Koh Chang

Tuesday March 31st 2009, 5:27 pm
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Source: The Nation

Prime Minister Abhisit Vejjajiva will be sending a strong message at the Group of 20 (G-20) Summit in London on Thursday.

That message will be about Asean’s determination and readiness to contribute to international efforts to revitalise the global economy and make necessary reforms to the world’s financial institutions and system.

Abhisit has already received a briefing statement from Asean Secretary-General Surin Pitsuwan, who has sounded out the common position of the region’s leaders. Abhisit, who chairs Asean, will represent the regional grouping at the London summit, where world leaders will be discussing ways to tackle the global financial crisis.

According to the briefing statement, obtained by The Nation, Abhisit will highlight Asean’s efforts to achieve sustainable growth and development through economic stimulus, so that this part of the world will be looked upon as a centre of growth in a post-crisis world.

“Our immediate efforts are to stabilise our economies, but we shall endeavour also to cushion the negative impacts on the poor and the vulnerable living at the margins of our societies. While these packages are necessary, they must not put too much burden on our fiscal resources and must not impair our well-earned fiscal discipline,” it said.

Abhisit will cite the region’s experience in using tough measures to cope with the 1997-98 financial crisis, which can now serve as a benchmark for other crisis-hit countries to follow.

This time around, Asean has so far been able to avoid a currency crisis and also moved forward to strengthening regional financial cooperation through the expansion of the Chiang Mai Initiative, which now has US$120 billion (Bt4.26 trillion) in multilateral currency-swap arrangements among the 10 member countries.

Abhisit will pledge to accelerate implementation of the Chiang Mai Initiative’s rules and procedures, so that it can safeguard regional financial stability and enhance confidence among the economic partners from around the world.

During his two-day stay in London, Abhisit will also meet with Indonesian President Susilo Bambang Yudhoyono, Chinese President Hu Jintao and Australian Prime Minister Kevin Rudd.

The Thai premier will send a clear message at the G-20 Summit that protectionism should not be adopted as a way out of the current global crisis.

“We have to make it absolutely clear that developed and developing countries will not give in to short-term measures and the temptation of protectionism. Indeed, as a strong antidote to the possible emergence of protectionism, an early conclusion of the Doha Round of the multilateral trade negotiations is more critical now than ever before,” the statement said.

Abhisit will also caution against excessive volatility in the global financial system and call for governance and transparency in ensuring stability.

While the global financial system is indispensable to mobilising and channelling necessary capital to regions for developing economies and societies, it can also create excessive volatility that may make a severe impact on developing countries. This impact can hurt rural areas, farmers, small and medium-sized enterprises and low-income people, which would further divide and cause social disparity and tensions within our society.

“A complex and global financial system can also obscure the ability of investors to evaluate good and bad investments. As a preventive measure, due attention must be focused on maintaining the balance of progress and innovation on the financial side and the real economy to reach stability and equity in the global financial and economic structure,” the statement said.

“Good governance and transparency in the global financial system are more urgent now than ever before.”

Abhisit will call for a quick restoration of the financial system of the leading economies, because that will be indispensable for global prosperity.

“We expect much of their bold measures to help in the recovery and rebuilding. Likewise, the developed countries must be supportive of the efforts of developing countries to upgrade their infrastructure, human resources, competitiveness and social progress to prepare them for full participation in a post-crisis, freer and fairer global economic system,” the statement said.

Asean wants role in solving crisis

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Asia could see rapid economic recovery: IMF chief

Monday March 30th 2009, 3:09 pm
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Source: AFP

Asia’s economies could recover rapidly next year from their slump once the rest of the world claws out of recession, the head of the International Monetary Fund (IMF) said.

“Once the world economy regains its footing, a rapid recovery is possible,” Dominique Strauss-Kahn said, predicting Asian economic growth of more than 5 per cent in 2010, almost twice the pace expected in 2009.

Asian countries cannot begin to recover until the rest of the global economy escapes from the current “major downturn” because they rely heavily on exports, the IMF chief said, speaking to an online briefing from Washington.

Asia was likely to post economic growth of 2.7 per cent this year, with the region’s developing countries seen expanding 5.5 per cent, Mr Strauss-Kahn said.

“But it’s very uncertain and a worse outcome cannot be ruled out,” he said.

Once the US and European economies start to rebound, however, some Asian economies “may recover very fast,” he added.

