Business groups urge 40m-baht soft loans to revive Hat Yai as fewer than 20% of shops reopen after floods

Business groups in Hat Yai are urging the government to expand soft-loan support to help the city recover from severe flooding, warning that the local economy remains in crisis and that fewer than 20% of affected businesses have been able to reopen.

Songpon Changsirivathanathamrong, president of the Songkhla Chamber of Commerce, said the damage from the Hat Yai floods has cut deep into the city’s economic structure, with shops and businesses in the city centre among the hardest hit. He said many premises suffered extensive damage, including to electrical systems and ceiling structures.

He said fewer than 20% of operators have been able to resume business, largely because they lack liquidity to repair and restore operations.

Songpon said Hat Yai’s recovery will depend on how quickly the government provides support, outlining three possible scenarios:

1. V-shaped recovery if funding is injected quickly and the economy rebounds immediately;
2. K-shaped recovery in which large firms with stronger finances survive but small businesses disappear;
3. L-shaped decline if no concrete support materialises and the city remains depressed for the long term without a meaningful recovery.

He proposed that the government revise the current soft-loan ceiling, initially set at 1 million baht, saying it does not reflect the scale of damage. He called for the recovery loan limit to be raised to up to 40 million baht per borrower to support renovations, with 0% interest for the first six months, followed by 1.5% per year over five years.

He also urged the government to help revive tourism through a “Let’s Go Halves Plus” co-payment scheme limited to Hat Yai district and nearby areas, and to consider relief measures such as reduced electricity and water bills and lower land tax to help businesses stay afloat.

Another key proposal, he said, is the issuance of an emergency decree on flooding to unlock urgent funding for “quick win” flood-prevention projects, such as dredging drainage canals and completing floodways within one to five years. He warned that waiting for normal budget cycles until 2027 could be too late and would undermine investor confidence.

Sittipong Sitthipatprapha, president of the Hat Yai-Songkhla Hotel Association, said flood damage would require around 3 billion baht in rehabilitation spending. Although 50-60% of hotels have reopened, the overall atmosphere remains quiet.

He said tourist flows through the Sadao checkpoint have dropped to about 10,000 people a day, with most travellers choosing to pass through to other destinations. He called on the government to treat the response as a national agenda and to organise continuous stimulus activities through Songkran to bring life back to the city and attract visitors.

Meanwhile, Sivath Suwannawong, president of the Songkhla Tourism Industry Council, said Hat Yai is currently seeing only about 10% of normal tourist volumes. He urged the government to cut red tape and reduce the share of revenue retained by relevant agencies so more support can be channelled back to the public.

He also pointed to the importance of private-sector support, citing efforts involving the LINE MAN Wongnai platform to help damaged restaurants that had lost their selling space continue generating income, preserve jobs and maintain cash flow, preventing businesses from collapsing before government assistance arrives.