Of all the 660 hotels sitting on this holiday island, only 150 of them remained open. Many have gone bankrupt and many are on their last legs, hoping for a vision.
“One of the big problems for hotels here is the unwillingness of Thai banks to offer loans meaning that businesses can’t repay debts,” said Mr Wirat Phonchabapnapha of the Pavilion Villa and Resort Hotel.
With many businesses being sold off to foreigners, mainly to the Chinese, they are now being repossessed by Chinese banks.
He said investors in places like Phuket and Samui are waiting in the wings to move in. He called for aid from the Bank of Thailand to extend help on the NPL (Non-Performing Loans) from three to twelve months.
Meanwhile, the local tourism associations have pointed out that the government’s 20 billion baht stimulus package “Rao Thiaw Duay Gan” (Let’s Travel Together) has barely helped Samui in terms of domestic travel and tourism.
Although the stimulus package has been a great benefit to other places near large cities such as Bangkok, and tourism areas like Chiang Mai and Hua Hin where there are frequent and cheap flights and the local business establishments has numerous promotions to offer.
Source: thaivisa.com THE NATION