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Thailand: Spending during World Cup set to rise
Consumer spending during World Cup 2022 is expected to increase from the previous tournament held four years ago, driven by greater economic activity amid concerns over a possible surge in gambling on the matches.
The latest survey by the University of the Thai Chamber of Commerce (UTCC) estimates that 18.5 billion baht would be spent during the 32-day football tournament scheduled to take place in Qatar from Nov 20 to Dec 18.
The figure represents a 3.7% increase over the amount spent during World Cup 2018, which was held in Russia, and a surge of 22% over the total amount spent during the UEFA Euro 2020 tournament.
UTCC president Thanavath Phonvichai said the live broadcast of the World Cup in Thailand should help boost the domestic economy.
The live broadcasts, especially on free TV channels, would inspire people to go out to eat and drink, watching the games on big screens at various venues such as bars, restaurants and pubs, he said.
Economic activities would lead to higher spending on sports apparel, restaurants, internet and communication, advertising, new TV purchases and entertainment venues, said Mr Thanavath.
He said spending during the World Cup would circulate throughout the economy following the Loy Krathong festival, propelling economic growth momentum through the end of the year.
The UTCC estimated spending during the annual Loy Krathong festival, which this year fell on Tuesday, to increase by 5.9% to 9.68 billion baht thanks to the country’s reopening and the anticipated extension of the government’s stimulus measures.
Average spending per person was estimated at 1,920 baht during the festival, up from 1,280 baht per person last year, with most of the spending on dining out and travel.
The university expects the local economy to grow at a rate of 3.0-3.5% this year and 3.5-4.0% in 2023.
However, Mr Thanavath warned there could be huge outlays on gambling during the World Cup.
The university projects the total amount spent on gambling in the country to surge to 57.2 billion baht, up 25% from the Euro 2020 tournament.
However, he said spending on gambling during the World Cup is unlikely to reach the 59 billion baht recorded for the 2018 World Cup, mostly because of the unfavourable current economic situation and relatively high cost of living.
Mr Thanavath expressed concerns over the negative impact of gambling, noting it could create financial and social problems, especially among the country’s youth.
Source: https://www.bangkokpost.com/business/2434189/spending-during-world-cup-set-to-rise