Thai tourism struggles to find workers as visitor numbers swell

yong · Post by **yong** » Wed Feb 08, 2023 12:24 pm

https://asia.nikkei.com/Business/Travel ... 8&si=44594

Thai tourism struggles to find workers as visitor numbers swell
Labor shortage creates headwind in sector that once comprised 18% of GDP

Since Thailand fully reopened for tourism in July 2022, the country has welcomed more than 11 million foreign visitors. © Reuters
APORNRATH PHOONPHONGPHIPHAT, Nikkei staff writerFebruary 6, 2023 12:00 JST

BANGKOK -- Thailand's tourism industry is struggling to recover from the COVID-19 pandemic, with the sector now facing a labor shortage that could hinder a quick bounce back.

Since the government reopened the country in July 2022, Thailand has welcomed more than 11 million foreign tourists, well above the target of 10 million forecast by the Tourism Authority of Thailand (TAT).

However, it is still unclear whether the surge in arrivals will be able to effect a quick turnaround in the industry, which once accounted for about 18% of Thailand's gross domestic product due to a shortage of workers.

Data from the Labor Ministry shows that the frequently visited southern beach town of Phuket is facing the most serious labor crunch. The tourism sector there needs to fill more than 17,000 positions, while the northern city of Chiangmai is about 9,000 workers short. Chonburi, just south of the capital Bangkok, is still trying to fill about 3,000 jobs.

"It's getting worse as more tourists come, and we don't have a large enough workforce to serve them," said Krisda Tansakul, adviser to the Thai Hotel Association. "We badly need more workers, from bellboys and cashiers to hotel managers."

TAT expected the number of foreign tourists to reach 25 million in 2023.

However, the Tourism Council of Thailand (TCT) -- a grouping of hotel operators and other related businesses -- was more optimistic, expecting up to 30 million foreign tourists this year, with total tourism revenue hitting three trillion baht ($91 billion).

"If this problem drags on, we may not be able to meet the demands of those 25 to 30 million tourists coming into Thailand," said TCT President Chamnan Srisawat in comments to Nikkei Asia. "This means we would miss tourism-based revenue targets."

But even if the industry finds enough workers, profits could be smaller than expected due to rising costs.

"Hotels need to pay higher electricity bills and find more manpower, resulting in higher labor costs. Even our bus drivers need to pay higher fuel prices," Ekkasit Ngamphichet, president of the Pattaya Business and Tourism Association, told Nikkei. "[Both] are unlikely to profit much."

The COVID pandemic adversely affected around 3.9 million employees in the tourism sector, according to a study by the National Institute of Development Administration. © Reuters

Thai tourism peaked in 2019, when the country welcomed nearly 40 million foreign tourists.

Then COVID struck, plunging the number of foreign tourists to 6.7 million in 2020, which dwindled to 427,869 in 2021. Since then, the number has jumped to 11 million as of the second half of 2022 after the country reopened.

But the steep drop-off in tourism hammered some 3.9 million workers in the sector, according to a study by the National Institute of Development Administration. Data from the Labor Ministry indicates that around 7.7 million workers were in the tourism industry before the pandemic.

Around 60% of people laid off returned to hometowns to work in the agriculture sector. Another 20% looked for new jobs in other industries while the remaining 20% started their own business.

"Those who found new jobs with higher incomes -- and particularly those who started their own business -- are feeling much safer after having moved on, and will most likely not go back to previous [tourism-related] jobs," said Vacharee Prashyanusorn, TCT president of Nakhonratchasima province.

Vacharee, who operates a hotel in Khao Yai, 130 kilometers northeast of Bangkok, said hotel operators were suffering the most, as they need to quickly staff positions to meet expected demand from millions of Chinese tourists after Beijing recently reopened borders.

"Big hotel chains are fleshing out their workforces by offering larger salaries, but small and midsized hotels still have liquidity issues, making it harder for them to spend on attracting new employees," said Chamnan of TCT.

To capitalize on the resurgence in Thai tourism, Chamnan said the TCT is working with educational institutions nationwide to find workers willing to fill open positions. The TCT is bringing in trainees from schools devoted to tourism and hotel management from several universities.

"It is a win-win measure because the trainees will get the jobs they are studying for, while operators can finally get the workforce at the right time," said Chamnan.

Moreover, the TCT has also received support from the Government Savings Bank, which offered a 5-billion baht loan for small and midsized hotels to help tackle liquidity problems.

"With this kind of help, we expect the tourism industry to get back to pre-COVID levels by the end of the year," Chamnan said.

phuketrichard · Post by **phuketrichard** » Wed Feb 08, 2023 1:36 pm

One big problem is recently the junta has closed down all means for Burmese workers over seas to renew their passports or those in Burma hoping to get a passport to travel overseas to work
Its affecting the number of migrant workers

By THE IRRAWADDY 23 January 2023

Myanmar’s military regime has suspended issuing passports since last week, dismaying many job seekers planning to work overseas away from the social and economic turmoil in Myanmar. Labor rights activists say that the junta’s move is politically motivated.

The regime suspended issuing passports in December, although Myanmar migrant workers were still able to obtain them under the Memorandum of Understanding between the Myanmar government and relevant foreign governments. But as of January 17, the junta fully suspended issuing and renewing passports, as well as accepting new passport applications.

https://www.irrawaddy.com/news/burma/my ... ports.html

SO what is happening in Phuket ( where there is a huge shortage of workers) and Kamala in particularly, is there has been an influx of Moslem women from down south to replace the migrant laborer's.