Connect with us

Phuket

Phuket businesses seek debt moratorium

Published

 on 

Phuket businesses seek debt moratorium | Thaiger

PHUKET (The Nation): Cash-strapped tourism businesses in Phuket are seeking debt relief in order to deal with the current downturn in tourist arrivals at a time when hotel occupancy rates are normally at their highest.

Somchai Pathamakantin, founder of the Phuket Seashell Museum and representative of tourist business groups on Kata and Karon beaches, today proposed to Phuket Governor Preecha Ruangjan that the government announce a debt moratorium for business operators in light of the current crisis.

The moratorium is the best solution, as it would require no legal amendments to take effect and would keep business operators financially strong enough to avoid staff layoffs, he said. A similar moratorium, which covered only interest on the principle, was instituted with government help after the 2004 tsunami disaster, he added.

The business sector’s problems could be more severe this time, as the global crisis is plunging the world into recession, Mr Somchai said.

If there were measures to maintain liquidity, other problems would be less severe. This is the best solution, as others, including the reduction of value-added tax, could take time to show results,” he noted.

Speaking on behalf of the Andaman Tourism Association, Phang Nga Tourism Association President Krit Srifa said there had been a meeting among representatives of tourism operators, state agencies and banks in Phuket, Phang Nga and Krabi on the effects of the political turmoil.

All parties had agreed to ask for financial help from the government by extending debt moratorium periods and offering them soft loans to enable both operators and workers to survive. Tourism entrepreneurs in the three provinces would also ask the government to reduce taxes to help them, he added.

After the tsunami disaster, most tourism entrepreneurs had to borrow money from financial institutions to save their businesses. Since then, tourist numbers had gradually improved – until the current political conflict erupted.

Thai Hotels Association President Prakit Chinamourpong said on Tuesday that many hotels in Phuket have also cut staff working days to four or five days per week.

Some luxury hotels are running with a single-digit occupancy rate, sharply down from the average 70% rate recorded in the same period last year… For the overall hotel industry, the average occupancy rate this month alone has declined 19.1%,” he said.

The nationwide impact of the Bangkok airports’ shutdown was greater than the 2004 tsunami, he said.

 

Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

World2 hours ago

25 arrested in Germany suspected of leading a ‘right-wing’ coup

Thailand4 hours ago

23 military students hospitalised after being trained too hard

Thailand5 hours ago

Thailand News Today | British man who loves Thailand banned for 5 years for overstaying

Sponsored7 hours ago

Top 5 Backlink Agencies in Bangkok for Your Business

Crime5 hours ago

Police arrest another Chinese visa overstayer living it up in Thailand

Hot News5 hours ago

Christmas present to Phuket motorists: Patong Hill road to reopen

Thailand6 hours ago

Firework maker killed in firework accident in eastern Thailand

Join the conversation on the Thaiger Talk forums today!
Thailand6 hours ago

Lao star swindled by Thai celebrity, more than 500 million baht lost

Thailand6 hours ago

Father chains up daughter and forces her to return to abusive husband

China7 hours ago

China mulls downgrading Covid-19 status as protests continue

Business7 hours ago

Tesla to launch in Thailand this month

Apple7 hours ago

Two women sue Apple saying AirTag product gives stalkers access to their whereabouts

Thailand7 hours ago

Electioneering: Thaksin’s daughter vows to end poverty in Thailand

Thailand8 hours ago

Thai travel agent group says travel restrictions hamper tourism growth

Hot News8 hours ago

Thailand pushes for more international flights as tourism surges

Crime8 hours ago

Man stabs passersby in Bangkok, 1 killed 1 injured

Thailand1 year ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand2 years ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism2 years ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket2 years ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism2 years ago

Phuket Thai food treats you need to try | VIDEO

Thailand2 years ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism2 years ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending