The Tourism Authority of Thailand's newest director of Asia and the south Pacific told Bangkok Business News that tourists are clearly desperate to come to Thailand.
But Thanes Petchsuwan noted that many countries have a requirement that returning tourists need to quarantine for 14 days and this is hindering matters due to its expense.
Some have suggested that if Thailand paid part of their 14 day quarantine costs then they would visit.
A case in point was Singapore, said Thanes, where information received has shown that if Thailand helped tourists in this regard their nationals would be prepared to visit Thailand.
Chonburi reports 1,348 new Covid -19 cases with 10 deaths, 1,246 people recovered
Chonburi –
The Chonburi Department of Public Health announced 1,348 new and confirmed cases of Covid-19 today with 10 new deaths, August 20th.
This makes a total of 52,094 cases of Covid-19 in the current round of infections, with 20,416 people still under medical care/supervision, and with a total of 283 recorded deaths in Chonburi since the start of this recent round of infections in early April. The details on yesterday's 10 new deaths were not given, which is standard for the health department.
Additionally,1,246 people were also released and recovered yesterday in Chonburi. 31,395 people in total have now been released from medical care and recovered in Chonburi since this current wave began.
The district-level new cases were as follows today:
Mueang Chonburi 334, Si Racha 354, Banglamung (Pattaya) 221, Panat Nikhom 91, Sattahip 34, Ban Bueang 88, Pan Thong 89, Bor Thong 24, Ko Chan 12, Nong Yai 8, Koh Si Chang 27 and 66 new cases transferred from other provinces for medical care.
The details on the cases are as follows:
Cluster, Fort Nawamintharachini in Mueang Chonburi District, 43 cases
Cluster, Autoliv (Thailand) Co.,Ltd in Si Racha in Mueang Chonburi District, 5 cases
Clsuter, IETL Cp., Ltd. in Mueang Chonburi District, 5 cases
Cluster, Phon Piya Yan buoyancy in Koh Si Chang District, 27 cases
Cluster, The Riviera Ocean Drive in Banglamung District, 24 cases
Cluster, Wide Faith Foods Co., Ltd. in Si Racha District, 15 cases
Cluster, Thai Fountain of Life Co.,Ltd. in Si Racha District, 5 cases
Cluster, Italian Thai company (Thai oil project Si Racha in District, 5 cases
Risky occupations like taxi drivers, customer-facing roles, 24 cases
10 medical staff
23 Risky occupations like taxi drivers, customer-facing roles
Provide history back from Bangkok – 3 cases, Samut Prakan – 1 case and Rayong – 1 case
Close contacts in general: in families – 316 cases, in workplaces – 163 cases, close friends – 26 cases, and joined a party – 1 case
Close contacts (under investigation), 124 cases
Currently under investigation in general for the source of Covid-19 infection, 507
A total of 1,312 close contact searches were received today with 536 initial proactive searches, and more proactive search reports are pending.
There are currently, in Chonburi, clusters of Covid-19 at 21 establishments and five markets, 10 construction worker camps, and four communities. TPN media notes that this cluster information appears to be outdated but is what was provided by authorities.
Pandemin får många av oss att slitas mellan hopp och förtvivlan. Ena stunden ser det lite ljusare ut, bara för att snabbt bli mörkare igen. Fram och tillbaka. Det är på många sätt härligt att sedan förra veckan vara tillbaka i Thailand efter sommarsemester i Sverige, men jag känner personligen stark frustration och vanmakt inför Covid-19 och dess konsekvenser. Pandemin påverkar högst påtagligt mitt och kollegornas och alla andras arbete. En ambassads samlade uppdrag bygger i stor utsträckning på möjligheten att möta människor på olika sätt. En del kan fortsatt göras digitalt, men mycket annat får stå tillbaka. Vi får fortsätta vara kreativa och göra det bästa av de möjligheter som står till buds.
Smittspridningen har nu kopplat ett hårt grepp om Thailand. Dödsfallen ökar och påfrestningarna på samhället är betydande, inte minst inom hälso- och sjukvården. Restriktionerna är tuffa över stora delar av landet och ekonomin fortsätter att ta stryk. Låt oss, inte minst för alla våra thailändska vänners skull, hoppas att det kan vända snart. Det finns försiktigt glädjande tecken på att vaccinationstakten nu ökar i Thailand, vilket i många andra länder har visat sig ge stora positiva effekter. Men vi har alla lärt oss att inte ta ut något i förskott, så osvuret är fortsatt bäst.