“Some Asian economies are really dynamic. They have a lot of resources. They have very strong fundamentals.”

Interest rate cuts and government spending would help spur the recovery in Asia, whose banks are not suffering problems on the same scale as their US and European peers, Mr Strauss-Kahn said.

He said certain countries in the region, including China, have more room for fiscal measures to stimulate their economies.

China would find it “very challenging” to meet its target of 8 per cent economic growth this year although it is not impossible, Mr Strauss-Kahn said, reiterating the IMF’s own forecast for 6.7 per cent Chinese growth in 2009.

China’s economy faces a lot of “painful changes” as a result of the global slowdown, he warned.

“But those changes are obviously for the good and in the interest of the people of China. It has to be done.”

In the longer term China and the rest of Asia need to reduce their dependence on exports and stimulate domestic demand, but this is a difficult task that will take some time to achieve, he added.

South Korea’s economy will shrink 4 per cent this year, the IMF said, sharply cutting its earlier estimate due to big falls in exports and weak domestic demand.

However, Asia’s fourth-largest economy will likely accelerate its recovery from the second half and is expected to grow 4.2 per cent in 2010, marking the largest turnaround among world economies, the IMF said in a report.

South Korea, like China and Japan, have been hit by falling exports as consumers in the United States and Europe tighten their belts to cope with the recession.

The IMF chief also warned countries not to turn to protectionism during the economic slump, saying: “Beggar thy neighbour policies will never give a good result.”

Supporters of free trade fear that the global economic crisis and the subsequent wave of job cuts could prompt governments to pursue policies that favour national companies and reduce global trade flows.

Asia could see rapid economic recovery: IMF chief

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Domestic MICE to get a boost

Friday March 27th 2009, 1:29 pm
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Source: Bangkok Post

The Thailand Convention and Exhibition Bureau (TCEB) has joined with the Thailand Incentive and Convention Association (TICA) to promote domestic meetings among Thai state agencies and private companies.

Actively promoting meeting, incentive, convention and exhibition (MICE) business to local customers would cushion the big drop in international MICE events, hit by the recession, said Chiruit Isarangkun Na Ayuthaya, a TCEB director for government and corporate affairs.

“We expect at least 1 billion baht will be generated from MICE activities within the country this year,” he said.

The TCEB and TICA will organise eight local roadshows in four regions to promote MICE under the “Thailand Moving Forward” campaign.

They started with Khao Yai, Nakhon Ratchasima, last weekend, and will continue with Chiang Mai from April 24-26, Hat Yai in May, Pattaya in June, Phuket, Krabi and Phangnga in July, Khon Kaen in August, Kanchanaburi in September and Sukhothai in November. The budget for the project is 30 million baht.

Meanwhile, the cabinet has approved a resolution allowing state agencies arranging meetings in Thailand to claim a tax deduction of twice their expenses for venues and accommodation.

“We expect more than half the buyers in each familiarisation trip to organise their meetings and incentives there, particularly in destinations like Korat, Hua Hin and Pattaya,” Mr Chiruit said.

The TCEB and TICA plan to use a door-knocking strategy to reach state agencies, a segment with high potential.

A participant at the Khao Yai meeting, Pansakorn Roadbunjob of Krungthai Car Rent & Lease Plc, said this year was a good time for meeting organisers because they could get high-quality products at very cheap prices.

“Our company set its meeting and training budget 20% higher than last year. I think it is a good time to train our staff to enhance their skills because they have more free time,” he said.

Domestic MICE to get a boost

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China vows to back Thai PM at G20

Thursday March 26th 2009, 3:02 pm
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Source: The Nation

China will be pleased to stand by Prime Minister Abhisit Vejjajiva in his capacity as Asean chair at the upcoming Group of 20 (G20) Summit in London, its visiting foreign minister, Yang Jiechi, said yesterday.

Yang also told Abhisit that China would fully support its friend and neighbour in fighting off the global economic crisis by stepping up bilateral trade and investment, extending loans and sending more tourists.

It had been reported the government would seek a US$400-million (Bt14.22 |billion) loan from the Export-Import Bank of China, but Abhisit yesterday denied such a move.

However, the government will go ahead with plans to borrow $1 billion from the World Bank, $500 million from the Asian Development Bank and $500 million from the Japan Bank for International Cooperation.

The loans will help finance the government’s stimulus plans over the next three years, Abhisit said. Parliament on Tuesday approved the government’s plan to borrow the combined $2 billion from offshore sources.

