Sign up | Log in



Home  >>   Daily News  >>   Thailand News  >>   Labor  >>   Tourism sector concerned about wage increases
NEWS UPDATES Asean Affairs            9   July  2011

Tourism sector concerned about wage increases

Related Stories

June 10, 2011
Thailand needs more skilled workers

June 4, 2011
Thai wages increases examined

May 26, 2011
Thai seafood industry needs workers

May 13, 2011
Best employers in Thailand chosen

March 29, 2011
Labor issues in Thailand’s growth model

March 10,2011
Wage increase proposed by Thai Democrats

Tourism operators say they will suffer and their expenses will rise by as much as 50 percent if they have to raise minimum wages to 300 baht a day in January.

The industry is concerned about the wage promises made by the Pheu Thai Party in its successful election campaign, said Kongkrit Hiranyakit, president of the Tourism Council of Thailand (TCT).

The current minimum wage is 159-221 baht, and Pheu Thai also proposed raising the starting salary for bachelor's degree holders to 15,000 baht per month, effective at the start of next year.

Around 2.5 million people work in the tourism industry, including those on daily wages and monthly salaries.

On average, Mr. Kongkrit said daily-wage personnel in the tourism business earned around 200 baht per day.

Entry-level salaries in service industries vary widely but many positions pay less than 10,000 baht a month.

Normally, labour costs in the tourism business are about 15-20 percent of total operating costs, higher than in manufacturing industries. In the electronics sector, the figure is around 10%.

Pichai Naripthaphant, a member of the Pheu Thai economic team, said the impact from higher minimum wages would be offset by a reduction in the corporate tax rate from 30 percent to 23 percent by next year and 20 percent by 2013.

''Small and medium tourism operators need more time to adjust to the wage policy. And the tax reduction will benefit only big operators,'' Mr. Kongkrit said.

The TCT believes tourism operators would have to pass on higher costs to customers. Once product and service prices rise, then inflation would increase, and Thai tourism would lose its competitiveness, he said.

Susdivachr Cheewarattanaporn, president of the Association of Thai Travel Agents (ATTA), said hotels and airlines would have to increase room rates and airfares to afford higher wages. Some 70 percent of operating costs of tour companies go to staff salaries.

Mr. Kongkrit said he was worried that wage and salary adjustments would draw an influx of workers from abroad, especially from the Philippines.

Singha Tangcharoenchaichana, the Federation of Thai Industries' chairman for the central region, suggested industrialists use more machinery to replace workers if their wages rise.

Long term, he is concerned about firms being more cautious about adding workers. Some may relocate to other countries where wages are still low.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    9  July  2011 Subsribe Now !
 • Bank prioritizes Cambodian development
Subcribe: Asean Affairs Global Magazine
• Indonesian coal powers project in Vietnam Asean Affairs Premium
• JCI moves into new territory
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Laos first private airline readies takeoff
• Malaysian rally brings KL lockdown
• UN promotes reproductive health in Philippines
• Tourism sector concerned about wage increases
• Business questions growth goals

Asean Analysis    10  July  2011

Advertise Your Brand
• WEEKLY SUMMARY Sponsor Our Events

Asean Stock Watch    July  2011 

• Asean Stock Watch-June 8 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2021 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand