Kommer Ni ihåg denna minister som under pandemin gjorde märkliga uttalanden och tog "udda" beslut i de flesta frågar rörande Covid19 och hur bekämpa sjukdomen…..??
Anutin Charnvirakul Receives Honorary Doctorate in Public Health from Praboromarajchanok Institute
On November 10th, 2023, Ms. Traisulee Traisanakul, the Spokesperson for the Ministry of Interior, publicly stated that Praboromarajchanok Institute awarded the degree of Honorary Doctor of Public Health 2023 to Mr. Anutin Charnvirakul, the Deputy Prime Minister.
Praboromarajchanok Institute is a public higher education institute for the production of the public health workforce under the Ministry of Public Health in Thailand.
Anutin expressed gratitude for the honorable award as the greatest achievement in his life. He also emphasized his role in supporting and valuing medical and public health work in his best effort with the living of Thai citizens into consideration.
Traisulee publicly stated that the degree of Honorary Doctor of Public Health was to praise Anutin as a good example to society that continuously supports medical and public health work with a significant impact on the nation and society.
Thai govt considering a small hike to basic daily wage before yearend. Thailand's Labour Minister Phiphat Ratchakitprakarn said the government was looking into the prospect of raising the minimum daily wage this year as a "New Year's gift" for workers.
However, he said, the hike will not hit the 400-baht per day level as promised by the premier earlier.
He also said the wage rate will vary from province to province and will not exceed 10 baht. Phiphat put the 10-baht limit down to employers' stance, economic growth and inflation.
The minimum daily wage has been adjusted about 10 times since 2012 when the basic wage stood at between 222 and 300 baht. The most recent increase was in September 2022.
As per the National Statistical Office, Thailand's workforce stands at about 39 million people. Here is how much they are paid, based on where they work:
On Sunday, November 5th, the picturesque town of Bangsaen in Chonburi province, Thailand, came alive with the exhilarating energy of the 'Bangsaen 42 Chonburi Marathon 2023.'
This momentous event, held for the seventh time, witnessed over 12,000 enthusiastic Thai and international marathon runners, who took on the challenge of a 42.195-kilometer race, adhering to the standards set by the International Association of Athletics Federations (IAAF).
The event was graced by the esteemed presence of Mr. Amnat Charoensri, Deputy Governor of Chonburi province, and Mr. Rut Jirawannakitchakorn, Managing Director of MICE and Communication Company Limited. Their presence underscored the significance of the event and the province's commitment to promoting sports tourism.
The Bangsaen 42 Chonburi Marathon has rightfully earned its place as one of the largest marathon events in Thailand, having been bestowed with the prestigious World Athletics Elite Label.
The marathon route was also carefully designed to showcase the province's natural beauty, including the pristine shores of Bangsaen Beach to the serene landscapes of Laem Taen and Khao Sammuk. The event's success signified Chonburi province as a premier sports tourism destination, with an estimated economic impact of over 400 million baht generated from the event.
PM Srettha Thavisin unleashes bold vision for EEC economic renaissance
Srettha recently took a train trip from Hua Lamphong Station to Laem Chabang, utilizing the journey to strategize with relevant agencies.
In a strategic move to fortify Thailand's Eastern Economic Corridor (EEC), Prime Minister Srettha Thavisin has taken proactive steps to attract foreign investment to the region. Embarking on a train journey from Hua Lamphong Station to Laem Chabang, Srettha utilized this opportunity to engage in strategic discussions with pertinent agencies.
Under Srettha's leadership, the government is placing a high priority on enhancing critical infrastructure and public utilities, with a particular focus on ensuring that services such as water supply adhere to international standards. Additionally, there is an ongoing review of tax measures aimed at providing attractive incentives to potential investors.
This proactive approach to preparing the EEC for substantial economic activities is anticipated to spur growth, generate employment opportunities, and position Thailand as a key player in the global market, according to officials. (Source: NNT)
Top lawyer and former member of the National Reform Council, along with others, calls for a new Revenue Code and for Thailand to compete with World tax havens such as Singapore and Hong Kong. They condemn the current move as a backwards step for the country and its tired economy.
