Thailand's Prime Minister Srettha Thavisin arrives at Pheu Thai Party headquarters in Bangkok, Thailand, Aug 24, 2023. (PHOTO / AP)

BANGKOK - Thailand's new Prime Minister Srettha Thavisin visited the resort island of Phuket on Friday, a first official trip to underline plans to shore-up economic recovery by bolstering tourism, a key driver of growth.

Thailand's economy expanded 1.8 percent year-on-year in the April-June period and 0.2 percent on the quarter, slowing sharply from the previous three months as its key exports sector slumped on weak global demand. The state planning agency has since cut its growth projection to a 2.5 percent to 3.0 percent range from 2.7 percent to 3.7 percent.

Tourism remains a bright spot, however, with the government aiming to reach about 29 million foreign visitors this year, nearly three-quarters of the record number received in pre-pandemic 2019, who spent 1.91 trillion baht ($54.40 billion).

Thailand's new Prime Minister Srettha Thavisin said his government would look at long-term plans to expand airport infrastructure in popular destinations like Bangkok, Phuket and Chiang Mai

Nearly 11 million of those were from China that year.

"Right now only 30 percent of Chinese tourists have returned," Srettha, a property mogul, told reporters.

"Chinese tourists are an important part." he said, suggesting loosening visa requirements.

Political newcomer Srettha was president of a real estate firm just a few months ago and became prime minister on Tuesday after winning with ease in a parliamentary vote.

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He must put together a cabinet from a crowded 11-party alliance that includes bitter rivals of his Pheu Thai Party, which will lead its fifth government in two decades. Three of those were topped by coups or courts.

Srettha on X, formerly Twitter, said he aims to boost tourism income next year to 3.3 trillion baht ($93.99 billion)

He also said his government would look at long-term plans to expand airport infrastructure in popular destinations like Bangkok, Phuket and Chiang Mai.

He has met airport operators in Bangkok and Phuket and was due to meet with tourism business operators and visit some tourism sites in Phangnga and in Phuket, which draws about a quarter or Thailand's annual visitors.

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Srettha said he expects his cabinet to be finalized over the next week. The government will then have to deliver policy objectives to a joint session of parliament before starting work, likely in late September.