Tourists are Back in Thailand - For Now

An uptick in visitor arrivals may not last, and probably can't rescue the economy

A tourist walks at Railay beach in Krabi, Thailand.
Brent Lewin/Bloomberg

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By Rina Chandran

April 2, 2015 at 6:52 AM UTC

This article is for subscribers only.

They're coming back. Tourist arrivals in Thailand rose almost 30 percent in February from a year earlier, the biggest jump since Dec. 2012. Given that tourism makes up the equivalent of 10 percent of the country's GDP, this is cause for celebration.

Almost. While there has been some good news lately -- manufacturing output rose in February for the first time in 23 months, and Prime Minister Prayuth Chan-Ocha lifted martial law that had been in place since last May -- most data have been disappointing. Consumer prices fell for a third straight month in March, while the consumer confidence index dropped to a nine-month low after the central bank cut its projections for economic growth. Exports also fell in February.