Phuket and Phang Nga operators propose debt moratorium

 Submitting the proposal to Phuket Governor Preecha Ruangchan on Friday, Somchai said the moratorium is the most possible solution as no laws need to be amended. Meanwhile, business operators would be financially strong enough to continue with their operations without having to lay off employees.

 He noted that the moratorium could cover only interest or the principle, like what the government did after the 2004 Tsunami which left many operators in ruins. He added that the problems that the business sector is experiencing could be more severe than years ago, as the global crisis is plunging the world into recession.

 "If there are measures to maintain liquidity, other problems would be less severe. This is the best solution, as others, including the reduction of value-added tax, could take time to show results," he noted.

Prasert Chanpolngam, secretary-general of Phang Nga Tourist Association and the owner of Royal Bangsak Beach Resort in the province, said that business operators in the province also discussed a meeting with the Bank of Thailand and Finance Ministry within this month. He noted that many operators had to borrow to finance reconstruction after tsunami, but as the number of tourists fall, they have troubles to finance the debts.

 "At least, the government should be able to convince the financial institutions to reduce interest or extend the payments," he said.

 He said that hotels in the province have seen a drop in the number of tourists. He noted that while regular visitors understood that the political chaos, which led to the shutdown of Bangkok airports, meant no harm, new visitors have been scared away.

 "It's important for all parties to revive the tourism image particularly among the first-time visitors. If they have the clear understanding of the situation, they could return next years," he said.