Severe flooding in Songkhla province is expected to cause economic losses of around 25 billion baht, said Burin Adulwattana, chief economist at the Kasikorn Research Centre.
With Songkhla contributing about 1% of Thailand’s GDP, Burin noted that the deluge has severely affected Hat Yai, the region’s—and the province’s—key tourism and economic hub.
“The economic impact on Hat Yai is very significant, as thousands of Malaysian tourists visit the city every week. Based on our estimates, the flooding will cost at least 25 billion baht, excluding damage to property,” he said.
He added that the agricultural sector will also be heavily affected, particularly rubber producers, who are expected to suffer substantial losses.
According to Burin, the rubber industry could face losses of up to 4–6 billion baht from rubber plantations and 2 billion baht from palm oil plantations. With flooding likely to damage palm trees and soil, farmers may need to wait as long as seven years for production to resume.
With thousands of people affected, Burin urged the government to provide more substantial assistance, such as larger cash handouts.
“I would like to see much more substantial cash handouts—at least enough to offset some of the losses suffered by people in the South. Flooding also has long-term impacts on various sectors, including industrial production. So the government should consider offering greater financial support,” he said.
Meanwhile, the Thai Chamber of Commerce (TCC) is warning that ongoing flooding in southern Thailand could cause economic losses of up to 15 billion baht if it continues for a month.
Thanawat Pholvichai, president and chief economic advisor of the Economic and Business Forecasting Centre at the University of the Thai Chamber of Commerce, said the ongoing heavy rain and flooding across 10 southern provinces are currently estimated to be costing 1–1.5 billion baht per day, as these provinces are major hubs for tourism, trade and investment.
He added that, if the situation does last for a month, it will decimate the annual tourism high season, which normally attracts large numbers of international visitors to the region.
Full interview with Burin Adulwattana:
