Friday, July 17, 2015

Troubles ahead

Agriculture: 

Drought is beginning to cause havoc on availability of local fruit and vegetables. No problem with higher priced imports
Expect shortages and associated price increases 
Farm produce exports will most likely decrease noticeably 



Tourism:  
The numbers of arrivals are up, but most likely does not translate into increased revenue. Group tourism tends to create less revenue 
Chinese tour promoters are demanding major discounts from hotels
The drought most likely will also have an impact on tourism venues related to river and canal tours
Increased numbers of tourists requires increased water use.



I am reminded a few years back, bars which lacked customers raised their prices in hopes of making up lost revenue. Many bars closed
Thailand: Turning cheap tourist destinations into quality ones - eTurboNews.com



It all adds up to less tax revenue, most likely tax increases or new taxes may be in the works.
An expected increase in VAT has been postponed for at least another year 

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