The Thailand Tourism Council (TCT) has declared that more than 30 percent of businesses related to tourism have left the market, citing the continued decline of the nation’s backpacking and vacationist scene.
The council also forecasted a further decline of enterprises related to tourism services, namely touring firms, small-scale shuttle operators, restaurants, souvenir shops, and hotels, in the second half of 2020.
Tourism businesses are instead choosing to cease their operations, instead of banking on the uncertainness of a market comeback soon, according to TCT President, Chairat Trirattanajarasporn. He said:
“The impact of covid-19 will become most serious in the third quarter this year after many operators had tried to cut costs by letting some of their employees go, but after more than a million positions cut the situation still hasn’t improved, as no foreign tourists are allowed into the country yet. The council estimates that in the next three months up to 30 percent of tourism-related businesses in Thailand are at risk of shutting down permanently.”
While the TCT is still consolidating the total number of businesses leaving the market, the council believes that the pandemic has already crushed 30 percent of tourism ventures in the first half of the year alone.
One thousand one hundred eleven touring businesses had already pulled-out between January and June, returning their business licenses and asking for their rebates back.
The month of June saw 262 enterprises leaving the market.
More than 30 percent of tourism business operators are slated to leave the market should the travel bubble agreement with other countries not be executed this year, according to the Thai Travel Agents Association (TTAA) President Thanapol Cheewarattanaporn.
However, some businesses are holding onto their operations due to the prospect of the travel bubble implementation continued the TTAA President. He stated:
“The domestic market has become a priority market for tour operators who want to maintain business while waiting for borders to reopen.”
Additionally, he called attention to the Egyptian soldier scandal that happened in Rayong province. He explained that the fiasco complicated the agreement, jeopardizing the travel bubble setting aimed to revive the dying tourism industry in Thailand.
Earlier this month, a UN-conducted study estimated that Thailand could lose at least 102.61 trillion baht (USD3.3 trillion) revenue from the tourism sector due to the pandemic’s crushing blow.
Source: Bangkok Post