Can the economic therapy of the new Thai Prime Minister be effective, with visa free treatment for Chinese people and payment for Thai people

Thai Prime Minister Saita recently announced that a visa free system will be implemented for Chinese tourists starting from the 25th, for a period of about 5 months.

Saita, who comes from a business background, just took office on the 5th and launched a new policy to boost tourism growth 8 days later, which is considered to reflect his urgent desire to stimulate the economy. On the 11th, Saita also announced that it will distribute 10000 Thai baht to Thai people aged 16 and above to promote domestic consumption.

Thailand's economic growth rate slowed to 1.8% in the second quarter, not only far below expectations, but also lower than other ASEAN economies such as Vietnam and Indonesia. Seta hopes to accelerate the growth and restore vitality of the Thai economy in the fourth quarter through the new policy.

Zhou Shixin, Deputy Researcher at the Asia Pacific Research Center of the Shanghai Institute of International Studies, told First Financial reporters that during and after Seta's campaign, he has repeatedly stated that he will improve the living standards of Thai people and make economic development his main task during his tenure.

He further stated that in addition to visa exemption for Chinese tourists, it is expected that Seta will also strengthen economic cooperation with China. Currently, Thailand is facing an important stage of upgrading its industrial structure. Connecting with China's advantageous production capacity and technology will further promote the development of China Thailand economic and trade relations.

On the day before the release of the visa free policy, Seta held a meeting on the 12th to discuss tourism development strategies. He stated that Thailand's visa free policy for Chinese citizens starts from September 25th and ends in February 2024, lasting for 5 months. In terms of time, it will be able to cover China's "Golden Week of National Day" and next year's Spring Festival holiday, attracting more Chinese tourists to travel to Thailand.

In fact, Seta had already started researching visa exemption measures before taking office. On August 22nd, the joint session of the upper and lower houses of the Thai parliament elected Saita as the Prime Minister. From the 25th to the 26th of the same month, Saita went to Phuket and Panya for inspection, listening to the suggestions of local enterprises for tourism development. This is Saita's first departure from Bangkok after taking office.

Seta stated that the reason for choosing Phuket as the first stop is due to its important position in Thailand's tourism industry. Currently, only 30% of Chinese tourists visiting Thailand have recovered to pre pandemic levels, so we need to find ways to make it more convenient for tourists to come to Thailand and strengthen management to make them feel safe. In addition, he also stated that he will renovate airports across Thailand.

Thai Prime Minister's Office spokesperson Cha Wachalong said at a press conference on the 13th that China is one of the main target markets for Thailand's tourism industry. Next, Thailand will launch a tourism promotion specifically targeting Chinese tourists and establish a dedicated team to explain negative news related to Thailand on the internet to Chinese tourists.

He also said that tourism is an important engine of Thailand's economy. Although Thailand's tourism industry grew last year, it has not yet recovered to the level before the COVID-19 epidemic. He said that Thailand plans to attract 28 million foreign tourists this year. By 2024, the Thai government will promote the comprehensive recovery of the tourism industry to pre pandemic levels, attracting 40 million foreign tourists.

According to the latest data released by the Ministry of Tourism and Sports of Thailand, as of September 10th, the number of Chinese tourists entering Thailand this year was 2.284 million, while in 2019 before the epidemic, the number of Chinese tourists visiting Thailand during the same period had reached nearly ten million. In 2019, Thailand received 11 million Chinese tourists, accounting for more than a quarter of the total number of overseas tourists in Thailand and continuing to hold the top spot among foreign tourists.

Regarding the management issues that visa exemption may bring, Thai immigration director Pappapa previously stated that the immigration department will increase the number of entry inspectors to welcome tourists, especially at the airport.

"Economic therapy"

In addition to visa exemption, Saita also stated in his policy address to the Thai parliament on the 11th that the new government will stimulate economic development through the distribution of digital cash and other "economic therapies".

Seta analyzed Thailand's economic and social issues in the short and medium to long term, stating that "Thailand is like a sick country," and the new government's policies to promote economic recovery include distributing 10000 Thai baht of digital cash to Thai people aged 16 and above.

Seta believes that "universal funding" will awaken the Thai economy and benefit all sectors. "The whole nation pays" was Saita's promise during the election. Previously, he and his Thai party had stated that they would provide Thai people with a cash disbursement plan worth 560 billion baht.

This year, due to the impact of export and tourism prospects, the Thai Economic and Social Development Commission has lowered its GDP growth forecast for Thailand this year, from the previous forecast of 2.7% -3.7% to 2.5% -3.0%.

In this context, a major selling point of the campaign for the Thai party is that Seta comes from the business world and his experience will help drive economic development. Saita previously stated on social media that her goal in politics is to address poverty and inequality, help Thailand develop its economy, and create a better life for its people.

Saita, who is now 61 years old, was previously a real estate developer and a "political amateur". After obtaining a Bachelor's degree in Civil Engineering from the renowned Thai university Chulalongkorn University, he also obtained a Master's degree in Finance from the United States. Eventually, he joined the family owned real estate company Shangsi Rui as CEO and developed the company into one of the largest real estate developers in Thailand. It was not until April this year that he officially resigned as CEO of Shang Sirui and focused on politics.