A former Chairman of a prestigious international law firm in Bangkok has warned that a new taxation directive issued by the Revenue Department targeting foreign income sources faces a legal challenge and will create more reporting obligations and confusion. The order published on September 15 2023, altering a 38-year-old interpretation, is a definite step by the government to widen the tax base, meaning more significant reporting requirements, at the very least for expats living in Thailand. Kitipong Urapeepattanapong, along with other legal experts, including a Supreme Court judge, is calling on the Thai government to overhaul the tax system thoroughly to make it competitive with Hong Kong and Singapore.
A former chairman of Baker McKenzie, an international law firm with offices in Thailand and a member of the National Reform Council has come out strongly against a recent move by the Revenue Department to change a 38-year regulation applicable to foreigners with overseas income on several grounds including the legality of the order and its broader impact on the Thai economy moving forward.
Kitipong Urapeepattanapong, a former chairman of the firm's board, referred to order number P161-2023, dated September 15, 2023.
New regulation changes an interpretation which disregards when money was earned abroad and taxes all income if not already taxed by treaty countries
The new order issued by the Revenue Department clarifies that income tax must be paid on income brought in from abroad from another jurisdiction whether or not the income was generated within the scope of the present tax year.
The new definition of income tax for foreigners in Thailand, which is what this is, has already bred unease and uncertainty because of the potentially wide-ranging implications of the move.
If the Revenue Department were to launch an aggressive campaign to generate additional income, it could see some expats from countries that do not have tax treaties with Thailand impacted or where tax has not been paid on retirement funding or other income remittances from foreign countries.
Ministry of Finance predicts a declining tax base until 2026 unless concessions are plugged and new streams of tax income found for the Exchequer
At length, the tax change is a step towards expanding the country's tax base as required by Finance Ministry officials, a goal indicated by former Minister of Finance Arkhom Termpittayapaisith in October last year to counter a fall off in the country's tax take as a percentage of GDP forecast until 2026.
As of now, tax advisers are suggesting that the new regulation will see Thai tax authorities moving to have foreign residents in the Kingdom make annual tax returns and even issue them with tax identification numbers as a first step towards expanding the country's tax base.
Concern over future taxation policy has been a consistent theme since 2020 among Ministry of Finance officials, with the country's tax base declining despite, up to now, healthy tax returns based on annual budget forecasts.
These forecasts, however, already consider the comparatively lower level of tax that the Kingdom's economy generates for the Exchequer.
Earlier regulation and interpretation from February 1985 on taxable foreign income is more aligned with Thailand's tax laws and likely to be tested
The new resolution passed by the Revenue Department replaces an earlier one referenced as 2-1985, dated February 21, 1985, which explicitly defines the terms on which foreign income brought into Thailand would be taxed.
That resolution read: 'If such income comes from an income source abroad, it will be subject to personal finance tax in Thailand when imported in the same tax year.'
'Most people bring in income in different tax years, which is considered tax planning. That is legal and is used as a guideline for taxpayers. And of course, for 38 years, the previous resolution of the Revenue Department has been taken by foreigners living in Thailand, coming to live and invest in Thailand as an indication of a reasonable and sensible attitude from the country's tax authorities,' explains Mr Kitipong.
Recently, legal and tax experts warned the government over the announcement that the newly installed Thai Prime Minister trumpeted after it was issued on September 15.
Prime Minister openly conceded the change is linked with widening the tax base and finding extra funding to address Thailand's inequality problem
Mr Srettha Thavisin is also the country's Minister of Finance and has, at the same time, given instructions to the Revenue Department to look at the operation of the country's inheritance tax, which he has criticised for only generating ฿200 million in the last year.
In mid-September, the new Prime Minister acknowledged that his move to widen the income tax base and scope of tax collections concerning foreigners would be unpopular but justified based on Thailand's chronic level of inequality.
