The Thai government's recent tax incentives aimed at boosting tourism in secondary provinces have been met with scepticism by the country's hoteliers. Despite the effort to encourage growth through financial benefits, hotel entrepreneurs’ response has been notably lukewarm.

 

In a survey carried out by the Thai Hotels Association (THA) in collaboration with the Bank of Thailand, the latest hospitality operators’ confidence index revealed that 50% of the 102 respondents expect the new tax policy to increase their income by just 5% this year. Most of the remaining respondents anticipate no more than a 10% rise in income.

 

Yesterday, THA President Thienprasit Chaiyapatranun highlighted a critical issue that the policy overlooks—the chronic shortage of skilled workers, affecting around 40% of hotel operators surveyed. Thienprasit pointed out that without addressing workforce needs, the impact of tax incentives could remain minimal.

 

The survey also illuminated the revenue breakdown for hotels, showing that 70% of their income comes from tourist customers, with less than 20% originating from the business sector, known as the MICE group (meetings, incentives, conferences, and exhibitions).

 

This sheds light on a disconnect, as the government’s tourism push is heavily directed towards the MICE segment in secondary provinces, reported The Nation.

 

Adding to the complexity, in the third quarter of this year, more than half of the hotel operators increased their room rates compared to the previous year. Most 4-star establishments limited their price hikes to within 10%, reflecting cautious optimism about the potential influx of tourists.

 

Hoteliers are calling for more substantial support measures. Their proposals include subsidies for utility costs, a delay in raising the minimum wage, and reductions in land and building taxes. They also seek broader tax deductions on business expenses.

 

Thienprasit stressed the urgent need for governmental intervention in resolving labour shortages. Hoteliers are advocating for the creation of a dedicated agency to source skilled workers and provide vital training, particularly in language skills, for existing staff.

 

TOP Picture courtesy: Bestagency

 

-- 2024-08-16

 

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3 hours ago, webfact said:

Yesterday, THA President Thienprasit Chaiyapatranun highlighted a critical issue that the policy overlooks—the chronic shortage of skilled workers, affecting around 40% of hotel operators surveyed. Thienprasit pointed out that without addressing workforce needs, the impact of tax incentives could remain minimal.

So why not start an internship programme... help yourself.

3 hours ago, webfact said:

 

The Thai government's recent tax incentives aimed at boosting tourism in secondary provinces have been met with scepticism by the country's hoteliers. Despite the effort to encourage growth through financial benefits, hotel entrepreneurs’ response has been notably lukewarm.

 

In a survey carried out by the Thai Hotels Association (THA) in collaboration with the Bank of Thailand, the latest hospitality operators’ confidence index revealed that 50% of the 102 respondents expect the new tax policy to increase their income by just 5% this year. Most of the remaining respondents anticipate no more than a 10% rise in income.

 

Yesterday, THA President Thienprasit Chaiyapatranun highlighted a critical issue that the policy overlooks—the chronic shortage of skilled workers, affecting around 40% of hotel operators surveyed. Thienprasit pointed out that without addressing workforce needs, the impact of tax incentives could remain minimal.

 

The survey also illuminated the revenue breakdown for hotels, showing that 70% of their income comes from tourist customers, with less than 20% originating from the business sector, known as the MICE group (meetings, incentives, conferences, and exhibitions).

 

This sheds light on a disconnect, as the government’s tourism push is heavily directed towards the MICE segment in secondary provinces, reported The Nation.

 

Adding to the complexity, in the third quarter of this year, more than half of the hotel operators increased their room rates compared to the previous year. Most 4-star establishments limited their price hikes to within 10%, reflecting cautious optimism about the potential influx of tourists.

 

Hoteliers are calling for more substantial support measures. Their proposals include subsidies for utility costs, a delay in raising the minimum wage, and reductions in land and building taxes. They also seek broader tax deductions on business expenses.

 

Thienprasit stressed the urgent need for governmental intervention in resolving labour shortages. Hoteliers are advocating for the creation of a dedicated agency to source skilled workers and provide vital training, particularly in language skills, for existing staff.

 

TOP Picture courtesy: Bestagency

 

-- 2024-08-16

 

- Cigna offers a variety of health insurance plans designed to meet the minimum requirement for medical treatment coverage, with benefits reaching up to THB 3 million. These plans are tailored to provide comprehensive healthcare solutions for expatriates, ensuring peace of mind and access to quality medical services. To explore the full range of Cigna's expat health insurance options and find a plan that suits your needs, click here for more information.

 

Get our Daily Newsletter - Click HERE to subscribe

If they want skilled workers they need to attract skilled workers by paying more.

No doubt the policy was implemented without any consultation with the relevant organisations and some government Muppets decided on their own to favour the MICE segment.

 

More non joined up writing from officials.

Sounds like their salaries and conditions aren't what workers are looking for.

Change those first maybe. 

Since when did Thailand have secondary provinces? Do I live in one? Where are the primary provinces?

10 minutes ago, greeneking said:

Since when did Thailand have secondary provinces? Do I live in one? Where are the primary provinces?

 

For a number of years now they've been referring to this in terms of tourism. The primary ones are the ones with well-established tourist destinations and secondary provinces are those that are less well-known but they want to promote. You can probably google for previous initiatives to see what 'secondary provinces' and attractions have been highlighted in the past.  

1 minute ago, KhaoNiaw said:

 

For a number of years now they've been referring to this in terms of tourism. The primary ones are the ones with well-established tourist destinations and secondary provinces are those that are less well-known but they want to promote. You can probably google for previous initiatives to see what 'secondary provinces' have been highlighted in the past.  

A secondary province can be defines=ed as one where the Government thinks people will travel to it to watch traditional handicrafts demonstrations.

One wonders whether the hoteliers are planning to pass the incentives onto customers in the form of cheaper rooms. No? Thought not.