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60% of tourism businesses in Thailand face closure, workforce’ income slashed by 47%


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60% of tourism businesses in Thailand face closure, workforce’ income slashed by 47%

 

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File photo for reference only//Credit: Reuters

 

Around 60 percent of businesses operating in the travel and tourism sector in Thailand could be forced to close permanently due to the impact from COVID-19, according to a new study by the Asia Foundation.

 

The study, titled Enduring the Pandemic: Surveys of the Impact of COVID-19 on the Livelihoods of Thai People, asked 982 small and micro enterprises in tourism and manufacturing, as well as 3,181 workers in Thailand between May and July of 2020 on how their business and employment has been affected by COVID-19.

 

The study’s eye opening findings paint a grim picture for the future of the travel and tourism industry in Thailand, with the impact from COVID-19 set to be felt long after the pandemic has gone.

 

“The Thai economy is showing early signs of a severe and prolonged contraction that will rival the Asian Financial Crisis of the late 1990s, said Thomas Parks, co-author of the study.

 

The study found that a staggering 70 percent of the national workforce in Thailand had seen their monthly income decline, with an average contraction of 47 percent. 

 

The study said that businesses in Thailand that depend on international tourists are struggling to survive and that operators have low confidence in the future, with businesses forced to let staff go at “an alarming rate”. 

 

“Most of the small businesses in this critical sector were anxious about their ability to survive the crisis, with 61% at risk of closing permanently”, read some of the key findings from the study.

 

“Compounding this problem, domestic tourism had also contracted, and was nowhere near the level needed to fill the gap left by international tourists. 

 

“Most tourism businesses realized that visitor levels will not return to pre-COVID levels until at least 2021, but more than a third did not think that they could stay in business that long. 

 

“Given extremely low levels of confidence in their future recovery, tens of thousands of small businesses are likely to decide to cut their losses now, and close permanently”. 

 

The study also said that a “second extended lockdown would be catastrophic” for business in Thailand, with many still struggling to recover from the first lockdown, business owners said they simply would not be able to survive a second lockdown.

 

Business owners said they felt anxious over the possibility of a second lockdown in Thailand having seen the resurgence of the virus in Vietnam. 

 

It isn’t only the tourism industry that is feeling the impact from COVID-19.

 

“While tourism is heavily affected, the economic damage from the pandemic is much broader”, the study said.  

 

“For example, small manufacturers are struggling, even though most are unconnected to tourism. As of June 2020, 70% of small and micro manufacturing businesses were making half, or even less of their pre-COVID earnings. 

 

“Only 68% of the businesses interviewed were operating normally, despite the full relaxation of lockdown measures. 

 

“Businesses interviewed in Buriram and Nakhorn Ratchasima Provinces said that customer demand was not recovering, especially for nonessential products. 

 

“The dramatic decline in individual incomes that has affected 70% of the Thai workforce, also points to a broad-based contraction in demand that will affect all sectors of the economy”. 

 

The news comes after business owners in Pattaya warned of the impact of COVID-19.

 

A report by Sophon TV revealed that scores of business had shut and that for sale/rent signs were all over the resort. 

 

Sophon spoke to three different kinds of businesspeople who all had similar stories and who all were affected by the complete lack of foreign tourists in Pattaya. 

 

 

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-- © Copyright Thai Visa News 2020-09-11
 
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12 minutes ago, webfact said:

The study said that businesses in Thailand that depend on international tourists are struggling to survive and that operators have low confidence in the future, with businesses forced to let staff go at “an alarming rate”. 

Maybe now while you are waiting for the foreign tourists to return you can give serious thought to not biting the hand that feeds you!

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1 minute ago, steven100 said:

are they going to keep going on and on about it  ?

Thailand is not the only country in the world affected.

Yes, what about half dozen of these related reports a day we get it and can see it.

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10 minutes ago, RotBenz8888 said:

Many of the greedy tourist businesses were dying anyway, better just put them out of their misery. 

clean out the cockroach infested hotels that were being used and never maintained.

shut them all down and get some quality back.

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7 minutes ago, steven100 said:

are they going to keep going on and on about it  ?

Thailand is not the only country in the world affected.

Steven  you do understand the people you accuse of "going on and on about it" are simply the admin of this weBsite, TVF.   They are providing fodder for the site  and that's their job.

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21 minutes ago, Laughing Gravy said:

I await the response from the government who make it all sound like there is nothing to worry about.

...........and they seem to be getting away with it. Maybe their snouts are so firmly ensconced in the trough that they really don't even notice!

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7 minutes ago, steven100 said:

clean out the cockroach infested hotels that were being used and never maintained.

shut them all down and get some quality back.

Those are the ones most likely to survive, as the locals consider 'meng' as tasty snacks.

And the owners haven't taken out big loans to upgrade their facilities.

