Bangkok: The University of the Thai Chamber of Commerce (UTCC) reports that the massive floods in the South have caused 40 billion baht in damage, affecting 2.19 million people.
According to Thai News Agency, the flooding has resulted in economic paralysis, particularly in Songkhla, which experienced the most significant impact.
Thanawat Phonwichai, President of the University of the Thai Chamber of Commerce and Advisor to the university’s Center for Economic and Business Forecasting, revealed that the heavy rains and flooding in 10 southern provinces have affected over 2.19 million people or 798,695 households. Songkhla Province suffered the most damage, with 243,568 households, or 60% of the total damage. Nakhon Si Thammarat followed with 223,221 households, and Phatthalung with 151,622 households. The estimated damage to the economy over a one-month period is approximately 40 billion baht, or 0.22% of GDP.
The tourism and service sector bore the brunt of the damage, exceeding 22.44 billion baht, as the
floods hit during the high tourism season with a large influx of foreign tourists. Many retail businesses, restaurants, and hotels were forced to temporarily close. The cancellation of the SEA Games further impacted economic confidence and opportunities. The agricultural sector faced damages of 10.72 billion baht, while the manufacturing and utilities sectors incurred losses of around 6.84 billion baht.
Recovery efforts are expected to be slow, with nearly 70% of businesses needing more than a month to return to normal operations. Key challenges include damaged assets and inventory, lack of trading equipment and goods, financial liquidity issues, and insufficient working capital for repairs and purchases. Additionally, damaged infrastructure such as roads, water, and electricity hampers business reopening efforts.
To address the crisis, a three-step action plan has been proposed: direct financial relief, accelerated infrastructure repairs, and the establishment of a regional rehabilitation unit to stimulate
the economy swiftly.