​​​​​​​Thai tourism industry will never be allowed to recover to pre-COVID levels

[tomauasia]

12 hours ago, webfact said:

Thai tourism industry will never be allowed to recover to pre-COVID levels

by Andrew J Wood

 

 

BANGKOK: Last week the Thai government Minister’s speech shows me that tourism will never be allowed to recover to previous levels. The writing is definitely on the wall, windows and front door, that there has been a major policy shift in government thinking by PM Prayut Chan-o-cha’s cabinet. 

 

In a deeply worrying development for Thailand’s massive Travel & Tourism industry, which last year generated a huge Bt 2.2 trillion of income (US$ 55.2 billion), and accounted for 20 per cent of GNP and 10 per cent of all jobs in Thailand, the deputy PM Supattanapong Punmeechaow said that the country relied too much on tourism and that this was unacceptable. 

 

This must be as worrying for property developers as well as investors. If the 39 million tourists that Thailand received last year in 2019, is never to be repeated, why do we need to continue building and investing in new hotels?

 

According to Thailand’s Nation newspaper, deputy PM Supattanapong Punmeechaow admitted that the Covid-19 outbreak had exposed cracks and faults in the Thai economy. 

 

“The Covid-19 outbreak that hit Thailand since April has exposed the fragility of the economy and shed light on the fact that we rely too much on export and tourism,” the Minister said. 

 

This is certainly a departure from what the Minister was saying back in August. The deputy PM, who also holds the Energy portfolio, announced then the formation of a new economic panel, and boasted that the new economic committee will boost tourism and employment. He said the panel agreed to increase subsidies for local tourists and create 1 million jobs in the near future to combat growing unemployment.

 

Supattanapong Punmeechaow the deputy PM is cleary worried about putting too many eggs in one basket and spreading the risk. However it maybe too early to start walking away from tourism when other industries are simple not ready to take up the slack. Infrastructure improvements; legal reforms, changes in corporate ownership regulations and reduced bureaucracy are just a few of the changes the chambers of commerce have been asking for and must be in place BEFORE we start to cook the goose that lays gold bullion on the floor of the vault in the bank.  

 

The deputy PM who was speaking last week at the “Restart Thailand 2021” dinner talk held at Siam Paragon shopping complex in Bangkok said,  “The outbreak has had an especially heavy impact on small and medium businesses, prompting the government to spend over Bt 800 billion on SME aid measures including postponing debt repayment worth over Bt 6.8 trillion for 12 million SMEs,” he said. “However, from July onwards, economic indicators have been pointing toward an improving trend thanks to cooperation from all parties in outbreak prevention, despite some minor impact from the political situations.

 

“The tourism industry has shown improvement, with about 30 per cent occupation, jumping from just 6 per cent in April, thanks to the government’s economic stimulus campaigns such as the ‘Let’s Go Halves’ shopping subsidy,” he added.

 

“Through the Thai Credit Guarantee Corporation, the government is also planning to provide an additional Bt 150 billion in loans to help small and medium businesses.

 

“The battle against Covid-19 is not over yet. The government still has many projects in the coming year to boost the economy, attract foreign investors and build infrastructure for future expansion,” the minister added.

 

“These projects include the construction of 14 Skytrain lines in Bangkok covering 500 kilometres in the next four to five years, larger than London’s Underground, and the infrastructure projects in the Eastern Economic Corridor to support digital technology, 5G and robotics industry.

 

“It is unacceptable to let Thailand slide back to the period before Covid-19. Since the global economy is changing we must be more proactive in attracting foreign investors, and the agencies responsible for this are the Board of Investment Office and Eastern Economic Corridor Office,” Supattanapong said.

 

“The next step will be to put Thailand on the list of top 10 countries with ease of doing business, which is a goal proposed by five countries who are our major trade partners.”

 

2021 will be the year of investment. 

 

The deputy PM further explained that next year the government will focus on investing in new industries that will help reduce reliance on export and tourism. “Bangkok will be the centre of regional offices of multinational companies, while Thailand’s automotive industry will focus on the manufacturing of electric vehicles (EVs), ” he said. “EVs will create other related industries such as smart equipment manufacturing and electricity generating from renewable energy. This will create a great opportunity for Thailand to further invest in community power plants, as well as biomass and solar power plants in Laos,” he concluded. 

