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More Than A Third Of Thai Tourism-related Businesses Closed Down

24 Jan, 2021

A Tourism Authority of Thailand survey, conducted between January 10 – 12, indicates that more than a third of the country’s tourism-related businesses has already shut up shop and gone out of business. An enormous majority were begging for TAT and government assistance fearing that they are unable to hand on much longer.

1,884 tourism businesses in Thailand were surveyed about their situations and how they were coping with the long-term closure of the Thai borders and the local restrictions on travel.

The businesses were in the areas of accommodation, travel firms, restaurants, car and bike rentals and public transport businesses.

34.7% said they had already shut down or gone out of business.

That the TAT admit that more than a third of their front-line organisations have gone to the wall already is a big turn-around from the perennially optimistic tone and often cringe-worthy predictions. The TAT and the Thai Minister of Tourism and ports are now staring down the barrel of an industry, not only diminished, but changed forever after decades of stunning growth.

At the start of the week the Tourism and Sports Minister claimed that 10 million tourists would start arriving on Thailand’s shores from the middle of this year for the rest of 2021. Just 3 months ago he also predicted that domestic tourists would undertake some 10 million trips a month during the forthcoming high season (December to February).

With only hope to back up his speculative predictions, the Minister was hopeful the stimulus measures approved by Cabinet will boost tourism numbers and help off-set some of the economic devastation caused by the closure of Thailand’s international borders.

This week’s prediction was that tourists, foreign and local, would be spending 1.2 Trillion baht on the battered tourist industry during 2021. He failed to provide details about where these tourists would come from or where they would visit during their stays – stays that still have to begin with a 14 day mandatory quarantine.

The only good news is a further 65% of businesses that continue to struggle on, waiting to see how 2021 unfolds and the effect of the roll out of Covid-19 vaccines, that will allow countries to open borders and a greater level of travel freedoms once again.

The break out of a cluster of infections in the Samut Sakhon province, just south west of Bangkok, and now spread to the majority of other Thai provinces, on December 20, forced the government to restrict inter provincial travel. The not-quite-a-lockdown that followed severely dampened the travel plans of locals and foreigners inside Thailand over the traditional December/January holiday season. This week the Bangkok Metropolitan Authority loosened some of the earlier restrictions and allowed some formerly closed businesses to re-open.

 

 

The Thaiger

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