Impact of the M7.7 Myanmar Earthquake on Thailand

On March 28, the dormant Sagaing Faultline rocked Central Myanmar with a devastating magnitude 7.7 earthquake, causing significant loss of life and property.

The fatal earthquake extended past land borders with tremors affecting northern and central Thailand, causing Bangkok to be declared a Level 2 Disaster Zone from March 28 to April 4. A disaster zone is still declared over the area around the construction site of the collapsed State Audit Office Building in Bangkok’s Chatuchak district as rescue and recovery operations continue for the victims of the earthquake. Prime Minister Paetongtarn pledged in a statement on April 6 that the Thai Government will work to mitigate the impacts of the March 28 earthquake.

Thailand foresees economic losses of 20-30 billion baht post-quake as the property, construction and tourism sectors take a hit from the disaster. The Ministry of Labor has set out a 1-2 million baht compensation each for the families of victims who perished in the collapse of the State Audit Office building, alongside other measures to support affected workers. The City of Bangkok is also providing financial relief to city residents affected by the earthquake via an assistance program set to receive applications until April 27. Businesses impacted and damaged by the earthquake are eligible to apply for soft loanswith 2% interest and a repayment period of 5 years as part of the Thai government’s support measures.

The earthquake looms over the ongoing Songkran celebrations from April 11-17, as Thailand targets record tourism revenue of over 26.5 billion baht for the month. A Tourism Risk and Crisis Management Team is being set up to support the tourism industry post-quake and restore travel confidence. With bookings dropping in main destinations for the Songkran holiday, Thailand hopes that quake-related impacts to the sector remain short-term and aims to communicate one key message: Thailand is safe for travel.

Airports of Thailand still anticipates a significant year-on-year increase of up to 18.3% in air travel by both domestic and international passengers during the Songkran period of April 11-17. The Thai Government remains confident that Songkran spending remains and will even increase according to a survey that projected a 4.5% increase to 134 billion baht. Consumers are expected to continue with their pre-planned Songkran activities but also to avoid events that are held in-doors or in high-rise venues.

Thailand’s condominium sector is facing a tough challenge from the quake, as an already oversupplied market was spooked, triggering evacuations and inspections. The Thai Cabinet has approved a cut of 0.01% in property fees for homes worth up to 7 million baht – covering both transfer and mortgage fees - effective until June 2026,  in an effort to prop up the weakened property sector. In contrast, the construction sector may see a positive uptick as post-quake repair works begin but will have to contend with stricter regulations for property developers in terms of disaster resilience.