Tourism operators into the hole : they ask… for loans to pay their employees !

Disclaimer : what I’m going to say applies to… virtually every country and to many sectors… It’s a global disease. A terrible virus.

A few scientists have managed to identify some parts of the DNA of this virus. Here is the list :
-wishful thinking

… A powerful cocktail indeed. 😉

Tourism business operators in Thailand are suffering from a lack of cashflow and want to borrow Bt15 billion to keep their businesses afloat, according to Deputy Prime Minister Korbsak Sabhavasu, who said on Monday that it will nonetheless take “at least six months” for the industry to recover.

Dr. Korbsak told journalists that as the government has made the tourism sector a national priority, the government must now assist tourist-oriented businesses.

Tourism entrepreneurs do not even have enough cash for their employees’ salaries
and are facing cashflow problems, he said.

Let’s summarize :

-tourism sector is suffering. A lot. Global economic crisis + political crisis… they are nailed. On the wall.

-but they all believe, sorry they all wish, that the crisis is going to end quickly…

-so they want to borrow money… to pay their employees ! They have cashflow problems… They don’t want to borrow to invest to enjoy opportunities in a growing market, prepare the profits of tomorrow bla bla bla… no… they’re just looking to pay for their expenses !

-shouldn’t they try instead to adapt, it means to cut capacities for instance, to lay-off ? Or even to change business  model ?

-that would be basic common sense, of course, but even the thai authorities are pushing them into disillusion.

-what are they going to do if the crisis… lasts longer ? Will they continue to borrow to pay their operating expenses ? To continue to pay employees who are not working because the customers have disappeared ? We are walking onto the head !

With such people (and tourism is not the only sector to cry for mama) and with such government and with such mindset… I tell you : we are doomed.

And again, this is not a thai exclusivity. The virus is everywhere. Car, bank industries in Europe, USA… It’s insane. A global hallucination.

5 Responses to “Tourism operators into the hole : they ask… for loans to pay their employees !”

  1. 1 Fonzi 22 April 2009 at 3:14 pm

    What’s the deal with the tourism delusions? Tourism isn’t going to bail out Thailand.

    This isn’t 1997 when the international economy, other than the Tom Yam Gung crisis countries, was in full throttle and western tourists could afford to go to Thailand and spend money despite the crisis. In fact, the 1997 crisis was good for tourism. This current economic and political crisis is bad for tourism. A mental midget could figure this out.

    This is the worst economic crisis since the Great Depression.

    People are going to spend their disposal income on things other than long holidays to war torn Thailand.

  2. 2 ClubSiam 22 April 2009 at 3:52 pm

    Political unrest, tsunamis, etc all have a temporary effect on tourism.
    What IS devastating to the industry is the widespread defrauding of visitors. Even the Tourist Police are in on it nowdays.
    Travelers are returning home, telling friends about the unrelenting scammers they face on their travels thru Thailand.
    They are fed up abd spreading the word. Now this is bad, real bad for the future of tourism. Isn’t time the TAT made an effort to protect visitors from these professional scammers?
    Erawan Shrine Tourist Mafia:

    Grand Palace Tourist Mafia:

    Silom Rd Tourist Mafia:

  3. 3 George P Tuckeer 22 April 2009 at 5:33 pm

    That was quick. Ten days ago I said in these comments that the tourism industry was playing up the effects of the political and civil unrest on tourism so that they could claim mana from the government.

    And here they are putting in their claims. If they admit that the major reason for tourism slowdown is the worldwide economic crisis, they have less of a claim for government largess than if they can show that the causes are mainly local and, to some extent, the government’s responsibility.

  4. 4 ratherbefishing 22 April 2009 at 9:50 pm

    Not sure if you missed this one… It does not look like the gubmint is helping any with the situation by imposing more restrictions and hampering business flexibility…

    PEOPLE who lose their jobs when a company closes have to be notified one month in advance and be given at least one months’ extra wages, says the Minister for Employment, Pitun Kaewtong.

  5. 5 antipadshist 26 April 2009 at 11:54 am


    “What’s the deal with the tourism delusions?”

    well, the word *deal* is the clue I guess ! 🙂

    most likely – guys in charge of Tourism (wasn’t it Banharn’s son as I recall ?) are getting their sweet slice of pie. because anyway, they know that Korn and others will get even bigger slice – with all the talks “Reds harmed economy further – so, we need to BORROW MORE”

    “Democrats” coalition are busy stuffing their pockets ASAP, before it is too late – whether the government collapses, or even if it stays longer but economy will get worse so that it will be harder to siphon money because it would be too evident – when it will be necessary REALLY to plumb the holes in the sinking ship of Thai economy.

    so, while they still can – they are hurriedly busy.
    coz all of them know the history of “Democrat” party too wel – how Chuan “The Painter” was forced to dissolve the government due to series of corruprion scandals (and sending his bro Raulek safely into hiding with suitcases fat with cash 🙂 ). So, I bet that was the main reason why other parties has joined the Coalition in the first place – they simply were acting in a practical way : why not? and even some of former TRT/PPP guys who weer more clever (or who could at all) – they jumped the sides and taken an opportunity, coz they knew : the “PIE SHARING PARTY” would be HUGE, before shite hits the fan fully !

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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