Bangkok smog to cause economic damage of over $200 million
The current severe air pollution crisis in Thailand’s capital Bangkok is expected to cost the country up to 6.6 billion baht ($207.8 million) in additional healthcare costs and losses from tourism as visitors prefer to stay away and go to healthier destinations. This is the result of a analysis of Kasikorn Research Center published on January 15.
The analysis stated that the healthcare and tourism sectors would be affected the most from the smog, as people face serious risks to their health from the excessively high PM2.5 levels, while the pollution and smog in the city were driving tourists away from Bangkok, hitting the tourism industry.
According to the statistics on air pollution-related sicknesses, cited in the Kasikorn Research Center analysis, it was found that the harmful PM2.5 level, a measure for particulate matter in the atmosphere, had already increased the number of patients with respiratory diseases in the Thai capital. It is estimated that at least 2.4 million people out of 11 million citizens in Bangkok now suffer from allergies and respiratory diseases.
Kasikorn Research Center estimated that the higher expenditure on medical treatment would cause opportunity costs to the economic system of up to 3.1 billion baht ($97.6 million), while tourists leaving or staying away would inflict losses to the tourism industry estimated at up to 3.5 billion baht ($110.2 million), or 4.5 per cent of overall tourism revenue in Bangkok during this time of the year.
The analysis, however, highlighted just a preliminary estimate of economic losses from air pollution. The full extent of the economic damage will depend on the duration and severity of the smog crisis and the effectiveness of authorities in tackling this problem.
Kasikorn Research Center urged the authorities to “thoroughly identify” the causes of air pollution, as well as learn from other countries’ efforts to tackle air pollution in order to lay out a long-term action plan to sustainably solve the smog problem for the long run.
The smog crisis and the related economic burden come at a time when the World Bank trimmed its projection for Thailand’s economic growth this year to 3.8 per cent from 3.9 per cent estimated earlier, due to a global slowdown and elevated trade tensions between the US and China. The number is down from an estimated 4.1 per cent in 2018.
“Weaker global growth will likely impact the export performance of Thailand and restrain manufacturing activities in export-oriented industries,” Kiatipong Ariyapruchya, World Bank senior economist for Thailand, said in a statement.
Thailand’s central bank, for its part, predicts growth of four per cent for this year after it estimated a 4.2 per cent expansion for 2018. Official 2018 GDP data will be released on February 18.
The current severe air pollution crisis in Thailand’s capital Bangkok is expected to cost the country up to 6.6 billion baht ($207.8 million) in additional healthcare costs and losses from tourism as visitors prefer to stay away and go to healthier destinations. This is the result of a analysis of Kasikorn Research Center published on January 15. The analysis stated that the healthcare and tourism sectors would be affected the most from the smog, as people face serious risks to their health from the excessively high PM2.5 levels, while the pollution and smog in the city were driving tourists away...
The current severe air pollution crisis in Thailand’s capital Bangkok is expected to cost the country up to 6.6 billion baht ($207.8 million) in additional healthcare costs and losses from tourism as visitors prefer to stay away and go to healthier destinations. This is the result of a analysis of Kasikorn Research Center published on January 15.
The analysis stated that the healthcare and tourism sectors would be affected the most from the smog, as people face serious risks to their health from the excessively high PM2.5 levels, while the pollution and smog in the city were driving tourists away from Bangkok, hitting the tourism industry.
According to the statistics on air pollution-related sicknesses, cited in the Kasikorn Research Center analysis, it was found that the harmful PM2.5 level, a measure for particulate matter in the atmosphere, had already increased the number of patients with respiratory diseases in the Thai capital. It is estimated that at least 2.4 million people out of 11 million citizens in Bangkok now suffer from allergies and respiratory diseases.
Kasikorn Research Center estimated that the higher expenditure on medical treatment would cause opportunity costs to the economic system of up to 3.1 billion baht ($97.6 million), while tourists leaving or staying away would inflict losses to the tourism industry estimated at up to 3.5 billion baht ($110.2 million), or 4.5 per cent of overall tourism revenue in Bangkok during this time of the year.
The analysis, however, highlighted just a preliminary estimate of economic losses from air pollution. The full extent of the economic damage will depend on the duration and severity of the smog crisis and the effectiveness of authorities in tackling this problem.
Kasikorn Research Center urged the authorities to “thoroughly identify” the causes of air pollution, as well as learn from other countries’ efforts to tackle air pollution in order to lay out a long-term action plan to sustainably solve the smog problem for the long run.
The smog crisis and the related economic burden come at a time when the World Bank trimmed its projection for Thailand’s economic growth this year to 3.8 per cent from 3.9 per cent estimated earlier, due to a global slowdown and elevated trade tensions between the US and China. The number is down from an estimated 4.1 per cent in 2018.
“Weaker global growth will likely impact the export performance of Thailand and restrain manufacturing activities in export-oriented industries,” Kiatipong Ariyapruchya, World Bank senior economist for Thailand, said in a statement.
Thailand’s central bank, for its part, predicts growth of four per cent for this year after it estimated a 4.2 per cent expansion for 2018. Official 2018 GDP data will be released on February 18.