 

-- Andrew J Wood 2020-12-21

They are dreamers. Keep going and you will have civil war

[Ddbanksy]

12 hours ago, webfact said:

Thai tourism industry will never be allowed to recover to pre-COVID levels

by Andrew J Wood

 

 

BANGKOK: Last week the Thai government Minister’s speech shows me that tourism will never be allowed to recover to previous levels. The writing is definitely on the wall, windows and front door, that there has been a major policy shift in government thinking by PM Prayut Chan-o-cha’s cabinet. 

 

In a deeply worrying development for Thailand’s massive Travel & Tourism industry, which last year generated a huge Bt 2.2 trillion of income (US$ 55.2 billion), and accounted for 20 per cent of GNP and 10 per cent of all jobs in Thailand, the deputy PM Supattanapong Punmeechaow said that the country relied too much on tourism and that this was unacceptable. 

 

This must be as worrying for property developers as well as investors. If the 39 million tourists that Thailand received last year in 2019, is never to be repeated, why do we need to continue building and investing in new hotels?

 

According to Thailand’s Nation newspaper, deputy PM Supattanapong Punmeechaow admitted that the Covid-19 outbreak had exposed cracks and faults in the Thai economy. 

 

“The Covid-19 outbreak that hit Thailand since April has exposed the fragility of the economy and shed light on the fact that we rely too much on export and tourism,” the Minister said. 

 

This is certainly a departure from what the Minister was saying back in August. The deputy PM, who also holds the Energy portfolio, announced then the formation of a new economic panel, and boasted that the new economic committee will boost tourism and employment. He said the panel agreed to increase subsidies for local tourists and create 1 million jobs in the near future to combat growing unemployment.

 

Supattanapong Punmeechaow the deputy PM is cleary worried about putting too many eggs in one basket and spreading the risk. However it maybe too early to start walking away from tourism when other industries are simple not ready to take up the slack. Infrastructure improvements; legal reforms, changes in corporate ownership regulations and reduced bureaucracy are just a few of the changes the chambers of commerce have been asking for and must be in place BEFORE we start to cook the goose that lays gold bullion on the floor of the vault in the bank.  

 

The deputy PM who was speaking last week at the “Restart Thailand 2021” dinner talk held at Siam Paragon shopping complex in Bangkok said,  “The outbreak has had an especially heavy impact on small and medium businesses, prompting the government to spend over Bt 800 billion on SME aid measures including postponing debt repayment worth over Bt 6.8 trillion for 12 million SMEs,” he said. “However, from July onwards, economic indicators have been pointing toward an improving trend thanks to cooperation from all parties in outbreak prevention, despite some minor impact from the political situations.

 

“The tourism industry has shown improvement, with about 30 per cent occupation, jumping from just 6 per cent in April, thanks to the government’s economic stimulus campaigns such as the ‘Let’s Go Halves’ shopping subsidy,” he added.

 

“Through the Thai Credit Guarantee Corporation, the government is also planning to provide an additional Bt 150 billion in loans to help small and medium businesses.

 

“The battle against Covid-19 is not over yet. The government still has many projects in the coming year to boost the economy, attract foreign investors and build infrastructure for future expansion,” the minister added.

 

“These projects include the construction of 14 Skytrain lines in Bangkok covering 500 kilometres in the next four to five years, larger than London’s Underground, and the infrastructure projects in the Eastern Economic Corridor to support digital technology, 5G and robotics industry.

 

“It is unacceptable to let Thailand slide back to the period before Covid-19. Since the global economy is changing we must be more proactive in attracting foreign investors, and the agencies responsible for this are the Board of Investment Office and Eastern Economic Corridor Office,” Supattanapong said.

 

“The next step will be to put Thailand on the list of top 10 countries with ease of doing business, which is a goal proposed by five countries who are our major trade partners.”

 

2021 will be the year of investment. 

 

The deputy PM further explained that next year the government will focus on investing in new industries that will help reduce reliance on export and tourism. “Bangkok will be the centre of regional offices of multinational companies, while Thailand’s automotive industry will focus on the manufacturing of electric vehicles (EVs), ” he said. “EVs will create other related industries such as smart equipment manufacturing and electricity generating from renewable energy. This will create a great opportunity for Thailand to further invest in community power plants, as well as biomass and solar power plants in Laos,” he concluded. 

