FPO slashes growth forecast to 2.8% on low tourism figures

The Finance Ministry’s Fiscal Policy Office (FPO) has slashed Thailand’s economic growth forecast to less than 3% this year as projected foreign tourist arrivals are substantially lower given the second wave of the pandemic.

GDP growth is projected at 2.8%, down from 4.5% estimated in October 2020.

“The lower economic growth projection for 2021 is attributed to an expected decrease in foreign tourist arrivals,” said Kulaya Tantitemit, acting director-general of the FPO.

The FPO forecasts full-year foreign tourist arrivals at 5 million this year, down from 8 million projected previously.

Lower foreign tourist arrivals translates to lower tourism revenue. International tourism receipts are forecast at 260 billion baht this year, down from 400 billion expected earlier, according to the FPO.

Foreign tourist arrivals totalled 6.7 million during the first 11 months of…