Ambassaden närmar sig hursomhelst fulltalighet efter semesterperioden. Arbetslaget fortsätter vara indelat i olika grupper och skift. Vi tar vårt serviceuppdrag på största allvar, men ber också om förståelse för att det kan bli något längre handläggningstider även under hösten. Vi uppmuntrar också till att använda våra e-tjänster – se gärna länk för mer info:
Hösten bjuder på flera viktiga uppgifter. Bland annat är vi mitt i förberedelserna för att överta ansvaret för våra bilaterala fältrelationer med Kambodja. I likhet med Myanmar, där vi under normala omständigheter har en betydande närvaro i Yangon, kommer vi att upprätta ett sektionskansli i även Phnom Penh. Detta innebär att Bangkok-ambassaden växer ytterligare och kommer att täcka fyra länder (utöver Thailand också Kambodja, Laos och Myanmar) från och med senhösten.
Bevakning av och rapportering om utvecklingen i Myanmar utgör en fortsatt viktig prioritet för ambassaden. Här tvingas vi konstatera att läget alltjämt är mycket allvarligt efter militärens maktövertagande i februari. En försämrad säkerhetssituation och omfattande övergrepp mot befolkningen förvärras nu av en mycket snabb smittspridning över hela landet. Sveriges insatser genom humanitärt stöd och utvecklingssamarbete fortsätter, men under förändrade förutsättningar.
Under hösten fortsätter vi också vårt samarbete med thailändska motparter inom samhälle och näringsliv. Bland annat hålls den sista delen i ett gemensamt hållbarhetsforum mellan våra länder i början av september. Forumet arrangeras i nära samarbete med Thailands ambassad i Stockholm, under ledning av min kära kollega; ambassadör Kanchana. Glädjande är att notera flera svenska företags deltagande i detta event, som vi också avser att fortsätta med under de kommande åren.
Vi är också glada över att kunna välkomna ett drygt 60-tal thailändska studenter till Sverige den här hösten. Studentutbyten leder ofta till betydelsefulla kontakter mellan länder, där enskilda individer inte sällan blir några av våra viktigaste ambassadörer.
Vi hoppas också kunna fortsätta arbeta tillsammans med våra nordiska kollegor här i Thailand. Bland annat har vi planerat en nordisk dag i november, där vi också hoppas kunna genomföra ett motionslopp ("Nordic Fun Run") under gemensam flagg. Nuvarande Covid-restriktioner sätter arbetet på lite paus just nu, men vi hoppas vara igång snart igen.
Så snart det blir möjligt kommer jag själv att återuppta olika besöksresor runt om i landet. Jag har flera ställen kvar på min lista, inte minst till platser med många svenskar boende, som till exempel Hua Hin, Phuket och nordöstra Thailand.
Flera av er har hört av sig till ambassaden angående vaccin, men fortsatt gäller att Sverige inte kommer att tillhandahålla vaccin för svenskar utomlands. Utländska medborgare i Thailand kan fortsatt registrera sig på följande länk för att få den första dosen vaccination mot covid-19: https://expatvac.consular.go.th
Augusti är månaden då många svenska utlandsmyndigheter byter delar av sin utsända personal. Ambassaden i Bangkok är inget undantag. I år välkomnar vi Anna Jakenberg Brinck som ny biträdande myndighetschef, Anders Nikanorsson som ny försvarsattaché, AnnaMaria Oltorp som ny chef för vår sektion för regionalt utvecklingssamarbete, Elisabeth Lindström till vår administrativa sektion, samt Tove Goldmann som kommer att arbeta med klimat- och miljöfrågor.
Låt mig avsluta med att önska alla en fortsatt fin augustimånad, med förhoppning om en förbättrad Covid-situation för alla i Thailand inom kort.
PHUKET: The latest Phuket Provincial Public Health Office (PPHO) daily COVID situation report has marked 129 new local infections on the island yesterday (Aug 18), bringing the total number of people recognised as infected with COVID-19 in Phuket since Apr 3 to 2,300.
The PPHO report, marked as accurate as of 9pm last night, also marked two news cases of Phuket Sandbox tourists being confirmed as infected.