 

-- Andrew J Wood 2020-12-21

Yeh,HK&SG are getting to small now,let's make Bangkok the new HK&SG,same weather,different hat's

 It's called ASEAN

[Laza 45]

I don't think it matters what they plan.. post Covid the market will be shaped by the 'new normal'.. vaccinations, pre flight testing.. the cost of seats.. each countries departure & entry requirements and their level of infection and recovery... many unknowns.. Also how quickly people's economic situation recovers from the disruption to their lives.. No matter how much governments or passengers would like things to return to the normal of 2019 ... it ain't going to happen..  

[Nout]

12 hours ago, Liverpoolfan said:

See. 

I was right.

The glory days are well and truly over.

Akin to the birth of the package holiday in the 60's and the death of the British sea side resorts in the 70's and 80's.

 

Thailand will never be the same again.

Wrong. British sea side resorts thrive. Go to Brighton some time or Devon or Cornwall. Try getting a room in Margate in the summer.

[Nout]

27 minutes ago, desert dueller said:

Recent long weekend Thur - Sun: Bus from Ptya to Korat (direct), midday dep, number of p[assengers: 2  Picked up another 8 after trawling thru the suburbs and Chonburi.

Thais love to travel when they have the time and money.

[Lacessit]

9 hours ago, vinny41 said:

I would suggest you pay a visit to your local train station or bus station where you will find the majority of buses are full going to destinations all over the country so you are incorrect with the statement that most thai's don't travel

A lot are traveling to try and find work, or returning to their home village because they have lost their jobs. Recreational travelers use their own vehicles, or fly.

[Lacessit]

1 hour ago, jvs said:

This time next week will be exactly the same as now.

I will pm you my bank account number.

In return, you should give him free beer tomorrow.

[geisha]

Hotels etc at 30% ? Maybe nobody told him . There seems to be a huge lack of communication between these ministers. In the meantime, Thailand is sitting on its backside where it could be fixing all the crumbling infrastructure. For how long , when will the troubles seriously begin ??

[George Aylesham]

12 hours ago, NorthernRyland said:

What does this really mean in practice? Implement a quota on the maximum number of tourist visas issued? Turn away tourists that want to come and tell them to go to another country? I've never heard of  any place intentionally killing their tourism industry.

No, I don't believe this at all - the DPM is simply recognising reality and it is refreshing to see some thinking outside the box. Part of the reality is that the high value of the baht has discouraged a lot of the poorer tourists who are choosing neighbouring countries such as Vietnam. Covid has simply accelerated the trend. Over the years Thailand has certainly proved itself up to the challenge of industrial, agricultural and technical development in their export markets - otherwise they wouldn't be the third most successful economy in ASEAN.

[Freigeist365]

I'd say this outcome was foreseeable, given the power constellation on the bridge of the MS Siam Titanicus... Similar to what you'd get when assigning a Bonobo ape to ghostwrite a romantic novel.

[CharlieH]

Reported post and response to it removed.

[D M G]

Besides Tourism, add Real Estate.  Condos, Villas, Apartments, etc...

 

EMPTY

[josephbloggs]

54 minutes ago, geisha said:

In the meantime, Thailand is sitting on its backside where it could be fixing all the crumbling infrastructure. 

When was the last time you were in Thailand?  Do you have any idea how much infrastructure development is going on at present?  An absolutely massive amount.  You clearly either aren't in Thailand, or you're couped up in a little village somewhere and don't read the news.

I have lived here for 25 years and the infrastructure development in the last 3-4 years has been more than in the entire 20 years before that.

Edited December 21, 2020 by josephbloggs

[chilli42]

It likely is sensible to reduce dependence on tourism but that does not mean they have to kill it in the process.  The plan to put another/more legs on the economic stool is about as well thought through is the plan to send a Thai to the moon.

[Blumpie]

It's interesting, and it sounds like he is talking about policy and not blathering like a two year old (which has happened up to this point)

He has not stated anything about abandoning it, he's stated that they rely too much on it.  

And the roadblocks in place for new investment outside of tourism is huge.  They are a country that is high on the corruption index.  There is a lot of work to do.

