Thailand has sold itself as a Covid haven haven. Nobody came

It is difficult to imagine a more luxurious place to spend two weeks in quarantine than Anantara Phuket Suites & Villas in Thailand, where visitors are pampered in private homes that can have their own pool and patio.

However, more than three months after the resort and more than a hundred as it reopens for long-stay travelers in an attempt to revive Thailand’s battered economy, foreign arrivals have failed to meet even the lowest expectations. Only 346 foreign visitors have entered the country on average each month on special visas since October, according to the Thailand Longstay Company, which helps facilitate the program. This is well below the government’s target of around 1,200 and a small fraction of the more than 3 million that came before the pandemic.

The lukewarm response to Thailand’s highly publicized reopening illustrates the difficulties facing tourism-dependent countries as they try to sustain economic growth while protecting citizens of Covid-19 before vaccines become widely available.

Thailand hoped to attract retirees who escaped European winter and others who could stay for a long time. They would have to be quarantined, but this could be done in the comfort of luxury resorts in a country that was not affected by the pandemic. After two weeks, Thailand would be theirs to roam for now nine months.

The lack of interest is increasing pressure on Thai lawmakers, who have struggled to accommodate both industry participants who call for relaxed quarantine rules and public health experts warning against putting people in danger. Meanwhile, as the beaches are empty, many tourism companies are closing their doors. To make matters worse, virus cases have increased in the country.

“It is really challenging to balance the demands of the tourism industry and the local population,” said Bhummikitti Ruktaengam, president of the Phuket Tourism Association. “I understand how difficult it is to be stuck in a room for 14 days. I did it. But people’s safety is a priority because tourists come and go, but the locals live here. “

In 2019, Thailand received more than $ 60 billion in tourism revenue from around 40 million visitors. The industry contributed about a fifth of the gross domestic product before the pandemic, compared to about 10% globally.

But six months with no foreign arrivals, followed by months with just one drop, affected the sector. At least 931 registered tourism-related companies closed last year, according to a Bloomberg News analysis of data from the Ministry of Commerce’s Business Development Department. The actual number is probably much higher, as many tourism companies are not registered in any database.

Closed companies

At least 931 companies registered in the Thai tourism sector closed in 2020

Sources: Department of Business Development, Bloomberg

On the famous tourist islands in Thailand, the situation is particularly bad. Take the example of Phuket, which before the pandemic received about 90% of its tourism revenue from foreign visitors. In Patong, its main tourist city, a street once bustling with bars and clubs is empty. Bangla Road is full of closed companies, with chairs stacked on tables and chains preventing access. Dust accumulates on stools and benches. The few open places have almost no customers.

“When there are no foreigners, the area is simply empty,” said Rungarun Loiluen, who works at The Kitchen, a restaurant and bar at the end of Bangla Road. She is one of eight employees who kept their jobs around the age of 30 before the pandemic, although with fewer hours of work. “There is almost no one walking on the road.”

In the next block, Hotel Clover Patong Phuket reduced its prices by up to 75% to attract domestic travelers, instead of its usual clientele of American, Russian and Chinese tourists. Still, it had about 10% occupancy in December, a period that used to be overcrowded, according to Jessada Srivichian, the hotel’s financial manager for the country.

Go to Phuket for the beaches, stay for food and adventure

Despite government efforts to help tourism companies, such as subsidizing the cost of accommodation in hotels, meals and airline tickets, national tourists who usually travel only on weekends are unable to fill the gap left by foreign visitors. Although only about half of the country’s hotels have reopened, the average occupancy rate is only 34%, Yuthasak Supasorn, governor of the Thai Tourism Authority, said in an interview in December.

“I have been in Phuket for 20 years and I have never seen such a peaceful place,” said Jessada, from Hotel Clover. “We need international visitors. We are not thinking about making a profit, but rather focusing on minimizing losses, because as long as there is a quarantine requirement, people will not come. “

The government should consider waiving the two-week isolation requirement for visitors from regions of countries without local infections for more than 60 days, said Vichit Prakobgosol, president of the Thailand Travel Agents Association, in late September. He hoped the rule would be relaxed for visitors from parts of China, Thailand’s biggest source of tourist income. But no deal has been concluded.

“It seems impractical to double the length of a trip to meet local quarantine requirements,” said Ron Cooper, an American photographer and business consultant who traveled abroad at leisure several times a year before the pandemic. “Add to that the cost of staying in a hotel for two unproductive weeks – it’s not a very attractive proposition.”

Vacation days

The average length of stay of 40 million tourists in 2019 was 9.3 days

Source: Ministry of Tourism and Sports

Thailand’s approach contrasts with other tourist destinations that have been less cautious. Maldives reopened to foreign tourists in July without requiring quarantine, although a negative Covid-19 test is required. The archipelago has seen more than 172,000 arrivals since then, according to data from Maldives Immigration. Although new infections increased afterwards, they have decreased since then.

“It was bold, daring to open the Maldives with all the risks inherent in it,” said Dirk De Cuyper, executive director of S Hotels & Resorts Pcl, whose occupancy rate in December for Maldives properties was 70%. And that could be bad news for Thailand, he said. “Many travelers do not accept quarantine, especially when other countries are opening up and they have no quarantine rules.”

But most Thais he opposed the reopening plan and is unlikely to want relaxed quarantine rules, in part because local residents live close to the resorts, unlike the Maldives, where properties are often isolated on their own islands.

“If I had to choose between health and income, I would choose health,” said Wiparad Noiphao, a fruit and vegetable seller at Banzaan’s fresh fruit market in Patong. “We have to prioritize security.”

Most Thais are opposed to lifting the tourist ban on fear of viruses

As a compromise, the government’s Covid-19 task force discussed reducing the quarantine period to 10 days. But this has not yet been implemented due to concerns about new infections. The government also has approved six golf resorts as quarantine centers.

“Any changes to the original plan would mean greater risks,” said Thira Woratanarat, an associate professor at the Chulalongkorn University School of Medicine. “There are many examples of free international travel that have led to a resurgence,” he said, giving an example from Europe. “We must wait until the global situation of the virus has improved.”

Cockfights and gambling make Thailand’s covid fight more difficult

The resurgence of the virus has also weakened the defense of quarantine rules. Thailand has more than doubled Covid-19 infections, to more than 11,000 in less than a month. An outbreak that started in seafood markets and migrant communities has spread across the country. The government has restricted travel in some high-risk regions, but has so far refrained from imposing a broad block. Also have extended its travel grant program.