On next Thursday’s London Summit, Abhisit told the Chinese foreign minister that there should be substantial progress in tackling the global economic crisis at the event, which brings together the leaders of the world’s top 20 economies.

Hosted by British Prime Minister Gordon Brown, the summit will see participation by US President Barack Obama, French President Nicolas Sarkozy and German Chancellor Angela Merkel, as well as Chinese, Japanese and other leaders of major economies.

Abhisit will consult with other Asean leaders on a common position before attending the summit as chair of the 10-country regional grouping.

The G20 Summit is expected to push for coordinated stimulus packages around the world, reforms of the global financial system and regulations, and a renunciation of protectionism. Abhisit said China and Thailand should increase their trade and investment ties amid the global economic crisis, because Thailand had been hit by sharp falls in export and tourism revenue.

China and India are expected to be among the few major economies still to enjoy forward momentum of more than 5 per cent, while Western economies, such as the US and Europe, will likely face cutbacks in output.

On tourism, the Chinese foreign minister said his government would help promote Thailand as a major destination.

The target is a doubling of Chinese visitor arrivals to 4 million a year.

Abhisit also invited China to consider investing in infrastructure projects in Thailand over the next three years, during which the government plans to spend Bt1.4 trillion in combined investment.

Transportation, especially railways, and agriculture were cited as just two of the sectors holding the most promise for Chinese investment.

China vows to back Thai PM at G20

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With printing presses working overtime, the real financial crisis has not yet begun

Wednesday March 25th 2009, 11:22 am
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Source: The Nation

Its roots are deep; after a consumption binge of decades, it’s time now to pay up for free lunch.

During his visit to London more than a week ago, Prime Minister Abhisit Vejjajiva got the impression from business people and investors there that the United States did not have enough political will to take on its banking crisis once and for all. They told Abhisit that if the US had recognised the total estimated losses of the banking system and come up with the money to plug the leaking hole, it would have restored confidence and set the stage for an economic recovery. This sounds plausible, but the whole point is how much of the losses of the US banking system can really be quantified. Is it US$30 trillion (Bt1,060 trillion), US$50 trillion or more?

The size of the US financial bubble that has gone bust is so large that it is impossible to quantify the losses due to the lack of transparency. The US banks, backed by the power of the Federal Reserve to issue paper currency without any limit, had over the past several decades gone global in raising money, issuing debts and all kinds of instruments in their proprietary trading and investment. They had several dozen times over-leveraged their capital. Wall Street and US banks’ easy money, fuelled by a low interest-rate policy during the Greenspan era, created a bubble economy.

In fact, it is not totally correct to assume that the current problem can be traced back to the Greenspan era alone. The US has walked away from manufacturing since the 1970s and shifted its policy toward consumption and financial services, backed by its superpower status to issue paper currency. The dollar has been floated around the world to become the de facto medium of international transactions without presumably any cost. The US consumers went on a consumption binge, enjoying one of the world’s best living standards. Wall Street executives made filthy bonuses every year. The Wall Street model has become the fixation of American business – how to make quick money from thin air.

But we all know that there is no free lunch. The dollar paper issued to the creditor institutions, funds and sovereign governments worldwide is now starting to backfire. The global economic imbalances, characterised by overconsumption in the US and overproduction by the emerging-market economies, including Japan, are now going through a correction. US over-consumed by issuing debt to finance its consumption, while other countries re-channelled their reserves back to the US so that US consumers would continue to buy their cheap goods. Now exports to the US have collapsed. Creditors are shying away from subscribing to US debt. They are cutting losses in their US dollar asset holdings.

The US banks have made things worse by offering easy lending to the real-estate sector. Real-estate loans were bundled as mortgage-backed securities, on top of which other dubious financial products were created. This is not to mention other financial products that US banks have issued like currency only because they have their brand names attached. Currency and paper are treated without any difference. The bubble was in full swing until the sub-prime debacle hit the US in August 2007. After that the US financial system and the US economy started to go downhill.

The US banks and financial institutions have been relying on the Federal Reserve’s Temporary Auction Facility to raise their liquidity. They have been facing a run, with foreign depositors and scared individuals withdrawing their money. Without the Fed’s intervention with liquidity, US banks and financial institutions would have been totally broken down by now.

