30,000 Thai hotels to lose all revenue during April

According to the Thai Hotels Association, out of the 32,564 hotels registered in Thailand, 95% will lose all revenue during April as the temporary lockdown escalates around the country. Adviser to the THA, Surapong Techaruvichit says that the number of hotel closures is growing every day as more provinces have imposed stricter lockdown policies.

“Phuket is the latest major tourism destination prohibiting people from free travel in and out of the area. Most hotels in provincial areas prefer a clear order from the authorities to close all hotels for the sake of employees, making them eligible for benefits from the Social Security Fund.”

“THA is asking members to look after the welfare of workers, such as offering hotel rooms and meals for those who can’t afford to pay rent and food, but it is hard for business operators to keep supporting employees as nobody knows how long the Covid-19 pandemic will last.”

“We strictly follow the rules by contributing 10% of salary to this fund, in which both employers and workers pay 5% equally, for example, a hotel with 550 staff will have to contribute at least 700,000 baht every month to pay for the Social Security Fund. But during this tough time when business operators have no income, and cannot continue to pay the levy to employees who are in need of it the most.”

The president of THA’s southern chapter, Kongsak Khoopongsakorn says that 87% of hotels in Phuket intend to temporarily close during April to comply with the one-month lockdown.

“There are no tourists in the province at this point and it is possible that the closure could extend beyond April if the outbreak still remains uncontrollable.”

Most of the 3,000 foreign visitors in Phuket are expected to leave before the airport is closed on April 10.

SOURCE: Bangkok Post