40% of travel staff face job loss if no govt allocation

The government must allocate a stimulus budget to the travel sector by no later than April, or else more than 80,000 employees could lose their jobs.

This is because the global economic crisis, last year's airport closures and continued local political uncertainty have combined to reduce the numbers of tourists entering the Kingdom.

"The government must allocate Bt5 billion for the travel industry by April, so that the sector will have enough money to promote growth and persuade tourists from everywhere to return, said Association of Thai Travel Agents (ATTA) president Apichart Sankary.

The baht's relative strength against other currencies is another factor in the lower tourist numbers. Apichart called on the government to weaken the baht to 37 to the US dollar, in order to ensure the sector's growth and efficient competitiveness.

Earlier, the government announced it would give Bt1 billion to the sector. However, that budget is still waiting for some procedural issues to be cleared up.

The industry has asked the government for Bt15 billion, but that has not yet been approved.

Apichart said the sector urgently needed the government to approve Bt5 billion of the Bt15 billion requested as an emergency fund to boost tourism by no later than April. Otherwise, many industry employees will face difficulties.

He questioned whether the government even had enough money to spend on stimulus packages.

Apichart pointed out there were 200,000 employees in travel companies. If the government does not allocate the required amount for the sector, 80,000 of them - a full 40 per cent, mostly tour guides - will be laid off.

That number does not include thousands of hotel staff who would have their workdays cut or have already been laid off since a dramatic decline in hotel occupancy ever since the airport closures late last year.

ATTA said tourists from Thailand's main markets had fallen gradually since last year's fourth quarter. The number of travellers from Scandinavia has declined 10 per cent, from other European countries, such as Germany, the Netherlands and England, 30-40 per cent and from China 90 per cent.

Apichart said the sector needed immediate government support to persuade tourists to return to the country. The government must also urgently resolve the ongoing political uncertainty, as potential visitors still express concern about the prolonged conflict. Some travel agencies abroad have even asked whether red or yellow was the most suitable colour for their clients to wear while travelling in Thailand, he said.