Bt16.8 Billion To Help Thai Tourism Operators

[webfact]

AFTER THE CRISIS

Funds proposed to aid affected tourism firms

By Suchat Sritama

The Nation

BANGKOK: -- The economic ministers yesterday approved Bt16.8 billion to help tourism operators affected by the recent political turmoil, Tourism and Sports Minister Chumpol Silapaarcha said yesterday.

The amount will be proposed for Cabinet approval today.

Meanwhile, Thai Airways International (THAI) may post a secondquarter net loss of Bt5.4 billion, with passenger numbers plunging in the wake of the political turmoil, president Piyasvasti Amranand told leaders of more than 700 airlines at the International Air Transport Association's annual meeting in Berlin yesterday.

However, he assured the audience that the political crisis was now over. THAI will also push forward the sale of 1billion shares this year.

The Tourism and Sports Ministry on Monday proposed the economic ministers meet to formulate an urgent financial package worth Bt21.2 billion to help operators suffering from the redshirt chaos of April and May. However, that amount was sliced to Bt10 billion.

Chumpol said Prime Minister Abhisit Vejjajiva reasoned the amount could be cut back because the government had placed priority on assisting small and mediumsized enterprises before moving to large operators in the second phrase.

Affected operators may request loans from the Small and Medium Enterprise Development Bank of Thailand (SME Bank) at interest of 23 per cent for a maximum eight years. Payments on the principal will be waived for the first two years.

The maximum loan amount will be Bt5 million.

The ministers also earmarked Bt1.5 billion for the Government Savings Bank to assist riotaffected individuals.

They also approved Bt360 million for the Tourism Authority of Thailand (TAT) to restore domestic tourism within the next three or four months.

The TAT earlier said it needed Bt1.6 billion to rebuild tourism over a few months.

And the ministers granted Bt5 billion to help general operators suffering from political unrest stretching back to the Bangkok airport closures in late 2008.

Last year, the government allocated Bt5 billion to help operators, but many companies have still not received that assistance, due to complicated regulations, procedures and paperwork.

Moreover, the ministers also reduced the taxdeduction ceiling from a proposed Bt15,000 to Bt12,000.

Federation of Thai Tourism Association spokesman Charoen Wangananont said the funds approved should help operators to run their business for a few months.

However, he believes the industry will not return to normal in less than three months and hopes the government will approve more money later. He said big operators might be in a difficult situation for the short term, due to receiving no immediate assistance measures from the government.

The tourism industry is experiencing great difficulties this year, losing an estimated Bt100 billion from the recent redshirt demonstration and violence.

-- The Nation 2010-06-08

[Lizard2010]

Hopefully this will stimulate the tourist industry to get more tourist to visit Thailand.

As long as the money does not go into the wrong hands.

Get Thailand the land of smiles Smiling Again.

[dumball]

Looks like much of this money is going in the wrong direction , again , don't fix that which is broken and causing the drop in tourism , just feed the fat cats and appease their greed , did not work before and I see it failing once again . A huge drop in the cost of what it costs for a tourist to visit would be a start in the right direction , and definitely remove the many barriers that face expats to remain in Thailand as retirees , in other words , encourage them , not keep trying to drive them elsewhere .

[frankman]

Looks like much of this money is going in the wrong direction , again , don't fix that which is broken and causing the drop in tourism , just feed the fat cats and appease their greed , did not work before and I see it failing once again . A huge drop in the cost of what it costs for a tourist to visit would be a start in the right direction , and definitely remove the many barriers that face expats to remain in Thailand as retirees , in other words , encourage them , not keep trying to drive them elsewhere .

Agreed

just include junger expats as well. they make it harder to stay for us as well! year by year, very stressy and unpleasent!!!

[bangon04]

"THAI will also push forward the sale of 1billion shares this year."

Well I am sure we will all be queuing up to get a piece of THAI airways. What a fantastic investment opportunity for the future. I think I am tempted to pour all of my life savings into shares in THAI airways, and rely entirely on these shares for my comfortable twilight years.

[dumball]

The title of this thread needs to be changed to " The continuing drivel of the none experts "

[madmitch]

360m baht to restore domestic tourism?????

[webfact]

Cabinet Approves Toursim Stimulus Package

BANGKOK: -- Today's Cabinet meeting agrees to introduce a relief package, including tax incentives and soft loans, for tourism businesses and others hit hard by the recent political unrest.

Deputy Finance Minister Pradit Patharaprasit revealed the Cabinet's resolution allows individuals to seek tax deduction of up to 15,000 baht with spending via tour companies. The incentive will take effect tomorrow.

Companies that hold seminars in the country are also offered two-fold tax deduction of those expenditures in two accounting periods starting from January this year.

Tour operators who organize roads hows or exhibitions overseas are entitled to the same rate of tax deduction of their spending until next year.

The Cabinet also resolved to raise the credit limit of loans offered to small and medium-sized business operators affected by the protests from one million baht to four million baht.

Lending of the first million can be sought without collateral while the rest will see interest at the minimum loan rate minus three percent. Companies will be free from making principle repayment for two years.

Insurance companies which have paid compensation to those affected by the political unrest can seek a tax deduction of 100 percent of their payout while the compensated amount will not be included in the calculation of the recipients' tax payment.

The tax relief package is expected to cause a loss of four billion baht in tax revenue.

-- Tan Network 2010-06-08