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Source: The Nation
The economic ministers yesterday approved Bt16.8 billion to help tourism operators affected by the recent political turmoil, Tourism and Sports Minister Chumpol Silapaarcha said yesterday. The amount will be proposed for Cabinet approval today.
Meanwhile, Thai Airways International (THAI) may post a second quarter net loss of Bt5.4 billion, with passenger numbers plunging in the wake of the political turmoil, president Piyasvasti Amranand told leaders of more than 700 airlines at the International Air Transport Association’s annual meeting in Berlin yesterday.
However, he assured the audience that the political crisis was now over. THAI will also push forward the sale of 1billion shares this year.
The Tourism and Sports Ministry on Monday proposed the economic ministers meet to formulate an urgent financial package worth Bt21.2 billion to help operators suffering from the Red-shirt chaos of April and May. However, that amount was sliced to Bt10 billion.
Chumpol said Prime Minister Abhisit Vejjajiva reasoned the amount could be cut back because the government had placed priority on assisting small and mediumsized enterprises before moving to large operators in the second phrase.
Affected operators may request loans from the Small and Medium Enterprise Development Bank of Thailand (SME Bank) at interest of 23 per cent for a maximum eight years. Payments on the principal will be waived for the first two years. The maximum loan amount will be Bt5 million.
The ministers also earmarked Bt1.5 billion for the Government Savings Bank to assist riot-affected individuals. They also approved Bt360 million for the Tourism Authority of Thailand (TAT) to restore domestic tourism within the next three or four months. The TAT earlier said it needed Bt1.6 billion to rebuild tourism over a few months.
And the ministers granted Bt5 billion to help general operators suffering from political unrest stretching back to the Bangkok airport closures in late 2008.
Last year, the government allocated Bt5 billion to help operators, but many companies have still not received that assistance, due to complicated regulations, procedures and paperwork. Moreover, the ministers also reduced the tax deduction ceiling from a proposed Bt15,000 to Bt12,000.
Federation of Thai Tourism Association spokesman Charoen Wangananont said the funds approved should help operators to run their business for a few months.
However, he believes the industry will not return to normal in less than three months and hopes the government will approve more money later. He said big operators might be in a difficult situation for the short term, due to receiving no immediate assistance measures from the government.
The tourism industry is experiencing great difficulties this year, losing an estimated Bt100 billion from the recent Red shirt demonstration and violence.
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