Hotels want soft loans, salary co-payment after new outbreak hurts tourism

[webfact]

Hotels want soft loans, salary co-payment after new outbreak hurts tourism

By The Nation

 

 

The Thai Hotels Association (THA) will ask for more government measures to soften the impact of Covid-19 on the sector, THA chairperson Marisa Sukusol told the Thansettakij newspaper.

 

Among them is a measure allowing hotels to suspend their outstanding debt. Hotels want to halt their principal and interest payments for two years. The THA also wants annual interest on hotel debt to be cut to 2 per cent.

 

The THA will also ask the government to allocate budget for soft loans of up to Bt60 million per hotel at 2 per cent interest, with principal and interest repayment suspended for two years. When payment is due, the loans should be converted into long-term credit at low interest. The loans were needed to boost liquidity, the association said.

 

It will also ask the government to pay 50 per cent of monthly staff salaries in order to retain as many as 200,000 hotel employees nationwide.

 

The co-payment scheme would cover monthly salaries of up to Bt15,000 and last for one year. Payments would be transferred directly into their accounts via Krungthai Bank. The total cost of the scheme is estimated at Bt18 billion.

 

Hotel operators calculate the Covid-19 impact could drag on until late next year, due to the fresh outbreak in Thailand.

The new surge of infections has seen some hotels that had reopened, close again after guests cancelled bookings over infection fears.

 

Source: https://www.nationthailand.com/business/30400437

 

 

-- © Copyright The Nation Thailand 2020-12-30

 

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[Damrongsak]

Now look at them yo-yo's that's the way you do it
You play the guitar on the MTV
That ain't workin' that's the way you do it
Money for nothin' and chicks for free
Now that ain't workin' that's the way you do it ....

 

[ourmanflint]

Seems hotel operators have some sense of how bad things are going to get. Tourism will not return to Thailand until Thailand vaccinates it's own population and that will not happen anytime soon.

[greenhornfarang]

"Hotel operators calculate the Covid-19 impact could drag on until late next year, due to the fresh outbreak in Thailand."

 

This is an extremely optimistic calculation, the stars and the moon would have to align for this impact to only drag on until late next year,  this can drag on for decades, 2020 was just the tip of the iceberg.

Edited December 29, 2020 by greenhornfarang

[malathione]

And how much equity will they offer in return for this "help"? And, of course, they will put up their properties as collateral for the loans. 

[madmitch]

3 hours ago, greenhornfarang said:

"Hotel operators calculate the Covid-19 impact could drag on until late next year, due to the fresh outbreak in Thailand."

 

This is an extremely optimistic calculation, the stars and the moon would have to align for this impact to only drag on until late next year,  this can drag on for decades, 2020 was just the tip of the iceberg.

But aren't there going to be ten million tourists in the third quarter?

[Mr Meeseeks]

You have then to ask, does the tourism industry actually create anything of value? It's a Keynesian economist's dream. 

 

Service industries like tourism just tend to move money around and encourage spending and instant gratification instead of patience, capital accumulation and investment, which is the entire premise behind Keynesian economics; keep them spending and stave off recession. 

 

The shift away from a reliance on tourism to more productive industries could just be the silver lining in the cloud that developing countries could benefit from.

 

[hotchilli]

6 hours ago, webfact said:

The THA will also ask the government to allocate budget for soft loans of up to Bt60 million per hotel at 2 per cent interest, with principal and interest repayment suspended for two years. When payment is due, the loans should be converted into long-term credit at low interest. The loans were needed to boost liquidity, the association said

I dreamed a dream....... 

[ChakaKhan]

Took my HARD earned cash into a shop for a massage, became a SOFT loan when my masseuse was a ladyboy.

 ????

[Cake Monster]

7 hours ago, webfact said:

Among them is a measure allowing hotels to suspend their outstanding debt. Hotels want to halt their principal and interest payments for two years. The THA also wants annual interest on hotel debt to be cut to 2 per cent.

These  Hotel Owners dont really want a lot ... do they !

They are the same as any other Business.

You decide to start your Business ( in this case a Hotel ) and you reap the rewards  from all your hard work.

But very few who start a Business ( in any Country ) ever consider what if it all goes wrong ?

Well it has gone wrong now for so many, and this is the flip side to running your own Business,

[mtls2005]

The horse is dead. You rode it hard, and got a lot winnings. Bullet to the head, and off to the dog food factory.

 

Time to move on.

 

 

 

 

[madmitch]

4 hours ago, Cake Monster said:

These  Hotel Owners dont really want a lot ... do they !

They are the same as any other Business.

You decide to start your Business ( in this case a Hotel ) and you reap the rewards  from all your hard work.

But very few who start a Business ( in any Country ) ever consider what if it all goes wrong ?

Well it has gone wrong now for so many, and this is the flip side to running your own Business,

 

3 hours ago, mtls2005 said:

The horse is dead. You rode it hard, and got a lot winnings. Bullet to the head, and off to the dog food factory.

 

Time to move on.

 

 

 

 

Do you not take into consideration the number of Thais employed in these businesses who will now be without a job? It's not just the owners suffering. And maybe take a look at how other countries are helping business owners and staff affected by coronavirus restrictions.

 

This is unprecedented and unlike a business destroyed by a tsunami, for example, there are no insurance payments to take advantage of and it's hardly down to poor business management.