#Thailand - Nearly one-third of tourism-related businesses ‘may shut down permanently’

About one-third of tourism business operators in Thailand will run out of liquidity to keep their businesses afloat in the second half of 2020, Tourism Council of Thailand president Chairat Trirattanajarasporn has warned.

“The impact of Covid-19 will become most serious in the third quarter this year after many operators had tried to cut costs by letting some of their employees go, but after more than a million positions cut the situation still hasn’t improved, as no foreign tourists are allowed into the country yet,” he said.

“The council estimates that in the next three months up to 30 per cent of tourism-related businesses in Thailand are at risk of shutting down permanently.”

Chairat added that some operators are starting to sell their establishments, such as hotels, resorts, restaurants and gift shops to investors who wish to turn them into other business. “However, since the real estate business is also affected by the economic crisis, the hope of selling their properties is still bleak for these owners,” he added.

“The council had a meeting with Prime Minister Gen Prayut Chan-o-cha on Friday (July 10) and proposed five measures to help tourism business operators,” said Chairat. “These measures are: providing soft loans to tourism entrepreneurs; considering moving the schedule up to open the country to foreign tourists under a practice similar to the travel bubble scheme; offering discount on electricity bills, one of the main costs of hotel operators; having the Social Security Office extend the compensation payment to temporarily unemployed staff from June to December, and reducing the employer’s contribution to Social Security Fund from 4 percent to 1 percent.”

Chairat also added that the Tourism Council of Thailand has predicted the income from foreign tourists in 2020 will drop significantly from Bt2.2 trillion last year to only around Bt600 billion.

Source - Pattaya One News

Airports of Thailand Offers Huge Discounts for Airlines and Business

Airlines and concessionaires that suspended operations will not owe rent or concession charges for 9 months or until operations resumed, AOT said.

Thailand’s State-owned Airports of Thailand Pcl has said it will offer new measures for airlines and businesses to mitigate the Covid-19 impact. Because of the decline in flights and passengers amid the coronavirus outbreak.

Airports of Thailand (AOT) said it would offer a 50% reduction in rents, terminal fees and landing charges from April to December for airlines and businesses.

The announcement comes after AOT warned on Wednesday that it expected passenger traffic to drop by 53% for the fiscal year ending in September.

Airlines and concessionaires that suspended operations will not owe rent or concession charges for 9 months or until operations resumed, AOT said.

Duty-free retailer King Power, which holds the majority of duty-free and commercial concessions at airports, has closed its stores and is selling non-duty-free products online.

AOT operates six airports, including the country’s largest international hub, Suvarnabhumi Airport, and saw nearly 900,000 flights and 141.8 million passengers in the year that ended September 2019, booking profits of 25 billion baht ($773.5 million).

Its airport on the resort island of Phuket is closed.

Thailand has reported 2,839 cases and 50 deaths from the coronavirus.

The country’s aviation regulator in early April imposed a ban on passenger flights until the end of the month to curb the spread of the virus. The government had already banned the entry of non-resident foreigners in March.

Southeast Asia’s second-largest economy stands to lose 1.3 trillion baht, most of it in the tourism sector.

More than 2.57 million people have been reported to be infected by the coronavirus globally, and 178,574 have died, according to a Reuters tally.

Source - Chiang Rai Times