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4 hours ago, steven100 said:

clean out the cockroach infested hotels that were being used and never maintained.

shut them all down and get some quality back.

Why you go 300 bth/night cockroach hotel!? Those kind not bother me! Those are quick lunch <deleted> place's for thai police officers!

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More closures to come I get the feeling a lot of place thought they could ride the storm for a while I saw only the other day one of the staff in a bar near me post on FB asking the question "Why is it so Quiet" one of the longer standing bars in the area, but I also think the days of pussy bars are over

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2 minutes ago, ChipButty said:

More closures to come I get the feeling a lot of place thought they could ride the storm for a while I saw only the other day one of the staff in a bar near me post on FB asking the question "Why is it so Quiet" one of the longer standing bars in the area, but I also think the days of pussy bars are over

Somebody should tell these idiots about the Covid thing.

 

 

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1 hour ago, steven100 said:

are they going to keep going on and on about it  ?

Thailand is not the only country in the world affected.

You're missing the point, Thailand is the only country in the world that matters to 'them'.

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60% of Tourism Business,s is on the low side me thinks.

The Banks are not going to support these Business,s for any prolonged period of time.

A more realistic figure would be around 80% + . I know this sounds OTT, but there are no tourists, the existing Business,s are in Hock over their Ears, Local Tourists are not capable of taking up all the slack, and the Thai Baht is massively over valued.

Just saying it as I see it.

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1 hour ago, ChipButty said:

More closures to come I get the feeling a lot of place thought they could ride the storm for a while I saw only the other day one of the staff in a bar near me post on FB asking the question "Why is it so Quiet" one of the longer standing bars in the area, but I also think the days of pussy bars are over

The ones paying 80k/month rent maybe.

The ones using a shopfront and fairy lights, renting for 3k/month, not so much.

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9 minutes ago, BritManToo said:

The ones paying 80k/month rent maybe.

The ones using a shopfront and fairy lights, renting for 3k/month, not so much.

Not around here mate on the beach front 

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60 percent is very low.

Wrap your head around this:  Best case scenario, one year.  Mark the calendar right now.  That's one year from today.  The hurt hasn't even started yet.  And then there is the post pandemic after everyone is inoculated and how long it takes people to wrap up travel again.

I would dare say that things are going to be interesting then - and I have no opinion nor idea how that will even take place.  

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4 minutes ago, Blumpie said:

60 percent is very low.

Wrap your head around this:  Best case scenario, one year.  Mark the calendar right now.  That's one year from today.  The hurt hasn't even started yet.  And then there is the post pandemic after everyone is inoculated and how long it takes people to wrap up travel again.

I would dare say that things are going to be interesting then - and I have no opinion nor idea how that will even take place.  

You are right The hurt hasn't even started yet I'm sitting in a bar at the moment and across the road a row of shops and not a light on anywhere 

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5 minutes ago, 3NUMBAS said:

5 years at least to get just a trickle of tourists but not enough to sustain businesses to stay afloat .its inline with tourism in spain etc

You're right.  

You cannot have a tap like this turned off without serious economic fallout.  And it has only just started.  

Those businesses shuttered won't be back in for at least several years.  

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60% of tourism business face closure. Probably very true, but....... a lot, and I mean a lot of new businesses have opened in the last few months.

 

Many houses near us have suddenly set up kitchens in their gardens and are delivering food via Grab, Panda or whatever. Are they registered? i doubt it.

 

It seems several houses are now being rented out for parties for HiSo's, for gambling or other "activities" ( no control, free flowing drinks, unlimited number of guests, wild orgies with young "pretties"). Yes, I have seen them.

 

That is just in the soi where I live. What about all the other places?

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It is what it is. 

Speculating is nonsense.  Thai people are more resilient than any of us foreigners will ever be, and they will bounce back as soon as demand is back.   

I see hundreds of motocy taxi drivers all over town still.  Sitting next to or across from closed hotels and next to closed 7-11's for months now.  No business, yet they always have their cigarettes as well as some food and drink.  Unknown to me how they are surviving, but they are.

Streets still full of cars, motorcycles, delivery trucks, street food vendors, and all daily.

 

I have no idea how long this could last though I admit.

 

80-90% of hotels shut down here in Pattaya. Those that opened for domestic tourism have rented some rooms out maybe 10 days out of the last 2 months.  More stores closed this month as well as last month. Massage places that were open are closing again.

 

Once everything goes out of business except the grocery stores I will believe things are "bad" 

Once the tax base cannot afford to employ the thousands of government workers at City hall, immigration, the police stations, TAT, and elsewhere, then I will say things are bad.    

 

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12 minutes ago, petedk said:

wild orgies with young "pretties" 

Get out your zoom lense camera and post some video for us please 🤣🤣🤣

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