Demand Rises as Thai Shoppers Return
Consumer demand is making a comeback in Thailand just months after the nation suffered the blows of a political upheaval.
"You can see the local demand bouncing back," said Charn Srivikorn, chairman of Gaysorn Shopping Centre, a luxury shopping mall in the heart of Bangkok.
"It's about confidence, with the local visitors," he told CNBC in an interview on Tuesday.
The popular Ratchaprasong shopping district turned into a war zone in May when the area became the target of protestors.
But consumer sentiment has rebounded just four months after the protests. Thailand’s private consumption index rose 5.1 percent in July from a year earlier, moderating from June’s higher-than-expected 8.3 percent jump, data showed.
Bangkok's largest shopping mall, CentralWorld, which is due to reopen on September 28, gives reason for a further increase.
"Thailand will witness (an) increase in private consumption," said Kobchai Chirathivat, CEO of Central Pattana, the mall's developer, estimating a near double-digit jump in consumption in early 2010 from a year earlier.
"That shows people have a lot of confidence in the economy," he told CNBC.
About $90 million has gone into rebuilding CentralWorld after protestors set the shopping mall on fire during the political crisis.
Thailand's tourism sector is also recovering and will have a major impact on the economy, Kobchai said.
Tourist arrivals rose 12.7 percent in July from a year earlier, government data showed.
However, Charn remarked that retail tourism for luxury goods still had some catching up to do.