In contrast, the ratios today stand at 31 percent and 27 percent, respectively. In terms of product mix, the economy neither depends on a specific commodity nor on a particular manufacturing sector. This has allowed for growth and  6/9  development of new industries to serve both domestic and external demands. Certainly, efforts to attract new investments in the EEC area will further enhance our ability to diversify, with establishment of industries of the future. The tourism industry is another well-diversified sector. With many unique destinations and attractions, the tourism industry is able to cater to wide range of customers in term of pricing and activities—from luxurious wellness centers for medical tourists to affordable accommodations for first-time foreign travelers. In fact, recent tourist patterns may have indicated that there is no longer low season in Thailand. The number of incoming foreign tourists has become relatively stable throughout the year with different mixes across different seasons. More importantly, given the choice of attraction and selection of price range, Thailand is in a unique position to attract many first-time foreign tourists, especially those rising middle class from China, India, Indonesia, and Vietnam. Last but not least is the ability for the economy and Thai people to adapt to change. The notion of adaptability is important for economic resilience not just to respond to adverse events and uncertainties but also to cope with disruptive changes, especially against the backdrop of changing landscape brought about by technological advancement.
On the other hand, trade diversion can lead to increased competition within Thailand as excess supplies of goods from China are diverted to the Thai market and priced at discount to compete with local products. Besides, prolonged uncertainties surrounding trade measures had led to unusual front-loading of exports in 2018 and will weigh on export growth in 2019—just when the global demand has begun to moderate. It can also impair business sentiments, preventing firms from taking on new investment projects. Ultimately, as the US-China trade disputes remain unresolved and the US’s inclination for further trade  1 Both products make up less than 1 percent of Thailand’s total exports  3/9  protectionism remains, such as potential US auto tariff measure, trade disputes will certainly be the key concern for all authorities. (2) Slowdown in the Chinese economy is another concern. While the slowdown may be in line with the Chinese authorities’ goal of restructuring the economy towards a long-run sustained growth model, in the short-term it can have significant impact on the Thai economy. This is because of high degree of linkages in terms of supply chain and production networks, tourism, and property investment. For instance, China is Thailand’s second largest export partner following the ASEAN region, making up about 12 percent of our exports in term of value while the Chinese tourists represent nearly 30 percent of total foreign tourists.