An episodic reopening for Thailand

La Thailand Does this perfectly reflect the way in which Southeast Asian countries approach tourism management in the Covid era? One might well ask the question, given that the reopening of the kingdom has been constantly postponed as the government has changed direction. This hesitation is not unique to the Kingdom in the region.

Bangkok loses its role as the Mekong's economic hub

At first, the country proudly declared be able to survive economically without the windfall from international tourism. By relying on consumption in its domestic market, however, the equation was doomed to failure. Thailand depends too heavily on tourismthe most prosperous sector of its economy for two decades.

In 2019, the last "normal" year, tourism generated 68.9 billion in revenues for the country, representing 21 % of all the country's exports. The contribution of the "tourism and labour" sector will reach 19.1 % of GDP in 2019, helping to provide eight million jobs. And, probably, providing a livelihood for nearly 25 million people out of a population of 67 million.

Last year, the disappearance of tourism weighed heavily. GDP contracted by 6.1 1Q3This was the sharpest fall since the Asian financial crisis of 1997. The near-total closure of borders has not only had a major impact on the economy, it has also had a major impact on the economy itself. repercussions for the kingdom's economy, but also for that of its neighbours. Burma, Cambodia and Laos are largely dependent on Thailand, with Bangkok acting as a commercial hub for much of the Indochinese peninsula.

Thai Airways' problems add to the turmoil 

This is often the most practical way for business travellers to get from one place to another. and regional cities along the Mekong is to transit via Bangkok airport.. The suspension of Thai Airways International - in receivership - has further destabilised the regional economy.

Not only did Thai Airways offer the largest international network from Bangkok, but the fact that the airline was grounded partly explains why it was unable to take off. the reluctance of the authorities to allow other carriers to serve Thailand. In the space of a few months, Bangkok lost its role as the hub of South-East Asia, with transit flights even banned until the end of the year. beginning of March 2021. Last year, traffic on Bangkok Suvarnabhumi airport fell by nearly 74.5 %. That's 16.7 million passengers, compared with 65.5 million in 2019.

Last year, the country welcomed 6.5 million tourists most of whom arrived before the borders closed at the end of March. The Thai hotel industry has had a black year. According to consulting firm STR, the hotel occupancy rate fell to 23.5 1TP3Q in 2020, compared with 72 % a year earlier. Not to mention a congress and conference industry that has been totally wiped out, particularly in Bangkok.

After remaining closed to international travellers for several months, the government has decided to offer the following services in autumn 2020 a new very long-term visa for travellers. Except that the entry ticket, which was very expensive, had more of a repulsive effect. It imposed a compulsory 14-day quarantine in hotels - between 1,500 and 5,000 euros. In addition, health insurance covering costs of up to one million dollars. All of this was accompanied by inflationary red tape and the obligation to take flights designated by the embassies.

More reasonable entry conditions

In the end, the government reversed some of these measures, with all but one of the many reductions: midlife. It certainly remains the most prohibitive factor on the return of travellers.

Under pressure from Thailand's major hotel and business groups, and in response to the economic downturn, Thailand has begun to relax the rules governing entry to the country. Since 1 April, the quarantine period has been reduced to ten days for people who have not been vaccinated and 7 days for those who have been vaccinated.. It must have been inoculated at least 14 days before departure.

Entry measures are still complex. Vaccinated travellers should download a vaccination certificate on the Ministry of Foreign Affairs website before their arrival. They must also present an entry certificate and visa issued by the Thai embassy, medical insurance and a negative Covid test. Only travellers who have received doses of Sinovac and Sinopharm, AstraZeneca, SK Bioscience, Pfizer-BioNTech, Serum Institute of India, Johnson & Johnson and Moderna vaccines are authorised to enter the kingdom.

The second stage in the normalisation of passenger flows is due to take place in July.. The island of Phuket will then be accessible to vaccinated tourists without quarantine. The third stage will involve Koh Samui, Bangkok as well as the north of the countryThis will probably be before the end of the year, for the high season.

Except that the Thailand's bad luck. The recent outbreak of covid could jeopardise this recovery, and further undermine the country's role as an economic hub for the whole Mekong region. How the epidemic develops over the coming weeks will be crucial.