Skal International Bangkok packed the house with future Thailand PM hopeful Korn Chatikavanij speaking candidly on a wide range of tourism related topics. It was an exceptional event which took place yesterday, Tuesday, June 14, 2022, at the Hyatt Regency Bangkok Sukhumvit hotel. The Business Luncheon Talk with the former Minister of Finance was well supported by industry influencers.
Korn Chatikavanij, politician, bestselling author, and former investment banker
Thailand’s Economy Direction for Thailand Tourism in 2022-2023
From 2008 to 2011, Korn Chatikavanij was finance minister under Prime Minister Abhisit Vejjajiva. In January 2020 he formed his own Kla party. As party leader Korn Chatikavanij, is considered to be a future potential prime minister with the younger entrepreneurial generation. Born in London and educated at St John’s College Oxford this 58-year-old Thai politician has a unique understanding of macro-economics and is no stranger to public speaking. He is widely regarded, articulate and knowledgeable.
The Skal Bangkok networking lunch proved to be a real eye-opener as former finance minister Korn Chatikavanij discussed inflation, the economy, integrated resorts, LGBTQ+ tourism, and the Surat Thani/Koh Samui bridge project.
No topics were off the table at this dynamic talk as Khun Korn offered unique insights and sage advice for Thailand’s tourism leaders.
Khun Korn at the beginning of his presentation identified that global economies were not doing well.
Post-Covid tourism has been badly hit. “It is the most challenging industry of them all,” he said. Tourism is returning quickly, however.
The challenges now for the economy are low growth coupled with higher inflation. He feels that inflation will lead to an increase in interest rates. The market he says is expecting an initial increase between 50 basis points up to one percent and later a further one percent increase.
Korn went onto discuss inflationary pressures such as the increase in household debt – already the highest ever at 90% of GDP – which will have a longer negative effect on the recovery of the economy. However, he believes that public debt currently at 70% of GDP is sustainable and allows fiscal space as there are still resources available to borrow further funds for the government to inject into the economy.
He believes though that the oil fund which is currently costing Thailand 20 billion baht per month, with a weaker baht touching 35 baht to the US dollar, is unsustainable and will have the long-term effect of higher fuel prices in Thailand long after global prices begin to decline.
Khun Korn said that there would be an election coming up as early as March or April of next year 2023 – nobody expects the current government to survive for another term, and probably parliament will be dissolved after the APEC meeting in November 2022. Thailand holds the chair as host.
Khun Korn went onto discuss property equity funds as a way to inject capital into businesses with property assets. He talked about his plans NOT to bring back property taxes immediately to 100% (they were dropped to 10% due to the pandemic). He prefers instead to look at a 5-year step-by-step program increasing gradually, only as businesses recover.
Speaking of immigration matters, he announced that he would be in favor to abolish the 90-day reporting for long-stay residents of Thailand.
He also announced that in order to look at new investments and opportunities for the travel and tourism industry, we cannot expect a quick return of the 40 million tourists that were recorded pre-Covid in 2019, but we do need to work harder to make sure we have a successful tourism industry.
As a political party we recognize that Thais like to gamble; they gamble in illegal establishments or are traveling to neighboring countries where casinos have been legalized and successfully introduced as integrated resorts. Khun Korn believes we should have our own, and this will make Thailand very competitive for this kind of business. There is already a subcommittee discussing this in parliament.Click here to view the full article.