Economic overview
Thailand’s export and tourism-fueled economy remains steady, despite violent political protests in 2010 and severe flooding that crippled manufacturing in late 2011. Gross domestic product grew 5.5% in 2012. But growth has softened this year on weaker international demand for Thai agricultural and industrial goods. The nation is attempting to regain ground by encouraging domestic consumption and public investment. The government projects a 4.2% economic expansion this year.
Business travel industry insight
Business travel within Thailand is linked to its status as a regional hub for automobile and electronics manufacturing. Capital city Bangkok is a rapidly growing commercial center. Suvarnabhumi International Airport, which opened in 2006 just outside Bangkok, significantly improved Thailand’s transport infrastructure. It handled 53 million arrivals in 2012, acting as a gateway to Southeast Asia and a connecting point for various foreign carriers. The World Travel & Tourism Council projects business travel spending in Thailand will grow by 6.9% in 2013 to US$10.7 billion.
Opportunities
- Thailand’s location in the heart of Southeast Asia makes it ideal for regional offices.
- The Association of Southeast Asian Nations has established a blueprint for a fully integrated economic community to be in place by 2015. The increase in cooperation and elimination of regional tariffs is likely to elevate ASEAN’s power and influence.
- Thailand’s meetings, incentives, conferences and exhibitions industry is expected to grow sales by 10% in 2013.
- New payment technologies have boosted acceptance of corporate cards, especially among small merchants.
Challenges
- Poor transportation links between Thailand and its neighboring countries could inhibit growth as the nation relies more heavily on regional exports.
- Corruption is persistent among government officials and business professionals.
- Robust plans are in place to expand Bangkok’s mass transit system, but traffic congestion already stifles the transport of goods and workers.
- Just seven years after it opened, Suvarnabhumi Airport already needs expansion.
When your business expands into new markets, BCD Travel can get your travelers where they need to be. Talk to your account manager about how we can support your company’s growth across the globe.