SURAT THANI, June 5 (TNA) – Nearly 100 hotels on the tourism island of Koh Samui are for sale due to the negative impacts of the coronavirus disease 2019 (COVID-19).
Tourism on Koh Samui has been quiet for over two months because the government ordered hotels to suspend service on April 7 to control the disease.
Worasit Pongkampan, president of the Tourism Association of Koh Samui, said owners of nearly 100 local hotels announced to sell their businesses because they lacked cash flow and banks did not lend to them.
According to him, their liquidity problem started late last year and picked up in January. The COVID-19 crisis struck them in February and some hoteliers have been unable to collect overdue payments from big tour agencies for seven months. Besides, during the temporary closure of their businesses, hoteliers have no revenue but have to pay their staff’s salaries and other costs.
“Under this circumstance it is more difficult for them to seek soft loans from banks to maintain their liquidity. I would like the government to immediately help the operators with soft loans before it is too late because hoteliers are in deep troubles. The impacts happen not only on Koh Samui but nationwide,” Mr Worasit said. (TNA)