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Coronavirus pandemic
This Week in AsiaEconomics

No destination in sight for Thailand’s tourism sector amid coronavirus uncertainties

  • Those working in the industry – which makes up some 17 per cent of the kingdom’s GDP – are facing a grim future amid an extended state of emergency
  • But there are signs some tourists, particularly those from China, have earmarked Thailand trips once the pandemic eases

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A man, wearing a facemask amid concerns about the spread of Covid-19, crosses a deserted street in front of the Grand Palace in Bangkok. Photo: AFP
Jitsiree Thongnoi
For Chanapan Kaewklachaiyawut, a Bangkok-based tour operator who caters to Chinese visitors, the news that Thailand on Monday extended its state of emergency until May 31 came as no surprise. After almost 30 years in the industry, the Covid-19 pandemic has left him unable to speculate about the future – either of his own business, or the country’s tourism sector.

“I cannot say when my business can return. We cannot look at just China, and China doesn’t only look at Thailand. I cannot even guess which Chinese cities will lift the ban on outbound tour groups first,” he said, adding that “Thai tourism was the first sector that was hit, but it is the last sector that receives help”.

Chanapan’s woes are shared by many in Thailand’s tourism sector whose businesses are feeling the pinch after China’s restrictions on outbound travel that were put in place in January and the Southeast Asian nation’s partial lockdown, which was instituted in April.

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Thailand is particularly reliant on tourist spending, especially by Chinese visitors, and the sector’s woes leave it with one of Asia’s bleakest economic outlooks. The Bank of Thailand said the country’s economy could contract by more than 5 per cent this year.
Tourists wearing face masks sanitise their hands at Wat Pho temple in Bangkok, Thailand. Photo: EPA
Tourists wearing face masks sanitise their hands at Wat Pho temple in Bangkok, Thailand. Photo: EPA
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Tourism, which makes up an estimated 17 per cent of the country’s GDP, is expected to suffer a major decline with no specific timeline as to when it will pick up again. Visitor numbers are set to tumble 60 per cent to 16 million this year, almost halving foreign tourism income, but those figures could go even lower amid the search for a vaccine or if a second wave of infections materialises, according to the Tourism Authority of Thailand.

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