Mr Kitipong compared the attitude reflected in the new Revenue Order to the United States policy on income tax, which is that tax collection should be operated on a global principle.
Existing Revenue Code gives government minimal power to tax income earned in any foreign country and may need to be changed if this plan proceeds
He argues powerfully that this is different from the law in Thailand.
Indeed, Mr Kitipong suggests that Section 41, Paragraph 2 of the country's Revenue Code gives minimal scope to the Thai government to tax any income from abroad by pointing out that the existing provision does not specify that income earned in foreign countries outside the jurisdiction of the Kingdom is subject to tax at all.
The 1985 resolution by the Revenue Department in Thailand was intended as a way of clarifying the matter. It has been accepted for 38 years as a reasonable compromise which is fair to taxpayers.
Mr Kitipong suggests that if the new resolution goes ahead on January 1 2024, it will likely lead to a challenge in court, which will throw the country's income tax collection process into confusion.
The legal expert also claims that there is a duty on the government to interpret the law as reasonably as possible concerning the responsibilities of taxpayers and, where appropriate, to give them the benefit of the doubt.
Change to the existing benign regime for taxpayers ultimately a retrograde step for the country's efforts to attract foreign investment and residents
He warns that the change in direction by the new government will be a retrograde step for the Kingdom, which in recent years has been touting itself as a destination for foreign investors and global business executives because of its tax-friendly regime.
His opposition to the new resolution is based on three fundamental concerns.
First is that the order itself is very likely to be tested in court. It is, in fact, a reinterpretation of an existing revenue code provision which has been in operation for 38 years.
Mr Kitipong distinguishes this from a law or even a regulation itself in that it is simply a statement of a new opinion, thereby forming a fragile basis for what is, in essence, a substantial change in Thailand's tax environment.
The second concern the former member of the National Reform Commission has is that the move by the present government will, in the longer run, cost the Kingdom more in terms of lost investment and opportunity.
Analysts see a link between this and the government's efforts to sign a trade deal with the European Union and attract American corporate investors
Some other analysts have suggested that the move by the new government could be part of some quid pro quo as it tries to gain acceptance by Western powers, including the European Union, with whom Thailand is currently involved in tough negotiations with the European bloc demanding overt concessions from Bangkok, with European negotiators talking of a potential deal with 'sustainability at its core' and one that is very wide-ranging when it comes to social issues.
In March this year, former Minister of Commerce Jurin Laksanawisit dashed to Brussels when it was confirmed that trade negotiations towards a new pact would commence with the 27-member bloc.
Thailand has, up to now, only engaged in bilateral trade pacts except for the Regional Comprehensive Economic Partnership (RCEP), with Asian nations, including Australia, New Zealand and China, which is effectively a trade and duties agreement, with less of an emphasis on commitments such as climate change and social justice.
The new government is also trying to attract reluctant foreign direct investment from the United States.
The previous government was one of the 13 initial signatories to the Indo-Pacific Economic Framework, IPEF, launched by the Biden administration at a US ASEAN summit in Washington DC last May.
First, there will inevitably be confusion impacting both foreign residents and Thai nationals currently investing abroad in enormous numbers online
Mr Kitipong is also cautioning that the new tax resolution is likely to lead to confusion among many Thai taxpayers who are currently investing abroad in large numbers.
He points to the use of investment platforms by 55,963 smaller Thai investors who have invested $8.886 billion abroad at this time.
Mr Kitipong says that the scope for confusion and the negative impact on potential investors in Thailand will undoubtedly make the proposal announced by the Revenue Department counterproductive.
The former Chairman of a legal firm with comprehensive experience in the Asia-Pacific in business and investment deals is suggesting that the government instead conduct a full review of the country's tax code and build a new one from the bottom up to compete with other players on the Asian continent such as Singapore and Hong Kong for investment and economic opportunities.
He says that it is clear that even if the current resolution is accepted, it can have different interpretations.
