THAILAND INVESTMENT YEAR 2008-2009

The Royal Thai Government has designated the years 2008-2009 as the Thailand Investment Year 2008-2009 and there are opportunities that are important factors in encouraging Thai investors are as follows:

• At present, Thailand has returned to be a democracy with an elected government that has resulted in political stability. Additionally, there are a number of projects that are able to be used as tools in driving the economy to increasingly expand.
• The government has given high priority in providing opportunities for the promotion of investment. They have set a policy and designated the years 2008-2009 as the “Thailand Investment Year 2008-2009” and the “Visit Thailand Year” with the sub-theme “Impressive Thailand”. The Ministry of Tourism and Sports has given significance to the promotion of strengthening the conditions for investment by promoting the cooperation between the related agencies, both within the government and the private sector.
• For the year 2008, the National Economic and Social Development Board (NESDB) has stated that the Thai economy would expand 4.5-5.5 percent, which is greater than the original estimate of 4.0-5.0 percent. In addition, private investment has shown a faster recovery than originally expected as seen from the fourth quarter of 2007. In 2008, the economic expansion will appear to be balanced that is a result of the recovery of the domestic demand being supported by various factors.
• The government is accelerating its expenditure in the investment and development of mega projects; such as, public rail networks throughout Bangkok and nearby areas including the City Link to the Suvarnabhumi International Airport. This will increase the country’s competitive advantage as well as reduce the business outlay.

Incentives have been provided by the Thailand Board of Investment (BOI) by the division of zones and setting up of guarantees as well as protection measures for businesses. This has been especially done for tourism-related businesses that have received incentives and increased opportunities; for example, hotels, convention and exhibition centers, long-stay facilities and retirement homes, care centers and hospitals, to motivate investors. Apart from this, Thailand already has all the necessary public infrastructure like energy, transportation and telecommunication networks if compared with our competitors. The trend will also show that the populations of the United States, U.K., Japan, and even Thailand have the baby boom group that is nearing retirement. As such, the BOI has a policy for reducing the outlay for business stakeholders.

The trend for Asia is still assisting in promoting the increased expansion of the tourism business in the region. This is also partly due to the fact that the People’s Republic of China will host the 2008 Olympics that will definitely initiate investment from the increased demand for accommodation in that country. However, at the same time, there is a need to encourage increased travel within Asia, especially in various countries including Thailand in which we hope to receive some of the benefits generated from this trend.

Outstanding opportunities include the positioning of Thailand as a gateway that can link tourism within ASEAN and the Greater Mekong Subregion as a tourism hub. This includes infrastructure such as roads and aviation routes that can expand the tourism base for tourists traveling within Thailand, or open opportunities for tourists to travel to the World Heritage Sites of Thailand and onto those in the People’s Republic of China, Lao PDR., Cambodia and Vietnam. In the years 2008-2009, there will be various routes linking investment with tourism within the Greater Mekong Subregion; such as, Route R3A that will link Chiang Khong district, Chiang Rai province passing Bokeo district, Huang Namtha, Lao PDR., Bo Then and Kunming, People’s Republic of China, as well as, Route R3B from Mae Sai district, Chiang Rai province to Tachilek, Myanmar, Chiang Rung, and Kunming, People’s Republic of China. The R3 routes were opened on 30 March 2008 together with Route 9. As such, tourists can cross the Mekong River at Mukdahan province to Suwannakhet district, Lao PDR. to Quang Tri, Hue, Danang and Hoi Anh, Vietnam.