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Thailand: TAT to monitor tourism impact of SVB
Economic concerns stemming from the collapse of Silicon Valley Bank (SVB) will not affect long-haul visitors to Thailand in the short term as pent-up demand should support the market, but officials plan to monitor the long-term impact, according to the Tourism Authority of Thailand (TAT).
SVB, which had mostly US startups and tech companies as clients, closed last Friday, stirring up global economic turmoil over a possible domino effect with other banks.
Siripakorn Cheawsamoot, TAT deputy governor for Europe, Africa, the Middle East and the Americas, said the situation is unlikely to cause an immediate slowdown in long-haul markets as it remains focused in the US, with limited effects in other countries.
He said pent-up demand is still motivating travel, particularly for those who saved up during the pandemic hoping to take outbound trips.
The TAT is monitoring the situation to see if it could affect purchasing power in the long run, as digital nomads and remote workers in the tech industry are some of the main targets of Thai tourism, said Mr Siripakorn.
Thanet Supornsahasrungsi, president of the Chon Buri Tourism Council, said the situation might affect tourism in the region where the bank operates, but should not directly hit Thailand or Asia.
He said April is not high season for Europe, so tourism operators often turn their marketing focus to short-haul markets such as China, South Korea, Japan and India.
Mr Thanet said attention should be focused on high airfares and limited flight capacity, which only recently picked up.
With China recently allowing tourist visa applications for those who want to visit the mainland, airlines should benefit as they can better balance inbound and outbound passengers, leading to more seats and lower airfares, he said.
Mr Thanet said the bank closures in the US could have a long-term impact on certain countries’ tourist spending and economies.
“If there’s an impact, it could be a big issue as people will cut their travel budgets first, with tourism secondary to other living costs,” he said.
Source: https://www.bangkokpost.com/business/2528859/tat-to-monitor-tourism-impact-of-svb