The health of Thailand 's economy is a big question mark as no one can agree on it.
But Mark Bode finds out there is optimism in the business travel sector.
Thailand 's economic slowdown has led to much debate in the country. A few months ago, Thai prime minister, Mr Thaksin Shinawatra, seemed to be floundering in his quest to convince people the country's economy was still in good shape.
But with continuing account and trade deficits, a tourism industry yet to fully recover from last December's devastating tsunami, ongoing unrest in the deep south, a prolonged drought and record high oil prices affecting consumer spending, there are worrying signs for the Thai economy.
Investor confidence took another knock in July, when the Bank of Thailand revised down its gross domestic product (GDP) projection for this year from 4.5 to five per cent to
3.5-4.5 per cent, citing high oil prices and a widening trade deficit.
In recent times, however, there has been a growing chorus of voices – both at home and abroad – keen to talk up the economy.
While last year's full-year GDP growth of 6.1 is a distant memory, they say there are now checks and balances in place which will prevent the crippling 1997 economic crisis from being repeated, and overall the economy is still in reasonable shape.
In perhaps another sign the economy is not as sick as some people suggest, the latest Billing and Settlement Plan (BSP) statistics project Thailand 's corporate ticketing to grow 5.2 per cent to 14.7 billion baht (US$358.7 million) this year and 5.5 per cent to 15.5 billion baht next year.
BTI director of marketing, Mr Frank Fioravanti, said the BSP figures were in line with BTI's projections. “It is positive growth. There may be even more robust growth – I think they're (BSP) being conservative,” he said.
“Compared to other markets in the region, we're up with them. Thailand compares favourably with Singapore . Singapore 's always on the move, and so are we.”
Mr Fioravanti said Thailand 's travel sector, which catered to the business segment, had undergone a major transformation in the five years he had lived in the country. When he first came to the kingdom, the country's level of service was poor compared to the west, but the gap had since been narrowed substantially.
Mr Fioravanti said BTI consistently posted full-year growth of 17 to 18 per cent, and was expecting between 18 and 20 per cent this year. He added the “enormous” fuel surcharges that were now being tagged onto airline tickets did not seem to be affecting the business travel industry.
“I don't think it will affect us that much – in leisure travel it does.”
Diethelm Business Travel general manager, Mr Vutravee Charuvatana, echoed Mr Fioravanti's optimism. With more major companies setting up regional headquarters in Asia, the outlook for the sector in Thailand was very promising, he said.
