Oak Maedow Phuket
Oak Maedow Phuket BRITISH INTERNATIONAL SCHOOL, PHUKET Kata Rocks
The Phuket News Novosti Phuket Khao Phuket

Login | Create Account | Search


TCT says 10% of firms have closed

TCT says 10% of firms have closed

BANGKOK: The tourism index plunged for two consecutive quarters, with 10% of operators already throwing in the towel and 537,280 employees laid off.

tourismeconomicsCOVID-19Coronavirus
By Bangkok Post

Thursday 1 October 2020, 08:59AM


Closed businesses line the streets in Karon, one of the hardest-hit tourism areas in Phuket. Photo: Tanyaluk Sakoot

Closed businesses line the streets in Karon, one of the hardest-hit tourism areas in Phuket. Photo: Tanyaluk Sakoot

The third-quarter index, which polled 700 local operators nationwide during Aug 15-30, climbed to 60 after bottoming out at 12 in the second quarter, reports the Bangkok Post.

The index’s reading was 100 in the second quarter last year, a level meaning stable or normal. Any reading below 100 suggests a decline in confidence, while a reading above 100 suggests improvement.

Chairat Trirattanajarasporn, the TCT president, said operators in the southern and central region showed the lowest confidence at 51, as they heavily rely on foreigners and were affected by the economic slowdown.

Entertainment venues forced to close during the lockdown in the second quarter were lowest on the index at 42, followed by hotels (48) and theme parks (50).

Mr Chairat said 400,000 tourism workers lost their jobs during the third quarter as 3% of companies shut down and 7% temporarily closed.

Although 88% of companies continue to operate, 13% reduced employee headcount by 30%, causing 137,280 to lose their jobs.

By year-end, the number of unemployed will rise to more than 1 million if the government cannot issue effective aid measures and allow more international tourists into the country, he said.

“The extension of repayment suspensions is the last hope for us,” Mr Chairat said. “The majority of tourism operators cannot continue debt payments under the current situation.”

 

He said there is more than B100 billion in debt from the tourism industry alone, while operators are requesting debt holidays beyond October.

“The crisis has pushed desperate operators to borrow money from loan sharks to sustain business, which could further worsen the spiral of debt and economic downfall,” Mr Chairat said.

He said the number of tourists will depend on the reopening plan from the government, but the limited number of 1,200 tourists per month is inadequate to help the tourism industry recover.

The TCT is supporting a tourism plan without a quarantine from low-risk countries that have no new cases for at least 60 days.

The limited number of tourists will not heal the industry, which used to receive 10mn tourists each quarter, said Vichit Prakobgosol, president of the Association of Thai Travel Agents.

If Thailand can implement a more relaxed quarantine in December, Thailand will draw 100,000 travellers in each month, mostly from mainland China and Taiwan, which will help generate at least B5bn, Mr Vichit said.

The council estimates that Thailand in 2020 will have 6.74mn international tourists, down 83.1% year-on-year, contributing B337bn, a dip of 82.6%.



Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.

CAPTCHA

charles | 01 October 2020 - 20:58:02

10%  more like 80% if we are only talking about businesses that rely on tourism. These guys need to take a walk down through Kata/Karon or Patong  From Kata Boat house to Karon Circle I count less than a dozen businesses open. out of a couple of hundred

LALALA | 01 October 2020 - 17:57:51

No new cases for at least 60 days ? Yeag...here we fo again. North Korea, Turmenistan are on the list. Who else ? China and Taiwan ? Surely not.

 

Have a news tip-off? Click here

 

Phuket community
Defence chief denies coup is a possibility

A military coup to oust the military! Hardly likely. Doesn’t the king usually step in? Oh that’s...(Read More)


Phuket Opinion: The middle way

DEK,who actually tells you that I am still in LOS ?...(Read More)


Phuket Opinion: The middle way

"...lack of brain capacity",haha and this from someone who still can't find a way out ...(Read More)


Phuket Veg Fest food vendors warned of overcharging

Aha. What about keeping this policies also for farang tourists in future? Like for taxis, tuktuks et...(Read More)


Phuket Immigration confirms retirement ‘visa’ income combo still accepted

Most embassies no longer issue letters as they cannot comply with immigration dept requirements, so ...(Read More)


Phuket Veg Fest food vendors warned of overcharging

Very good counter actions against these profiteers. The Vegetarian Festival is a spiritual event not...(Read More)


First group of Chinese visitors arrive

I thought the visit of 120 was cancelled as no one actually applied for it?...(Read More)


Phuket Opinion: The middle way

DEK..you are directed to my previous posts in which an explanation to your questions was given, I am...(Read More)


First group of Chinese visitors arrive

This is a good start, but the STV plan will not enable most travel-related shops, restaurants and ho...(Read More)


First group of Chinese visitors arrive

41 tourists or 1,200 STV visits per month cannot quickly solve the current economic and tourism diff...(Read More)