A New Year On The Horizon
Reflecting On 2011, And Looking Forward To 2012
In many ways 2011 was a tough year for Thailand, with the worst flooding in more than 50 years crippling the country's capital and killing any hopes of positive economic growth. Despite facing adversity, Thailand will look back at 2011 as a year that brought many positive milestones. The national elections in July of 2011 saw Thailand elect their first ever female Prime Minister, Yingluck Shiniwatra, sister of former PM Thaksin. Despite the flooding in the Central provinces and the closure of the Don Muang Airport, Thailand still managed to see a record number of annual visitors in 2011, a staggering 16 million tourists arrived at airports throughout the country.
resort areas of Pattaya and Hua Hin will see a dramatic increase in demand
While the floods managed to slow economic growth in 2011, property value continued to rise, Thailand's Treasury Department announced a 20% increase in property valuations nationwide, the cost of construction materials and skilled labour is expected to rise as much as 50%, with increased demand due to necessary repairs and reconstruction. While buyers might be hesitant to invest in property in the country's capital without a clear plan in place to combat future flooding, the nearby resort areas of Pattaya and Hua Hin will see a dramatic increase in demand.
The island of Phuket continued to see record numbers of annual visitors in 2011, however the resort destination is still suffering from growing pains, including the lack of an efficient transportation system, and an increase in crime and petty theft. Swedish newspaper "Aftonbladet", recently published a story predicting the demise of Phuket, saying "Phuket in Thailand has become a nightmare for many Swedish holidaymakers". Swedes make up a large percentage of the annual visitors to Phuket, and while negative publicity like this is nothing new, it seems inevitable that local authorities have a lot of cleaning up to do if they want to keep people coming to Phuket.
The economic forecast for 2012 is a modest growth of just under 5%, however GDP in the second half of 2012 will grow 5-7 per cent, better than the 3-4 per cent growth expected in the first half of the year. Another record number of annual visitors in 2012 will not only boost the economy, but also keep the property market going strong. All indications are that 2012 will be far more kind to Thailand than 2011, as we look forward to a positive new year.
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