Chinese New Year festival is regarded as a ‘spending festival,' a lucrative time for businesses, thanks to the lavish spending by Thai-Chinese New Year celebrants and employees of Thai-Chinese owned businesses. KResearch has conducted a qualitative survey on the “Spending Behavior of Bangkok Residents during 2011 Chinese New Year”, by interviewing representatives of Thai-Chinese families and businesses buying ceremonial offerings for homage to ancestors. The survey was conducted January 10-18, 2011, using a sampling group of 255 respondents.
Regarding highlights of this Chinese New Year, although the festival will not fall on Valentine's Day as seen in 2010, the forecast on turnover is higher than in 2010, particularly spending on recreation (general spending and traveling expenses), because Bangkok residents' are now more confident toward the economic situation and have higher purchasing power due to increases in general wages, salaries of government employee as well as salaries and bonus of private sector. Because Chinese New Year this year is quite close to Christmas and the international New Year, turnover might be softer than it should be otherwise. As a result, some Bangkok residents may prefer to save and postpone spending during Songkran festival when the holidays will be longer than last year.
KResearch expects that many activities during the festival may generate two types of turnover, i.e., income from the tradition-related spending at perhaps THB12.5 billion this year, rising 1.6 percent YoY (including expenses for alms and cash ‘Ang Pao') and from recreational expenses estimated at THB8.2 billion, rising 9.3 percent. It is possible that people's spending on recreation is partially from ‘Ang Pao', and their savings during holidays or days off. The recreation expenses will be allotted to travelling in Bangkok, domestic one-day trips and overnight trips or even international travel. As a result, many businesses will benefit from the said turnover, so they should see this as important opportunity to generate better income during early in 2011.