Earthquake set to worsen tourism market

Central bank also sees hit to property

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The Bank of Thailand believes the earthquake will further slow the already sluggish recovery of the property sector and the existing high supply of tourist arrivals.

The central bank’s initial assessment suggested that the tragic event would affect economic activities across three key sectors – property, tourism and domestic consumption, according to Sakkapop Panyanukul, assistant governor for the Bank of Thailand’s monetary policy group.

“Given the disaster, the Bank of Thailand expects that rentals and purchases of high-rise condominium projects will slow down the already weak recovery of the property sector and the existing high supply of residential units,” he said.

Regarding the tourism sector, international travellers to delay or cancel their trips. However, the rate of cancellations and delays is expected to be minimal, in line with the short-term shock of the disaster, he said.