OVERVIEW

The Kingdom of Thailand , covering an area of 514,000 square kilometers, lies in the heart of Southeast Asia . It shares borders with Myanmar to the west and north, Lao P.D.R. to the north and northeast, Cambodia to the east and Malaysia to the south. Thailand has positioned itself as the tourist gem of Southeast Asia . It is a developed tourist industry with a more than adequate infrastructure that makes it the most visited country in the southeastern part of the continent.

GOVERNMENT

Constitutional monarchy since 1932. Its Parliament is composed of 2 houses, The House of Representatives and the Senate. Head of State: HM King Bhumibol Adulyadej (Rama IX) since 1946. Head of Government:

The 2006 Thailand coup d'état took place on Tuesday 19 September 2006, when the Royal Thai Army staged a coup against the government of caretaker Prime Minister Thaksin Shinawatra. The coup, which was Thailand's first in fifteen years, followed a year-long political crisis involving Thaksin and political opponents and occurred less than a month before nation-wide House elections were originally scheduled to be held. The military cancelled the upcoming elections, suspended the Constitution, dissolved Parliament, banned protests and all political activities, suppressed and censored the media, declared martial law, and arrested Cabinet members.

The coup was bloodless, with no casualties reported. International reactions ranged from criticism by countries such as Australia to expressions of neutrality from countries such as China. The United States, which considers Thailand a major non-NATO ally, said it was "disappointed," and that the coup had "no justification."

The new rulers lead by general Sonthi Boonyaratglin and organised in a Council for Democratic Reform (CDR), issued a statement on 21 September setting out their reasons for taking power and giving a commitment to restore democratic government within one year.^[1] However, the CDR also announced that after elections and the establishment of a democratic government, the council would be transformed into a permanent "Council of National Security" whose future role in Thai politics has not yet been explained.^[2] The junta later drafted an interim charter and appointed retired General Surayud Chulanont as Premier.

 

PEOPLE

The people of Thailand are composed of Thais (80%), Chinese (10%), Malays (3%), and minorities ( Mons , Khmers, hill tribes.) Ethnic Thais form the majority, though the area has historically been a migratory crossroads, and has thus produced a degree of ethnic diversity. Integration is such, however, that culturally and socially there is enormous unity.  

FESTIVALS

PASSPORT/VISA REQUIREMENTS

Entry requirements for Americans: Visas are not required for travel by US Passport holders for periods of 30 days or less (an extension of up to 7 days is possible). For periods longer than 30 days a visa must be obtained in advance.

Entry requirements for UK nationals: Visas are not required for travel by UK Passport holders for periods of 30 days or less (an extension of up to 7 days is possible). For periods longer than 30 days a visa must be obtained in advance.

Entry requirements for Canadians: Visas are not required for travel by Canadian Passport holders for periods of 30 days or less (an extension of up to 7 days is possible). For periods longer than 30 days a visa must be obtained in advance.

Entry requirements for Australians: Visas are not required for travel by Australian Passport holders for periods of 30 days or less (an extension of up to 7 days is possible). For periods longer than 30 days a visa must be obtained in advance.

Entry requirements for South Africans: South Africans do not require a visa for visits of up to 30 days (an extension of up to 7 days is possible).

Entry requirements for New Zealanders: New Zealand nationals require a valid passport. No visa is necessary for a stay of up to 30 days provided a return or onward ticket is held. Entry may be refused if of 'hippy' appearance.

Entry requirements for Irish nationals: Irish nationals require a valid passport, but a visa is not necessary for stays of up to 30 days. An extension of up to 7 days is possible. If holding an APEC Business Travel Card then a visa not required.

Passport/Visa Note: All nationalities require valid passports; it is recommended that they are valid for six months beyond period of intended stay. Travellers entering Thailand are required to prove they have sufficient funds to cover the length of their stay, and should hold documentation for return/onward travel. Entry may be refused to travellers of 'hippy' appearance.

Note: Passport and visa requirements are liable to change at short notice. Travellers are advised to check their entry requirements with their embassy or consulate.

 

With credit to "Index of Economic Freedom"

http://www.heritage.org/index/country.cfm?id=Thailand

 

 

Thailand's economy is 65.6 percent free, according to our 2007 assessment, which makes it the world's 50th freest economy. Its overall score is 0.5 percentage point higher than last year, partially reflecting new methodological detail. Thailand is ranked 9th out of 30 countries in the Asia–Pacific region, and its overall score is higher than the regional average.

Thailand enjoys high levels of business freedom, fiscal freedom, freedom from government, monetary freedom, and labor freedom. Opening a business takes less time than the world average, and overall licensing procedures are simple and transparent. Thailand imposes fairly high tax rates, and overall tax revenue is low as a percentage of GDP. Government spending is also low as a percentage of GDP, and state-owned businesses account for a small portion of overall revenue. Thailand's labor market is highly flexible, and firing a redundant worker is costless.

