Thailand has added three popular beach destinations to a visa program that allows foreign visitors to avoid mandatory isolation, providing a lifeline to the country’s Covid-hit tourism industry, which is seen as critical to the country’s nascent economic recovery.

Starting Tuesday, vaccinated foreign tourists can enter Krabi, Phang Nga, and Koh Samui, in addition to Phuket, under the so-called sandbox program, which does not require them to go through quarantine if they stay for at least a week. Thailand’s relaxed visa policy is yet another attempt to restart its tourism industry as the emergence of the omicron variant causes a new wave of Covid infections. The tourism-dependent country suspended a broader quarantine-free program indefinitely last week to quell a surge in new cases, despite attracting 350,000 visitors in just two months.

Tourists Return

With easier entry rules, Thailand saw an increase in tourist arrivals. While tourist arrivals in Samui are likely to be 50% lower as a result of the sandbox programme, “it’s still better than zero, still better than a total travel ban,” said Ratchaporn Poolsawadee, president of the Tourism Association of Koh Samui. “Because the suspension occurred during peak travel season, the impact on the industry is quite significant.”

Faltering Strategy

The stalled reopening strategy is expected to dampen Thailand’s growth prospects, as the tourism industry contributed nearly a fifth of the country’s economy prior to the pandemic, with 40 million foreign tourists generating more than $60 billion in 2019.

“The emergence of new variants and subsequent border controls, both in Thailand and elsewhere, pose a risk” to Thailand’s tourist arrival estimates and growth, according to Juliana Lee, an economist with Deutsche Bank AG, in a report published Monday. “In fact, it may take years for global tourism to be fully normalized.” It will take time for tourists to gain confidence in traveling abroad – people will be hesitant to travel to distant and unfamiliar locations until they are confident in the efficacy of treatments.”

The resort island of Phuket, which was the first Thai province to waive mandatory quarantine for immunized travelers beginning July 1, is currently dealing with its highest daily caseload since the pandemic began, with approximately 60% of its hospital beds occupied. Local officials, however, have vowed to continue the program, claiming that the island’s healthcare system can handle the resurgence.

Biggest Wave

Over the last three days, Phuket’s daily Covid-19 cases have broken records. “Phuket’s outbreak situation is similar to that of many other countries.” The Phuket Tourist Association’s president, Bhummikitti Ruktaengam, said, “We’re now adding capacity for travelers to isolate in hotel rooms.” “What Thailand did with the suspension and adjustment demonstrated that we were quick to make a decision to limit the damage and made changes as we learned more.”

Covid infections have been on the rise in Thailand following the New Year’s holiday and celebrations, with omicron cases now accounting for the majority of new infections detected upon entry and among local clusters. Thailand reported 7,133 new cases on Tuesday.