A survey from the University of the Thai Chamber of Commerce (UTCC) indicates that consumers are tending to spend more on alcohol products these days, largely because they feel they are under strain from the country's economic downturn.

Higher spending on drinking will be evident during the Songkran festival. Saowanee Thairungroj, vice president of the university's Research Department, said the statistics revealed an unpleasant outcome: people have actually increased their purchases of alcohol from 5 per cent of their income last year to 14 per cent now.

She expressed concern that the high pressure from the economic stagnation was increasing stress in people, so they consume more alcohol, which leads to such things as road accidents and domestic violence and thus even more stress.

The rise in alcohol consumption nonetheless does not reflect a significant increase in overall spending. The survey showed that spending during Songkran was likely to grow only 3.9 per cent this year, due mainly to consumers' concern about their lower purchasing power.

Normally, consumers double their spending during the festival.

In the same period last year, consumer spending grew 10.15 per cent, but this year consumers are expected to spend Bt92.02 billion over the festival period, compared with Bt88.53 billion last year, said UTCC.

Spending has increased at a lower rate, reflecting the fact that consumers have lower confidence in their future income and the economic growth of the country, Thanawat Polvichai, director of the university's Economic and Business Forecasting Centre said yesterday.

He pointed out that consumers normally doubled their spending during special occasions like Songkran. However, concerned about economic stagnation, they will decrease spending this year.

Based on a survey of 1,206 respondents conducted from March 28-31, the poll showed most people would prefer to stay at home rather than go out, because they are worried about higher costs and their personal safety.

People are concerned about the hotter weather, accidents, traffic jams, crime and possible bombs at tourist attractions, said Thanawat, adding that if there were further bomb incidents, spending during the festival would decrease 10-20 per cent.

Of those who preferred to stay put during the festival, 31 per cent said they would buy consumer goods worth an average Bt2,530 per person, followed by 29 per cent who would go on merit-making missions at an average cost of Bt1,039 per person. About 21 per cent said they would spend an average of Bt2,555 per person for a party, and 14 per cent would buy alcoholic beverages worth an average of Bt1,215.

Sources of funds were 54.8 per cent from salaries, 33.2 per cent from savings, 10.5 per cent from bonuses and extra income and the rest from other sources.

The poll also found that people would turn to domestic travel during the festival, instead of going abroad, because they preferred to save money for the future. Last year, 28 per cent of respondents planned to travel abroad, but that figure fell to 14 per cent this year.

Petchanet Pratruangkrai

The Nation