by wilbersuen | Nov 12, 2024 | News
Thailand is setting an ambitious goal to attract 8 million European tourists in 2025, aiming to reach 11 million total long-haul visitors. The Tourism and Sports Ministry is committed to accelerating partnerships with airlines and foreign embassies to resume full international flight operations.
“Thailand’s tourism sector is poised for a vibrant future. We’re enhancing infrastructure, simplifying visa procedures, and developing new offerings to ensure Thailand remains a global leader in tourism,” said Tourism and Sports Minister Sorawong Thienthong at the 2024 World Travel Market in London, held from Nov 5-7.
Following the event, Minister Sorawong plans to engage with ambassadors from key markets, including the UK, Germany, Eastern Europe, and the Middle East, along with airline executives, to align on flight schedules and preparations for peak travel seasons in 2025.
The ministry also intends to collaborate with the Transport and Finance Ministries on airline support initiatives, such as fuel and tax subsidies, to boost tourism accessibility.
For 2024, Thailand anticipates 9.6 million long-haul arrivals, including 7.3 million from Europe, as per the Tourism Authority of Thailand (TAT). Next year’s expected 11 million long-haul visitors are projected to generate over 896 billion baht, contributing 40% of Thailand’s 2.2 trillion baht in foreign tourism revenue.
At the WTM, 42 Thai tourism operators joined the TAT pavilion to engage with long-haul markets, especially the UK and Europe, with TAT projecting at least 950 business meetings and an estimated economic impact of over 898 million baht.
Princess Ubolratana was also present to advocate for Thailand’s focus on sustainable tourism and cultural appeal.
Nithi Subhongsang, managing director of Nutty’s Adventures, a Thai destination management firm, noted that European travelers, especially small groups, remain core customers interested in local and sustainable travel experiences. He emphasized the importance of consistent policies supporting sustainable tourism and diversifying tourist destinations to manage crowding and boost local economies.
Sam Collins, UK product manager at Best at Travel, highlighted Thailand’s reputation for warm hospitality and value. In 2023, Best at Travel saw over 4,000 UK tourists visit Thailand, generating £8 million (351.8 million baht). He observed a shift in demand toward less-crowded locations such as Koh Lipe, Koh Samet, Koh Tao, and Khao Lak, rather than major hubs like Phuket and Samui. Collins urged the Thai government to invest in inter-city transportation, particularly rail, and increase direct international flights.
Korakot Chatasingha, THAI’s chief commercial officer, shared that the national airline is positioning Bangkok as a hub for European tourists visiting Asia. European routes are expected to contribute around 30% of the airline’s revenue this year, with flight frequencies rising to 91 per week by December, including a new route to Belgium. THAI’s load factor for European flights remains above 80%, and the airline, with 88 aircraft by 2025, aims to sustain its European routes with strong frequency, with London as the only destination offering first-class service.
Source: Bangkok Post
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The editorial team at Invest Bangkok Property
by wilbersuen | Nov 11, 2024 | News
Foreign investment in Thailand rose by 60% to reach 134 billion baht in the first nine months of this year, according to a government representative, with Japan remaining the leading source of investment.
Jirayu Houngsub, spokesperson for the Prime Minister’s Office, announced that approvals were granted for 636 foreign businesses under the 1999 Foreign Business Act, reflecting a 29% increase compared to the previous year.
These investments generated jobs for 2,505 Thai workers.
Japan led in investment volume and applications, contributing 74 billion baht across 157 applications, followed by Singapore with 12.2 billion baht (96 applications), China with 11.9 billion baht (89 applications), the United States with 4.14 billion baht (86 applications), and Hong Kong with 4.11 billion baht (46 applications).
“Key areas such as platform and software businesses have driven foreign investor interest, bolstering strong growth in the Thai economy,” said Mr. Jirayu, noting that these sectors accounted for 28.3 billion baht, or 7.27% of total foreign investment during the period.
The top three investor countries in platform and software sectors were Singapore, Taiwan, and Malaysia, respectively.
Source: Bangkok Post
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The editorial team at Invest Bangkok Property
by wilbersuen | Oct 29, 2024 | News
The Bangkok housing market is projected to decline amid economic challenges, according to SCB EIC, the research arm of Siam Commercial Bank. They anticipate a 10% drop in the transfer of new residential units in Greater Bangkok this year, with an additional contraction of 1-3% likely in 2025, largely due to Thailand’s stagnant economic conditions.
In terms of market value, a 9% decrease is forecast for 2024, with potential stabilization between 0-2% expected next year.
The slowdown in the housing sector stems from rising living costs, reduced purchasing power, high household debt, increased interest rates, and more stringent mortgage approval processes. These pressures are prompting prospective homebuyers, especially within lower- and middle-income brackets, to delay their purchasing plans.
SCB EIC also forecasts a 28% year-on-year reduction in newly launched residential units for 2024, with moderate recovery expected in 2025 as the contraction may ease to 2-4%.
To address these conditions, developers are concentrating on middle- to high-end projects where buying capacity is less affected. Major local banks reported a decline in mortgage lending in the first nine months of this year due to tighter mortgage criteria.
