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22 Dec 2022

Thai Economy

Bangkok residents resume New Year 2023 celebrations, with spending projected to reach THB30.9 billion (Current Issue No.3375)


        Due to the fragile recovery seen in income and the high cost of living, consumers continue to be cautious about their spending. However, most of them have resumed outdoor activities, including travelling as COVID-19 has begun to ease. They have also organized celebrations during various festivities during the second half of 2022 as they usually did before COVID-19. This is in line with the survey conducted by KResearch, showing that a majority of Bangkok residents continue to place importance on festive celebrations. They intend to set aside a greater amount of funds than that during a normal period to organize activities during a festival despite their limited budget.  
        We at KResearch assess that the overall spending by Bangkok city dwellers during the upcoming New Year 2023 may reach approximately THB30.9 billion, an increase of 10.5 percent YoY, as a majority of Bangkok folks intend to resume activities, including travelling during the year-end festive season as compared to the previous year when there was a widespread outbreak of the Omicron variant. Moreover, the “Shop Dee Mee Kuen” (shop and refund) stimulus program may help stimulate more spending from consumers, who have moderate to high purchasing power. The poll also shows that most of the respondents intend to allocate budget for New Year 2023 celebrations during the December 30, 2022 – January 2, 2023 period only as they are still concerned about expenses and the persistently high product prices.
        As consumer purchasing power has yet to fully recover while businesses are reeling from the rising costs and increased competition, entrepreneurs will continue to face challenges from the launch of sales promotions, high management costs and how to meet the needs of consumers in terms of product quality and service experience, particularly those that have weak purchasing power.

Thai Economy