New tax provision is not a law nor an administrative or ministerial regulation but a reinterpretation of one issued 38 years ago and in effect since 1985
It replaces an interpretation from 38 years ago that illustrates the problem. It highlights the need for a clearly defined tax code, which is thought through and aimed at making Thailand an attractive destination for investors while offering a clear and precise regulatory framework.
In the short term, he has suggested that if the government wants to change the current provision, it must enact either a royal decree or a new law to give legal certainty to the taxpayer.
As well as this, Mr Kitipong brings several authoritative sources to support his position, including Professor Chaisit Trachutham, a former judge of the Supreme Court with extensive experience in litigation dealing with taxation matters. Professor Chaisit is also former Chairman of the State Audit Commission.
This legal expert claims the new regulation is an erroneous interpretation of the current tax code.
His opinion is that the tax code in Thailand must be interpreted strictly and, in this instance, in a way that most favours the taxpayer.
In the case of the current situation, this poses a new provision against the 1985 directive, which is the interpretation that the Revenue Department has operated for 38 years.
Likelihood the directive will be overturned
Furthermore, legal experts suggest that the department order issued on September 15 can quickly be challenged with a strong likelihood that it will be overturned.
The former judge points out that the directive issued is not even a ministerial regulation but an administrative interpretation in the form of an order that directly conflicts with a previous one issued by the same department.
Mr Kitipong, meanwhile, also points to a well-regarded Thai law textbook in Thailand authored by Professor Paichit Rojanawanich and others.
This textbook clearly states that income tax earned personally or by companies or assets associated with the taxpayer who has been resident in Thailand for over 180 days, that is, that has been earned previously or not within the current tax year, is not subject to taxation in Thailand when it is brought into the Kingdom.
Thailand's tax code has never accepted the US principle of global income, which is inherent in the new directive and push by Revenue authorities
The former legal practitioner also quoted Ajarn Koment Suebwiset, a professor of tax law in Thailand and a former Director of the Revenue Department.
He opines that any interpretation of tax law must be strictly applied and allow the benefit of the Revenue Code, which is currently being used by people resident in Thailand for tax planning purposes or, indeed, for legal tax avoidance.
This should continue to be acceptable until the government introduces legislation on taxation which explicitly defines a new and efficient tax regime.
The former Director of the Revenue Department points out that Thailand has never accepted the principle of global income, which is the basis for US tax law and appears to be the thinking behind the current proposed change from the beginning of 2024.
Ajarn's comment also points to the potential negative consequences for the Thai economy, which competes for investment with tax havens such as Singapore and Hong Kong.
Hong Kong and Singapore only tax income generated within their own limited territories; Thailand should compete with these two special financial hubs
Both these jurisdictions do not levy tax on income earned abroad, but specifically within the territory that they control.
Capital gains tax is exempt concerning activities outside their respective jurisdictions.
Mr Kitipong warns the government that the new directive may also create problems for the operations of Thailand's capital markets, not only in dissuading capital inflows into the Kingdom but also creating confusion and uncertainty, which is anathema to people engaged in international business and finance.
He quotes an example of how financial investors differentiate between principal and interest concerning capital flows.
This question also touches on the issue of the growing number of smaller Thai investors investing abroad in capital markets through the use of innovative online platforms.
Pitfalls and problems arise if the new push to widen the tax base and target foreign earnings is pursued with confusion on reporting of foreign income
He further cites a problematic situation for foreigners in Thailand as opposed to Thai residents in respect of Section 48 of the Revenue Code, which determines the amount of tax applicable to any resident of Thailand, including foreigners who have been living in the country for over 180 days.
This is a detailed section regarding any individual resident in the Kingdom with an income of more than ฿120,000 per year.
The section provides for a 15% tax rate on interest on bonds, deposits or debentures, and capital gains derived from selling shares, debentures, bonds or other financial instruments linked to companies or other juristic partnerships.
The legal experts suggested that many investors, including foreigners and Thai people alike, may not be able to easily differentiate for tax purposes between the principal and income of sums moving in and out of the country, which could lead them to be taxed at a rate of 35% and in this way would become an incentive for investors to keep their money out of Thailand to avoid complications with the Revenue Department.
