Thai travel trade not resorting to drastic measures ... yet

Another round of no-pay leave and retrenchments could be on the horizon for the  Thai travel industry should the political protests in Bangkok continue for much longer.

The trade feared the situation could soon start impacting jobs at small and medium-sized tourism establishments, triggering a repeat of the country?s 2009 summer blues when a number of hotels and tour companies resorted to no-pay leave and downsizing to stay afloat.

Apichart Sankary, honorary advisor of the Association of Thai Travel Agents, said the growth enjoyed from October 2009 to February/March this year might not be able to compensate for the inevitable losses in revenue due to the political rallies.

CCT Group chairman Vichit Prakobgosol said visitors from China, Taiwan, Hong Kong and Macau had dropped by 80 to 90 per cent in March and April, translating into a billion baht (US$31 million) loss in revenue in April alone.

?Small and medium-sized inbound Chinese agents may face closure if the protests linger beyond three months. Larger operators may be able to hold out for around six months,? said Vichit.

Tourism establishments in the protest area bleed 300 million baht in revenue for each day the Ratchaprasong intersection, hotels and shopping malls remain closed, according to Charoen Wangananont, spokesman of the Federation of Thai Tourism Associations (FETTA).

So far, hotels in the protest area and elsewhere in Bangkok have reportedly only asked staff to clear annual leave. Centara Hotels and Resorts sales and marketing vice president Chris Bailey, however, said the unrest was starting to threaten tourism jobs nationwide.

Dusit International CEO, Chanin Donavanik, who vowed not to implement no-pay leave just a day before the violence of April 10, insisted: ?At this time, I still have no plan. We have to look at the situation and see if the government will be able to do something to solve the problem.?

While tagging this year and last as ?the worst years ever?, Royal Cliff Beach Resort managing director Panga Vattanakul had no intention of cutting pay or laying off staff. ?We may have to seek a bank loan.?