Record number of tourism firms quitting Covid-ravaged sector for good


As the devastating economic effects of Covid-19 restrictions persist, a record number of Thai tourism operators are quitting the sector for good. The number of tourism firms surrendering their licences peaked last month, and around 70% of outbound agents have shut up shop indefinitely. The final nail in their collective coffin has been the Covid-19 resurgence, which originated in a seafood market in the central province of Samut Sakhon and has now spread to over 60 provinces.

The president of the Thai Travel Agents Association says around 10% of outbound tour operators have returned their licences to the Tourism Department. Suthiphong Pheunphiphop says 2,598 tourism operators have left the sector for good, unable to survive having no international tourists for nearly a year now. He says the last quarter of 2020 saw the highest number of companies de-registering, at 765. Of those, 293 quit last month.

Suthiphong says domestic tourism may pick up again by April, but this depends on how effective the government is at bringing the second wave of the virus under control. He adds that with the arrival of spring in many parts of the world in the coming months, global infections may fall, but it’s still a waiting game.

“Operators have to wait and see how things turn out in June The outlook for the outbound market is the most difficult to predict as the industry faces highly uncertain factors such as vaccine efficacy and policies in each destination to allow the flow of tourists.”

The TTAA says that in 2019, 11 million Thai tourists spent 430 billion baht on overseas trips. Last year, that plummeted to 1 million spending 50 billion baht. The association has postponed the Thai International Travel Fair, which was due to take place in February. It is now scheduled for August 26 – 29.

According to a Bangkok Post report, the Tourism Minister Phiphat Ratchakitprakarn will meet Labour Minister Suchart Chomklin this week, in order to discuss a co-payment scheme to protect those employed in the tourism industry. It’s understood the proposal is to subsidise 50% of monthly salaries, up to a maximum of 7,500 baht per employee.

SOURCE: Bangkok Post

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Maya Taylor

A seasoned writer, with a degree in Creative Writing. Over ten years' experience in producing blog and magazine articles, news reports and website content.

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