Thailand

F

Services and Tourism

Thailand’s rapid growth transformed the services sector. This sector, which includes housing, restaurant and hotel services, personal services, wholesale and retail trade, and many other related activities, grew very quickly in response to increased demand, especially from the expanding urban population in and around Bangkok. The service share of GDP was 45 percent in 2006. The sector has shifted from low-skilled jobs to formal, high-skilled jobs in banking, finance, management, and trade.

Tourism is a major industry within Thailand’s services sector, with 13.9 million tourists visiting the country in 2006. Revenues from tourism make up the largest single component of Thailand’s export earnings. Popular tourist destinations include Bangkok and the country’s beach resorts.

G

Energy

In 2003 Thailand produced 114.7 billion kilowatt-hours (kwh) of electricity, up from about 3 billion kwh in 1968. Of this, 92 percent was produced by generating plants powered by oil, gas, and coal. Thailand is heavily dependent on imported fossil fuels and electricity to meet its energy demands. The country imports electricity from hydroelectric plants in neighboring Laos, and natural gas along a pipeline from Myanmar.

H

Transportation

Thailand has an extensive network of inland waterways, based on the Chao Phraya River and linking the agricultural heartland of central Thailand to Klong Toey Port in Bangkok. These waterways provided the major mode of transport until just a few decades ago and are still widely used to ship bulky products, such as rice and oil. Ferries on Bangkok’s extensive system of canals (khlongs) serve thousands of commuters every day.

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Thailand’s railway system, established a century ago, consists of 4,071 km (2,530 mi) of track. It links Bangkok to the northern city of Chiang Mai as well as to the country’s western, northeastern, and southern extremities. The country has 57,400 km (35,700 mi) of roads and highways. Major improvements to the road system, begun in the 1970s, have brought all but the most remote communities within relatively easy reach of markets and services.

In September 2006 the Suvarnabhumi Airport opened in Bangkok to replace the overloaded Don Muang International Airport. The new international airport ranked as one of the largest in Asia. Smaller domestic airports are located throughout the country.

I

Communications

Thailand has a thriving newspaper industry, in large part due to the 1991 repeal of a press censorship law. Network television is largely controlled by corporations owned either by the government or by institutions such as the military. Satellite technology has helped television reach almost every town and village. In 1997 Thailand had 234 radio receivers and 281 television sets for every 1,000 residents. Although there are only 110 fixed telephone lines per 1,000 people, the rapid spread of cellular telephones has facilitated personal communications in all parts of the country. In 2004 there were 430 mobile phones per 1,000 people. That year there were 58 personal computers per 1,000 people.

J

Foreign Trade

Thailand’s economy is closely linked to world markets through trade, as well as through investment and other capital flows. The composition of trade has shifted dramatically toward manufactures; between 1980 and 2003 manufactures as a percentage of total exports increased from 25 percent to 75 percent. In 2003 Thailand’s exports earned $80.3 billion, while the cost of imports totaled $75.8 billion.

Thailand’s economy is highly vulnerable to fluctuations in world prices of its major imports, such as oil. On the other hand, it has successfully taken advantage of growth in world demand for many of its exports, including seafood products, clothing and textiles, and electronics. The United States and Japan are Thailand’s largest trading partners. The establishment of the Association of Southeast Asian Nations (ASEAN) Free Trade Area in 2002 substantially increased Thailand’s trade with other Asian economies.

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