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9 Dec 2016

Thai Economy

2017 New Year Spending in Bangkok to top THB28.5 billion (Current Issue No. 2798)

KResearch forecasts that during the New Year holidays[1], spending will probably top THB28.5 billion, climbing 5.0 percent over 2015 when an 8.0 percent rise was registered. This year, businesses will continue to capitalize on the New Year season to boost sales but marketing events will not be so conventional given that the country is still in mourning.

Of the projected spending, THB9.2 billion would likely be on food and beverages, followed by THB8 billion on accommodation and travel expenses, THB4.4 billion on gifts, and THB2.8 billion on religious ceremonies and merit-making activities. Spending per person is forecast at THB5,400. Since the government has announced a four-day New Year break, along with the year-end stimulus plans, such as shopping tax break and subsidies for low-income citizens, spending in Bangkok during this year-end should be fairly vigorous. That said, there are many factors, including high costs of living, which may affect consumer behavior for this holiday spending, while the nation mourns His Majesty King Rama IX's passing.

Shopping behavior that shifts in accordance with the mourning has instead benefited other businesses, apart from department stores which are key shopping sites. Companies engaging in publishing, clothing, community rice production and stores operated by the Royal Project Foundation are among others seeing a more lucrative market. Considering this, companies should make appropriate adjustments to cash in on this trend; for example, through exhibitions on His Majesty's activities or musical performances on royal compositions, together with relevant marketing campaigns.

[1] Bangkok residents

Thai Economy