According to ATTA Chairman Sitdiwat Cheevarattanaporn, the recent earthquake will affect tourists’ decision to travel to provinces where tsunami warning were previously issued, especially Phuket, during the Songkran Festival. It is expected that the impact will last for at least 2-3 months due to the lack of confidence in security among tourists. Although the tsunami did not occur, it is hardly possible to guarantee that it will not. And in the case that it should happen, the degree of violence would be hard to predict.

Thus, tourists, especially the MICE groups, will most likely avoid visiting those areas, which will lead to a slowdown in tourist activities as well as trip cancellations. However, the exact cancellation rate will be determined within the next few days. The natural disaster is also expected to reduce local tourism towards the year-end.

Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said on Wednesday that Thailand would be borrowing around one billion dollars, or approximately 30 billion baht, for the country’s basic infrastructure improvement plans.

Mr. Kittiratt’s statement was heard after his meeting with officers from the World Bank.

He added that details of interest rate and payback period were yet to be finalized.

The DPM brushed aside claims that the government had to borrow from the World Bank because it could not find any local sources of funding.

In related news, Mr. Kittiratt said that the value of the baht has weakened slightly.

He noted that the weaker baht, if caused by the imports of capital goods and machinery, would benefit the Thai economy over the long term.

The Thai Chamber of Commerce (TCC) foresees significant economic recovery at the end of the second quarter this year with signs of further growth while believing that the southern car bomb will not affect the overall confidence.

Director of the Center for Economic and Business Forecasting of the University of the Thai Chamber of Commerce, Thanawat Polwichai, said the consumer confidence index in March 2012 rose to 76.6, increasing continuously for four months in a row and standing at the highest in six months. The improving confidence was a result of the recovering economy and businesses after the floods last year.

Moreover, consumers also hoped the economy and their incomes would improve in the future. Their confidence in the economy in the next six months increased for four consecutive months to 78.6, largely due to the minimum wage hike to 300 baht a day.

However, the director said consumers were still worried about many issues, such as economic recovery after the floods, the rising cost of living caused by high energy prices and political instability.

The confidence index on the economy in general grew for four consecutive months to 66.5, following the government’s approval of a 1.6-billion-baht budget for assistance measures for low-income people.

The TCC also forecast that consumer confidence would keep improving despite recent bombings in the southern economic zone of Hat Yai, Songkhla province. As for this year’s economy, the TCC assessed that it would significantly rebound from June onwards with a growth estimate of 5.5-6.5%.

The Department of International Trade Promotion (DITP), Commerce Ministry, has estimated that the export figure this year will expand by at least 15%.

DITP Director-General Nantawan Sakultanak has revealed that the export this year is expected to value over 8 trillion baht. Although the first quarter export figure has increased very little due to the ongoing recovery from the flood, Ms Nantawan said the export sector will expand more in the second quarter and it will be back to normal on the third and fourth quarters.

The DITP has planned to launch nearly 1,000 export promotion activities this year. They consist of international trade fairs in Thailand and abroad, road shows, sales promotions for foreign importers, business matchups, and entrepreneur development courses.

Ms Nantawan said the entrepreneurs have to face rising production costs, mainly due to the 300-baht minimum wage, fuel costs, and weak baht. She said the weak baht policy of the Finance Ministry will help Thai exporters in the short-term; but they have to see if the market mechanism experiences any unusual movement.

On 29 March, Prime Minister Yingluck presided over the “Miracle Thailand 2012” to boost tourism according to the government’s declaration of the year 2011 and 2012 as “the Miracle Year of Thailand.” The objective of the campaign is to persuade foreign tourists to visit Thailand and join in the celebrations of auspicious occasions this year.

The Miracle Thailand 2012 is being held from 29 March–1 April 2012 at IMPACT Muang Thong Thani.

The PM said tourism is the first business that rebounded and expanded fast after the flood crisis late last year. In 2011, tourism was the country’s main source of revenue, contributing as high as 700 billion baht, and the sector still continues to grow further this year. Ms Yingluck said in order to reach the targeted revenue of two trillion baht, cooperation would be needed from all ministries as well as the private sector.

According to the PM, the government’s tourism stimulus measures seek to heighten security for tourists, establish long-term branding for Thai tourism and develop transport infrastructure to connect the routes to neighboring countries.

