Northern region feels the pinch
Tourism and private investment in the northern region remained sluggish in May due to a lack of confidence and political uncertainty, according to a Bank of Thailand report.
The number of foreign tourists through northern airports was 291,600 in May, down from 335,800 tourists the previous month but up by 3.8 per cent from May last year. The slowdown in the tourism industry was caused not only by the low season but also foreign tourists' concern over the political situation. The number of seminars by government agencies also declined in May, the report said. The room occupancy rate was 37.9 per cent, compared with 46.5 per cent in April. The average room price was Bt779.2, down from Bt821.3 in April and down 2.2 per cent from May last year. In addition, investment indicators suggest that private investment in the region continued to slow, the report said. Sales of construction materials in May declined 9.5 per cent from the same period last year. Imports of machinery and parts were down by 26.6 per cent year on year and investment under Board of Investment promotions fell 50.4 per cent. However, construction areas permitted in municipal zones increased 8.2 per cent, compared with a 20.7-per-cent rise the previous month. The approval involved construction of dormitory and commercial buildings in Chiang Mai, Chiang Rai, Lamphun and Nakhon Sawan. Employment in the non-agricultural sector in April recorded 3.37 million workers, down 9.5 per cent from the same period last year, due to declining employment in the hotel, restaurant, industrial, retail and wholesale businesses. In April, the unemployment rate was 1.9 per cent of the labour force, rising 1.2 per cent from the previous month, according to the report. However, private consumption in the region picked up in May, as indicated by a 17.7-per-cent rise in value-added tax collections. Registered vehicles rose 9.2 per cent in number from May last year. Motorcycle registrations rose 12.8 per cent, due partly to high demand before a new academic semester as new models were launched. According to central bank's report, the 8.1-per-cent growth in farm income in May also encouraged rising consumption, but it was lower than the 9.5-per-cent increase the previous month. Prices of agricultural goods rose 4.8 per cent while production increased 3.3 per cent.
Anoma Srisukkasem The Nation
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