But the worst has yet to come. With a loss of confidence in the US financial system, creditors and investors are dumping dollar-denominated instruments. They are willing to cut losses. The US banks, who issue the instruments, have to take their debts back. Since they do not have the liquidity because the credit market has already ground to a halt, they can only rely on the Federal Reserve. As a result, the balance sheet of the Federal Reserve will continue to balloon.

US Treasuries, traditionally recognised as risk free, are now under pressure. Russia, China, India and other countries are discussing a possibility of dumping the US dollar as a reserve currency. They have proposed a return to the Special Drawing Rights issued by the International Monetary Fund.

In the meantime, the US federal government will find it tough to finance its deficit spending. Recent projects have put the deficit for 2009 at a record US$1.8 trillion. This would complicate President Obama’s efforts to pass his US$3.55 trillion budget plan for 2010. The deficit would continue for several years to come. Where will this money come from?

The US won’t be able to finance the deficit of this magnitude. The US Treasury doesn’t have any money. The Americans are also losing their savings and investments in the meltdown of the stock market by at least 50 per cent last year alone. They are also saddled with consumer and mortgage debt. So the US ends up with only two options left: borrowing from the foreign creditors or resorting to the printing press.

Under the current condition, foreign creditors will be more cautious or unwilling to subscribe to US debt. They already have toxic financial instruments in the books of their banks more than they can handle. So the US has only one option left, which is to inflate away the debt by printing money. By doing so, the US Treasury will issue bonds directly to the Federal Reserve, which will issue the money in return. The Treasury will use the money to meet its budget or other spending obligations.

This US money-printing, the Bank of England, the Swiss National Bank, the Bank of Japan, have warned is threatening hyperinflation afterward. The dollar will head for a decline. Once inflation is off and running, the printing press dollars will only have goods made in America to chase after. The real crisis has not yet begun.

With printing presses working overtime, the real financial crisis has not yet begun

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US stocks skyrocket on toxic asset plan while Asia rises

Tuesday March 24th 2009, 2:00 pm
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Source: AFP

Wall Street shares skyrocketed on Monday as the market cheered a plan to clean up toxic assets clogging the balance sheets of US banks in a bid to stabilize the recession-hit economy.

In response, Asian stocks pushed up to a two-month peak in Tuesday trading and higher-yielding currencies rose against the battered yen.

The revival in investor risk-taking boosted currencies such as the Australian and New Zealand dollars against the yen as carry trades – borrowing in low-yielding currencies and buying higher-yielding ones – showed signs of making a comeback.

The Japanese stock market was trading sharply higher .

In early trades, the benchmark Nikkei 225 Index was gaining 189.12 points, or 2.3%, to 8,404.65 and the broader Topix Index of all First Section Issues was advancing 16.61 points to 808.17.

The MSCI index of Asia-Pacific shares outside Japan climbed 1.6% in early trade before most regional markets had opened, taking gains to 28% from the five-year low hit last November.

Japan’s Nikkei share average was up 2.4% to strike a two-month high, even as Japan has lagged the global rebound in stocks due to persistent foreign investor selling.

Extending a two-week rally, the Dow Jones Industrial Average catapulted 497.48 points (6.84 percent) to end at 7,775.86 – the blue chip index’s fifth largest percent gain ever as it reached its highest level since February 13.

The tech-heavy Nasdaq leapt 98.50 points (6.76 percent) to 1,555.77 while the broad Standard & Poor’s 500 powered higher by 54.38 points (7.08 percent) to 822.92.

The market soared after President Barack Obama’s administration announced a public-private sector program to help the ailing banking system recover from massive losses suffered in the US real estate meltdown.

The cornerstone of the plan unveiled by Treasury Secretary Timothy Geithner was a “Public-Private Investment Program for Legacy Assets” funded with 75 to 100 billion dollars from the government – an idea that has generated some praise but also skepticism.

Officials said this approach would “generate 500 billion dollars in purchasing power” and could expand to one trillion dollars.

“One ray of light to the resolution of the financial crisis is better than no ray at all, and markets gave this next phase of the program a relatively enthusiastic endorsement,” said IHS Global Insight chief US economist Brian Bethune.

The day’s early stock rally gathered momentum after the National Association of Realtors reported that existing home sales rose 5.1 percent in February, defying analysts’ expectations for a monthly decline.

Against this bullish backdrop, the Dow surged to a 300-point gain by midday, said Elizabeth Harrow of Schaeffer’s Investment Research.

