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"Domino effect" sees Phuket's tourism downturn affect all areas of the economy


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"Domino effect" sees Phuket's tourism downturn affect all areas of the economy
 
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Thai PBS reported from Phuket where they saw the devastating effect of the pandemic on the tourism industry destroy other businesses in its wake.
 
The complete lack of foreign tourism on which the province relied has meant a kind of domino effect that has swept through the economy. 
 
Covid meant no tourists which has caused hotel closures, staff redundancies, a collapse of the rental market and a devastating effect on shops and restaurants. 
 
Many people have just packed up and gone home.
 
Epitomizing the dire state of the Phuket economy was Panatda who used to work at a five star 482 room hotel that was forced to shut temporarily on April 14th after not having a single booking. 
 
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Though she and a hundred other got four months pay then three months welfare payments it was not enough for many who just packed up and left Phuket for their home villages.
 
Her father who used to run a taxi business is suffering. Her mother has shut her clothing and souvenir shop because there are no customers. 
 
They all relied on foreign tourists. 
 
"We went from collectively earning thousands of baht per day to nothing," she said. "We just have some savings to fall back on". 
 
Kongsak of a hoteliers' association said that 90% of tourism related business had just shut. 
 
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So far there have been about 50-60,000 redundancies  in hotels some of whom had received redundancy pay and some of whom have not. He expected many more as there are 3,000 hotels and 150,000 rooms in Phuket but no tourists.
 
He expected many lawsuits in the coming months between employers and employees unless the government comes in with some bailouts. 
 
Panatda continued that the domino effect was also showing in the rental market.
 
She has ten rooms that would normally be rented to workers in hotels and tourism related areas.
 
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Now just two are occupied because hotel staff, restaurant workers and convenience store staff have just packed their bags, left Phuket and gone home. 
 
The rental and property market on the island had simply collapsed, she said.
 
Source: Thai PBS
 
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18 minutes ago, webfact said:

"Domino effect" sees Phuket's tourism downturn affect all areas of the economy

Really? How can be? Never guess that whitout this big news! But HEY im simple man, i think its only effect few hotel.

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1 hour ago, webfact said:
The complete lack of foreign tourism on which the province relied has meant a kind of domino effect that has swept through the economy. 
 
Covid meant no tourists which has caused hotel closures, staff redundancies, a collapse of the rental market and a devastating effect on shops and restaurants. 

Lots of stories about such, but a bit short on solutions. If immigration made it easy for farang retirees to live in LOS perhaps they'd get a lot, but I'm guessing they are not about to make it easy any time soon.

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2 hours ago, webfact said:

He expected many lawsuits in the coming months between employers and employees unless the government comes in with some bailouts. 

Think I can safely predict that the entire court system worldwide is about to collapse for covid related ppi-like claims within he next 18 months

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16 minutes ago, KarenBravo said:

Immigration does NOT make policy, they just implement it. If blame someone you must, blame the government.

Also, it IS easy to live in Thailand if you are a retiree.

 

Retirees are a drop in the ocean. Families, couples, Western package tourists who spend their usual 2 - 3 weeks in the country are the motor of the tourism industry. And they are deperately needed, long before any others.

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3 minutes ago, Deli said:

 

Retirees are a drop in the ocean. Families, couples, Western package tourists who spend their usual 2 - 3 weeks in the country are the motor of the tourism industry. And they are deperately needed, long before any others.

I agree with you 100%.

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