In light of higher energy costs, Bangkok Metro Public Company Limited (BMCL) is planning to propose an MRT fare hike to reflect the increased operating expenses.

Managing Director of BMCL Chaiwat Utaiwan said the company sees a need to raise ticket prices for the entire Hua Lampong-Bang Sue line of the MRT subway. The proposal is awaiting approval from the Mass Rapid Transit Authority of Thailand (MRTA), which is the concessionaire of the subway system.

Mr Chaiwat elaborated that due to the global fuel price hike, the number of commuters on the MRT has increased by 15 percent to approximately 300,000 commuters per day. Previously, the company estimated that the total number of daily passengers would stand at 260,000.

Meanwhile, the BTS group is also contemplating a fare increase for the BTS Skytrain. According to reports, the fare hike is expected to take effect by the middle of this year.

In a related development, Mr Chaiwat said starting from May, the Bangkok Metropolitan Administration (BMA) will start collecting a 15-baht flat fare for the On Nut-Bearing section of the BTS line, which has been operating on a trial period since mid-2011. He added that the entire BTS system is now serving over 600,000 commuters per day, increasing from last year by 100,000.

Investors have fully subscribed KASIKORNBANK’s 22-billion-Baht of debentures, this long-term investment mirroring their confidence in the Bank’s growth potential. The issuance is aimed at raising long-term funding with reasonable interest payment and the proceeds will be counted as the Bank’s Tier-2 capital.

KASIKORNBANK’s 10-year, 22-billion-Baht subordinated debentures with issuer’s early redemption right were subscribed during February 6 to 14, 2012, via the Bank’s nationwide branch network. As confirmed by Mr. Somkiat Sirichatchai, Senior Executive Vice President of KASIKORNBANK, a number of investors had shown interest in the debentures, which were later fully subscribed as planned.

This achievement reflects investor confidence in the Bank’s business potential with solid financial performance, growth and stability. The Bank’s subordinated debentures have been rated by Fitch Ratings (Thailand) at AA-(tha), and have become an alternative investment tool with certain returns of 4.5 percent per annum.

The Pioneer states that are in the process of evaluating the impact of flooding. That are difficult to assess the impact on the overall business is now in place. It plans to announce financial results again on the 29th of November

During the 6 months since April. Until September this year. Profits from the operation of Pioneer rose 5 percent compared to the same period a year ago it was 7 billion yen, or 2,700 million baht, compared with sales initially, which was 213,700 million yen found. The net profit was down by 5.7% during the month of April. To September was 1,500 million yen, down 80.3% over the same period a year ago. The extra income from the sale of real estate.

According to the Thai Auto Parts Manufacturers Association (TAPMA), what Thai and foreign operators are most worried about is the government’s lack of clear policy and slow response to their problems, which they deem to have resulted from political disunity.

Apart from the government’s failure to clarify the investors’ worries, the populist policies, particularly the minimum wage hikes, are also a major obstacle that could cause the industry’s recovery to take a longer time. The investors admit they might look for new investment bases in other countries where the production costs are lower.

TAPMA members have planned to call a meeting to discuss the impacts of the floods and think out the solutions. TAPMA will also propose that the government temporarily approve the tariff exemption for imported auto parts and equipment for at least six months after which time the auto industry should pick up.

In his 2nd press conference since the flood situation, Acting AoT President Mr. Somchai Sawasdeepon said Suvarnbhumi Airport has already had an effective flood prevention plan in place and there is no need for public concerns. The water levels around the airport have been constantly monitored and the current height has decreased to 43 centimeters due to the airport’s effective draining system.

The AoT has coordinated with the Department of Highways and the Department of Rural Roads in increasing the height of the 23.5 kilometer earthen dyke surrounding the airport, and increasing the capacity of nearby canals in Lat Krabang district which will be useful in releasing the torrent to the Chao Phraya. The dyke will be constantly watched and will be reinforced to maintain its strength.

With 8 water pumps, the airport is able to drain as much as 1 million cubic meters of water per day. The Department of Royal Irrigation has provided support to the AoT in keeping the 24 hours surveillance on the water level around the airport compound.

The AoT has also been checking the daily weather forecast with the Meteorological Department to make sure the situation is under control. Mr. Somchai is confident that the airport will be safe from flooding. Moreover, no flights have been canceled and that the number of passengers arriving to Suvarnabhumi Airport has remained the same.