Need for a clearly defined and all-new tax code to allow Thailand to attract financial and inward investment for free and mobile capital and investors
Ajarn Koment suggested that in this way, the action currently being taken by the Revenue Department will only benefit tax jurisdictions such as Singapore and Hong Kong, where the matter is clear-cut and there is no interest in authorities there in taxing activities outside their own jurisdiction.
Indeed, this is explicitly advertised to potential investors considering using those city-states as places for future investment and residency.
The former Revenue boss suggested that the change announced on September 15 will, in theory, affect the majority of tax residents in Thailand with income from abroad and will lead to Thailand's high-net-worth investors keeping their money from reaching the Kingdom, thus benefiting Singapore and Hong Kong in particular, the former, which is already used by tax residents in Thailand for planning purposes.
The former revenue official also suggested that tax residents in Thailand may employ ingenious devices to avoid falling afoul of the new tax regime by opening current accounts and credit facilities with banks in Singapore, Hong Kong or other jurisdictions to make regular payments and to use credit cards.
They may also use assets or legal entities in foreign countries to arrange back-to-back loan facilities as collateral and avoid being snared into reporting for the purposes of an ill-defined Thai tax.
Tax treaties with countries only solve the problem de jure but de facto; many foreigners in Thailand already avoid tax on relatively small incomes
The new tax regime may also encourage smaller individual investors to set up companies abroad or to use various mutual funds operating in countries that already have low rates of tax and also have double taxation agreements with Thailand.
One of the arguments by those suggesting in recent weeks that the latest change will not have a considerable impact is that Thailand currently has a taxation agreement or treaty with 59 countries. These include Armenia, Austria, Australia, Bahrain, Belarus, Bangladesh, Belgium, Bulgaria, Cambodia, Canada, Chile, China, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Korea, Kuwait, Laos, Luxembourg, Malaysia, Mauritius, Myanmar, Netherlands, Nepal, New Zealand, Norway, Oman, Pakistan, Philippines, Poland, Romania, Russia, Seychelles, Singapore, Slovenia, Spain, Sri Lanka, South Africa, Sweden, Switzerland, Taiwan, Tajikistan, Turkey, Ukraine, United Arab Emirates, United Kingdom, United States, Uzbekistan and Vietnam.
The Kingdom is currently negotiating with Lithuania, Papua New Guinea, Brunei, Zimbabwe and Kenya to extend this list further.
However, each of these taxation treaties is different and does require a considerable effort by tax residents here to ensure that they have the correct certification and arrangements in place to benefit from the treaties and avoid double taxation.
Treaties only prevent double taxation; if the Revenue Department pursues the new tax interpretation, it will mean at least more reporting for foreign residents
The treaties, in effect, put the onus on the taxpayer to ensure that they avail of the concessions allowed, preventing double taxation.
This only applies if the government moves to apply a heavier hand concerning tax compliance.
The de facto situation, as opposed to de jure, is that the 1985 interpretation has allowed for tens of thousands of Thai or foreign residents in Thailand to avoid taxation on personal income and pensions where otherwise they would have been taxed except for large foreign companies, high earners and net worth foreigners who would routinely employ tax consultants.
This situation is about to change, and many tax advisers are already looking forward to the stream of fee income that this may generate among new and existing foreign residents in Thailand who have never even had to consider the matter before.
Foreign Expats blissfully aware that they have been benefiting from the previous directive with no reporting requirements on pension and other income
These foreigners living in Thailand have been blissfully unaware that they are paying no tax at all.
In contrast, others have assumed that they are paying tax in their country of origin, therefore availing themselves of the supposed right to be exempted from double taxation.
This move by the Revenue Department, if followed up on a mass basis, could create a significant problem.
Still, it remains to be seen how the Revenue Department will approach it, assuming it wishes to avoid a significant issue for hundreds of thousands of foreign residents in Thailand who are investing and contributing to the Kingdom's economy.
