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Phuket hotels look to close during lockdown

Phuket hotels look to close during lockdown

PHUKET: The number of hotels in Phuket intending to temporarily close in April to comply with the one-month lockdown has risen to some 87%, reports Kongsak Khoopongsakorn, President of Thai Hotels Association (THA) southern chapter.

COVID-19Coronavirustourismeconomics
By The Phuket News

Tuesday 31 March 2020, 11:35AM


Bangla Rd in Patong remains closed. Photo; Patong Municipality

Bangla Rd in Patong remains closed. Photo; Patong Municipality

Mr Kongsak said there are no tourists in the province at this point. It is possible the closure could extend beyond April if the outbreak remains uncontrollable, he told the Bangkok Post. (See report here.)

Phuket Tourist Association Pre­sident Bhummikitti Ruktaengam said he agrees with the lockdown. The association has suggested the measure to Phuket Governor Phakaphong Tavipatana since Mar 15, and suggested to Governor Phakaphong yesterday (Mar 30) to issue an order for hotels on the island to close. Phuket has around 400 registered hotels.

Mr Bhummikitti said most of the 3,000 foreign tourists now in Phuket are expected to leave before the airport is sealed under the full lockdown from April 10-30.

Over 30,000 hotels are set to lose all revenue in April as the lockdown intensifies in provincial areas, while hoteliers in Phuket are bracing for the greatest losses, said the Bangkok Post report.

Of the 32,564 hotels registered in Thailand, some 95% or 30,936 expect to have zero income in April when they temporarily stop operations, according to the THA.

Surapong Techaruvichit, an adviser to THA, said the number of hotel closures is growing every day as more provinces have imposed stricter lockdown policies. Phuket is the latest major tourism destination prohibiting people from free travel in and out of the area.

Mr Surapong said most hotels in provincial areas prefer a clear order from the authorities to close all hotels for the sake of employees, making them eligible for benefits from the Social Security Fund (SSF).

“THA had a discussion with the Labour Ministry last week, but failed to achieve the goal of protecting our workers,” he said. "Operators in each province have to help themselves by urging their governors to officially approve the closure of hotels in order to get SSF payment for affected employees.”

Mr Surapong said hotels are disappointed with regulations that are likely to leave 1.63 million workers in the hotel business stranded without any support despite making regular payments to the SSF, particularly the 978,252 employees making minimum wage.

He said THA is asking members to look after the welfare of workers, such as offering hotel rooms and meals for those who can’t afford to pay for rental homes and food. But it is hard for operators to keep paying for employees as nobody knows how long the pandemic will last, said Mr Surapong.

“We strictly follow the rules by contributing 10% of salary to this fund, in which both employers and workers pay 5% equally. For example, a hotel with 550 staff have to contribute at least B700,000 every month. But during this tough time when we have no income, SSF cannot pay out to employees who need it the most,” he said.

Centara Group announced it will close 28 hotels, 25 in Thailand and three overseas, for the entirety of April, while continuing to look after its employees, the Bangkok Post noted in its report.

The Tourism Council of Thailand proposed to the Tourism and Sports and Labour ministries to consider waiving monthly salary payment to the SSF for both employers and employees until the virus is contained, the report added.

 

Read the original Bangkok Post story here.

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CMen | 31 March 2020 - 15:11:16

We're Italian tourists and beacause our Country has been the first to be banned right now has not be possible to leave Phuket with a commercial flight and if we're not supported to our Country will be very difficult to leave before 10 april. Where do we have to stay if the hotels will close?

Kurt | 31 March 2020 - 12:55:34

@ Nasa,  this article answers your question. There are around 400 registered hotels on Phuket. And I remember previous publications of Phuket officials that there are more than 200 illegal hotels/guesthouses. Staff working in illegal hotels/guesthouse, massage shops ( many) do not receive financial support from Government when they are 'dismissed' during present period of time. 

 

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