SCB, the fourth-largest bank in Thailand and a leader in housing loans, reported a mortgage loan portfolio of 779 billion baht as of September 2024, reflecting a quarter-on-quarter decrease of 15.5%, a year-to-date decline of 39%, and a year-on-year drop of 38.5%.
Bangkok Bank (BBL), the country’s largest lender, recorded a mortgage portfolio of 332 billion baht, slightly down by 0.6% quarter-on-quarter and 1.7% year-to-date. Bank of Ayudhya (Krungsri) saw its housing loan portfolio decrease to 248 billion baht, down by 3% quarter-on-quarter and 7.6% year-to-date.
TMBThanachart Bank (ttb) reported an overall mortgage lending decrease of 0.8% quarter-on-quarter and 2.2% year-to-date as of September, according to a filing with the Stock Exchange of Thailand (SET).
In contrast, Krungthai Bank (KTB), Thailand’s second-largest lender, reported growth in its mortgage loan portfolio, reaching 498 billion baht by September, a 1.5% increase quarter-on-quarter and a 2.9% rise year-to-date.
Kasikornbank (KBank) did not release mortgage loan data in its SET report.
In response to current market trends, major banks announced widespread cuts to their lending rates, including adjustments to the minimum retail rate (MRR) for housing loans. BBL now offers the lowest MRR at 7% per year. Other banks’ rate reductions will be effective from Nov 1, with the revised MRRs as follows: KTB at 7.445%, KBank at 7.180%, SCB at 7.175%, Krungsri at 7.275%, and ttb at 7.705%.
Source: Bangkok Post
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The editorial team at Invest Bangkok Property
by wilbersuen | Oct 21, 2024 | News
The developer sentiment index for Greater Bangkok’s housing market fell for the second consecutive quarter in Q3, hitting its lowest level since Q3 2020.
Kamonpop Veerapala, president of Government Housing Bank and acting director-general of the Real Estate Information Center (REIC), reported the current situation index at 45.1, a 4.6-point drop year-on-year and 0.1 points lower than in Q2.
“The index has remained below the neutral threshold of 50 for seven consecutive quarters, signaling a continued decline in developer confidence in the residential sector,” he said.
The last time the index was this low was in Q3 2020, at 42.8 points, before rising to 46.3 in Q4 2020.
In Q3 2024, the most significant quarter-on-quarter decline was seen in sales sentiment, which dropped 6.6 points to 40.7, followed by a 0.2-point dip in investment sentiment, bringing it to 47.4.
Notably, revenue sentiment rose by 2.5 points to 42.0, and sentiment for new project launches increased by 1.6 points to 50.7.
Development costs sentiment increased 1.5 points to 40.4, while employment sentiment rose by 0.9 points to 49.6. However, except for new project launches, all other components remained below the neutral 50 mark.
The sentiment index for listed developers declined to 47.9, down from 52.2 in Q2 2024, reflecting reduced confidence and heightened concerns among listed firms, according to REIC.
Sales sentiment for listed developers saw the largest drop, falling 15.8 points to 43.8. Investment and new project launch sentiment both declined by 5.6 points to 52.1, while revenue sentiment decreased by 2.3 points to 47.7.
On the positive side, development costs sentiment rose by 3.1 points to 39.6, and employment sentiment edged up by 0.2 points to 52.1.
Looking ahead, the expectations index for the next six months rose to 51.6, slightly up from 51.4 in Q2 2024, signaling a positive outlook from developers for the near future.
The biggest improvement was seen in sales sentiment, which increased by 3.4 points to 57.8, followed by development costs, which rose by 2.9 points to 37.5.
Employment sentiment increased by 2.2 points to 52.4, and revenue sentiment grew by 2.0 points to 53.0.
However, there were declines in sentiment for new launches, which dropped by 6.3 points to 58.1, and investment, which decreased by 3.1 points to 51.0.
Source: Bangkok Post
Yours sincerely,
The editorial team at Invest Bangkok Property
by wilbersuen | Oct 17, 2024 | News
The Thai government is preparing to roll out 55 billion baht (approximately US$1.66 billion) in soft loans to stimulate the property sector and boost the national economy, according to Deputy Finance Minister Paopoom Rojanasakul.
This proposal will be presented to the cabinet for approval, Rojanasakul stated in a press briefing.
He added that the stimulus package would target both supply and demand within the real estate market, aiming to encourage both property developers and buyers, ensuring a wide-reaching impact.
The Deputy Minister emphasized that fresh stimulus measures are necessary as the current schemes have been fully utilised.
Recently, the Finance Ministry leveraged state financial institutions, including the Government Housing Bank (GH Bank), to support the real estate market. Earlier this year, GH Bank launched a low-interest loan program called “Happy Home,” offering a total of 20 billion baht in loans. This initiative provided flexible loan terms for low-income households, allowing for a maximum loan of 3 million baht per applicant, with a fixed interest rate of 3% for the first five years. However, this program has now reached its funding limit.
Source: Bangkok Post
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The editorial team at Invest Bangkok Property
