Thailand: Vaccine rollout to spur travel confidence

• May 28, 2021

Italthai expects domestic tourism to pick up in the second half of this year while international demand for Phuket may not fully revive this year.

Yuthachai Charanachitta, group chief executive at Italthai Group, said if the vaccine rollout runs as planned next month, domestic demand will start to bounce back from July as tourism confidence improves.

Mr Yuthachai, who is also chief executive at Onyx Hospitality Group, said hotels under Onyx are set to attract locals as they are the only revenue source they can expect in the third quarter, particularly Thai outbound travellers who can afford the luxury segment.

Meanwhile, there are concerns about the Phuket sandbox model, which will see the province open its border to inoculated tourists, over international flights, the number of guests and the rainy season.

Thus, the firm has higher hopes for the last quarter when the country has exact protocols to bring tourists back and vaccinations gather pace, allowing the country to ensure safe travel.

For the hotel business, he expects corporate debt to continue to rise as owners have to apply for loans to support payrolls of 3-40 million baht per month.

“It is important to help support the hospitality business and protect the country’s status as the top tourism destination globally because neighbouring countries can overtake us anytime,” Mr Yuthachai said.

Speaking at the seminar “Thailand Survivor” yesterday, Saenphin Sukhee, chief executive of Frasers Property Home, suggested developers think about business sustainability, new business ventures and game-changers to survive the virus crisis.

“Developers should have income from both recurring and non-recurring sources to ensure sustainability,” he said. “Non-recurring businesses like residential developments are difficult as they fluctuate with each outbreak.”

Source: https://www.bangkokpost.com/business/2122827/vaccine-rollout-to-spur-travel-confidence