BANGKOK (REUTERS) – Thailand’s tourism-dependent economy should receive eight million foreign visitors next year and see a recovery to a pre-coronavirus pandemic level of 40 million visitors by 2024, the country’s Finance Minister said on Wednesday (Dec 2).

South-east Asia’s second-largest economy contracted 6.4 per cent in the third quarter from a year earlier after slumping 12.1 per cent in the prior quarter, with tourism taking a hit.

The economy is expected to take two years to recover, but the tourist sector should take until 2024, Finance Minister Arkhom Termpittayapaisith told a business seminar.

“If global travel gets better than expected after there is a vaccine, our tourism may come back faster,” he added.

While Thailand has had few outbreaks and removed most restrictions, it has not lifted a travel ban imposed in April.

It recently started receiving a limited number of tourists on special visas with a quarantine requirement.

Officials have forecast 6.7 million tourists this year, 6.69 million of which visited in the first quarter before the ban.

The spending of the nearly 40 million foreign tourists last year accounted for at least 11 per cent of gross domestic product.

The government will discuss later on Wednesday an additional boost to purchasing power, which remained weak, Mr Arkhom said.

The government’s economic task force is expected to extend subsidies for consumers.

Monetary policy must also be in step with fiscal policy to support the recovery, Mr Arkhom said.

“Monetary policy has to remain accommodative until the economy fully recovers,” he said, adding the central bank would deal with the strengthening of the baht.

The government plans to borrow one trillion baht (S$44.28 billion) to help mitigate the impact of the pandemic on an economy that officials expect to contract 6 per cent this year.

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