Consumer spending during the Loy Krathong festival is projected to be the highest in five years, helped by the country's reopening to foreign visitors and the government's stimulus measures.
The latest survey by the University of the Thai Chamber of Commerce (UTCC) revealed that spending during the annual full moon celebration, which falls on Nov 8, is expected to increase by 5.9% to 9.68 billion baht.
"People are feeling more celebratory during this year's Loy Krathong festival, so it should be more cheerful than last year's event thanks to the country's reopening and the anticipated extension of the government stimulus measures," said Thanavath Phonvichai, president of UTCC.
The government is planning to roll out a number of measures as "New Year gifts" at the end of the year, including an extension of the "Khon La Khrueng" co-payment scheme and the "Shop Dee Mee Khuen" tax rebate.
Prime Minister Prayut Chan-o-cha recently assigned all ministries at a cabinet meeting to propose new measures as gifts to the public, with cabinet consideration of the measures slated for the middle of this month.
The fresh measures aim to encourage consumer spending to maintain the momentum of the economic recovery.
Deputy Prime Minister Supattanapong Punmeechaow said earlier the new measures are highly likely to include retreads of the Khon La Khrueng and Shop Dee Mee Khuen schemes, as well as the "We Travel Together" tourism stimulus campaign.
Mr Thanavath said average spending per person is estimated at 1,920 baht during the festival, up from 1,280 baht per person last year, with spending mainly on dining out and travel.
He said the university survey found most respondents expect the economy will start recovering strongly in the second quarter of 2023.
"Most people surveyed believe the Thai economy has already recovered, as their key concern was Covid-19 infections, which have dwindled. Many Thais returned to working, normal shopping behaviour and travelling upcountry," said Mr Thanavath.
"Oil prices are now quoted at US$90-100 per barrel, which is no longer such a serious risk factor, while the domestic diesel price remains capped at 35 baht per litre and petrol prices have decreased."
He said the baht's slump has yet to affect the overall economy and inflation rates. Instead, it benefits the export sector, leading overall shipments to grow by 7-8% this year.
Mr Thanavath said the baht's weakness is also expected to encourage foreign tourists to visit Thailand this year, with the number of foreign arrivals expected to exceed 10 million in 2022.
The university expects the economy to grow at a rate of 3.0-3.5% this year and 3.5-4.0% in 2023.
