Thailand News

Thailand News

Pattaya - A safe haven for many

As Bangkok prepares to abandon more areas due to the floods, resort towns such as Pattaya and Hua Hin are gearing up to accommodate the stricken residents. The Stock Exchange of Thailand has also seen fit to create a fallback centre in Pattaya to ensure trading can continue and to "maintain foreign investor confidence". Even so, SET president Charamporn Jotikasthira stated on Thursday that the daily trading value had sunk 30%.

Pattaya is often chosen as a great place to stay and invest in property

This mass exodus has increased visitors to Pattaya's serviced apartments and hotels, although some of the higher end hotels have seen a fall in demand. Most likely caused by cancellations from international customers.

Pattaya has remained largely unaffected by the recent turmoil in the central and northern parts of Thailand and seems to suffer much less from heavy rains. That is not to say that Pattaya never floods - it does. But it is often only a few hours before the rain water drains away. 

Said to be in its own micro-climate, Pattaya boasts more clement weather than much of the rest of Thailand - An oft-stated reason why Chonburi was selected as the site for Utapao airport, and another reason why Pattaya is often chosen as a great place to stay and invest in property and real estate.

National Minimum Wage Increase In Thailand

Thailand was set to implement the new national minimum wage of 300THB, (10USD) per day in October of 2011. Prime Minister Yingluck Shinawatra used the promise of an increase in minimum wage to gain support amongst voters in rural areas of Northern Thailand while campaigning for the recent election. Since the election there has been some confusion regarding if and when these policies will actually be implemented. A recent poll on the Bangkok Post website shows that over 65% of people support the wage increases. Critics say the move will damage the economy and scare away foreign investors, however the Puea Thai Party insists that raising the minimum wage from an average of under 200THB per day to 300THB per day will increase domestic spending and promote growth.

It only seems logical that Thailand's workforce should see wage increases to compensate for inflation and rising food costs

The International Labor Organization (ILO) seems to agree with the move, citing that over the past 30 years, Thai companies have been earning an increase in profits, while Thai workers have been receiving a decrease in the share of those profits. With an unemployment rate of just over 1%, demand for labor is high in Thailand. Thailand's booming industries of manufacturing, food production and tourism should not have any trouble sustaining the increase in minimum wage.

Critics of the government policy have suggested that the new minimum wage will increase inflation and drive companies to hire more migrant workers. The ILO insists that inflation as well as rising fuel costs and an increase in food prices make wage increases necessary. Those who don't agree with the minimum wage increase might want to look at China as an example, after years of suppressing wages, the Chinese government has introduced policies designed to to increase both minimum and average wages. These moves have not had any negative impact on GDP growth or foreign investment.

At first glance, you might think that a minimum wage of just 10USD per day is remarkably low, and surely not enough to live off of. When you compare Thailand's minimum wage to that of western countries such as the United States, Canada, or the U.K., it might sound low, however when you examine the cost of living in comparison to the wage it makes more sense. The average cost of an average meal at a restaurant in Thailand is around 1USD, meaning that a Thai worker earning minimum wage can easily afford to eat 3 square meals per day at a restaurants and still have 70% of their daily wage left over. Modest accommodation is available in Thailand for less than 100USD per month, therefore a person earning minimum wage can choose to rent their own apartment, even in large metropolitan cities where the cost of living is higher. Now imagine trying to pay for a flat in London, or an apartment in Vancouver or New York on a minimum wage salary, it is simply impossible. With the cost of food in restaurants much higher in western countries, it is also not possible for a worker earning minimum wage to eat out on a regular basis.

It only seems logical that Thailand's workforce should see wage increases to compensate for inflation and rising food costs. Unfortunately the country's many migrant workers are unlikely to benefit from these wage increases. While the constitution of Thailand as well as international labor laws are supposed to guarantee equal standards for all workers, including migrant workers, this is not currently in practice and there is little to no enforcement of these laws. So while the current government's policy on wage increase is heading in the right direction, there is still plenty of room for improvement.

Fleet Upgrades at Thai Airways

Thai Airways Looks To Upgrade Their Fleet - Adding 37 New Aircraft By 2017 

Thailand's national carrier has a stellar reputation in the aviation industry, as one of the founding members of the Star Alliance Group. The airline is world renowned for it's award winning cabin staff, winning multiple awards for service in recent years. Thai Airways is majority owned by the government of Thailand, with a more than 50% share in the company. Over the years, Thai Airways has been one of the world's most successful and profitable airlines, showing significant profits year after year. 

By upgrading their fleet, Thai Airways is making a bold statement

Thai Airways looks to build on it's history of success, with it's sights on becoming one of the world's biggest players in global aviation. The company has announced plans to add 37 new aircraft by 2017, at a total cost of approximately £9.1 billion. The new aircraft are expected to reduce the average age of the fleet from the current average of almost 12 years, to just above 8 years average age per aircraft. In addition to reducing the average age of the aircraft in service, the move is also expected to increase fuel efficiency and reduce maintenance costs. 

The plan is to add 11 new narrow-bodied aircraft for regional and domestic routes as well as 26 wide-bodied aircraft for intercontinental flights. The order includes 6 Airbus A380-800, with the first of which expected to be in service on the route between London to Bangkok by 2013. Thai Airways is also said to have made arrangements with Boeing to lease 8 of the 787 Dreamliners that have made headlines for delayed deliveries lately. Last week Boeing finally delivered the first order of Dreamliners to ANA (All Nippon Airways) at a ceremony at their Everett, Washington production plant. 

All Nippon Airways has announced that the 787 will make it's first ever passenger flight later this month from Narita to Hong Kong. The new jet is expected to reduce fuel consumption by 20%, as it is the world's first ever jet made of composite materials. Thai Airways along with the rest of the aviation industry will be keeping a close eye on how the new jet performs in the coming months, as expectations are high for the future of the Dreamliner. 

By upgrading their fleet, Thai Airways is making a bold statement, and clearly demonstrating their commitment to upholding it's reputation as a world class airline, as well as taking steps to become a larger player in the aviation industry. This is welcome news for Thailand, as tourism is an important part of the local economy and the country's national carrier is considered to be a symbol of the success of the country. The success of Thai Airways is a source of national pride amongst the people of Thailand.