Bangkok Post

Operators slam inefficien­t measures

Tourism sector warns over half of employees could face layoffs, write Dusida Worrachadd­ejchai and Narumon Kasemsuk

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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

 ?? WICHAN CHAROENKIA­TPAKUL ?? The deserted skywalk at MBK mall as tourists cancel travel plans during the coronaviru­s outbreak.
WICHAN CHAROENKIA­TPAKUL The deserted skywalk at MBK mall as tourists cancel travel plans during the coronaviru­s outbreak.

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