THREE resort and business owners representing a Kata-Karon owners association told the Phuket Governor today that banks need to provide financial lifelines through the global downturn.
''It is worse than the tsunami,'' one told Governor Dr Preecha Ruangjan. ''Just like the post-2004 environment, we need soft loans and tax concessions to make it through.''
Extra time for repayment of loans would also be necessary, the Governor was told. In many cases, businesses could only afford to repay the principal sum.
Governor Dr Preecha said that not a lot could be done for now until a new government is formed in Bangkok. (An election for Prime Minister is scheduled for Monday.)
But he said he would do what he can in readiness for the time when the situation changed.
He said he could not seek vast injections of cash from Bangkok. Back in 2004, the tsunami was a crisis only for the Andaman.
This time, the whole of Thailand and the world was being affected.
Some resort brands are likely to find life in 2009 more difficult than others.
New resorts in 2008 are likely to find the establishment period much tougher now, and some smart marketing required to make ends meet.
Some brands, including two of the three new Courtyards by Marriott in Patong and Kamala, are complete and ready to open.
One of the most star-crossed of resorts in the region is the large new Rixos Premium, near Khao Lak in Phang Nga, which is almost ready to open.
Its recent history tells the torment of the early 21st century along the Andaman.
The resort, in a splendid location, moved from being a four-star Novotel to a five-star Sofitel just days before the tsunami swept in.
The owners took good care of their staff in the aftermath, but had a two-year battle to win comprehensive insurance coverage.
As time passed, the wrecked resort moved from being in line to reopen as a Sofitel to a Kempinski, then to a Rixos Premium.
The owners quite deliberately held back on reopening until they could be sure that the region had fully recovered.
Having set December 15-16 to begin all over again as one of the region's most spectacularly beautiful resorts, with no expense spared, along came the world economic downturn, plus the airports blockade.
Because vital imported materials needed for the finishing touches were caught up in the blockade, the reopening has now been rescheduled for January 26.
Between 900,000 and one million jobs are expected to be lost throughout Thailand next year, with tourism taking a disproportionate hit because of the damaging and unnecessary airports blockade.
Losses to tourism and related industries from the shutdown of the airports between November 25 and December 3 are estimated to total 146 billion baht.
According to the Tourism Authority of Thailand, a preliminary survey forecasts that tourist arrivals from December to April will drop by 2.3 million.
Much of the TAT's 170-million baht budget for overseas roadshows and advertising has been shifted to promote Thai tourism in markets with the highest potential, such as Scandinavia, where the global recession does not seem to be causing quite so much damage.
The downturn plus the blockade has been a totally unnecessary double penalty for Thailand's tourism industry.
The Constitutional Court would have ruled to ban the Governing party and the then prime minster anyway, without the airports blockade.
Around the world, tourists remain hesitant to return to Thailand because of fear of being trapped here, and travel warnings of potential violence.
Here's how the Times Online in Britain reported the situation today from a Bangkok correspondent:
''The week-long forced closure of Bangkok's airports has hit Thailand's hotel industry harder than the devastating 2004 tsunami, a senior official from the Thai Hotels Association has claimed.
''Surapong Techaruwichitr, vice president of the Thai Hotels Association, told The Times that fewer than a quarter of hotel rooms in Thailand were currently filled, and there were high-end hotels recording single digit occupancy rates.
'''It's 20 to 25 per cent occupancy overall in Thailand now,' he said. 'Usually at this time it's 75 to 80 per cent. It is worse than the tsunami.'''
Phuket's desired option of becoming a five-star destination has been blown to smithereens by the protest blockaders, with five-star resorts suffering most heavily.
'''Occupancy levels last week were single-digit in some cases,' Dale Lawrence, a spokesman for the Pacific Asia Travel Association, told The Times, adding he had heard of one top-end hotel with a six per cent occupancy rate and one with a seven per cent rate.
In Singapore, the Straits Times reported one travel agency saying that 90 percent of customers with forward bookings to Bangkok till February are considering switching destinations, delaying or cancelling their flights.
Another agency says it has seen overall bookings to Thailand fall by 80 percent compared to the same period last year.