The 129 new local infections bring the total number of new local infections on the island in the past seven days to 551, as follows:
Aug 13 - 82 new cases
Aug 14 - 109 new cases
Aug 15 - 49 new cases
Aug 16 - 50 new cases
Aug 17 - 43 new cases
Aug 18 - 89 new cases
Aug 19 - 129 new cases
The current total of 2,300 infected in Phuket since Apr 3 does not include 10 people infected with COVID-19 in other provinces and 23 returning from other countries and testing positive.
The current Phuket tally also does not include 38 COVID patients brought back to Phuket under the "Bring Phuket people home" policy, or the 62 Phuket Sandbox arrivals who have tested positive for the virus after landing on the island since the Sandbox scheme began on July 1.
According to the PPHO COVID report for yesterday, 917 people were under medical care or supervision, an increase of 70 from the day before.
The report also marked 1,454 people in total being discharged from medical care for COVID infection since Apr 3 ‒ 62 more patients than the 1,392 reported for Wednesday.
The report posted last night recorded 77 new cases of people suspected of being infected with COVID-19 after testing positive by antigen test kits (ATKs) yesterday (Aug 18).
The 77 suspected cases, which have yet to be confirmed by RT-PCR tests, bring the total number of people now being held at "COVID-19 Care Centers" across the island to 381 (+100).
The report did not confirm how many people who tested positive by ATKs were confirmed infected by RT-PCR tests or how many people had been released from ATK detention at 'COVID-19 Care Centers' and allowed to go home.
The PPHO daily COVID situation report posted last night also reported that Phuket currently has in total 937 beds available for COVID patients (+7 from yesterday), with 726 (77.48%) of the beds occupied (+27), and 211 beds still available (-20).
The report also marked that of the COVID patients in care 24 were designated as 'Red patients' (+2); 275 were designated 'Yellow' patients (+7) and 369 were 'Green' patients (+13).
The PPHO COVID report for yesterday marked no new deaths attributed to COVID-19, leaving the total number of deaths in Phuket attributed to COVID-19 since Apr 3 at 16.
With the lockdown in the heart of Phuket Town last week, now lifted, and the rash of infections in the fishing port areas, the latest map released by the PPHO showing the location of the new infections across the island shows very different areas as the having the highest rate of infections in Phuket comapred with just a few weeks ago.
The latest map, released yesterday (Aug 19), is marked as accurate as of 6pm Wednesday (Aug 18), as follows:
Phuket Town 457 cases (Talad Yai 237, Talad Neua 220)
Phuket Sandbox travellers can fly out starting next month
Tourists pose for pictures at Mai Khao beach in Phuket in 2019. Mai Khao beach is a popular destination for tourists looking to snap a few selfies with planes as they approach directly overhead, flying low before landing on the runway. (Bangkok Post file photo)
Domestic flights catering to Phuket Sandbox travellers will be allowed at Suvarnabhumi and Don Mueang airports, starting next month, says a source at the Transport Ministry.
Flights at the airports have been suspended by the Civil Aviation Authority of Thailand (CAAT) due to the Covid-19 outbreak, causing inconvenience to tourists under the tourism reopening programme.
The aviation regulator issued a ban on commercial domestic flights to destinations in provinces hardest-hit by Covid-19, the so-called dark red zones, on July 21. Affected are Suvarnabhumi in Samut Prakan and Don Mueang in Bangkok.
According to the source, CAAT is prepared to relax the flight ban at Suvarnabhumi and Don Mueang airports to cater to the sandbox visitors.
Passengers arriving from Phuket are required to complete the 14-day programme if they want to travel to Bangkok or other provinces.
However, foreign visitors who are unable to complete the programme but want to return home are also allowed to fly but they cannot leave the airport. The transit/transfer period is extended from 12 to 24 hours.
Meanwhile, Thai Airways International (THAI) said it has adjusted flight operations to accommodate changes in air travel demand and Covid-19 restrictions.
According to THAI executive Nont Kalintha, the carrier will operate two domestic flights between Bangkok and Phuket per week until October.
Phuket-bound TG922 will leave every Thursday while Bangkok-bound TG916 will leave Phuket on Fridays. Flights are expected to start in September in line with the CAAT's announcement.
The airline also plans one return flight on the Bangkok-Phuket-Frankfurt route leaving Bangkok every Thursday and one return flight on the Bangkok-Phuket-London route leaving Bangkok every Friday.
The carrier also plans to offer two routes -- Bangkok-Paris-Phuket-Bangkok and Bangkok-Zuric-Phuket-Bangkok -- per week leaving Bangkok every Thursday and Friday respectively.
