Connect with us

Phuket

Phuket businesses seek debt moratorium

Legacy Phuket Gazette

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

📱 Download our app on Android or iOS
👋 Have your say on our Thailand forums
🔔 Subscribe to our daily email newsletter
📺 Subscribe / Join YouTube for daily shows
👍 Like/Follow us on Facebook
🐦 FOLLOW us on Twitter
📷 FOLLOW us on Instagram

image

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:

Weather4 hours ago

Flooded hospital in Chaiyaphum had to evacuates 40 patients

Thailand5 hours ago

300,000 more AstraZeneca vaccines donated from Japan arrived

Northern Thailand5 hours ago

Extremely rare earthstar mushrooms found in Phetchabun

Welcome back to Thailand!

Thaiger is getting behind local businesses for the restart of tourism in Thailand - up to 50% discounts across all advertising packages!

Weather7 hours ago

Flood warnings below of Chao Phraya Dam, across Thailand

Thailand9 hours ago

US calls meeting with Thai officials to resolve donated vaccines

Thailand9 hours ago

10 Burmese migrant workers arrested in Songkhla

image
Join the conversation on the Thaiger Talk forums today!
Thailand10 hours ago

Over 50 million vaccine doses administered in Thailand

Coronavirus (Covid-19)10 hours ago

Sunday Covid-19 Afternoon Update: Provincial Totals

World11 hours ago

China announces cryptocurrency trading is illegal

North East11 hours ago

Stolen 72 year old elephant returned to owner after 18 years

Thailand12 hours ago

Pattaya readjusts tourism goals for high season

Thailand13 hours ago

Phuket relaxes checkpoint requirements to help tourists and health officials

Phuket13 hours ago

Phuket Covid-19: 2 deaths, 4 Sandbox infections, 10k total cases

Thailand14 hours ago

Facebook page that claims to sell dog meat met with scorn on social media

Thailand15 hours ago

Thailand welcomes its first AI influencer, “AI Ailynn”

Thailand2 weeks ago

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

Thailand7 months ago

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

Tourism7 months ago

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

Phuket7 months ago

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

Tourism7 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand7 months ago

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

Tourism7 months ago

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

Thailand8 months ago

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

Thailand8 months ago

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

Thailand8 months ago

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

Thailand8 months ago

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

Thailand9 months ago

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

Thailand9 months ago

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

Thailand9 months ago

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

Thailand9 months ago

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

Trending