KResearch urges asset warehousing to protect Thai hotel operators
Kasikorn Research Centre (KResearch) has urged the government to use “asset warehousing” to protect hotel operators from the Covid-19 fallout.
The idea of asset warehousing was raised by the Thai Bankers’ Association last month as a way of managing finances of hoteliers who had curtailed or suspended operations.
The research house said the new virus outbreak had stalled recovery of the hotel business, which would take at least three years to return to normal.
The centre also cut its forecast of foreign tourist arrivals this year from 7 million to 4.5 million.
"Although a rise to 120 million domestic tourists is predicted this year, it cannot compensate for the loss of foreign tourists, who generate over Bt500 billion in revenue for hotel operators," the centre said.
KResearch said at least 4,000 Thai hotels that rely on foreign tourists will be under pressure until the Covid-19 crisis is resolved.
"We believe that the government and financial institutions are seeking a solution to ensure that hotel operators will gain maximum benefits from the asset warehousing measure," the centre added.