If they were to bring up manufacturing, etc. they have an uphill battle too - namely getting labour.  Already there is no labour.  So this would mean higher prices.  

[Huckenfell]

7 hours ago, klauskunkel said:

Of course it will recover to those levels and more. The power of easy money overrules everything. The government will want more submarines in the future,... and a flight to the moon.

I recently saw a video of my Thailand home , Koh Samui, before i became 'shipwrecked' in Queensland earlier in the year. I was shocked, Chaweng was just about deserted and beginning to look like a Democratic run city in the USA., rundown.  I have read that out of 650 hotels on Koh Samui, only 150 are still open.

[seancbk]

They are not talking about getting rid of tourism, they are talking about incentives for foreign investment in things other that tourism so they can build another revenue stream, and in the process lower the percentage of GDP that tourism accounts for. 

It's a good idea and one I've been hoping to see for a long time.  Perhaps they'll allow foreign owned companies instead of the 49/51% nonsense, and even reduce the 4 Thais per expat requirement.  There are a very large number of foreign owned companies in Hong Kong (and elsewhere) that would love to move here, I know several people who'd move their operations here, along with most of their foreign and some of their Chinese staff.  The benefit to Thailand would be huge.  Do away with low quality tourists and instead replace them with companies paying tax, putting money into the housing market, schools and the economy at large for many many years, not just a few weeks.

 

[Raphael Hythlodaeus]

In a country of 67-million people, can Thailand really sustain 40-million tourist arrivals a year?

The effects on the creaky infrastructure, environment, and culture were clear to see.

Perhaps 20-million could be considered as a target maximum.

I would introduce a per diem charge paid on entry for all tourists, adjustable on a yearly basis, with refunds for any unused days on departure.

For starters I suggest a charge of $5 per day.

They would have to get rid of the quarantine requirement and other nonsense and rely on testing.

 

Edited December 21, 2020 by Raphael Hythlodaeus

[Huckenfell]

6 hours ago, miamiman123 said:

The vaccine requirement to travel will be the final nail in the coffin for Thailand.

Many many will refuse to take this vaccine and this mandate that a vaccine is required to travel will show its head this year.

Thailand has recognized that tourism in the future is over and must look to other avenues

I do not think that Thailand will ever be the same again.

Thailand must now be concerned about those Thais that are now really struggling with survival...I hope they will.

 

Dream on. Those at the top are only interested in themselves and a few others at the top.

 

[internationalism]

11 hours ago, vinny41 said:

I would suggest you pay a visit to your local train station or bus station where you will find the majority of buses are full going to destinations all over the country so you are incorrect with the statement that most thai's don't travel

 But majority of them are not tourists. Family matters, work. So few of them will stay at hotels, visit tourist attractrions. 
Train stations and trains can be packed, because there are very few of them, in comparison to developped rail network in the othe countries. 
Thai domestic tourism is only half of that international one, even with holidays, long weekends. Majority would stay home, visit family in the village or do just one day trips to the seaside, national parks, with all the teples on the way there

Edited December 21, 2020 by internationalism

[Asking for a friend]

15 hours ago, ThailandRyan said:

Where will this come from and why here. Who would invest here with this government in power as corrupt as they are.

CIA loves running black sites in Thailand. Biden is in the CIAs back pocket. Should be good business next 4 years. Black hood manufacturing will be gangbusters.

[Huckenfell]

5 hours ago, Artisi said:

And would that be any great loss, but it won't happen as Thailand doesn't have the leaders with enough smarts to do anything other than chase the quick money. 

There is one man who could "pull the rabbit" out of the hat. But he has been banned from office.

[Truth Will Set You Free]

15 hours ago, webfact said:

It is unacceptable to let Thailand slide back to the period before Covid-19. Since the global economy is changing we must be more proactive in attracting foreign investors, and the agencies responsible for this are the Board of Investment Office and Eastern Economic Corridor Office,” Supattanapong said.

Well you shot yourself in the foot when you started talking bad about the foreigners. Then you put in place restrictions that so harsh for anyone to come into this country and then tried to sell them as incentives as if foreigners are stupid. 
 

It’s great that Thailand has low numbers due to your measures but you let your guard down and allowed the closet country to you reenter and now you back at set one again. 
 

