Operators slam inefficient measures
Tourism sector warns over half of employees could face layoffs, write Dusida Worrachaddejchai and Narumon Kasemsuk
The tourism sector has derided the government’s inefficient measures in battling the coronavirus, warning that unemployment could rise as over half of the 4.3 million people in the industry may lose their jobs.
As of January, there were 3 million employees at hotels and restaurants, according to the National Statistical Office.
The Tourism Council of Thailand (TCT) estimates the total number of workers including related hospitality services such as tour companies and other attractions could total 4.3 million.
If the outbreak continues to escalate at the same pace, affected businesses will have to take stricter measures to control costs, with up to 20% of total employees, or 860,000 people, possibly laid off.
“This prediction is based on the worst-case scenario, with Thailand having only 30 million international arrivals this year. But if there’s not a more effective plan from the government, more than half of the employees in the sector will be at risk,” said Chairat Trirattanajarasporn, president of TCT.
The approval of aid measures from the government on Tuesday boosted confidence somewhat among small and medium-sized enterprises (SMEs) as operators who are members of the Social Security Office can benefit from a tax deduction of three times expenses incurred from salary payments.
“The government has to ensure the measures, particularly soft loan approvals, will be implemented as soon as possible,” Mr Chairat said.
Supawan Tanomkieatipume, president of the Thai Hotels Association (THA), said despite the aid measures, hotels and attractions are still at risk of financial collapse and closing down because of weak demand from international tourists. The current remedies are not enough, she said.
Moreover, hoteliers have to confront the government’s indecisive quarantine policy, which changes on a daily basis as the government doesn’t have anyone managing the crisis and therefore cannot issue a unified, clear message, said Ms Supawan.
“When the government indicated countries on the watch list, hoteliers had no clear procedures about how to treat guests from those countries,” she said.
“As a service business, it’s impossible for us to reject customers, unlike airlines. The Civil Aviation Authority of Thailand has endorsed airlines rejecting passengers from at-risk countries without medical certificates. Hotel operators all want more reliable screening from countries of origin.”
While hotels would like to follow the preventive suggestions of the Public Health Ministry, they cannot afford sufficient sanitising products such as alcohol and body thermometer equipment, said Ms Supawan.
Surapong Techaruvichit, adviser to the THA, said hotels that rely on a single market are on the verge of closing down.
The highest risk is faced by 1,000 hotels in the vicinity of Suvarnabhumi airport in Bangkok targeting tour groups with lower budgets. Those properties cater to guests that need accommodation for 1-2 nights when arriving or before departure.
Such hotels are small and mediumsized with around 100 rooms. The average occupancy has dropped to 10-20%.
“Management will initially ask for cooperation from employees such as salary cuts with fewer working days. But in the end, lay-offs may be necessary,” said Mr Surapong.
The measures will help operators for a short period of 3-6 months, but the most important thing is maintaining tourism competitiveness and attracting tourists to return once the outbreak is contained, said Vichit Prakobgosol, president of the Association of Thai Travel Agents.
He believes if arrivals dip to 30 million, 30% of workers in the tourism industry can expect to be laid off as owners shut down operations.
Hoteliers have to confront the government’s indecisive quarantine policy, which changes on a daily basis. SUPAWAN TANOMKIEATIPUME President, Thai Hotels Association