Geithner’s remarks about the bank toxic asset purchase plan was warmly welcomed by the market even though just a week ago he was slammed, with some calling for his head to roll, over a bonus payment fiasco at insurance giant AIG, which was saved from collapse by taxpayer money.

“Investors might have been calling for his resignation last week amid the AIG bonus scandal, but Treasury Secretary Timothy Geithner reemerged today as the unlikely savior of the equities market,” Harrow said.

Last month, the Dow index dived 4.62 percent after the market gave a thumbs down to Giethner’s broad outline of a plan to restore financial stability.

Handsome gains Monday were led by banking stocks, including Bank of America which shot up 26.01 percent to 7.80 dollars, Citigroup by 19.47 percent to 3.13 dollars, JPMorgan Chase by 24.67 percent to 28.86 dollars and Wells Fargo by 23.87 percent to 17.33 dollars.

Conglomerate General Electric also jumped 9.33 percent to 10.43 dollars even after Moody’s Investors Service downgraded Monday its the key debt rating.

Industrial and energy stocks also enjoyed a good run. Aluminium producer Alcoa was up 13.15 percent to 7.40 dollars while aircraft manufacturer Boeing rose 9.06 percent to 35.50 dollars and equipment manufacturer Caterpillar leapt 9.46 percent to 29.63 dollars.

Time Warner rose 9.67 percent to 8.62 dollars after the media-entertainment giant said it would invest some 241 millions dollars in Central European Media Enterprises (CME) to expand its global footprint.

Bonds were down. The yield on the 10-year US Treasury bond rose to 2.660 percent from 2.625 percent Friday and that on the 30-year bond increased to 3.693 percent from 3.654 percent. Bond yields and prices move in opposite directions.

Global stock markets rallied as well as word leaked out on the US plan.

The FTSE 100 index in London closed up 2.86 percent, the Paris CAC 40 rose 2.81 percent and the Frankfurt Dax gained 2.70 percent.

In Asia, Tokyo’s Nikkei-225 index leapt 3.39 percent, nearing a two-month peak, and Hong Kong stocks raced 4.78 percent higher.

US stocks skyrocket on toxic asset plan while Asia rises

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The Tourism Authority of Thailand wants visa fees waived for China, Japan

Monday March 23rd 2009, 4:31 pm
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Source: The Nation

The Tourism Authority of Thailand (TAT) wants to extend the waiving of visa fees to China and Japan to attract more tourists during the low season.

Board chairman Weerasuk Kowsurat said the TAT would evaluate the success of the existing scheme, which was implemented on March 5, and recommend its extension if warranted to the Tourism and Sport Ministry.

The government is stimulating tourism in tough times by waiving visa fees for 42 nationalities for three months. Weerasuk said the proposal covered only the sensitive markets of Japan and China.

“If we could offer visa waiving to China and Japan after May, when their long holidays fall, we should have more visitors,” Weerasuk said.

Tourism and Sport Minister Chumpol Silpa-archa said he would ask Prime Minister Abhisit Vejjajiva to visit China to restore tourist confidence.

China and Japan are the big tourist markets, along with Malaysia and South Korea.

Last year 900,000 Chinese came to Thailand, and this is expected to reach one million this year.

The TAT expects more than 70 charter flights from China during Songkran.

It plans road shows to Shanghai and Beijing in May.

Total arrivals have been falling due to the economic crisis, but the TAT projects 14 million as planned for this year.

The Tourism Authority of Thailand wants visa fees waived for China, Japan

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Number of tourists to Thailand contracts 30%

Friday March 20th 2009, 1:30 pm
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The chairman of the Tourism Association of Thailand (ATTA), Mr. Apichart Sung-aree, pointed out the number of tourists in March 2009 shrank by 30 percent, compared to the same period in the year 2008 due to the prevailing global economic crisis.

Mr. Apichart said that around eight or nine thousand foreign tourists usually travelled to Thailand in March each year, while only five thousand tourists were seen in March 2009.

He anticipated that the embattled tourism industry would hardly turn around in the next six months, so that the number of foreign tourists for the whole year 2009 were to be around 10 million.

Mr. Apichart urged the government to take aggressive campaigns to promote Thai tourism, by putting advertisements in local media of prospective countries, both print and electriconic.