Those tourist that are here and is in Bangkok and God know where else, might get it right here and when they leave take it with them.  <deleted> poor planning don’t constitute tourist and investors coming here to bail the country out of setbacks.????????

 

[vinny41]

6 minutes ago, internationalism said:

 But majority of them are not tourists. Family matters, work. So few of them will stay at hotels, visit tourist attractrions. 
Train stations and trains can be packed, because there are very few of them, in comparison to developped rail network in the othe countries. 
 

I have stayed in a number of hotels where 99% of the guests were Thai, I have seen facebook pages where Thai families that live inland visiting various places for beach holidays, or people from the south going to chiang Mai to experience the different climate.

Some resorts are not seeing many visitors as their target market is foreigners which both longterm expats and Thai visitors avoid as their pricing model is crazy and they don't provide value for money

[George Aylesham]

1 hour ago, josephbloggs said:

When was the last time you were in Thailand?  Do you have any idea how much infrastructure development is going on at present?  An absolutely massive amount.  You clearly either aren't in Thailand, or you're couped up in a little village somewhere and don't read the news.

I have lived here for 25 years and the infrastructure development in the last 3-4 years has been more than in the entire 20 years before that.

 

[Huckenfell]

3 hours ago, Mavideol said:

I did asked that same question last year while visiting Krabi/Ao Nang and I saw 5-6 new big hotels being built and the already existing ones were empty or barely/merely a 20-30% occupation rate, something sounded/looked wrong but they kept going, recently as 2 weeks ago was there and this NEW 5-6 hotels were showing some occupancy (don't know how much %) but only Thais there and under government subvention. Spoke with a manager and he said that usually a room price there, on this period,  goes for around 12-14 K baht but the government deal is to lower price to t-8 K baht per room and from that some HiSo ask for a 20-25% discount and all meals included, he said they barely cover their expenses, he also said  doesn't expect to stay open for too much longer

As i said earlier. Koh Samui has 650 hotels but only 150 of them remain in business.

[George Aylesham]

Yes, just one example would be road construction - superbly engineered across difficult terrains.

[NeoDinosaw]

7 hours ago, ftpjtm said:

Everyone of the top 10 has protected the environment far better than Thailand. It's about effective governance, not percentage of tourism related GDP.

 

https://www.visualcapitalist.com/countries-reliant-tourism/

 

 

Over half of those countries were British Colonies or Protectorates before. Is this significant ? 

[NeoDinosaw]

7 hours ago, patsfangr said:

I truly believe that it is safe to say that the world will never be the same again in the wake of the COVID-19 pandemic. Big business and the mega rich will survive. But medium sized and small businesses, which account for most of the employment in the world, will shrivel to something less than 60% of their pre-COVID levels. As a result; the number of poor and homeless will greatly increase; as will drug abuse, crime, and suicide. At least the next several decades will be as dark a period as humanity has seen in centuries.

 

7 hours ago, patsfangr said:

I truly believe that it is safe to say that the world will never be the same again in the wake of the COVID-19 pandemic. Big business and the mega rich will survive. But medium sized and small businesses, which account for most of the employment in the world, will shrivel to something less than 60% of their pre-COVID levels. As a result; the number of poor and homeless will greatly increase; as will drug abuse, crime, and suicide. At least the next several decades will be as dark a period as humanity has seen in centuries.

Let's hope that you are wrong.  But I have a worrying feeling that you could be right .....

[bkkdawg]

1 hour ago, Muzzique said:

 

And I suppose you think Bill Gates is busy activating a mind controlled army of the vaccinated to begin this takeover.

 

That why he is ensuring the vaccination program focuses on 80-90 year olds first, as part of his master plan..

 

 

Starting by creating a strategic military base in Chelsea and fitting these Zombified soldiers out with Kevlar reinforced Tena products and armor plated Zimmer frames. 

 

I suggest you keep your nonsensical conspiracy theories to yourself as you are obviously a few prawns short of a buffet.

 

Next thing you'll be telling us that the Thai government plans to send people to the moon !!!

 

Right and you've got it all worked out of course. Both of the points I mentioned are true and can be verified. Maybe try and do some of your own research instead of blindly believing the propaganda you're spewed through the mainstream. Wake up nobed!