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3 to 4 years for tourism revenue to recover, research centre says

Caitlin Ashworth

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3 to 4 years for tourism revenue to recover, research centre says | The Thaiger
PHOTO: Thai Publica
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It’s going to take years for Thailand’s tourism revenue to recover. A lack of international tourists caused income to drastically drop and it’s going to be at least 3 to 4 years until revenue is back to normal, according to the Krungthai COMPASS Research Centre.

Many tourism companies are also changing their marketing approach to stay in business, focusing on a domestic tourist base rather than foreign tourists.

By the end of this year, Thailand’s tourism revenue is expected to shrink by 70%, making only 9.1 billion baht compared to the 3.02 trillion baht tourism brought in last year.

Things are expected to get better next year, but still not close to what was projected before the pandemic. The centre predicts the income will be 59% lower than what was expected. Assuming that a vaccine will be available by the end of this year, the centre estimated tourism will bring in 1.24 trillion baht in 2021.

Entry restrictions are still tight and only a limited number of international tourists may be allowed to enter Thailand next year. The centre estimates that domestic tourists will make up 64% of the revenue.

Senior director for the research centre, Phacharapot Nantharamas, says many tourism businesses need to come up with a “new normal tourism style” now that the customer base has changed to domestic tourists. He says the number of Thai tourists increased from 36% before the pandemic to 70%, adding that Thais typically travel outside of the country during the holiday season.

“They may instead travel within the country and create up to approximately 14 million trips in the year since domestic travel takes fewer days and allows them to travel more often.”

An analyst for the centre, Kittipong Ruentip, says businesses who adapt to the “new normal” of tourism, with a local customer base, are doing fairly well. But for those who are still focused on targeting foreign tourists, it is difficult for them to make as much as they did before the pandemic.

SOURCE: Pattaya News

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13 Comments

13 Comments

  1. Avatar

    Preesy Chepuce

    September 11, 2020 at 7:02 pm

    What happened to “villa quarantine”?
    Perhaps they could look into developing some kind of covid bars where girls in suitably ventilated tropical nurse outfits could set up IV drips for ethanol, and attend to the patients with bedbaths with copious amounts of soapy disinfectant, and high frequency catheter changes? Medical tourism, no?

  2. Avatar

    Glenn

    September 11, 2020 at 8:02 pm

    well domestic tourism is nice, but it’s a net zero. Just money spent on a hotel, eats, and some entertainment that would have been spent elsewhere in the economy.

    international tourism is a 100% net positive, obviously. All money is incoming.

    and the longer that the govt keeps the boarders closed, the more people that will loose jobs, businesses, savings, and – oops, the govt will loose a boatload of tax revenue. Oops we forgot that?

    therefore the slightly uplifting optimistic as they can make it sound report is just a load of #$%^&*!.

    • Avatar

      Bobby m

      September 11, 2020 at 11:21 pm

      It’s exactly as you say Glenn.

      They have also failed to grasp the fact that the increase in internal tourism contains an amount of wealthy Thais that have only taken their holidays internally because they can’t get back into the country without quarantine, if they travel out. Once the entry restrictions are lifted, they will travel out of Thailand leaving the internal numbers to fall back to where they were before. As for refocusing to attract more takers. You can’t sell a holiday to someone with no money to pay for it.

      It’s almost unbelievable

    • Avatar

      John C.

      September 12, 2020 at 12:37 am

      > the govt will loose a boatload of tax revenue. Oops we forgot that?

      I’m fairly sure they don’t need some sexpat with a room temperature IQ to remind them of this.

  3. Avatar

    Harold H.

    September 11, 2020 at 9:16 pm

    Idiocy beyond anything I’ve ever seen.

    But this is what happens when you have a poorly educated military junta running the country. They prioritize ‘safety from COVID’ over the health and economic well-being of most of their citizens.

    Let’s all sit back and watch Thailand collapse back into the Third World country it was only a couple of decades ago, with half its population struggling to keep a roof over their head, while their inept military government keeps coming up with useless ‘plan’ after useless ‘plan’ to save them.

