#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

Understanding Travel Restrictions in Thailand and Across Asia

Most tourist hotspots in Asia and Southeast Asia still remain out of bounds to international flights as travel restrictions remain due to the covid-19 pandemic. However some countries including Thailand are now making arrangements to lift the travel restrictions.

The Foreign Ministry has informed Thailand’s foreign chambers of commerce that foreigners who have work permits or permission from Thai government agencies will soon be allowed to enter Thailand.

Foreigners with work permits will be allowed to return once the aviation rules change. Unfortunately spouses and families are not included in the stipulation.

Travel Restrictions in place for Asian countries

THAILAND:

A ban on commercial international flights has been extended until end June. Nationals and foreigners with work permits can return on charter flights. But citizens need to provide certificates issued by Thai embassies, and foreigners are required to present a negative coronavirus test. There is a mandatory 14-day quarantine on arrival.

Thailand hopes to lift travel restrictions and reopen to limited international tourism later this year for “low-risk” countries including China and South Korea.

AUSTRALIA, NEW ZEALAND:

Borders are effectively closed except for returning citizens and residents, who are quarantined for 14 days. The two countries have talked about a possible “travel bubble” between them but New Zealand has said that is unlikely to happen while travel between Australian states remains restricted. A travel bubble may include Pacific Islands.

CHINA:

Citizens can return under their travel restrictions, but the entry of most foreigners is banned. Including those with valid visas and residence permits, remains suspended.

It has, however, signed a fast-track programme with South Korea and Singapore to allow essential business travel and is in talks with more countries to do so.

It has also allowed foreign executives and technical personnel from some other nations to enter on pre-approved charter flights, sometimes with reduced quarantine, to accelerate the resumption of business.

INDIA:

Borders are effectively closed as coronavirus cases have surged to over 267,000. India said this week it will take a call on resuming international flights as soon as countries ease restrictions on foreign nationals.

 INDONESIA:

Citizens and long-term pass holders may enter, but must bring documents showing they are free of the coronavirus or undergo tests at the airport. The country is opening up domestic travel from Wednesday with safety and quarantine measures.

JAPAN:

The country is considering an easing of travel curbs, although it is likely to require testing and the submission of a travel itinerary,Reuters reported. It is in talks with some countries to reopen borders, with business travellers and medical staff expected to be fast-tracked.

MALAYSIA:

Borders remain effectively closed, but interstate travel will be allowed starting June 10. Returning Malaysians who test negative can self-isolate at home for 14 days starting Wednesday, instead of at a quarantine centre.

SINGAPORE:

Singapore is allowing travellers to transit through its main airport, but borders remain effectively closed. It is in talks with some countries about reopening travel links, including Malaysia and New Zealand.

SOUTH KOREA:

A few international flights continue to operate. All citizens and foreigners who enter are quarantined for two weeks. Diplomats or foreigners with official business status are exempted from mandatory quarantine but are tested on arrival.

TAIWAN:

Borders remain closed other than for citizens, foreigners with residence permits and a few other exceptions. Everyone coming in has to undergo a 14-day quarantine. The government said it will be cautious when looking at whether to ease border restrictions given the serious situation still in many countries.

A limited number of international flights continue to operate.

VIETNAM:

Borders remain closed except for citizens as well as foreign experts with valid work permits and negative coronavirus test certificates who are returning on charter flights. A 14-day quarantine upon arrival is mandatory.

The government on Tuesday said it was seeking to end travel restrictions and reinstate international flights. Only to countries that had been free of the virus for 30 days. Flights would resume these with limited frequency and priority given to foreign experts and investors.

Source - The Chiang Rai Times

Vietnam offers cut-price paradise to lure local travelers post coronavirus

In Phu Quoc, a Vietnamese island off the coast of Cambodia, posters warning tourists of the dangers of COVID-19 have long since faded in the powerful sunshine, along with the throngs of international travelers that used to dot its beaches.

Vietnam recorded a 98 percent fall in visitors this April compared to 2019 because of the coronavirus pandemic, but its success in fighting the virus, posting only 324 cases and no deaths, now sees it set to breathe life back into its tourism industry.

Vietnam will be one of the first Southeast Asian nations to start to revive its economy, but with a ban still in place on foreign visitors, and many of their major tourist markets under lockdown, hotels and resorts are discounting paradise to make it more attractive to local travelers.

At the Mango Bay resort in Phu Quoc, staff in surgical masks served icy cocktails and chilled glasses of white wine to small groups of guests, many of them young urban tourists, from Hanoi or from Ho Chi Minh City.

General manager Ronan Le Bihan said the resort now needed to adapt to local tastes.

"Tourist businesses targeting foreign tourists will be in trouble for a long time," said Bihan. "We can now focus on the Vietnamese market. But that is a very large term. And not all Vietnamese are interested in what we offer."

A tourism promotion campaign "Vietnamese People Travel in Vietnam" debuted last week and aims to "introduce quality tourism products and service packages at reasonable prices".

The move puts Vietnam ahead of its regional tourism competitors such as Thailand, Indonesia and the Philippines, where travel restrictions are only just starting to lift.

Tourism raised 726 trillion dong ($31 billion) last year, nearly 12 percent of Vietnam's 2019 GDP, but while barely 17% of the 103 million travelers were foreigners, they spent slightly more than domestic counterparts.

Warning of the risk of reopening to foreigners too quickly, Prime Minister Nguyen Xuan Phuc has called for the promotion of domestic tourism.

To lure local travelers, hotels and airlines have cut prices by as much as half, Vu The Binh, chairman of Vietnam Society of Travel Agents, and vice chairman of the Vietnam Tourism Association, told Reuters.

"The recovery of domestic tourism should boost international tourism," he said. "After this program ends in mid-July, we will embark on another program to promote international tourism, depending on the virus situation."

'Travel bubble'

Domestic tourism is on the post-lockdown agenda elsewhere in Southeast Asia, but tight travel restrictions mean its uncertain when it will resume. Indonesia's holiday island of Bali has said it could reopen to foreign tourists in October, and hotels in Thailand are gearing up for an eventual reopening.

One option being considered in Vietnam is to join a "travel bubble" with other countries that have successfully fought back the coronavirus.

Ken Atkinson, vice chairman of the Vietnam Tourism Advisory Board, said the first countries to target could be Australia and New Zealand, which are considering their own free-movement zone.

"However, as China and Korea are our two biggest inbound source markets it is important to have plans in place to reopen travel from those markets as soon as it is safe," he told Reuters.

Asian markets were likely to be the first to recover, said William Haandrikman, general manager of the Sofitel Legend Metropole Hanoi, an iconic, colonial-era hotel whose crowds of wealthy Western tourists are long gone.

"We have had to re-invent ourselves to focus directly on the local domestic market as well as regional Asian markets," he said. That includes room deals with $100 credits for food.

Domestic tourism is now on the rise, with most Vietnamese airlines reporting their limited domestic flights are fast reaching capacity.

Lured by low prices, Le Thi Mai Phuong, a 38-year-old businesswoman from Hanoi, spent last weekend in the central city of Danang.

"I'm afraid that if we wait until the virus is over, the cost will go up and the beaches will become too crowded," she said. "We don't know if the virus will return to Vietnam and cause another lockdown".

"I'd have to stay at home and dream about travelling again." 

Source - TheJakartaPost