Tourism
Thailand’s Tourism Industry Pinning its Hopes on Covid-19 Vaccines
Despite concern about the latest Covid-19 outbreak, Thailand’s tourism industry is hopeful their businesses will bounce back this year. They have pinned their hopes on new covid-19 vaccines to stamp out the virus plaguing Thailand and the World.
The recent covid-19 outbreaks stem from a seafood market in Samut Sakhon.Covid-19 has now spread to 53 provinces across the nation. Health officials have warned that infections are also likely to continue to rise.
This prompted the government to order the closure of several premises and outlets, bringing an economy only just showing the first signs of recovery since being battered by the first wave of the pandemic early last year to a halt again.
Tourism, Thailand’s major engine for economic growth, has been among the sectors hit hardest by virus.
According to the Tourism and Sport Ministry, the tourism sector earned 760 billion baht from January to November of last year, a decline of 1.93 trillion baht or 71.75%, compared to the same period of 2019.
There were 6.69 million foreign tourist arrivals during that time which represents a drop of 29.27 million (81.38%), while income from foreign travellers fell by 1.38 trillion baht to 332 billion baht (an 80.59% decrease), according to the ministry.
Hopes of a covid-19 vaccine
For 2021, however, the world is pinning its hopes on an effective Covid-19 vaccine arising from the work of pharmaceutical companies, including Pfizer, Moderna and AstraZeneca.
The United States has allowed Pfizer’s vaccine to be administered to citizens under an emergency use authorisation as it seeks to halt the country’s massive infection rate.
Meanwhile, the Thai government has pre-ordered 26 million doses of AstraZeneca’s vaccine, enough for 13 million people.
Deputy Prime Minister and Public Health Minister Anutin Charnvirakul previously said he had secured the supply of at least 2 million doses of Covid-19 vaccine for “between February and April”.
He did not name the vaccine he had secured, and nor is it known how long the roll-out will take.
The government earlier signed an advance agreement with AstraZeneca for 26 million doses and the right to produce its Covid-19 vaccine in Thailand, but supplies are not expected before May.
The Bangkok Post interviewed operators in a number of previously popular destinations for tourists — Koh Samui in Surat Thani, Pattaya in Chon Buri, Phuket and Chiang Mai.
For Koh Samui, 95% of its income was derived from foreign tourists, and the pandemic has sent its local economy spiralling downwards for most of the year.
A slow 2021 hard to avoid
Worasit Phongkhamphan, president of the Tourism Association of Koh Samui, said the island had lost 50 billion baht in revenue last year.
Of the total 660 hotels there, only about 180 now remain open.
“If the local transmissions continue at this rate, domestic tourism will have to halt, as well as plans to welcome the return of foreign travellers. Tourism on the island is likely to remain sluggish,” Mr Worasit said.
But if local infections can be contained during the first quarter of this year, the second quarter, which is when high season falls, could see the return of tourist business, especially due to its preparation of alternative state quarantine facilities (ALSQ), he said.
Mr Worasit said Koh Samui is ready to welcome tourists who travel directly to its ALSQ facilities at 11 hotels which have made the necessary adjustments.
However, a special tourist visa (STV) scheme launched by the government has not yet been rubber-stamped so the hotels remain empty, he said.
“Therefore, we may have to rely on travel bubbles with other countries with low infection rates, so we can reduce the quarantine period to no more than 10 days. That might allow the island to start receiving foreign arrivals in February or March,” Mr Worasit said.
“If we are fortunate human trials of vaccines should take place in Thailand in the second quarter, and if vaccines prove to be effective by the end of the year, foreign tourists from Western countries who receive vaccines are expected to be allowed into the country on commercial flights,” he said.
“However, I can’t see light at the end of the tunnel for 2021. Overall, the slowdown will continue unless foreign travellers arrive,” he said.
Phuket’s eggs in one basket
Sarayuth Mallam, president of the Phuket Tourism Council, said a vaccine is the only hope for Phuket’s economic recovery.
“We are waiting for the government to provide vaccinations. If the vaccines are proven to be safe and effective, they should be made available between February and March. If more people are vaccinated and if foreign travellers are allowed to enter, the economy in Phuket should start to recover,” he said.
