No respite for Thai tourism
Facing one of its worst crisis in years, Thailand’s tourism industry is going to great guns to drum up business that has plunged thanks to political upheaval, the global recession and now swine flu fears.
Foreign traveler arrivals have fallen 16% so far this year, while hotel occupancy across the country has dropped to 44%, down from 66% last year. Luxury hotels in Bangkok have even lower occupancy rates.
To offset the drop-off in visitors from abroad, Thailand is promoting domestic tourism and hotels are offering rock-bottom discounts to Thai residents. The government is extending a holiday in early July to get Thais on the road. It also has offered low-interest loans to small businesses catering to tourists.
On the other hand, Thai Airways is trying to lure passengers from outside Asia with free domestic flights. Hotels on Thailand’s resort island of Phuket are offering a fourth night free. And mountain lodges up north are offering free golf and spa pampering.
But many fear recovery is a long way off for the industry that employs 2.5 million people and is a pillar of the economy, which already has slid into a recession.
So far, the slump has not led to big job losses, but many hotels have put employees on temporary leave without pay. Thai hotels and restaurants had 100,000 fewer seasonal workers in March than they did in February.