Support For THB From Thailand's Efforts To Attract Foreign Tourists Dissipates

Thailand's latest efforts to revive the tourism industry coupled with overnight USD sales weighed on spot USD/THB in early trade, but the pair has already recouped the bulk of earlier losses. The rate last sits -0.030 at THB33.385, off its session low of THB33.275.

• The government has announced fresh steps to lure foreign tourists into Thailand despite the country's alarming Covid-19 situation. Officials said that three popular holiday destinations (Krabi, Phang Nga andKoh Samui) will join Phuket in the sandbox programme, under which vaccinated tourists can enter Thailand without having to quarantine on arrival.
• Worth adding that the government is planning to collect a THB300 entry fee from each visitor, with the new rule set to take effect in April. The fee will likely be included in the price of one's plane ticket, while the money will be used to develop tourist attractions and fund insurance for visitors. The government estimates that the number of foreign visitors will be within the 5mn-15mn range this year and revenue from foreign tourists will be around THB800bn.
• However, the Federation of Thai Industries suggested that the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) will likely downgrade their GDP growth forecast at their meeting today, as the impact of the rapid spread of the Covid-19 Omicron variant looms large.
• Participants look ahead to the latest update on consumer confidence from the University of the Thai Chamber of Commerce. The data is due for release tomorrow.
• From a technical perspective, bears would be pleased to see Jan 5 low/channel floor at THB33.160/33.105 give way. Conversely, a rebound above channel top/Jan 10 high at THB33.725/33.747 would turn bullish focus to Dec 22 high of THB33.835.