Thai Bank Anticipates A Prolonged National Tourisum Recovery

A study with clear forecasts has been published by the Kasikorn Bank Research Centre, as the lucrative tourism industry in Thailand continues to diminish.

The tourism and hospitality industry in Thailand is confronted with 1,69 trillion baht losses in 2020 and recovery “may not be clearly evident” next year. The report also envisages strict “new norms” as government action controls the entry and exit of foreign tourists, and indeed all foreigners, to prevent further outbreaks of Covid-19.

As restrictions continue, while the number of new daily cases are in one digit, Thailand becomes the zero-risk destination. It has not been specifically confirmed how this can be achieved and the list of restrictions imposed. Yet it is unlikely that the immigration doors will ever be opened in the near future.

The impact of Covid-19 on the demand for travel and the weak buying power of future tourists has been predicted by Kasikorn Research Centre, which indicated hard times ahead for Thailand ‘s major tourism industry, contributing up to 18 percent of its GDP.

“Even in 2021, recovery will probably not return. Therefore it will be a difficult period for businesses in the chain of the tourism sector.”

“Until a vaccine is found, tourism and hospitality operators will need to adjust their services and the content they offer to ensure they deliver safe distancing and comply with strict health measures.”

The paper discusses a variety of other important topics, such as;

• Health regulations dictate the experience of travel.
• Touch points must be removed as far as possible
• Secure distance must be practiced in common tourist spots and during travel, stay or move from and to hotels.

Tour operators face the challenge of ensuring safe transport by bus across Thailand, which is needed for all transfers. This raises the costs of transfers and tours and would require more buses to transport groups of visitors.

For groups visiting water parks, floral gardens and museums, further outbreaks of Covid-19 would need to be carefully handled.

Also on aircrafts, the option of rising passenger load would make it difficult for airlines to operate profitably if the air fares do not increase significantly.

If the ‘risk-free’ model of Thailand is effectively implemented, the entire tourism supply chain will be radically different. The report suggests that hotels are invited to participate in certification schemes.

Fed tourism economies such as Pattaya, Phuket and Koh Samui will be the hardest hit and have a long recovery period beyond the end of next year for several years to come.

SOURCE: The Thaiger

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