How Businesses in Thailand are Coping During Lockdown

Thailand has officially gone back into a strict lockdown and is currently facing its largest outbreak since the beginning of the pandemic. The lockdown has placed restrictions on travel, malls and has implemented curfews which affects countless businesses. With tourism being one of Thailand’s biggest sources of income, this has a devastating effect on many businesses.

Many businesses in Thailand have gone into debt due to the many lockdowns and COVID-19 restrictions causing a major loss of income. Businesses like salons and massage parlors have been forced to shut down which leaves them at a complete loss, without any assistance for the loss of income.

Restaurants especially have been struggling since most restaurants depend on customers coming to eat inside, which is not possible during a lockdown. After the lockdown in December, businesses were struggling to recover from the lack of tourism and the economic decline. Many restaurants tried to incorporate delivery services and the use of technology similar to that of IT Support Companies to try to generate some revenue for their business.

Thailand’s biggest form of revenue

Luckily, the open-air markets in Thailand have managed to survive through the lockdowns and lack of tourism. Although there are many strict social distancing measures in place, the markets have been one of the least affected. They have only seen a 10% decrease in sales which is significantly less than other businesses.

The tourism industry, one of Thailand’s biggest forms of revenue, has seen a decrease of 82%. Thailand has usually seen close to 10 million tourists a year and are now estimated to only see around 1 million tourists this year. Domestic travel has also been cut significantly. Before the pandemic Thailand saw 10 million domestic trips per month. In 2021 they have only seen 23.6 million trips in the last 6 months, which is a devastating cost to the economy.

The endless lockdowns and constant threat of a new COVID outbreak has been devastating for Thailand and will continue to be until more of the population has been vaccinated. There is some end in sight for financial struggles for workers who have been affected by the closures because Thailand has a social security fund and will be rolling out a program to support those who are not covered by the security fund. As vaccines roll out, there is more hope for the future of businesses and Thailand’s economy overall.