BANGKOK: Speaking at Thursday morning's webinar "Gearing up Thailand Economic Recovery in 2022 and Beyond" organised by the Thai Exhibition Association (TEA) and sub-headed A Brighter Outlook for Thailand's Exhibition Industry, Mr. Montri Mahaplerkpong Secretary General of the Federation of Thai Industries (FTI) suggested it may take 8-10 years for tourism to recover.
Other webinar speakers included Mr. Kavit Kittyboonya, Vice President, the Thai Exhibition Association (TEA), Mr.Chiruit Isarangkun Na Ayuthaya, President, Thailand Convention and Exhibition Bureau (TCEB) and Mr. Stanley Kang, Chairman, Joint Foreign Chambers of Commerce in Thailand.
In addition Mr. Montri Mahaplerkpong Secretary General, The Federation of Thai Industries who impressed many of those attending the webinar with his presentation. Responding to my question his reply was both thoughtful and well reasoned.
Does the panel have an estimate when tourism will normalise?
Mr. Montri replied by firstly stating that tourism was not the Federation's specialised area however if we compare the global pandemic to a Thailand centric crisis such as the '97 Tom Yum Financial Crisis, this started here in one country. It took 5 years to recover. Now if we look at the Covid pandemic it is global involving all countries. "I can't see tourism recovering for 8-10 years," he said.
He went on to explain that this was also dependent on other factors. He asked, "How safe is it to travel on an aircraft?" Economy class travel is too cramped for social distancing so high-end tourism travelling in business class with more space, may improve quicker than economy class tourism he suggested. In addition he felt the rate of vaccinations and certification would effect the pace of the recovery.
Webinar no.2 of the series will take place on 26th August 2021 via Zoom 10:00-11:30 (GMT+7) and entitled "Where to Play and How to Win".
What was the Tom Yum Kung Crisis?
The Thai dish Tom Yum Kung is a spicy Thai shrimp soup.
The Tom Yum Kung Crisis was an economic meltdown, set into motion by a number of different factors in 1997. It was dubbed this particular name because of the heat Thai citizens were feeling during this time, and the stress of this crisis and the financial implications of it led many people to take their own lives. It was the worst economic crisis Thailand had ever seen, and the effects were felt far and wide. People's salaries were cut in half, jobs were lost, and those who were planning on entering the workforce could not find any jobs, regardless of their skills or previous education.
What caused the crisis?
Many factors came into play, starting with the real estate market which began to crash in 1996. Then the stock index fell. A total of 16 financial institutions were shut down, and by July 2, 1997, the baht was floating, which had not happened in 14 years.
BANGKOK, Aug 19 (TNA) – Thai Airways International (THAI) announced to resume international and domestic flight operations during the August – October period.
In response to demand for air travel, the airline will operate flights to international and domestic destinations under the Covid-19 prevention measures, said Nond Kalinta, THAI's chief commercial officer.
The domestic route is:
Bangkok – Phuket: two flights per week every Thursday and Friday, starting from September to October.
The routes to support the Phuket Sandbox project are:
Bangkok- Phuket- Frankfurt: one weekly flight on Thursdays.
Bangkok- Phuket – London: one weekly flight on Fridays.
Bangkok-Paris-Phuket-Bangkok: one weekly flight on Thursdays.
Bangkok-Zurich-Phuket- Bangkok: one weekly flight every Friday.
The routes to Europe and Australia
Bangkok – London: two flights per week, Wednesdays and Sundays.
Bangkok – Frankfurt: two flights per week, Saturdays and Sundays.
Bangkok – Copenhagen: two flights per week, Tuesdays and Saturdays (only on Saturdays in September).
Bangkok – Sydney: two flights per week, Wednesdays and Sundays.
The regional routes are:
Bangkok – Singapore, one weekly flight on Wednesdays, starting from October.
Bangkok- Osaka, two flights per week on Thursdays and Saturdays.
Bangkok – Tokyo (Narita), three flights per week, on Tuesdays, Thursdays and Saturdays.
Bangkok – Tokyo (Haneda), two flights per week, on Tuesdays and Saturdays.
Bangkok- Nagoya, two flights per week, Thursdays and Sundays.
Bangkok- Seoul, two flights per week, on Thursdays and Sundays.
Bangkok – Taipei, two flights per week on Wednesdays and Fridays.
