Why Thailand

    Thailand is the centre of Asia’s MICE business. With its strategic location in the heart of ASEAN, Thailand is a connecting point to the rest of Asia. The Thailand Convention and Exhibition Bureau (Public Organisation), or TCEB, has formulated a strategic plan for the development of the Thai MICE industry. TCEB’s plan includes co-operation with strategic partners in the ongoing development of the 10 key MICE cities across the country. Additionally as it has established regional conference and exhibition promotion offices in the country’s four regions that work with government agencies and the private sector to support MICE events and organisers across the country. TCEB is working proactively to continue to develop Thailand’s MICE industry and create sustainable models of prosperity to lay the foundations for Thailand to be the centre of Asia’s MICE business.  TCEB continues its close work with provincial authorities and local associations, agencies, and entrepreneurs to build awareness and employment opportunities across the country, ready to unlock MICE opportunities with a formula based on the principles of “Revive, Support and Promote”. The aim is to push the Thai MICE industry to the forefront of the Asian MICE landscape and seek out every opportunity to help revitalise all aspects of the nation’s economy.

Thailand is a key link between countries in Asia, with economic ties spanning the continent that include the transfer of goods, services, skilled labour, trade and investment. Thailand is the continent’s gateway between ASEAN and the rest of Asia. It is also an important production and export base for many of the world’s major industries, including the automobile and automobile component industries, computers and IT industries.

•   Exports

According to figures released by the Ministry of Commerce, Thailand’s exports in July 2024 totalled US$25.72 billion, reflecting 15.2% growth. This marks the highest rate of growth in 28 months. In Thai baht, this amounts to 938.29 billion baht, the highest total since March 20222. The increase in exports is primarily attributed to the global slowdown in average inflation, helping to increase consumer purchasing power and serving as a key factor in the broader economic recovery. Additionally, rising employment rates and wage adjustments in Thailand’s major trading partners, particularly in Europe, have resulted in a rebound in consumption positively impacting Thailand’s export performance. 

The Ministry forecasts that Thailand’s export performance in 2024 will continue to improve in line with improving global economic and trade conditions. This includes signs of recovery in global industrial production while the continued growth in the digital economy is expected to support related products, and drive growth throughout the year.   

•   Domestic Investment

According to the Department of Business Development, the period from January to June 2024 saw permission granted to 385 foreign investors to establish businesses in Thailand. Of these, 106 investments were made through the foreign business licence process, while 279 investments were made via the foreign business operation certificate, ie. via investment channels under the Investment Promotion Act, with authorization from the Industrial Estate Authority of Thailand, or rights under international treaties or agreements. The total amount invested was 81.49 billion baht creating 1.852 jobs for Thai citizens. The top five countries of origin for foreign investment, in order of amount invested, were Japan, Singapore, the USA, China, and Hong Kong.

•  Inland Port Projects in Khon Kaen and Nakhon Ratchasima provinces
  

The Port Authority of Thailand (PAT) has plans to accelerate the development of inland ports, or dry ports, in the provinces of Khon Kaen and Nakhon Ratchasima. These are considered crucial infrastructure projects to serve as central hubs for the shift in cargo transportation from road and rail to waterways. 

The Khon Kaen dry port project is currently in the study phase with bidding expected to begin in 2025. Construction of the project is expected to take three years and the facility will be located in the Ban Non Payom area, Muang Wan sub-district, Nam Phong district, and will cover between 600 – 800 acres with a forecast investment of seven billion baht. Khon Kaen was selected as the location for the project because of its role as a major agricultural hub and its strategic location for connecting various transport links with neighbouring countries. 

The Nakhon Ratchasima project will proceed after the Khon Kaen study is completed. Once that is finished, both projects will proceed concurrently, although a final decision on whether the Nakhon Ratchasima project will be located at the existing site in Koodjik sub-district, Sung Noen district, or at a new site near Ban Kradon railway station in Nong Kha Nam sub-district, Muang district has yet to be made. 

2. Easy Access

Thailand enjoys a strategic location in Asia, and is well-equipped with public facilities and utilities, including international convention centres. The country also boasts 10 designated MICE cities - Bangkok, Khon Kaen, Chiang Mai, Nakhon Ratchasima, Phitsanulok, Pattaya, Phuket, Songkhla, Surat Thani, and Udon Thani - which offer a variety of options for organising a diverse range of MICE activities.    


•   Airports 

The Don Muang Airport Development Project is a key initiative of the Airports Authority of Thailand Public Company Limited (AOT) being expedited to enhance the airport’s capacity for both domestic and international air traffic. The project is part of the Don Muang Airport Master Plan, which is divided into three phases. Phase 3 aims to increase the airport’s capacity to handle the growing number of domestic and international passengers, with the goal to be able to manage an average of 50 flights per hour. Construction for the project is divided into the following five work areas:

• Work Area 1 – This includes work on the southern side of the airport, including construction of Terminal 3, Aircraft Docking Stand 6, and the renovation of the seven-story car parking building to serve as a passenger drop-off and pick-up platform.

• Work Area 2 – This covers work on the northern side of the airport, including the renovation and expansion of aircraft docking stands, construction of new aircraft docking stands, and the construction of airline office buildings and a new VVIP lounge building. 

• Work Area 3 – This includes work in the aviation operation area of the airport, including construction of aircraft docking aprons on the northern side and connecting taxiways. 

• Work Area 4 – This includes renovation of Terminal 1 and the aircraft docking stands numbers 2 through 4.

• Work Area 5 – This includes the construction of infrastructure systems, including electrical, sanitation, water supply, wastewater, and management systems.

Construction is to begin in 2025 and is scheduled to take three years to complete with the new facilities operational in 2028. The work will increase the airport’s passenger capacity by 15 million persons per year bringing its passenger volume to around 45 million annually. The airport will have a maximum capacity of 50 million passengers per year.

Credit: Airports Authority of Thailand

•   Highway #3245 Expansion Project

According to the Department of Highways, the 2nd Road Construction Office has now completed the project to expand Highway #3245 from Pluak Daeng district to Nong Yai district in Chonburi province, from kilometre marker 22+142 – 34+000. The expansion involved doubling the width of the highway from two lanes to four lanes over a distance of 11.85 kilometres. The expansion project is part of the integrated highway system development plan that aims to improve traffic convenience, speed and safety, and increase the road system’s ability to handle increased traffic volume, reduce transportation costs and travel times, as well as supporting the government’s development of the Eastern Economic Corridor (EEC). These projects will continue to support growth in the transportation and tourism sectors.

3. New Development

•   Transportation System Development

The State Railway of Thailand (SRT) recently announced that its Board of Directors had approved a co-operation project between the Royal Thai Government and the People’s Republic of China to develop a high-speed rail system linking Bangkok and Nong Khai, with Phase 2 of the project from Nakhon Ratchasima to Nong Khai covering a distance of 357.12 kilometres, with a budget of 341,351.42 million baht. (NOTE: DID THEY JUST APPROVE PHASE 2 OR THE ENTIRE PROJECT. I’M NOT CLEAR ON THIS). The next stage is for the project to be presented to the Ministry of Transport and Cabinet for approval which is expected to be granted in January 2025. The bidding process for project contractors will then take place over a period of nine months from February to October 2025. Construction is scheduled to begin in November 2025, with a construction timeline of 72 months, with rail services projected to commence in November 2031.