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Phuket tourism businesses seek up to B20 billion in assistance over virus fallout

Phuket tourism businesses seek up to B20 billion in assistance over virus fallout

PHUKET: Phuket Governor Phakaphong Tavipatana on Monday (Feb 3) was handed a formal request for the government to provide up to B20 billion in assistance to tourism businesses suffering as the number of international tourist arrivals continues to plunge in the fallout from the Wuhan coronavirus outbreak in China.

tourismeconomicsChinesehealthCoronavirusCOVID-19
By Tanyaluk Sakoot

Saturday 8 February 2020 09:33 AM


Phuket Governor Phakaphong Tavipatana received the request for B20 billion in assistance on Monday (Feb 3). Photo: PR Dept

Phuket Governor Phakaphong Tavipatana received the request for B20 billion in assistance on Monday (Feb 3). Photo: PR Dept

The same request had already been sent to Prime Minister Prayut Chan-o-cha and the Ministry Finance, explained Kongsak Khoopongsakorn, President of the Thailand Hotels Association Southern chapter, who was at the meeting at Provincial Hall on Monday.

Phuket Tourist Association President Bhummikitti Ruktaengam explained that the request for B20bn was for a worst-case scenario of the number of Chinese tourists falling by 90%.

As of Tuesday (Feb 4), the total number of international tourist arrivals at Phuket International Airport had fallen by more than 44%, according to the Tourism Authority of Thailand (TAT) Intelligence Centre. (See story here.)

“We have modelled our request on three scenarios,” Mr Bhummikitti told The Phuket News.

“The first scenario is that the number of Chinese tourists falls by 50%, which would result in losses of tourism revenues of about at B7.425bn and a total economic loss of about B9.281bn,” he explained.

“The second scenario is that the number of Chinese tourists falling by 70%, which would result in tourism income losses of about B10.395nm, and a total economic loss of about B14.033bn,” he added.

“The third scenario is that the number of Chinese tourists falls by 90%, which would result in tourism income loss of an estimated B13.365bn and a total economic loss of about B20.047bn,” Mr Bhummikitti said.

“If the coronavirus situation remains uncontrollable, we may suffer greatly as a consequence, but either way an increased economic impact is inevitable,” he added.

The request for assistance has been formally filed by the Phuket Tourism Business Association, in cooperation with the Phuket Tourism Industry Council, the Thai Hotel Association Southern chapter and the Phang Nga Province Tourism Association, Mr Bhummikitti explained.

“We sent the urgent request to Prime Minister Prayut Chan-o-cha and the Ministry of Finance on January 28,” he confirmed.

The operators are not expecting a government giveaway, Mr Bhummikitti added.

“We require and ask for B20bn be provided as soft loans to support tourism operators, businesses and staffers working in Phuket. We have asked that the government provides loans to support tourism businesses with 2% interest, which is same rate of interest as the soft loans provided after the 2004 tsunami,” he explained.

Mr Kongsak pointed out that 15 of the 100 THA member hotels in Phuket had suffered 100% cancellations of Chinese group tour bookings, and the number of Chinese “free independent travellers’ (FITs) was also falling dramatically.

“In February and March we expect 100 % cancellations of all Chinese tour group bookings, and bookings by Chinese FITs to fall by up to 80%,” Mr Kongsak said.

“After that we expect Chinese FITs to start returning slowly in lower numbers in April, but not recovering to the same numbers as last year.

“Chinese groups might come back in October, but by then it will already be the tourism low season,” he added.

Mr Kongsak also voiced concerns that tourists from countries other than China are also deciding to not come to Phuket for fear of the virus spreading.

“We are worried about travelers from other countries, they are scared of this virus, which delays their decision to travel,” he explained.

“The government has tried to cheer up and encourage the Chinese people. This does not help us,” he said.

“I require the government to send the right message to other countries that are our tourism source markets, such as Europe, India and Russia, for those people to have confidence in travelling to Phuket,” Mr Kongsak explained.

BLANKET ASSURANCES

Governor Phakaphong at the meeting on Monday assured that the government was already supporting local businesses by implementing control measures to curtail the spread of the virus and apparently by still promoting tourism to Phuket.

Present at the meeting to hear the assurances were Phuket Vice Governor Suphoj Rotrueang Na Nongkhai along with the heads of government agencies and representatives from the Phuket Chamber of Commerce, Phuket Tourism Industry Council, Phuket Tourism Business Association, Thai Hotels Association Southern chapter, Phuket Professional Tourist Association, Phuket Old Town Tourism Community, hotel business operators, tour boat operators and airlines.

“Phuket has implemented strict measures to prevent pneumonia from the new virus on Jan 5 with disease surveillance measures, disease prevention and control measures, tourism measures and measures on public transport and to reduce the impact of the virus, which includes both fiscal and financial remedies [see here],” the Governor said.

“Phuket has discussed with the private sector to revitalise the tourism industry of Phuket now and in the future in order to reduce the economic impact that will occur due to the decrease in the number of tourists at this time by helping to find measures to promote tourism in the country as well as building confidence in tourists in the disease control measures in Thailand and Phuket,” he added.

HIDDEN NUMBERS

Not mentioned at the Bangkok-ordered “virus situation daily update” meeting on Monday was any update on the number of people still being held in isolation in Phuket on suspicion of being infected with the virus. At last report, on Jan 30, Vachira Phuket Hospital Director Dr Chalermpong Sukontapol confirmed that three more tourists in Phuket were suspected of carrying the virus and were in isolation and under observation at the hospital.

However, Dr Chalermong did not explain where the tourists were identified as suspected of being infected with the virus, which country they originated from, how long they had been in Phuket, or even their ages or genders. He did say that the new cases brought to 23 the total number of people held in isolation in Phuket on suspicion that they may be infected since officials started screening tourists on Jan 5.

So far no people in Phuket have been confirmed as infected with the coronavirus, Dr Chalermpong stressed.