Thailand to help virus-hit tourism with tax cuts and loans

[snoop1130]

Thailand to help virus-hit tourism with tax cuts and loans

 

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The package will include steps to help businesses to prevent layoffs and to promote domestic travel, Somkid told reporters.

 

The government expects the number of foreign visitors to fall by 5 million this year to about 35 million owing to the outbreak. Spending by foreign tourists accounted for no less than 11% of Thailand’s GDP last year.

 

“The government is very worried about job cuts,” Somkid said. “We will help ease the situation and will do it quickly”.

 

China, the centre of the virus outbreak, accounted for 28% of Thailand’s tourists and tourism revenue last year.

 

This year, the government expects the number of tourists from China alone to fall by 2 million.

 

Somkid said there would be tax measures and support from banks, including soft loans, to help businesses to retain jobs over the next three to four months.

 

The central bank will also consider easing the cost of finance, he added.

 

The government will consider how it can encourage older people to travel in Thailand, potentially through tax incentives for their children, and also encourage the use of local tourist attractions for events or seminars.

 

Further details will be announced later, Somkid said.

 

Finance Minister Uttama Savanayana said the government would also introduce other economic measures to help support tourism and the overall economy, which is growing at its weakest pace in years.

 

-- © Copyright Reuters 2020-02-14

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[fforest1]

Loans, tax cus, giving free money away, free visas etc etc.....But God forbid ever encouraging more western tourist to come or making the western expats you already have feel welcome.....That's simply not a option....They will let the place burn to the ground before that happens....

[legend49]

Lets hope those desperate SME's can repay the loans???

[DLock]

A few days ago, they expected down 20million tourists (albeit the maths was wrong) and now only 5million...

 

Thats only 12.5%.

 

Easily manageable for smart business operators.

[yellowboat]

14 hours ago, snoop1130 said:

“The government is very worried about job cuts,”

They should be.  Jobs are hard to come by now, especially for the young.  The veneer of cha cha on a white horse bringing peace and prosperity to the land has faded.   Thailand has put all its eggs in the China basket.  Not good governance.

[Acrylic]

Never know mighty Thais can be desperate for tourists. All this time, I have been led to believe that Thai attitude is "Don't like our culture, our language, our way of life, don't come here". It seems that karma is real. 

[Grumpy John]

Down 5 million, crikey yesterday in another thread it was 20million.  They can't be both right! 

[Cake Monster]

7 hours ago, legend49 said:

Lets hope those desperate SME's can repay the loans???

All the Business,s will do, is take the Gov,t money, and then declare Bankruptcy.

Workers will still be laid off, and the Gov,t will not receive a single Baht in Tax payments and Loan repayments.

Mean while the Bosses of these " Enterprises " will just wait it out on the Gov,t money, and when things start to get better again, they will start another get rich quick Business.

I feel for the workers in these situations,as they have no voice, and recourse to any payments in lieu of notice Etc.

 

[Knocker33]

God forbid these businesses that have been making loadsa money over the last few years should ever put some money aside for times like these.

[CGW]

7 minutes ago, Knocker33 said:

God forbid these businesses that have been making loadsa money over the last few years should ever put some money aside for times like these.

I'm sure the ones making the serious money did, there bank accounts will be healthy, as there business model will be to employ the cheapest labour they can, the "workers" are unlikely to have much in the way of savings though!