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24 Dec 2020

Econ Digest

Samut Sakhon Tourism… New Wave of COVID-19 Outbreaks Causes Loss of THB180-200 Million in One Month

คะแนนเฉลี่ย
        The tourism industry in Samut Sakhon Province has come to a standstill again because the local government must take measures to control the spread of COVID-19 after a large number of COVID-19 infections were found there. Measures may include local lockdowns, requiring service places such as restaurants to only allow take out, and implementing a 14-day restricted access measure (from December 19, 2020 to January 3, 2021)
        Most of the main tourist attractions in Samut Sakhon are community-style tourism. About 1.6 million Thai and foreign tourists visit for day trips or overnight stays every year. Thai tourists, especially Bangkok tourists, are the main source of visitors to the province’s tourism market, generating about THB2.7 billion for tourism and related industries, accounting for 0.3% of Thailand’s domestic tourism revenue but about 0.6% of the GDP of Samut Sakhon Province.
        After Thailand successfully controlled the first wave of COVID-19, the tourism industry in Samut Sakhon Province has gradually recovered, but remains at a low level compared to other provinces. According to the Ministry of Tourism and Sports of Thailand, the tourist occupancy rate in October 2020 fell to 22.4% from 23.4% in September 2020, and a new wave of COVID-19 outbreaks will inevitably affect the recovery of local tourism.
        Although Samut Sakhon has not yet banned cross-province travel and hotels and guesthouses in the province are still operating normally, information about confirmed cases locally has led tourists to cancel or postpone their travel plans to the province even though some tourist attractions are far from the epicenter of the outbreak. KResearch predicts that the new wave of COVID-19 outbreaks in Samut Sakhon will cause the province’s tourism revenue to lose about THB180-200 million in the one-month period from December 19, 2020 to January 19, 2021, provided that the government can contain the COVID-19 outbreak within the areas where a large number of cases are detected, and that it does not spread to other areas of the province, and that the government does not ban cross-province travel.
        Under this situation, operators should continue to update COVID-9 outbreak information in the area through various channels such as Facebook, website or Line to provide customers with the right information when deciding on travel plans after the COVID-19 outbreak has eased, and to build tourists’ confidence in the safety of travelling to Samut Sakhon.

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