Thailand could do better in monetary freedom, investment freedom, and freedom from corruption. Though inflation is low, Bangkok directly subsidizes the prices of a number of staple goods. Foreign investment is subject to a variety of restrictions, and these restrictions are not enforced uniformly. Corruption is significant, although it is not as great a problem as it is in many neighboring countries.

Background:
Thailand has a strong and business-friendly economy. The only Southeast Asian state never to be colonized, it has been independent for over 600 years and a constitutional monarchy since 1932. Thai politics were already in turmoil in early 2006, and then the military deposed Prime Minister Thaksin Shinawatra in September as this publication was being prepared for printing. Consistent annual growth rates of 4 percent–6 percent in recent decades and relatively high GDP per capita are largely the result of free-market economic policies, manufacturing and agricultural exports, and tourism. In 2004, Thailand began negotiating a free trade agreement with the United States that has yet to be finalized.

Business Freedom - 76.1%

Starting a business takes an average of 33 days, compared to the world average of 48 days. To maximize entrepreneurship and job creation, it should be easier to start a company. Obtaining a business license is simple, but closing a business is difficult. The overall freedom to start, operate, and close a business is relatively well protected by the national regulatory environment.

Trade Freedom - 69.2%

Thailand's weighted average tariff rate was 5.4 percent in 2005. Some prohibitive tariffs, import bans, significant and complex import taxes and fees, export subsidies, burdensome standards and import licensing requirements, restrictive sanitary and phytosanitary rules, service market access barriers, non-transparent government procurement procedures, and weak enforcement of intellectual property rights add to the cost of trade. Consequently, an additional 20 percent is deducted from Thailand's trade freedom score to account for these non-tariff barriers.

Fiscal Freedom - 83.2%

Thailand has burdensome tax rates. The top income tax rate is 37 percent, and the top corporate tax rate is 30 percent. Other taxes include a value-added tax (VAT) and a property tax. In the most recent year, overall tax revenue as a percentage of GDP was 15.9 percent.

Freedom from Government - 91.2%

Total government expenditures in Thailand, including consumption and transfer payments, are low. In the most recent year, government spending equaled 17 percent of GDP, and the government received 6.2 percent of its revenues from state-owned enterprises and government ownership of property.

Monetary Freedom - 77.6%

Inflation in Thailand is low, averaging 3.9 percent between 2003 and 2005. Relatively unstable prices explain most of the monetary freedom score. The government retains authority to set price ceilings for 20 goods and services, including medicines, sound recordings, milk, sugar, fuel oil, and fertilizer, and influences prices through regulation, subsidies, and state-owned utilities. Consequently, an additional 10 percent is deducted from Thailand's monetary freedom score to account for these policies.

Investment Freedom - 30.0%

The law permits 100 percent foreign ownership except in 32 restricted service occupations. Non-Thai businesses and citizens may not own land in Thailand unless it is on government-approved industrial estates. Regulations are not enforced consistently or predictably and remain an obstacle to investment. Residents and non-residents may hold foreign exchange accounts, subject to approval in some cases and maximum limits. Foreign exchange transactions, repatriation, some outward direct investments, and transactions involving capital market securities, bonds, debt securities, money market instruments, real estate, and short-term money securities are regulated and require government approval in most cases.

Financial Freedom - 50.0%

Following the 1997 Asian financial crisis, Thailand pursued reform of its financial system. Financial regulation and supervision are largely transparent and have improved, although they remain short of international standards. Credit is generally allocated on market terms. Financial regulations can be burdensome. The government holds 56 percent of Krung Thai Bank, 48 percent of Siam City Bank, and 49 percent of BankThai, all of which are among the top 10 domestic banks. Foreign ownership of Thai financial institutions is restricted in some cases. The government's establishment of an investment fund in June 2003 raises questions of impartiality. Roughly 100 insurance companies are registered in Thailand, including many competitive foreign firms. Capital markets are relatively well developed and sophisticated. The stock exchange is active and open to foreign investors.

Property Rights - 50.0%

Thailand generally protects private property, but there are indications of inefficiency and corruption. The legal process is slow, and litigants or third parties sometimes affect judgments through extra-legal means.

Freedom from Corruption - 38.0%

Corruption is perceived as significant. Thailand ranks 59th out of 158 countries in Transparency International's Corruption Perceptions Index for 2005.

Labor Freedom - 90.4%

The labor market operates under highly flexible employment regulations that enhance overall productivity growth. The non-salary cost of employing a worker is low, and dismissing a redundant employee is relatively costless.