It’s certainly taken a long time for Thailand and the rest of the global economy to reopen. But now that the COVID-19 pandemic is being contained, the government has deemed it safe to welcome tourists and businesses back into the country.
In Thailand, several sectors are expected to benefit greatly from the country’s reopening. Some of them are projected to grow exponentially in 2022, including automobiles, food, e-commerce, delivery, logistics, cybersecurity, IT solutions, and warehouses. Besides these, the industries that have struggled in the past two years due to the pandemic are also expected to have improved performance.
Industries Expected to Improve this Year
It comes as no surprise that the pandemic impacted all economic sectors in the country, some worse than others. As Thailand — along with the rest of the world — begins to welcome tourists and foreign businesses once again, these economic sectors that have suffered the most will rise once again.
Tourism
According to the estimation conducted by the central bank in February of this year, they predicted that there would be 5.6 million foreign tourist arrivals in 2022, which will contribute to a 20% increase in the country’s GDP.
However, from 5.6 million, the number increased to 15 million as the Kingdom removed the mandatory on-arrival COVID testing starting May 1, 2022. As per the Tourism Authority of Thailand, the number of tourists coming in is expected to spend anywhere from 630 billion baht to 1.2 trillion baht. While this is a major improvement from 2020 and 2021, it’s still not enough to reach pre-pandemic levels.
In 2019, a reported 40 million foreign tourists visited the country and spent almost 2 trillion baht. But the increasing number of tourists coming in shows promising growth for the sector from this point on.
Some of the businesses benefitting from the arrival of tourists include airports, hotel operators, and public transporters. So, if you’re interested in seizing opportunities in tourism, you can register a Thai company in any of these businesses.
Export
Another growing industry is export. During the emergence of the pandemic in 2020, the export sector significantly decreased in performance due to extensive travel restrictions and supply chain bottlenecks.
But as imports and exports ease with the help of technology and logistical innovations, the industry is bound to bounce back. At present, Thailand’s primary markets include China, Japan, the United States, and the European Union.
Based on last year’s statistics, exports became the major driver of growth for the Kingdom in 2021, which improved its overall performance by 15%. This year, the industry is expected to increase again. However, due to the steady export performance, the expected increase is not radically high. In fact, experts believe that the increase is capped at 10%.
Despite this, more than 75% of Thai exports have already surpassed their pre-COVID value. These include processed foods, agricultural products, automobiles, metals, rubber products, electronics, and computers. The improvement in their international performance translates into their domestic supply chains, making them profitable products to venture into this year and beyond.
Government’s Plans to Support the Industries
To support each sector’s continuous growth, the government aims to provide financial aid to businesses that need it. More specifically, they have implemented schemes and incentives to encourage more foreign investors to invest in companies in the country, one of which is local start-ups.
In terms of enhancing the tourism sector, the Tourism Council of Thailand (TCT) is requesting 200 million baht from the government for developing upskilling and reskilling programmes for tourism operators. This proposed budget also includes tourism development, especially with regard to digital trends, to keep the sector competitive on a global scale.
How Businesses can Benefit from the Country’s Reopening
With the economy reopening for foreign tourists and investors, private investment (both domestic and international) is expected to grow, and businesses are expected to flourish. Additionally, if the economy bounces back as expected, companies in Thailand can enjoy higher revenue, experience international acclaim, and engage with a broader market scope.
Overall, businesses in Thailand are prospering, and company registration in Thailand for foreign investors is now encouraged more than ever before.
Hire a Thailand Company Registration Firm
If you’re interested in proceeding with company registration in Thailand Bangkok, be sure to get company incorporation services from reputable companies to help you set up your company with ease.
Reliance Consulting is a top company registration firm that can help you incorporate your business in Thailand. Contact us today to get started.
