BANGKOK: Thailand’s success in attracting huge numbers of tourists has put some infrastructure for handling the influx under pressure, an economist with the World Bank said on Monday.
“Bottlenecks are building up in destinations like Chiang Mai, Bangkok and Phuket, while infrastructure still hasn’t expanded,” Kiatipong Ariyapruchya said.
The economist also said that new destinations inside Thailand “must be introduced and monitored closely to support sustainable tourism.”
The industry has remained resilient despite a 2014 coup and a wave of deadly bombings in August this year that killed four Thai tourists and injured dozens, including foreigners.
Last year, Thailand attracted a record 29.9 million visitors. The tourism ministry expects 32.4 million visitors this year while the tourism council says there could be 34.4 million in 2017.
But tourism growth is putting airports and other aspects of infrastructure under strain. Infrastructure is a problem not just for tourism — a rare bright spot for the economy — but for growth in general.
In the World Economic Forum’s Global Competitiveness Index 2016-2017 , Thailand’s infrastructure ranking was 49th compared with 38th in 2006-2007.
For airport congestion, help is planned. In June, Airports of Thailand Pcl (AOT), the country’s main airport operator, said it intends to spend $5.5 billion over the next 15 years to expand six main airports.
At present, Thailand is in the middle of its tourist high season, as travelers seeking respite from the cold in the Western Hemisphere flock to the country’s beaches and islands.
Sunsanee Fongcharoen, a Bangkok Airways passenger service supervisor at Suvarnabhumi Airport, one of the capital’s two international airports, said bookings have increased two-fold during the peak season, putting airport services under strain.
There can be “passenger build-up at counter check-in areas and at immigration,” Sunsanee said.
In 2015, Suvarnabhumi Airport and Don Muang International Airport handled a total of 525,679 flights, up 15.6 percent from the previous year, according to the Thailand Board of Investment.
Surge in tourists puts some strain on Thailand’s infrastructure
Surge in tourists puts some strain on Thailand’s infrastructure
Silver crosses $77 mark while gold, platinum stretch record highs
- Spot silver touched an all-time high of $77.40 earlier today, marking a 167% year-to-date surge driven by supply deficits
- Spot platinum rose 9.8% to $2,437.72 per ounce, while palladium surged 14 percent to $1,927.81, its highest level in over 3 years
Silver breached the $77 mark for the first time on Friday, while gold and platinum hit record highs, buoyed by expectations of US Federal Reserve rate cuts and geopolitical tensions that fueled safe-haven demand.
Spot silver jumped 7.5% to $77.30 per ounce, as of 1:53 p.m. ET (1853 GMT), after touching an all-time high of $77.40 earlier today, marking a 167% year-to-date surge driven by supply deficits, its designation as a US critical mineral, and strong investment inflows.
Spot gold was up 1.2% at $4,531.41 per ounce, after hitting a record $4,549.71 earlier. US gold futures for February delivery settled 1.1% higher at $4,552.70.
“Expectations for further Fed easing in 2026, a weak dollar and heightened geopolitical tensions are driving volatility in thin markets. While there is some risk of profit-taking before the year-end, the trend remains strong,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Markets are anticipating two rate cuts in 2026, with the first likely around mid-year amid speculation that US President Donald Trump could name a dovish Fed chair, reinforcing expectations for a more accommodative monetary stance.
The US dollar index was on track for a weekly decline, enhancing the appeal of dollar-priced gold for overseas buyers.
On the geopolitical front, the US carried out airstrikes against Daesh militants in northwest Nigeria, Trump said on Thursday.
“$80 in silver is within reach by year-end. For gold, the next objective is $4,686.61, with $5,000 likely in the first half of next year,” Grant added.
Gold remains poised for its strongest annual gain since 1979, underpinned by Fed policy easing, central bank purchases, ETF inflows, and ongoing de-dollarization trends.
On the physical demand side, gold discounts in India widened to their highest in more than six months this week as a relentless price rally curbed retail buying, while discounts in China narrowed sharply from last week’s five-year highs.
Elsewhere, spot platinum rose 9.8% to $2,437.72 per ounce, having earlier hit a record high of $2,454.12 while palladium surged 14% to $1,927.81, its highest level in more than three years.
All precious metals logged weekly gains, with platinum recording its strongest weekly rise on record.