Mr Kitipong, as a legal expert, has called on the government to embark on a tax reform programme if it wishes to introduce into Thailand the principle of global income tax, similar to the United States.
To do this, in the short term, he suggests a restructuring of Section 41 of the Revenue Code, which defines a taxpayer in Thailand and the basis for paying income tax, probably something long overdue in any event because of changes that have come about in the last few decades concerning the internet and mobility of populations in the world.
Need a new Revenue Code or tax law to clearly set out reporting and tax obligations for all foreign residents in Thailand and compete with tax havens
Mr Kitipong suggests that a new law or decree should be enacted defining the nature of the taxpayer under Section 41 and the basis and tax rates to be applied while implying that any such provision should ensure that the country is competitive with Singapore and Hong Kong.
He points out that as a member of the National Reform Council, he had once proposed to the government to reform its tax code based on the Singapore model so that Thailand could compete for investment in Southeast Asia and the wider region.
Likely, the administrative order or reinterpretation of the tax code issued on September 15 will be challenged in court, which will in itself lead to confusion.
Markedly, he calls on the government to think in the longer term regarding benefiting the economy.
He suggests that rather than simply introducing a stopgap measure to raise funding for stimulus programmes and other measures to combat inequality in the short term, a complete overhaul of the tax code is required.
Otherwise, he points out that the change being proposed will disadvantage many tens of thousands of small Thai investors as well as foreigners who have invested or are contributing to the Thai economy.
Bangkok must compete with Singapore and Hong Kong as a global financial hub and low tax base
Finally, the experienced lawyer calls for the government to launch a programme to create a new taxation code and compares it to building a new house instead of patchwork repairs, with the directive issued on September 15 falling into the category of shoddy workmanship.
He specifies that any new tax structure should be for the investors or taxpayers, offering both clarity and certainty concerning the income tax that is payable and the appropriate rate to be paid.
It should be competitive with Singapore and Hong Kong.
In other words, he proposes Thailand could look forward to becoming a key financial centre in Asia in addition to being a country that is currently very popular in Asia and presently very popular with foreigners from all over the world.
Easier visa-free access for Chinese tourists is a risky move amid lower demand with a rising flight of criminal classes and the desire by certain elements in China to shift funds offshore. The move may backfire and lead to more damage to the kingdom's reputation among genuine tourists from affluent Chinese population centres although the Royal Thai Police has assured the government in recent days that it was prepared to ensure the security of all visitors even under the new free visa regime.
The new Tourism and Sports minister Sudawan Wang-Suphakitkosol, on Thursday, set out her stall to not only reach record levels of foreign tourist numbers next year but to exceed the income level earned that year by over 50%. This comes despite substantially lower income per capita income generation when compared to 2019, recorded in 2023 and what appears to be out-of-kilter official figures. It comes with visa-free access approved by the cabinet on Wednesday for both China and Kazakhstan in the face of strong security concerns and heightened links between criminality and undesirable elements from the Communist country.
Following the first working cabinet meeting on Wednesday this week, the Thai government confirmed that it had granted permission for a free visa regime to be operated from the 25th of September 2023 to the 29th of February 2024 in respect of visitors from China and Kazakhstan.
The proposal to offer visa-free facilities to Chinese visitors has already proved controversial, with security analysts pointing to the large spike in criminality which resulted at the start of the year in conjunction with a surge in the number of Chinese arrivals.
Curbs and stricter controls on incoming Chinese tourists imposed by outgoing National Police Chief General Damrongsak Kittiprapas earlier this year
Chinese visitors were allowed to travel to the kingdom again after the communist country lifted its travel restrictions and Thailand emerged from its lockdown at the beginning of the year.
At that time, Thai police noted a correlation between the increase in Chinese visitors and rising criminality in Bangkok and Pattaya.
This necessitated moves to curb access from China to would-be tourists which were initiated and brought into play by outgoing National Police Commissioner General Damrongsak Kittiprapas.
