Even though the persistent toxic haze caused by ultra-fine dust particles shrouding Bangkok and its vicinity has not yet taken a toll on the tourism sector, an impact is inevitable if the pollution is prolonged, says a senior official at the central bank. The tourism sector has not been affected by the dust, with hotel occupancy rates still robust, but an extended period of pollution could affect both local and foreign tourists, said Don Nakornthab, senior director of the economic and policy department at the Bank of Thailand. The central bank is monitoring the government's measures to deal with the pollution, he said. Tourism income, accounting for 20% of GDP, is a major driving force for economic growth amid global economic uncertainties. In December, foreign arrivals totalled 3.84 million, up 7.7% from a year earlier. The number of Chinese increased 2.8% in December, the first rise in five months since the deadly boat accident that claimed the lives of 47 Chinese visitors in Phuket last July. The growth was attributed to the launch of new direct flight routes to Thailand, together with the waiver of visa-on-arrival fees implemented since mid-November. After seasonal adjustment, the number of foreign tourists increased from the previous month. Tourists arrivals expanded by 4.3% in the final quarter last year, improving from 1.9% the previous quarter. Foreign visitors surged 7.5% to 38.2 million last year, with tourism income growing 9.7% to 2 trillion baht, said the Tourism and Sports Ministry. Mr Don said exports will likely see low growth levels this year, slowed by the US-China trade spat. The central bank in December slashed its forecast for payment-based 2019 export growth to 3.8% from 4.3% predicted in September. Payment-based merchandise exports contracted 1.6% year-on-year in December, compared with 0.2% growth in November. "The trade war dealt a larger-than-expected blow to exports in December," Mr Don said. "It was surprising to see exports shrink 1.6%." The contraction could have been due to the high-base effect in several products, weaker global demand as a result of the protectionist trade policies of the US and China, and slower growth in a number of major trading economies.
The toxic smog currently affecting Bangkok will inevitably hit the tourism industry if it continues over the longer term , a Bank of Thailand official has warned . The city and its surrounding areas are currently enduring high levels of pollution caused by ultra - fine dust particles . While hotel occupancy rates tend to be unaffected so far , the poor air quality is likely to have an impact on local and foreign tourism revenues if it is avoided , according to Don Nakornthab , senior director of the bank ’s economic and policy department .