    Thank God I left Thailand when I did, because I wouldn’t wish living in this mess of a country on my worst enemy,

    • Avatar

      Perceville Smithers

      September 11, 2020 at 10:06 pm

      You never left!

    • Avatar

      Gosport

      September 12, 2020 at 9:41 am

      You are here trapped, whining

  4. Avatar

    Johnny Rambo

    September 11, 2020 at 10:09 pm

    Harold H.@

    To be honest: Thailand has always been one of the most racist and xenophobic countries in the world. Now the government uses Covid 19 as an excuse to eradicate the international tourism in Thailand and turn the country into another super-isolated North Korea. Lets boycott this disgraceful country and see how long they can survive without international tourists.

    • Avatar

      J.C.

      September 12, 2020 at 12:43 am

      Most of the xenophobes are the so-called “elite”, many of whom are Thai-Chinese. The real Thai people suffer under them and their military junta far more than any expat or tourist does.

    • Avatar

      murika

      September 13, 2020 at 5:45 pm

      Thailand is not more racist than any other country, they welcome 40 millions tourist every year, they are nationalist and protective witch is a good thing, otherwise the land would already belong to foreigners, like you can see in south america for example, where locals can’t own any land, i think you just hang out in the wrong places, like phukett and pataya, and you don’t speak the language so you get paranoid when a thai look at you and speak his own language, go live in a small village and learn thai and you will see that most thais are very nice and open meet and be friend with farangs…

  5. Avatar

    Rajkumar

    September 12, 2020 at 11:40 am

    why my comment not appear ?

  6. Avatar

    Rajkumar

    September 12, 2020 at 9:22 pm

    good news

  7. Avatar

    Bob

    September 13, 2020 at 8:03 am

    Isn’t 9 billion out of 3.02 trillion a loss of 99.7%?

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Caitlin Ashworth is a writer from the United States who has lived in Thailand since 2018. She graduated from the University of South Florida St. Petersburg with a bachelor’s degree in journalism and media studies in 2016. She was a reporter for the Daily Hampshire Gazette In Massachusetts. She also interned at the Richmond Times-Dispatch in Virginia and Sarasota Herald-Tribune in Florida.

Thailand

Thailand beaches may limit visitors until Covid-19 vaccine is available

Caitlin Ashworth

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Thailand beaches may limit visitors until Covid-19 vaccine is available | The Thaiger
PHOTO: Unsplash: Merve Selcuk Simsek

Beaches and national parks might not fully open to international tourists until a Covid-19 vaccine is available. Around 120 to 150 tourists departing from China are set to arrive in Phuket on October 8 after a 6 month ban on international tourists. They’ll have to go through a 14 day state quarantine, but after that, they may not be able to enjoy some of the island’s beaches. A report from Bloomberg says it’s “unlikely” beaches and parks will fully open to overseas travellers until a vaccine is out.

Thailand’s borders won’t fully reopen to international tourists until a vaccine is widely available to the public, according to Tourism Council of Thailand president Chairat Trirattanajarasporn. For the time being, only tourists on select charter flights with a 90 day Special Tourist Visa can enter the country.

“It’s good for the country to reopen even if it’s just for trial … Once we’ve tested our reopening plan for a month, we can assess how to go forward and allow more visitors to come in.”

The new Special Tourist Visa is an effort intended to help revive Thailand’s tourism industry which has been crippled by the coronavirus pandemic. According to Bloomberg, the sector makes but about a fifth of the nation’s economy. Last year, the tourism industry generated 1.9 trillion baht with about 40 million foreign visitors. With travel restrictions in place to control the spread of the coronavirus, Chairat predicts tourism revenue will drop 82.6% to 336.5 billion baht by the end of the year.

“Businesses that rely on foreign tourists, especially in Phuket, Samui, Pattaya and Chiang Mai, will continue to close in the coming months because there would only be a small group of people coming in after the reopening.”