Mr Sarayuth said foreign tourists, particularly from China, are ready to travel again, although the Chinese government continues to enforce a ban on outgoings — a decision he has urged Deputy Prime Minister Jurin Laksanawisit and the Foreign Affairs Ministry to negotiate an end to.
“Business operators are haemorrhaging cash reserves and struggling to survive. Please allow foreign visitors to enter as quickly as possible. The government should prioritise provinces which are important to tourism and can generate income for the country,” he said.
Ekkasit Ngampichet, president of the Pattaya Business and Tourism Association, said that Pattaya has always relied mainly on foreign tourists but will be shifting its focus to attract domestic visitors this year, even though their spending power is lower.
He said that there were four main groups of foreign visitors to Pattaya — Chinese, Russians, Indians, South Koreans.
Before Covid-19, about 10 million foreigners visited the resort city, bringing in about 240 billion baht in revenue annually.
That figure plummeted to 40 billion baht for 2020, Mr Ekkasit said.
“Under a worst-case scenario, a recovery won’t take place until late 2021 or even mid-2022. However, if vaccines tested by other countries prove effective and foreigners are allowed into Thailand, we might be able to get back and running sooner,” Mr Ekkasit said.
Chiang Mai wants STV clarity
Chiang Mai was affected by infections from Thai workers sneaking back across the border from Myanmar in early December, with a drop in hotel room bookings by 50%.
Even though its number of infections remains comparatively low, Chiang Mai is still feeling the pinch as it is now the province’s traditional peak period for visitors.
Before the pandemic, Chiang Mai earned more than 100 billion baht in tourism income annually, but that was slashed in half after Covid-19 hit.
“In 2021, if the reopening of the country is late, we may only reach 40% of our usual target,” Pallop Sae Jew, president of the Tourism Council of Chiang Mai, said.
He also warned that without the STV scheme going live soon, he did not predict an economic upturn for the year as a whole in the region.
“It appears that the scheme is not being taken seriously. No agencies have been given clear guidelines on how to proceed. It is all still up in the air,” Mr Pallop said. “The private sector is of the same mind. Without a vaccine, most of the factors that prompt global tourism remain absent.”
Chairith Yonpiam is assistant news editor, Bangkok Post.
People from more nations will be now able to enter Thailand without a visa beginning Monday. This is part of an effort to increase tourism and encourage visitors to stay longer, Interior Ministry spokeswoman Traisuree Taisaranakul said on Friday.
According to Ms. Traisuree, Interior Minister Anutin Charnvirakul has signed four documents that will make it easier for foreigners to travel. These modifications will all take effect on Monday, provided they are published in the Royal Gazette.
The instructions include 93 more nations on the list of individuals who can visit Thailand without a visa, up from 57 previously. People from these countries can stay for a maximum of 60 days. Additionally, from 19 to 31, nearly twice as many nations will be able to obtain visas on arrival in Thailand.
To attract digital nomads, artists, and tourists interested in learning or practicing skills such as cooking and Muay Thai, the country will also introduce the Destination Thailand Visa service.
The new form of visa, which is valid for five years, allows travelers to stay for up to 180 days.
According to Ms. Traisuree, students holding visas for master’s degrees or higher will not be required to leave Thailand immediately upon graduation. They will be able to stay for an additional year to hunt for work or vacation.
In order to enhance the economy and tourism, the cabinet took a general decision on these additional measures in May. The statement was meant to be released in June, but it was pushed back.
Ms. Traisuree believes that this is the greatest sort of visa for persons who want to work from home in the Land of Smiles and explore the nation without the various restrictions and complications that come with conventional tourist visas.
Getting a DTV will give you a 5-year multiple-entry visa that lets you stay in Thailand for a total of 180 days a year, with the opportunity to stay for another 180 days.
Ms. Traisuree said that the Destination Thailand Visa is great if you want to work from home in the Land of Smiles and see the sights without the many restrictions and problems that come with a regular tourist visa. The Destination Thailand Visa will cost 10,000 THB.
Qualifications for the Thailand Destination Visa (DTV)
According to Thai Embassy, to be eligible for the visa, you must fulfill the following conditions (which could change):
- You have to be 20 years of age or older
- You have to be able to afford the cost of the visa
- To sustain your stay in the nation, you must demonstrate that you have at least 500,000 THB in your bank account
- Proof of your employment with a recognized company is required.
