Bangkok Post

Restaurate­urs likely to be hit by global, local economic woes

The global economic downturn and Thailand’s sluggish economy are likely to have a significan­t impact on the local restaurant segment, even with the visafree scheme attracting more visitors.

“The lukewarm global and Thai economies will affect Thai customers’ spending behaviour as people are more careful with their spending,” said Thaniwan Kulmongkol, president of the Thai Restaurant Associatio­n.

Even with Thailand’s visa-free scheme to attract foreign visitors, it will not help the industry as expected, said Ms Thaniwan.

She said the Thai restaurant business this month, considered low season for the tourism and restaurant sectors, will likely record a decrease in sales compared with the same period last year.

“We hope this government will come up with a solution to solve the economic crisis, but up until now, there is no tangible policy or directive apart from the soft power campaign,” Ms

‘‘ We hope this government will come up with a solution to solve the economic crisis, but up until now, there is no tangible policy or directive apart from the soft power campaign.

THANIWAN KULMONGKOL President, Thai Restaurant Associatio­n

Thaniwan said.

Thailand’s tourism industry has long suffered from widening inequality of income distributi­on, she said.

Tourists tend to visit certain crowded cities, leaving some second-tier cities behind. This discrepanc­y is also reflected in the income inequality of restaurant­s in different areas, said Ms Thaniwan.

The cabinet has approved plans to stimulate tourism during the low season.

Companies can deduct 1.5 times the actual amount spent for holding seminars or training courses in both secondary and non-secondary cities from their corporate income tax.

Moreover, individual­s can deduct actual expenses paid to tour operators or hotels in secondary tourism provinces from their personal income tax calculatio­ns.

“I was surprised that the new round of measures does not include any scheme to stimulate the restaurant business,” Ms Thaniwan said.

Referring to the ruling Pheu Thai Party’s 10,000-baht digital wallet handout scheme which aims to kick off later this year, she said the eligibilit­y criteria for shops that want to participat­e are still vague, so restaurant operators are still playing the waiting game.

As the cost of living increases, Ms Thaniwan said people tend to order fewer dishes per bill. However, as the prices of meals increase, the industry is poised to experience sales growth this year.