BANGKOK • Thailand received no foreign tourists or related spending last month after closing its borders and banning most incoming international flights to fight the novel coronavirus outbreak.

Visitors stranded in the country because of lockdowns around the world were not counted in the numbers, the Tourism Ministry noted in data released yesterday in Bangkok. There were almost 3.2 million arrivals in the same month last year, generating receipts of 146 billion baht (S$6.48 billion).

The latest report is the first to slump to zero in data compiled by Bloomberg stretching back to the 1990s. Incoming international flights are banned up to June 30 and it remains unclear whether visitors will be willing or able to rush back when curbs are lifted.

Tourism accounted for about a fifth of gross domestic product before the pandemic, as holidaymakers flocked to sample azure waters, sandy beaches, gastronomic delights and Bangkok's sometimes infamous nightlife. Chinese visitors were the biggest source of foreign receipts.

The crash in the industry is one reason why the economy is now on course for its worst contraction in about two decades.

The nation remains under a state of emergency but is loosening a partial lockdown in stages to kick-start its economy after virus cases dwindled.

The government has previously said it planned to reopen all businesses within June, although passenger flights remain suspended.

Some provinces have allowed hotels to open their doors again, though domestic tourism is sputtering because of Covid-19 restrictions.

The South-east Asian country has seen a slowdown in locally transmitted cases, and more recent cases have been found among those in state quarantine after returning from abroad.

Globally, air passenger numbers are expected to drop as much as 55 per cent this year, a far steeper slump than previously estimated.

This is according to S&P Global Ratings, which warned yesterday of more rating downgrades for airports over the next few months.

"Air travel will eventually return when current health and safety concerns have been meaningfully addressed by the industry and consumer confidence rebounds, supported by steady historical growth rates in air traffic of 4 per cent - 5 per cent per year," the analysts said.

"A more widespread adoption of remote working and virtual meetings could have a lingering impact on business travel, which has been the more lucrative passenger segment for the airlines."

Cash-strapped Thai Airways International said on Wednesday it has appointed board members as rehabilitation planners in a bankruptcy court submission.

The court accepted the airline's request for bankruptcy protection earlier on Wednesday, setting the first hearing for Aug 17. It gave creditors until three days before then to submit objections.

The court's decision to agree to bankruptcy protection prompted local rating agency Tris to downgrade the airline's senior unsecured debentures to default because the airline was given an automatic stay on debt.

Tris said it would reassess the rating after there is agreement on the rehabilitation plan.

BLOOMBERG