For digital nomads or remote workers who want to make the most of their travels and yet have the opportunity to work while they’re there, the Destination Thailand Visa is designed just for you. Additionally, it is ideal if you are traveling to Thailand in order to partake in any of the following activities:
- Thai food prepared with Muay Thai
- Instruction and conferences
- Sports medicine therapy
- International talent International music and art events
Thailand DTV Visa Benefits
Additionally, there is uncertainty about these details and they could change:
- In comparison to other Southeast Asian nations that provide comparable visas, Thailand has less stringent income requirements and charges for the visa. For another 10,000 THB, you can extend the visa once, for a maximum of 180 days.
- There are ninety-three foreign nations that qualify for the Thailand DTV Visa.
- With this visa, you can lawfully operate remotely for foreign clients and companies while in Thailand.
- Your spouse and any children under the age of twenty may accompany you.
- You are exempt from paying taxes on your foreign income because the visa allows you to stay in Thailand for up to 180 days.
Drawbacks of a Thailand DTV Visa
You are unable to work for a Thai company that needs a Thai work visa, even though you are still able to engage in some activities and make money. Your DTV will end if you decide to change the kind of visa you are currently on.
Additional information on the visa’s release date and application process will be available in late June or early July of 2024. You will most likely be able to apply for it via the Thai immigration office, a Thai embassy, or a Royal Thai Consulate.
Thailand’s Hotels Association (THA) reports that another German tour operator has gone bankrupt, but that this will have a far less effect than the recent bankruptcy of FTI Touristik.
Following notification from the Tourism Authority of Thailand (TAT), the Thai Hotels Association has now confirmed that the Cologne-based luxury tour operator Itravel Group has formally filed for bankruptcy.
Southern Thailand is home to numerous high-end resorts, which Itravel aims to attract, according to Thai Hotels Association president Thienprasit Chaiyapatranun.
As a result of Itravel’s bankruptcy, he said, the hotels association is currently collecting data from its members.
On Monday, the organization wrote to the TAT and the Foreign Ministry, requesting that they assist hotel operators in keeping up with legal developments surrounding the bankruptcy of the German tour operator FTI, which resulted in a loss of almost 111 million baht for hotels around the country.
Hotels having issues with Itravel
On Monday, during the THA monthly meeting, Mr. Thienprasit noted that they also emphasized the case’s urgency to Minister Sermsak Pongpanit of Tourism and Sports.
In response to allegations that hotel operators with business partnerships with Itravel were experiencing issues with financial transactions, the agency issued an alert to the industry, according to Siripakorn Cheawsamoot, TAT deputy governor for Europe, Africa, the Middle East and the Americas.
He speculated that the losses might be lower with Itravel, an online travel agency that focuses on the niche luxury market, than with FTI, the third operator.
According to the Bangkok Post, at Monday’s THA meeting, Mr. Sermsak stated that the ministry will look into measures to assist hotels, especially since the goal of 3.5 trillion baht in tourism earnings for this year is still very ambitious.
According to Mr. Thienprasit, the organization is opposed to the government’s plans to increase the legal foreign ownership of condominiums from 49% to 75%. This, he added, might lead to an increase in unlawful accommodations and make other condo residents feel uneasy about having more guests around the clock.
Unscrupulous investors
He said that some international investors are already breaking the law by renting out their rooms to day guests, even though the Hotel Act only permits rentals of at least 30 days.
An increase in the foreign ownership quota for condos, according to Mr. Thienprasit, could entice unscrupulous investors and lead to the construction of even more unlawful rooms, which now exceed the number of registered hotel rooms by a factor of two.
The success of Thailand’s hotel industry is highly dependent on the business of tour operators. These collaborations bring in a constant flow of visitors, particularly during busy seasons.
It is more convenient for passengers to book comprehensive packages offered by tour operators, which include hotel accommodations and activities. Because of this arrangement, hotels may anticipate a specific amount of bookings without having to spend a lot on advertising.
Additionally, hotels are able to provide more affordable rates, which appeals to guests who are mindful of their budget. But if tour operators go through slumps or start focusing on other places, this dependence might be disastrous.
Source: Bangkok Post, Thai PBS
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SEE ALSO: Thailand Named Top Spot for Most Popular Tourist Destination
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