Online campaign in China earlier this year has damaged the kingdom's reputation there, further outrages will be disastrous for Thailand's reputation
The rising spate of kidnappings and murders caused an online campaign to flourish in China in March attempting to persuade Chinese nationals not to visit Thailand for fear of becoming a victim of criminal gangs.
This campaign is thought to have severely damaged Thailand's reputation in China.
Another upsurge in kidnappings of Chinese nationals and similar outrages such as the horrific and sadistic murder of Chinese student, Jin Can, by a group of male tourists from the northern province of Hebei in China in Nonthaburi earlier this year, would be disastrous.
Thailand targets ฿1.52 trillion in foreign tourism income in 2023 or 80% of the 2019 figure, this is exceedingly optimistic given far weaker spending
Following the cabinet meeting on Wednesday the 13th of September, the new Minister of Tourism and Sports, Ms Sudawan Wang-Suphakitkosol announced that the new visa entry regime for China and Kazakhstan was to be part of an effort to restore the kingdom's foreign tourism industry.
The goal is to move beyond the level achieved in the record-breaking year of 2019.
Ms Sudawan had already set a target of 40 million visitors for 2024 and a target of ฿3 trillion in income, well ahead of what was earned four years ago in a record-breaking year for Thailand's tourism industry before it was crushed in 2020 and 2021 with pandemic crisis-era restrictions.
The figure appears to be based on a massive rise in tourist spending, which has not been the case this year. Thailand is on target in 2023 to see somewhere between 28 and 30 million visitors.
The minister, on Wednesday, suggested that the country may achieve an income level of ฿1.52 trillion or 80% of what was achieved in 2019.
Based on visitor arrivals being achieved at 28 million arrivals this would average out at an expenditure of ฿54,000 per visitor.
However, because the nature of foreign tourism in 2023 has changed substantially, comprising more short-term tourists from Asian countries, it is reported that the average spend of ฿47,738 in 2019 has plunged to ฿40,100 in 2023.
Even if Thailand can attract 40 million arrivals in 2024, earnings of ฿3 trillion are unlikely based on current visitor spending patterns and profiles
The figures tend to show that even if Thailand can return to a level of arrivals amounting to 40 million tourists, then, based on the current expenditure per capita, it can only hope to achieve ฿1.64 trillion in foreign tourism earnings next year compared to the ฿3 trillion targeted by the government after Wednesday's cabinet meeting.
The inclusion of Kazakhstan in the visa-free dispensation is also interesting since Kazakhstan has not previously been a significant market for Thai tourism and is not even analysed separately on monthly breakdowns released by the Ministry of Tourism and Sports except under the category of other for South Asian countries.
However, both Kazakhstan and China have a significantly higher GDP per capita than Thailand with China's running at $12,656 per head in 2022 while Kazakhstan's was $11,424.
Thailand by comparison was only $7,651.
Kazakhstan, the new tourist market being targeted, saw serious unrest develop in that country in January 2022, which saw Russian military forces deployed to its largest city, Almaty, when violent protests erupted over rising fuel costs.
Tourism minister wants 30% more arrivals in 2024
The new tourism minister highlighted, after Wednesday's cabinet meeting, that her priority was to increase the number of tourists visiting the Kingdom by 30% in 2024.
On Thursday, Ms Sudawan set a target of ฿4 trillion in income from both foreign and domestic tourism activities next year.
Referring to the cabinet meeting on Wednesday, she highlighted the new prime minister's determination to fire up the key industry which is without doubt a valuable economic asset: 'Mr Srettha Thavisin, the Prime Minister and Minister for Finance and the whole cabinet agreed that the Ministry of Tourism generates income for the whole country quickly. It is a quick win for the Thai economy and the Prime Minister has ordered efforts to promote the industry be integrated into the efforts of all ministries. This can be seen from the visa exemption policy for Chinese and Kazakhstan tourists that the cabinet approved on September 13th, making it seem likely that we will reach the goal of generating income from more foreign tourists.'
