Tourism operators are crying foul over not receiving financial aid despite a green light from the Bank of Thailand, saying at least 5,000 firms have exited the industry or suspended their operations.
Soft loans were approved by the cabinet last week, but tourism operators have been unable to access these funds, which should be delivered through financial institutions, said Chairat Trirattanajarasporn, president of the Tourism Council of Thailand (TCT).
More than two months into the coronavirus outbreak, the industry has been hit hard, Mr Chairat said.
At a meeting yesterday between the private sector and the Tourism and Sports Ministry, the TCT estimated that more than 50% of 4 million workers in the tourism sector would not receive their salary this month, as employers lack sufficient liquidity to support monthly fixed costs.
Mr Chairat said several operators went to banks and asked for soft loans, a moratorium on principal payment or interest rate cuts and received no response.
"There are approximately 5,000 operators that have closed down or temporarily stopped operations because they cannot bear the cost anymore," he said.
If the pandemic lasts until July, at least 10,000 tourism operators -- particularly small and medium-sized enterprises like souvenir shops, spas, restaurants, tour buses and tour guides -- will have to exit the market, Mr Chairat said.
Of the 4 million positions in the tourism sector, 25-30% or 1 million-1.2 million employees are expected to lose their jobs.
Mr Chairat said most employers are opting to reduce workdays or offer leave without pay, with layoffs as a last resort.
"The financial aid we requested is not a big deal relative to the scale of the crisis," said Vichit Prakobgosol, president of the Association of Thai Travel Agents. "We would like easier and faster access to soft loans. Once business normalises, we will definitely pay them back."
Mr Vichit said the pandemic in China will be over soon, which has Chinese tourists looking to travel abroad again from May or June.
By then, Thailand has to be able to assure foreign tourists that the country is completely safe from the pandemic.
Operators from 13 tourism associations agreed with the idea of a national lockdown for 14-30 days in order to contain the virus and restore the confidence of local and international tourists.
Thanapol Cheewarattanaporn, president of the Thai Travel Agents Association, said neighbouring countries have already imposed decisive lockdowns.
If the government cannot install measures to protect citizens effectively, he said, there is little hope for any tourism, whether inbound, outbound or domestic.
Tourism and Sports Minister Phiphat Ratchakitprakarn said the ministry is seeking cooperation from the Thai Hotels Association to use hotels and resorts in Bangkok and its suburbs for self-quarantining. The Public Health Ministry is considering compensation for hotels that agree to join.