The Tourism Authority of Thailand (TAT) will monitor the long-term impact of the collapse of Silicon Valley Bank (SVB) on Thailand’s tourism. However, Smooth sailing believes that the state of affairs is unlikely to cause an immediate slowdown in long-haul markets.
The bank’s closure last Friday raised considerations about possible economic turbulence, especially given the variety of startups and tech firms it served. However, TAT stated that demand is still driving journey, significantly amongst those that saved cash in the course of the pandemic and at the moment are looking to take outbound journeys.
Siripakorn Cheawsamoot, TAT’s deputy governor for Europe, Africa, the Middle East, and the Americas, said that the scenario stays targeted in the US. However, he mentioned TAT is monitoring the influence on purchasing power in the lengthy run, as digital nomads and remote workers within the tech business are a number of the main targets of Thai tourism.
Thanet Supornsahasrungsi, president of the Chon Buri Tourism Council, stated that the scenario could have an effect on tourism in the region the place the financial institution operates, however it mustn’t instantly impact Thailand or Asia. He added that focus should be targeted on high airfares and limited flight capability, which have solely just lately began to choose up.
Thanet mentioned that the closure of banks in the US might have a long-term impact on sure countries’ tourist spending and economies, Bangkok Post reported.
Apart from tourism, the SVB collapse has triggered issues about the security of money in banks, with prospects in Thailand wondering whether their cash is secure and whether or not they should withdraw it.
While Thailand’s Finance Minister Arkhom Termpittayapaisith insists that the troubles confronted by some major US banks have had no impact on Thailand, individuals are still nervous because a number of specialists mentioned that before the monetary crisis in 2008..g