''It is worse than the tsunami,'' one told Governor Dr Preecha Ruangjan. ''Just like the post-2004 environment, we need soft loans and tax concessions to make it through.''
Extra time for repayment of loans would also be necessary, the Governor was told. In many cases, businesses could only afford to repay the principal sum.
Governor Dr Preecha said that not a lot could be done for now until a new government is formed in Bangkok. (An election for Prime Minister is scheduled for Monday.)
But he said he would do what he can in readiness for the time when the situation changed.
He said he could not seek vast injections of cash from Bangkok. Back in 2004, the tsunami was a crisis only for the Andaman.
This time, the whole of Thailand and the world was being affected.
Some resort brands are likely to find life in 2009 more difficult than others.
New resorts in 2008 are likely to find the establishment period much tougher now, and some smart marketing required to make ends meet.
Some brands, including two of the three new Courtyards by Marriott in Patong and Kamala, are complete and ready to open.
One of the most star-crossed of resorts in the region is the large new Rixos Premium, near Khao Lak in Phang Nga, which is almost ready to open.
Its recent history tells the torment of the early 21st century along the Andaman.
The resort, in a splendid location, moved from being a four-star Novotel to a five-star Sofitel just days before the tsunami swept in.
The owners took good care of their staff in the aftermath, but had a two-year battle to win comprehensive insurance coverage.
As time passed, the wrecked resort moved from being in line to reopen as a Sofitel to a Kempinski, then to a Rixos Premium.
The owners quite deliberately held back on reopening until they could be sure that the region had fully recovered.
Having set December 15-16 to begin all over again as one of the region's most spectacularly beautiful resorts, with no expense spared, along came the world economic downturn, plus the airports blockade.
Because vital imported materials needed for the finishing touches were caught up in the blockade, the reopening has now been rescheduled for January 26.
Between 900,000 and one million jobs are expected to be lost throughout Thailand next year, with tourism taking a disproportionate hit because of the damaging and unnecessary airports blockade.
Losses to tourism and related industries from the shutdown of the airports between November 25 and December 3 are estimated to total 146 billion baht.
According to the Tourism Authority of Thailand, a preliminary survey forecasts that tourist arrivals from December to April will drop by 2.3 million.
Much of the TAT's 170-million baht budget for overseas roadshows and advertising has been shifted to promote Thai tourism in markets with the highest potential, such as Scandinavia, where the global recession does not seem to be causing quite so much damage.
The downturn plus the blockade has been a totally unnecessary double penalty for Thailand's tourism industry.
The Constitutional Court would have ruled to ban the Governing party and the then prime minster anyway, without the airports blockade.
Around the world, tourists remain hesitant to return to Thailand because of fear of being trapped here, and travel warnings of potential violence.
Here's how the Times Online in Britain reported the situation today from a Bangkok correspondent:
''The week-long forced closure of Bangkok's airports has hit Thailand's hotel industry harder than the devastating 2004 tsunami, a senior official from the Thai Hotels Association has claimed.
''Surapong Techaruwichitr, vice president of the Thai Hotels Association, told The Times that fewer than a quarter of hotel rooms in Thailand were currently filled, and there were high-end hotels recording single digit occupancy rates.
'''It's 20 to 25 per cent occupancy overall in Thailand now,' he said. 'Usually at this time it's 75 to 80 per cent. It is worse than the tsunami.'''
Phuket's desired option of becoming a five-star destination has been blown to smithereens by the protest blockaders, with five-star resorts suffering most heavily.
'''Occupancy levels last week were single-digit in some cases,' Dale Lawrence, a spokesman for the Pacific Asia Travel Association, told The Times, adding he had heard of one top-end hotel with a six per cent occupancy rate and one with a seven per cent rate.
In Singapore, the Straits Times reported one travel agency saying that 90 percent of customers with forward bookings to Bangkok till February are considering switching destinations, delaying or cancelling their flights.
Another agency says it has seen overall bookings to Thailand fall by 80 percent compared to the same period last year.
At least the bar girls should charge us less now.
Posted by Rob C on December 13, 2008 12:07