Thai tourism operators closed for good in record numbers

A record number of Thai tourism operators are quitting the sector for good as the devastating economic effects of the Covid-19 restrictions persist. Last month, the number of tourism firms surrendering their license peaked, and about 70 per cent of outbound agents have indefinitely shut up shop. The Covid-19 resurgence, which originated in the seafood market in the central province of Samut Sakhon and has now spread to over 60 provinces, has been the final nail in their collective coffin.

Around 10 per cent of outbound tour operators have returned their licenses to the Tourism Department, the president of the Thai Travel Agents Association says. Suthiphong Pheunphiphop says 2,598 tourism operators have left the profession for good and have been unable to survive for about a year now without international tourists. He says the last quarter of 2020 saw the highest number of de-registering companies, at 765. In those, last month, 293 quit. 

Domestic tourism may pick up again by April, Suthiphong says, but this depends on how effective the government is in bringing the second wave of the virus under control. He adds that global infections may fall with the arrival of spring in many parts of the world in the coming months, but it's still a waiting game. 
"The outlook for the outbound market is the most difficult to predict as the industry faces highly uncertain factors such as vaccine efficacy and policies in each destination to allow tourists to flow." Operators have to wait to see if things happen in June.

The TTAA says that 11 million Thai visitors have spent 430 billion baht on overseas trips in 2019. That plummeted to 1 million last year, spending 50 billion baht. The Thai International Travel Fair was postponed by the association and was due to take place in February. It is now scheduled for 26 to 29 August. 
Tourism Minister Phiphat Ratchakitprakarn will meet Labour Minister Suchart Chomklin this week to discuss a co-payment scheme to protect those employed in the tourism industry, according to a Bangkok Post report. The proposal is understood to find 50 per cent of monthly salaries, up to 7,500 baht per employee at most.