Mr. Apichat said the 5 billion baht credit loans the government had set aside to help shore up affected tourism businesses are helpful, even though it is projected that the industry needs more than 15 billion baht.

Number of tourists to Thailand contracts 30%

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Booze ban ‘will harm tourism’ in Thailand

Thursday March 19th 2009, 4:18 pm
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Source: Bangkok Post

Plans to ban the sale of alcohol during the Songkran festival have sparked a bitter row between the Tourism and Sports and the Public Health ministries.

Tourism and Sports Minister Chumpol Silpa-archa yesterday opposed the Public Health Ministry’s plan to ban the sales, saying it would harm the already crippled tourism industry.

But Deputy Public Health Minister Manit Nopamornbode insisted a survey conducted by his ministry had found that most tourists do not consider drinking to be the main purpose of their visit. They prefer to enjoy the culture and visit tourist destinations.

The Public Health Ministry has proposed two options on the ban.

One calls for a halt to alcohol sales altogether from midnight April 11 to midnight April 14. The other softer option is to allow licensed restaurants and entertainment venues to serve alcohol from 6pm to midnight during the three-day period.

The National Committee on Alcohol Policy will choose which, if any, of the two options to adopt.

Mr Chumpol said the government should delay the ban on alcohol sales during Songkran until at least next year.

He said the government needed additional tourism revenues to substitute the sharp drop in earnings from exports and investment.

The minister said the tourism industry had the capacity to recover from the economic crisis much faster than other sectors and could serve as the driving force to support the overall economy.

His stand mirrored that of Deputy Prime Minister Sanan Kajornprasart.

Maj-Gen Sanan, who is the chairman of the National Committee on Alcohol Policy, said the ban would not address the root cause of drink driving and the high incidence of road accidents during the Songkran holiday.

He said most accidents over Songkran happened on small provincial roads, not on main roads. The authorities need to strictly enforce the law on those accident-prone areas.

Maj-Gen Sanan said the ban was expected to affect international tourists’ travel plans and could hurt the country’s tourism earnings. A study on the impact of a ban on alcohol sales should be carried out before it is imposed.

A ban might encourage consumers to stock up on drink before the holidays, which would do nothing to help reduce the road accident rate.

Maj-Gen Sanan said his statements reflected his personal view, not that of his committee.

Booze ban ‘will harm tourism’ in Thailand

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Thailand’s tourism fund too small

Wednesday March 18th 2009, 3:44 pm
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Source: Bangkok Post

The five-billion-baht fund for tourism operators is not enough for them to all survive the slump, said Tourism and Sports Minister Chumpol Silpa-archa. The financial support programme was officially launched yesterday and will run until April 30. The Federation of Thai Tourism Associations (FTTA) predicted that at least 450 tour operators would seek financial help worth at least 1.8 billion baht.

More than 1,000 restaurant operators are expected to submit loan applications for 500 million baht, with small hotels likely to seek up to two billion baht.

Soft loans to help tourism-related operators will charge an interest rate at 2% in the first two years, followed by the minimum lending rate (MLR) -3%.

”The requests for loans during the 1.5-month period will exceed five billion baht for sure. If demand is excessive, we will go forward with the second fund,” Mr Chumpol said.

The minister estimated that the tourism business would pick up near the end of this year if the private and government sectors worked hand-in-hand to promote the country in the same direction.

Apichart Sankary, the FTTA president, said the tourism industry in Thailand would be sluggish in the next two years, particularly for inbound business.

”I can say that this year is the poorest since I have been in business. This summer, tourist arrivals from Europe and the United States will drop more than 30%. Instead, most operators should pin their hopes on Asian tourists particularly from Japan and China,” he said.

However, Mr Apichart said arrivals from China and Japan were still poor in the first two months because they were concerned about the economic downturn and local political problems.

”In my opinion, the number of international tourist arrivals will be lower than 12 million this year. I want the government to promote the country in the right direction. It should have a focus and deliver promotional messages through the media or billboards in targeted nations instead of using mass media, for example,” he added.

Prakit Chinamourphong, president of the Thai Hotels Association (THA), said the fund would help only small and medium-sized hotels. The association plans to ask for some financial aid for big hotels, which are facing similar difficulties.

”I am just back from ITB (the world’s biggest travel fair) in Berlin. This year, the situation there was very sluggish. Most buyers came to the fair to bargain prices and Thai tour operators were pressured with no choices,” he said.

Thailand’s tourism fund too small

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