial sectors.

Recommendations to the government including
1) To reconsider the fuel adjustment charge of Q3/2023 (September – December 2023) by reducing it to 4.25 Baht per unit, it could lower the manufacturing cost for entrepreneurs and mitigate the impact of the decelerated economy.
2) Increasing the number of flights and improving transport facilitation for tourists, with a focus on enhancing security measures, and arranging events for Thai business owners to showcase and promote Thai industrial goods related to the tourism industry to international visitors.
3) Preparing to address the impacts of the El Nino drought and establish plans for managing water resources in the agricultural and industrial sectors.
4) Request the government to provide the mitigation plan from the increased stability in goods and cost of living.