THAILAND TRAVEL NEWS: The Thailand government is planning a Bt21.5 billion (about $US659 million) rescue package for the tourism industry in the wake of recent political protests in the capital that saw more than 88 people killed and almost 2,000 people injured.

The package comprises Bt10 billion ($US306 m) in soft loans for small and medium sized enterprises, Bt10 billion for large businesses and Bt1.5 billion ($US46 m) for tourism-related personnel such as tour guides.

The rescue package proposal follows an estimate by the tourism industry that the 65-day long political protest had cost the industry more than Bt130 billion ($US3.98 b).

Attachai Burakamkovit, permanent secretary for the Tourism and Sports Ministry, said the proposed package will provide large businesses with eight-year loans at the Minimum Lending Rate (MLR) minus 3 percent, with an interest free period of six months, while the Government Savings Bank will extend loans worth Bt1.5 billion at an interest rate of 0.5 percent per month to 15,000 tourism industry employees.

The Tourism and Sports Ministry also plans to ask economic ministers to waive household, land, plate and excise taxes for golf this year, as well as a 12 month extension of the property tax waiver for hotel operators from the planned December 2010 expiry and a 50 percent reduction in entrance fees to national parks until March 31, 2011.

In addition, the ministry is also proposing a a one-year waiver of contributions to the Social Security Fund and a training programme for 50,000 people in the tourism industry.

According to Airports of Thailand (AOT), foreign arrivals at Bangkok Suvarnabhumi International Airport slumped to between 12,000 and 13,000 a day between May 19 and 21, compared to an average throughout 2009 of more than 38,000 a day, and peak periods of about 120,000.

Earlier this year Thailand’s Tourism and Sports Minister, Chumpol Silpa-archa, predicted Thailand would welcome between 15 and 15.5 million foreign tourists in 2010, generating revenue of between Bt560 to Bt570 billion ($US17 b).

By John Le Fevre

Thailand Travel News for June 9, 2010