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56719
Tue, 04/21/2009 - 20:16
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http://m.oananews.org//node/56719
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Thailand acts to help battered tourism industry
BANGKOK, April 21 (TNA) -- The Thai Cabinet on Tuesday gave a green light to petitions to assist the country’s ailing tourism industry, which earlier proposed 17 measures for government implementation to help the industry, severely hit by the worldwide economic slump and the extended political turmoil in Thailand.
Significant measures for the tourism industry would be financial, tax and tourism promotion oriented, according to deputy government spokesman Vachara Kannikar.
Under the financial measures, government agencies have been asked to accelerate their 2009 budget disbursement, before the end of the current fiscal year on September 30, and to spend money as planned on earlier tourism development programme proposals.
The government is also willing to assume the risk for loans sought by tourism operators from the Small- and Medium-Enterprise Development Bank of Thailand (SME Bank) in future. The SME Bank has set aside Bt5 billion as loan for tourism entrepreneurs but not many applied earlier due to stiff requirements imposed by the bank. The government will review the details again.
Regarding tax measures, these will be relaxed further until the end of 2009, following the impact of the temporary closures of Don Mueang and Suvarnabhumi Airports last December by yellow-shirt demonstrators.
The government will also disburse money from its budgets for Fiscal 2009 and 2010 to develop infrastructure in tourism destinations.
As a number of international assurance firms have opted not to issue life insurance coverage for foreign tourists visiting Thailand due to political unrest, the Cabinet discussed possible assignment of the Office of the Insurance Commission or domestic commercial insurance firms to accept insurance for foreign tourists instead.
However, details of the regulations will be studied later, the spokesman said.
Kongkrit Hiranyakit, chairman of the Tourism Council of Thailand, said the country’s tourism business now faces a “severe crisis.” This year the number of tourists visiting Thailand is expected to fall to 10.9 million, from last year’s 14.1 million, down 22.7 per cent.
Earnings from tourism in 2009 are forecast to amount to Bt350 billion, down 35.19 per cent from 2008, said Mr. Kongkrit. The current global economic slump plus political unrest in Thailand will affect foreign tourist confidence for some 4-6 months.
Because of the negative factors, about 10 per cent of the total 2.57 million employees in the tourism industry and hospitality industry are expected to be laid off this year, he added. (TNA)
Significant measures for the tourism industry would be financial, tax and tourism promotion oriented, according to deputy government spokesman Vachara Kannikar.
Under the financial measures, government agencies have been asked to accelerate their 2009 budget disbursement, before the end of the current fiscal year on September 30, and to spend money as planned on earlier tourism development programme proposals.
The government is also willing to assume the risk for loans sought by tourism operators from the Small- and Medium-Enterprise Development Bank of Thailand (SME Bank) in future. The SME Bank has set aside Bt5 billion as loan for tourism entrepreneurs but not many applied earlier due to stiff requirements imposed by the bank. The government will review the details again.
Regarding tax measures, these will be relaxed further until the end of 2009, following the impact of the temporary closures of Don Mueang and Suvarnabhumi Airports last December by yellow-shirt demonstrators.
The government will also disburse money from its budgets for Fiscal 2009 and 2010 to develop infrastructure in tourism destinations.
As a number of international assurance firms have opted not to issue life insurance coverage for foreign tourists visiting Thailand due to political unrest, the Cabinet discussed possible assignment of the Office of the Insurance Commission or domestic commercial insurance firms to accept insurance for foreign tourists instead.
However, details of the regulations will be studied later, the spokesman said.
Kongkrit Hiranyakit, chairman of the Tourism Council of Thailand, said the country’s tourism business now faces a “severe crisis.” This year the number of tourists visiting Thailand is expected to fall to 10.9 million, from last year’s 14.1 million, down 22.7 per cent.
Earnings from tourism in 2009 are forecast to amount to Bt350 billion, down 35.19 per cent from 2008, said Mr. Kongkrit. The current global economic slump plus political unrest in Thailand will affect foreign tourist confidence for some 4-6 months.
Because of the negative factors, about 10 per cent of the total 2.57 million employees in the tourism industry and hospitality industry are expected to be laid off this year, he added. (TNA)
