BANGKOK, April 2 (Xinhua) -- Consumer spending during the upcoming Songkran festival in Thailand is projected to contract 3.7 percent from a year earlier, driven by surging fuel prices and concerns over geopolitical conflicts, data showed on Thursday.
According to a nationwide survey conducted by the University of the Thai Chamber of Commerce, the estimated cash flow of 129.65 billion baht (about 3.96 billion U.S. dollars) during this year's Songkran holiday from April 13 to 15 marks the first decline in four years.
Both consumer behavior and business sentiment reflect a highly cautious approach to the traditional Thai New Year, which is typically the highest spending period of the year, said Thanavath Phonvichai, president of the university.
Around 46 percent of consumers polled stated that they will reduce the number of items they purchase during the festive season, citing high fuel costs and rising prices for goods and services, Thanavath told a news conference.
Geopolitical tensions are heavily weighing on domestic decisions. An overwhelming 85.4 percent of consumers expressed concern that the Middle East conflict will keep oil prices high and make travel pricier.
Consequently, 38.7 percent of respondents have decided to reduce their domestic travel budgets, and 32.5 percent are cutting back on their overall spending.
The survey also indicated that 58.2 percent of respondents said they will not participate in traditional water-splashing activities this year, leaving only 41.8 percent planning to join the water fights. ■
