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Thailand’s Tourism Industry is Struggling to Deal With its Chronic Labour Shortage

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Thailand's Tourism Industry is Struggling to Deal With its Chronic Labour Shortage

(CTN News) – Thailand is in serious trouble because of a persistent labor shortage in the country’s tourist sector.

Since Thailand’s reopening in July 2022, over 11 million international visitors have visited the nation, resulting in a severe labor shortage.

Data from the Labour Ministry indicates a severe labour shortage in well-known tourist locations like Phuket, Chiang Mai, and Chon Buri, where there is a need to fill more than 17,000, 9,000, and 3,000 jobs, respectively.

The Thai Hotel Association’s advisor, Krisda Tansakul, acknowledged the need for more workers in the sector.

As more visitors arrive, the situation worsens since there isn’t enough staff to accommodate them. From bellhops to hotel managers, we need additional employees.

Thailands Tourism Industry Expects Foreign Tourists Arrivals to Exceed 30 Million this Year 1

With over 40 million international tourists in 2019, Thailand experienced high tourism. The Covid-19 epidemic, however, caused a significant reduction, bringing the number of visitors to 6.7 million in 2020 and only 427,869 in 2021.

Despite the setback, tourist numbers increased to 11 million following the reopening in the second half of 2022.

According to a report by the National Institute of Development Administration, the decline in tourism significantly affected the 3.9 million employees in the tourist sector.

According to the Labor Ministry, there were 7.7 million employees in the industry before the epidemic.

Of those fired, 60% went back to work in agriculture in their hometowns, 20% looked for jobs in other fields, and the other 20% founded their enterprises.

The Tourism Council of Thailand (TCT), which projects up to 30 million international visitors in 2023, has an upbeat view, although the sector is still confronting difficulties. Hotels have a tougher time making a profit as expenses rise.

Chamnan Srisawat, president of TCT, told Nikkei Asia…

Thai economy may grow by 4 this 1

“Big hotel chains are increasing pay to fill their workforces, while small and mid-sized hotels still struggle with cash flow, making it difficult for them to spend on recruiting new personnel.”

The TCT is collaborating with educational institutions around the country to fill the labor gap and providing small and mid-sized hotels with a 5-billion-baht loan from the Government Savings Bank.

To assist in filling unfilled posts, the TCT is also hiring trainees from institutions that specialise in tourism and hotel management.

Chamnan declared

It is a win-win situation since the operators will finally have access to the workforce properly, and the trainees will receive the positions they are training for.

Although tourism is rising in the Land of Smiles, the nation has difficulty meeting demand. Not only are hotels suffering from a lack of workers, but the nation’s standing as a tourism destination is also suffering.

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