Bangkok – Jakarta, one weekly flight on Wednesdays. (TNA)
Prominent Thai doctor says everyone will eventually catch Covid-19, we need to learn to live with it
Prominent Thai doctor, Manoon Leechawengwongs, urged non-infected people to stop discriminating against Covid-19 Coronavirus cured patients as he believes everyone would eventually be infected, sooner or later.
PHOTO: Dr. Manoon Leechawengwongs
Bangkok –
The doctor from Vichaiyut Hospital stated online today, August 19th, that Thailand has an increasing number of covid patients every day. But the other thing that is happening now is that many cured coronavirus patients who strictly conducted self-treatment and self-quarantine at home until 3-4 weeks have passed are also shunned by society.
His status read: "Their boss doesn't let them go back to work. Local shopkeepers refused to provide service to them. Society treated them like they used to treat people with HIV and tuberculosis. They are stigmatized and discriminated against."
"The SARS-CoV-2 can survive in people with mild to moderate symptoms for up to 14 days and not more than 20 days in severe patients. If the cured patients conduct a swab test, only dead germs, not living organisms, will be found. They can't infect others after more than 3 weeks of being cured."
PHOTO: Workpoint News
Dr. Manoon also asked everyone to treat the recovered more kindly as many of them have already been suffering enough and even experienced a near-death experience before they eventually recovered themselves.
"I believe that almost everyone, regardless of which vaccination brand they received, would be infected sooner or later due to new research on the Delta variant and the fact that vaccination will not fully prevent spread or transmission. We cannot live in a state of fear forever. We have to learn to live with it and do not discriminate against those who have already been recovered. They deserve to live like everyone else. We should be reminded to always have mercy on your fellow human beings," he concluded.
Chonburi reports 1,322 new Covid -19 cases with 7 deaths, 1,276 people recovered
Chonburi –
The Chonburi Department of Public Health announced 1,322 new and confirmed cases of Covid-19 today with 7 new deaths, August 19th.
This makes a total of 50,746 cases of Covid-19 in the current round of infections, with 20,324 people still under medical care/supervision, and with a total of 273 recorded deaths in Chonburi since the start of this recent round of infections in early April. The details on yesterday's 7 new deaths were not given, which is standard for the health department.
Additionally, 1,276 people were also released and recovered yesterday in Chonburi. 30,149 people in total have now been released from medical care and recovered in Chonburi since this current wave began.
The district-level new cases were as follows today:
Mueang Chonburi 312, Si Racha 410, Banglamung (Pattaya) 184, Panat Nikhom 71, Sattahip 47, Ban Bueang 75, Pan Thong 88, Bor Thong 13, Ko Chan 27, Nong Yai 26, and 69 new cases transferred from other provinces for medical care.
Cluster, Thai Fountain of Life Co.,Ltd. in Si Racha, 6 cases
Cluster, Adient & Summit Corporation Co., Ltd. Laem Chabang in Si Racha, 6 cases
Cluster, Italian Thai company in Banglamung, 7 cases
GFPT Nichirei (Thailand) Company Limited in Nongyai, 5 cases
Cluster, Autoliv (Thailand) Co.,Ltd in Si Racha in Mueang Chonburi, 5 cases
Risky occupations like taxi drivers, customer-facing roles, 41 cases
2 medical staff
36 cases from various enterprises in Rayong
Close contacts in general: in families – 289 cases, in workplaces – 212 cases, close friends – 15 cases, and joined a party – 1 case
Close contacts (under investigation), 232 cases
Currently under investigation in general for the source of Covid-19 infection, 448
A total of 1,295 close contact searches were received today with 321 initial proactive searches, and more proactive search reports are pending.
There are currently, in Chonburi, clusters of Covid-19 at 21 establishments and five markets, 10 construction worker camps, and four communities. TPN media notes that this cluster information appears to be outdated but is what was provided by authorities.
A woman looks at closed stores while walking alone in Siam Square in Pathumwan district. (Photo: Chanat Katanyu)
In my previous articles, I have suggested the economy is in bad shape, and that at least 2 trillion baht in economic relief packages is needed to prevent the economy from collapsing.
The governor of the Bank of Thailand has just voiced a similar idea by urging the government to borrow an additional 1 trillion baht to boost the economy. He has given four reasons why the economy is in serious need of support.
The Covid-19 outbreak in Thailand has caused 1) massive income losses totalling 2.6 trillion baht from reduced working hours and business interruption; 2) 3.4 million unemployed and under-employed workers, equivalent to 13.4% of the non-agriculture workforce; 3) a K-shape recovery which means some industries, such as the tourism industry, will never recover without government support; and 4) a long recovery time of three years compared to two years elsewhere in Asia. To overcome these four problems, in the governor's view, a 1 trillion baht GDP push is required.