SOURCE: Bloomberg

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Economy

Cabinet approves co-payment of 3,000 baht each for 10 million consumers

Maya Taylor

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Cabinet approves co-payment of 3,000 baht each for 10 million consumers | The Thaiger
PHOTO: www.bitcoretech.com

In its latest round of direct economic stimulus, the Thai government is to offer a co-payment of 3,000 baht each to 10 million Thai citizens for a period of 3 months. The scheme is expected to kick off on October 23 and run up the end of the year, with the co-payment subsidising half the cost of purchases, but excluding alcohol, tobacco, or the government’s bi-monthly lottery. There will be a maximum daily co-payment of 150 baht, and 3,000 baht per person in total.

Government spokesman Anucha Burapachaisri says Thai citizens over the age of 18 can sign up for the scheme from October 16. The subsidy will be transferred to consumers’ electronic wallets. Anucha says the scheme will cost around 30 billion baht and will provide a much-needed boost to small businesses. Businesses interested in participating can register from tomorrow.

The Bangkok Post reports that Cabinet have also approved the addition of an extra 1,500 baht to the monthly living allowance for nearly 14 million citizens holding state welfare cards. Recipients will get the 1,500 baht in 3 installments of 500 baht between October and December.

The government also plans to compensate businesses that hire new graduates, through the introduction of a co-payment plan. Companies hiring students who work part-time and are registered in the social security system, will receive help from the government. This is a change from the previous stipulation that only graduates not registered in the social security scheme could participate in the program.

Under the employment subsidy program, the government will pay 50% of graduates’ salaries for one year, beginning next month. Around 260,000 new graduates are expected to be included in the programme, which will be financed from the government’s 400 billion baht economic recovery fund.

SOURCE: Bangkok Post

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Economy

Vietnam’s booming manufacturing sector reduced to a trickle as world pandemic kills demand

The Thaiger

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Vietnam’s booming manufacturing sector reduced to a trickle as world pandemic kills demand | The Thaiger

Vietnamese finance officials are downgrading expectations for a recovery of the south east Asian nation’s economy in 2021. The normally fast-growing gross domestic product in 2020 has stalled due to a huge drop in local and global demand, and the absence of international tourism. The booming economy, growing at an average of 6% per year since 2012, will struggle to reach a growth rate of 2% this year.

Fuelled by manufactured exports, the Vietnam economy has dropped back to a trickle. The Asian Development Bank estimates that this year’s GDP growth could be as low as 1.8%. The Vietnamese factories, that usually crank out shoes, garments, furniture and cheap electronics, are seeing dropping demand as the world’s consumer confidence drops dramatically.

Stay-at-home rules in Europe and America are keeping are keeping people away from retail stores. And despite the acceleration of online retail, many of the consumers are emerging from the Covid Spring and Summer with vastly reduced spending power.

The headaches of 2020 are also challenging Vietnam to maintain its reputation as south east Asia’s manufacturing hotspot. Rising costs and xenophobic foreign policy have put China ‘on the nose’ with some governments, complicating factory work in China, whilst other south east Asian countries lack infrastructure and are incurring higher wage costs.

One Vietnamese factory operated by Taiwan-based Pou Chen Group, which produces footwear for top international brands, has laid off 150 workers earlier this year. There are hundreds more examples of the impact of falling demand in the bustling Vietnamese manufacturing economy.

Vietnam’s border closure is also preventing investors from making trips, setting up meetings and pushing projects forward. Those projects in turn create jobs, fostering Vietnam’s growing middle class. Tourism has also been badly affected by the restrictions on travel. “International tourism is dead,” says Jack Nguyen, a partner at Mazars in Ho Chi Minh City.

“Inbound tourism usually makes up 6% of the economy.”

“Things will only pick up only when the borders are open and there’s no quarantine requirements. Who knows when that’s going to be.”

A mid-year COVID-19 outbreak in the coastal resort city Danang followed by the start of the school year has reduced domestic travel, analysts say. Some of the country’s hotels are up for sale as a result.

“Recovery could take 4 years.”

The Vietnamese Ministry of Planning and Investment is now warning that global post-pandemic recovery could take as long as 4 years, perhaps more.

Not that foreign investors in the country are pulling out. Indeed, many are tainge a long-term view that Vietnam’s underlying strengths will outlive Covid-19. Vietnam reports just 1,069 coronavirus cases overall.

SOURCE: VOA News

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