Discrimination against the LGBTQ+ community costs Thailand an estimated THB 51.8 billion to 121.8 billion every year, according to a groundbreaking report by Open for Business, a coalition of major global companies advocating for LGBTQ+ inclusion. This staggering figure represents the untapped potential that could be harnessed if Thailand fully embraced its diverse workforce and addressed systemic discrimination, laying the foundation for economic growth and social equity.

Launched in Bangkok in collaboration with Transtalents Consulting Group and Sasin School of Management, the report spotlights the economic impact of exclusion, pinpointing specific areas where LGBTQ+ discrimination is hindering Thailand’s economic prosperity. The findings present a compelling case for businesses and policymakers to dismantle discriminatory barriers and decisively promote a more inclusive economy.

Economic Impact Breakdown: A Closer Look

The report reveals that the cumulative loss stems from health inequalities, wage disparities, and hindered productivity. One of the primary contributors is the high prevalence of depression within the LGBTQ+ community. Alarmingly, 11% of Thailand’s LGBTQ+ population is diagnosed with moderate to severe depression, costing the country an estimated THB 5.0 billion to 14.9 billion annually.

Additionally, the healthcare costs associated with managing HIV/AIDS among LGBTQ+ individuals amount to an astonishing THB 24.4 billion to 73.2 billion each year. This substantial loss is mainly due to lost productivity and wages resulting from disability or premature mortality, highlighting the urgent need for increased prevention and intervention efforts.

The wage gap between LGBTQ+ workers and their non-LGBTQ+ counterparts is another critical issue. The report estimates that this inequality alone accounts for a loss of THB 22.5 billion to 33.7 billion annually—an economic drag greater than that of neighbouring countries such as the Philippines, Singapore, and Vietnam. Despite being the only country in Southeast Asia with anti-LGBTQ+ workplace discrimination laws, Thailand still lags in reaping the full economic benefits of inclusion.

Addressing the “Rainbow Economy” Potential

Nikki Phinyapincha, the founder of Transtalents Consulting Group, emphasized the strategic importance of recognizing and harnessing the potential of the “Rainbow Economy.” She stated, “The Rainbow Economy is not just about financial growth; it’s a movement for economic justice. It unlocks potential and empowers communities that have long been marginalized and deprived of their rightful opportunities. With Thailand’s recent passing of the Marriage Equality Law on September 24, 2024, we are witnessing a turning point that could catalyze the development of human capital, society, and the economy on the global stage.”

The report’s release comes just as Thailand made headlines for being the first country in Southeast Asia to legalize same-sex marriage. This milestone is expected to contribute significantly to the country’s reputation as a global leader in LGBTQ+ rights. This progressive move could make Thailand an even more attractive destination for international talent and tourism, driving further economic gains.

Tourism and Thailand’s LGBTQ+ Soft Power

Tourism, which accounted for THB 1.3 trillion in 2022, stands to benefit enormously from improved LGBTQ+ rights. Statista’s data reveals that a significant portion of this revenue was generated from LGBTQ+ travellers, who are increasingly drawn to destinations known for their inclusivity. Stephanie Galera, Head of Southeast Asia for Open for Business, expressed optimism about the positive ripple effect on Thailand’s tourism industry.

“Thailand’s progressive stance on LGBTQ+ rights positions it as a prime candidate for hosting major events like WorldPride,” Galera said. “By creating an environment where LGBTQ+ individuals feel safe and valued, Thailand can secure its place as a global tourism hub, translating acceptance into economic opportunity.”

Midnight Poonkasetwattana, Executive Director of APCOM, echoed this sentiment, noting, “Thailand’s reputation as an LGBTQ+ haven is not just a social victory but an economic asset. The BL series phenomenon, inclusive tourism, and a thriving service sector all benefit from the nation’s commitment to diversity. The recent marriage equality bill is a testament to Thailand’s readiness to embrace LGBTQ+ as one of its proud Soft Powers.”

Strategic Recommendations: Pathway to Inclusion

The report calls on Thailand’s policymakers and business leaders to implement targeted strategies prioritising LGBTQ+ inclusion to unlock the country’s total economic potential. Dr. Drew B. Mallory, a professor of management and organizations at Sasin School of Management and the report’s Inclusion Ambassador, outlined practical recommendations in a newly developed “Inclusion Toolkit for Organizations and Business.”

“Comprehensive policies and inclusive practices are not merely aspirational; they are essential for sustainable business growth and national prosperity,” Mallory said. “Our research provides actionable data that can help leaders make informed decisions that drive real change, benefiting not only the LGBTQ+ community but the entire nation.”

Key areas identified include:

1. Health and Wellbeing: Increased investment in mental health services and HIV/AIDS prevention programs to reduce economic losses and improve quality of life.
2. Wage Equality: Implementing robust pay equity policies to close the wage gap and enhance productivity.
3. Workplace Inclusion: Expanding workplace programs that support LGBTQ+ employees, as studies show that diverse teams are more innovative and achieve higher financial performance.

The Future of Thailand’s Economy: A Call to Action

The release of this report is a clarion call for Thailand to lead by example in Southeast Asia and embrace an inclusive and sustainable growth model. By addressing the barriers faced by the LGBTQ+ community, the nation stands to gain a more diverse, innovative, and productive workforce.

As the world continues to evolve towards greater inclusivity, Thailand can position itself as a beacon of LGBTQ+ rights in the region, leveraging its “Rainbow Economy” to achieve unprecedented economic and social success.

The stakes are high, but the rewards are even higher—up to THB 121.8 billion per year, to be exact. The question is: Will Thailand seize this opportunity and lead Southeast Asia into a new era of inclusion-driven growth?

 

 

 

Written by: Kanda Limw

 

 

 

 

 

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