The governor has the right idea but the wrong number. In order to push GDP up by 1 trillion baht, economic stimulus packages must be at least 2 trillion baht, not just 1 trillion baht because "free" money is only half as effective as "earned" money. I term this the "chicken for fish" theory. Let me explain.
Assuming that there are only two workers/consumers in an economy, Mr A who raises chickens and Mr B who raises fish. A chicken and a fish are both 100 baht each. During normal times, Mr A will sell his chicken for 100 baht and use the money to buy one fish from Mr B.
Then comes a bird flu outbreak causing all the chickens to die. The government decides to support Mr A by giving him "free" money of 100 baht. Mr A uses that money to buy fish from Mr B.
Here is the essence of the theory. During normal times, 100 baht of earned money will be transacted to create two products for the economy -- one chicken and one fish. Thus, GDP, the valuation of an economy, would be valued at 200 baht. With stimulus packages, 100 baht of free money to Mr A will be transacted to create only one product -- one fish. With only one product, GDP would be valued at 100 baht.
Confused? Do not worry. Readers are not economists. Just remember that "free" money from government stimulus packages will not push GDP up on a 1 to 1 basis. In the real world, the ratio is 1 to 0.25 which means 1 trillion baht of stimulus packages would likely induce a 250 billion baht increase in GDP.
This phenomenon has already happened in the US and around the world. About US$2.8 trillion (93 trillion baht and roughly 14% of the GDP) of stimulus packages was spent by President Trump and President Bidden.
However, that money can push US GDP growth up by only 3.5% and not 14%. Why? Because when people and businesses receive "free" money, they do not naturally spend the entire amount at once. They save some for future rainy days, slowing down immediate GDP growth.
The real problem now is not arguing about the right size of additional borrowing as the government is currently not spending a substantial sum of money to stimulate the economy. Have we forgotten the 0.5 trillion baht of additional borrowing authorised by the emergency decree on May 25? Two and a half months have passed. How much has been borrowed under that emergency decree? Urging the government to borrow 1 trillion baht on top of that could prove to be a waste of time.
I have given three possible reasons why the government is not in a hurry to borrow. The first one is that legal public debt to GDP ceiling of 60% is about to be breached. However, this problem can be easily resolved by amending relevant laws. The second possible reason is the government might reserve the borrowing allowance to cover income shortfalls as a weak economy means a much lower tax income.
The last possible reason could be that the government might realise that the Thai liquidity market is very tight and a large amount of borrowing might not be feasible.
I have three solutions to offer. The first solution is for the Bank of Thailand to embark on Quantitative Easing (QE) by purchasing government bonds like all major central banks have done. I did not understand why the Bank of Thailand said there were not enough private debt instruments in Thailand to perform QE. The private sector does not need funding, but the government desperately does.
The second solution is for the Bank of Thailand to purchase Thai government foreign currency bonds, ie, sovereign bonds. Instead of issuing baht bonds which can upset domestic liquidity, the government can opt for issuing dollar bonds. This arrangement is equivalent to pseudo capital inflow.
As I have explained before, the 1 trillion baht government borrowing in 2020 was funded by foreign money through the balance of payments surplus and hot money inflow.
Available domestic liquidity in 2020 was also not enough to absorb large funding needs. Fortunately, the Bank of Thailand's foreign currency reserves, one of the world's strongest, is over $230 billion which is ample to support the issuance of Thai sovereign bonds of $30-60 billion.
The third solution is to put the economy into hibernation. Stimulus packages are costly and would result in a high price to pay in the future. To support the idea of 1 trillion baht additional borrowing, the governor also suggests that an increase in the VAT rate might be necessary. A 1% increase in VAT would bring in 60 billion baht of extra tax income annually. To pay off the debt and its interests, VAT would have to be raised from the current 7% to 8% for about 20 years. Of course, a higher VAT rate would bring hardships to lower income people. Economic hibernation is a much cheaper alternative as it will incur minimal cost to the government and consumers.
How would this hibernation concept apply to the economy? Instead of the government giving out free money of 1 trillion baht and shouldering the full amount of debt, consumer and business expenses of 1 trillion baht (or much less) can be eliminated to yield equivalent effects on GDP. How? I will need more time to think the process through.
