TOUR OPERATORS OF THAILAND MASSIVELY FACE BANKRUPTCY

Thailand is forced to say goodbye to almost a third of its travel companies. Some of them (more than 30% ) have left the market irrevocably. Others are preparing for the bankruptcy proceedings, as this very scenario was voiced by the local journalists at the suggestion of the national tourism board.  

Half a year of the crisis caused by COVID-19 has left its mark on the industry. The companies are being massively liquidated, having no hope for better times.  

The tourist segment of the Thai economy turned out to be highly dependent on the behavior of tourists from China - travelers from the Middle Kingdom accounted for about 20% of the total number of all foreigners entering the country. It is known that about 30 million Chinese citizens preferred to spend vacation at home in 2019.  

The travel ban, introduced by the Chinese authorities for its citizens at the end of January, has reduced the flow of funds into Thailand's tourism industry.

The experts point out that not only hotels and travel agencies are being ruined. Many companies associated with tourists, even indirectly, are being shut down. The owners of the vehicle fleets that were involved in the transportation of tourists to the sights and cultural places were left without clients and are currently suffer losses. 

The owners of the souvenir stores and manufacturers experienced an unprecedented drop in demand for the goods. Hotel owners and restaurateurs were left without revenue - they hastily close their businesses while there is still a chance to return some savings.   

Official statistics provided by the tourism department show that more than 1,100 operators of the country's tourism market have ceased operations in the first half of the year.

In July, the atmosphere intensified even more, as 262 companies massively left the market within one month.

The Travel Agents Association of Thailand has no reason for any optimism. The experts predict a wave of a massive liquidation of companies, which will get even worse over time. The only hope that the business remaining in the country has is the possible opening of inbound tourism, albeit in a limited way. The regime of "tourist bubbles" is currently being discussed by the country's leaders. According to the proposal, not the whole country will be accessible for tourists, but only certain territories (for example, remote islands), which could save a part of the tourist infrastructure from ruin. However, it is unknown, whether these exemptions will be introduced.