Aim is to position Thailand as the Entertainment capital of Asia, taking this accolade from Singapore
The new tourism minister talked about Thailand emerging as the hub for Entertainment and Sports in Asia replacing Singapore as the Entertainment Capital for the continent.
At the same time, a spokesman for the ministry, Chai Wacharonke reiterated that the goal was to exceed the 40 million visitors achieved in 2019, in 2024.
'Tourism is the only economic engine that can still run and is expected to generate substantial revenue for the country,' Mr Chai told the media.
The tourism industry during the COVID-19 emergency has proved itself to be at the heart of the Thai economy, not only in directly generating 12% of direct GDP but 20% of the country's overall economic activity including spin-off income for other sectors that benefit such as construction.
Pandemic shutdowns severely damaged the industry not only structurally but also in terms of international confidence due to erratic decision-making
However, the disastrous impact of the pandemic shutdowns is still felt within the industry, with many small hotels struggling under huge debt burdens, despite loan moratoriums and other concessions introduced by the previous government.
The loss of confidence caused by the dramatic shutdowns in 2020 and 2021, as well as the arbitrary nature of decisions made by the previous government, is also known to have damaged the relationship between Thailand and the international travel industry, most notably among international airlines during the chaotic period that followed significant spikes and threats from the virus across the world.
Thailand has not regained the same level of flight connectivity even to key markets such as China that it lost in early April 2020 when the country shut down its airspace to international flights and the foreign tourism industry itself.
'This year the expected revenue from tourism will account for 80% of the figure in 2019 when tourism-related revenue peaked before the COVID-19 pandemic,' Mr Chai told reporters this week.
45.4% of visitors to September were from Asian countries dominating the top five countries of origin
However, these figures are open to question given the reported lower level of per capita spending now associated with the profile of foreign tourists being seen from the 1st of January to September 3rd, 2023, when the country recorded 18 million visitors, with 45.4% of these coming from the country's five markets which were Malaysia, China, South Korea, India and Russia.
There are also fears that the visa-free concession to Chinese visitors will be exploited by foreign mafia gangs, particularly Chinese triad gangs who are sending criminal elements not only from China but from criminal hotspots around the world including Cambodia, Dubai and other centres which is causing more and more Chinese nationals including lone operators, to commit criminal acts in Thailand linked to kidnapping, money laundering, fraud and even cases of coercion and murder.
In the last decade or so, Thailand has become a magnet country for Chinese crime gangs involved in online fraud, gambling and drug dealing to launder money and migrate large numbers of people to the kingdom.
Many of these people have successfully obtained not only long-term visas but also Thai citizenship and the direction of Thai companies through newborn children.
Prime Minister Srettha to act as an ambassador for Thailand when he visits foreign countries in forthcoming trips say officials at the Ministry
On Thursday, officials at the Ministry of Tourism and Sports also pointed out that Prime Minister Srettha Thavisin would soon be visiting foreign countries and attempting to drum up interest in Thailand as an idyllic vacation hotspot.
Among the plans being worked on is a goal to make key Thai cultural and religious events such as Loy Krathong and Songkran into world-class festivals to attract fun-loving visitors from all over the world.
The cabinet also discussed increasing flight connectivity between Thailand and other countries, especially with new flights into secondary airports or regions.
The ministry is also reported to be setting up what it calls an online crisis management team to respond to emergencies which may impact the country's valuable foreign tourism industry stemming from possible emergencies or accidents which may occur in the kingdom.
This unit will also be tasked with combating negative coverage which was seen at the beginning of the year in China, despite intensive efforts by the Thai Embassy in Beijing, ultimately unsuccessful, to thwart the virulent and damaging campaign which reached hundreds of millions of Chinese visitors, portraying Thailand as a land of danger for tourists.
The spokesman for the Ministry of Tourism, on Thursday, outlined 10 measures which the ministry was currently working on to restart the tourism industry and help contribute to the economic recovery being planned by the new Pheu Thai-led government.
