COVID-19: PERCEPTIONS OF HOW FEWER FOREIGN TOURISTS HAVE AFFECTED SMALL RESTAURANT OPERATIONS ON YAOWARAT ROAD (ถนนเยาวราช), BANGKOK

Asia-Pacific International University Faculty of Business Administration COVID-19: PERCEPTIONS OF HOW FEWER FOREIGN TOURISTS HAVE AFFECTED SMALL RESTAURANT OPERATIONS ON YAOWARAT ROAD (ถนนเยาวราช), BANGKOK By PHAM NGUYET THAO An Independent Study Submitted in Partial Fulfillment of the Requirements For the Degree of Master of Business Administration Asia-Pacific International University May 2023

i Independent Study Title: COVID-19: Perception(s) of How Fewer Foreign Tourists Have Affected Small Restaurant Operations on Yaowarat Road (เยาวราช), Bangkok Author: Pham Nguyet Thao Independent Study Principal Advisor: Dr. Paluku Kazimoto Muyisa Co-Advisor: Assistant Professor Dr Wayne Hamra Program: International Academic Year: 2022-2023

ii DECLARATION I hereby declare that this Independent Study is my original work and has not been submitted for a degree in any other Institution. SIGNATURE…………………………… DATE………………… NAME: PHAM NGUYET THAO REG NO: This report has been submitted for examination with my approval as the university supervisor. SIGNATURE……………………………... DATE…………………… SUPERVISOR: DR. PALUKU KAZIMOTO MUYISA

iii ABSTRACT The COVID-19 pandemic, stemming from the novel coronavirus SARS-CoV-2, caused a worldwide health crisis that underscored the importance of global health security and prompt responses to emerging infectious diseases. The pandemic has had a deep-seated impact on businesses, and numerous business owners experienced significant suffering as a result. Small restaurant businesses located on the Yaowarat Road area of Bangkok, Thailand, were particularly hard hit by the pandemic. This research study examined the effects of the COVID-19 pandemic on small restaurant operations in this part of Bangkok. The study aimed to understand small restaurant owners' perceptions of the impact of fewer foreign tourists on their businesses. The research methodology included a quantitative survey (n=73) combined with short interviews of some restaurant owners on Yaowarat Road (from the beginning of the road to Soi 15). Statistical tools used to analyze the data included descriptive analysis, paired sample t-tests, and Pearson correlation analysis. The study found that the decline in foreign tourists significantly affected small restaurant operations in the Yaowarat Road area. Many had to lay off employees or reduce their work hours in order to survive, while the availability of take-out and delivery services dramatically increased. These innovations continue even though pandemic restrictions have been lifted. The government programs deemed most helpful to these small businesses were lower social security contributions and the We Travel Together (Rao Tiew Duay Kan) Program. The study's findings offer insights into the challenges small restaurants faced during the pandemic, and the strategies they adopted to adapt to these changes.

iv ACKNOWLEDGEMENTS I would like to express my gratitude to everyone who has contributed to the completion of this research paper. Firstly, I would like to thank the small restaurant owners in the Yaowarat Road area of Bangkok, Thailand, who participated in our survey and shared their valuable insights and experiences with me. I would also like to extend my appreciation to my academic advisors who provided me with valuable guidance, advice, and support throughout the research process. Their constructive feedback and inputs were instrumental in shaping this paper. I am grateful for the assistance provided by my best friend Thanh Truong (also known as Sakhon Waengwan in Thai) in distributing the survey during the challenging period of the COVID-19 pandemic. Furthermore, I would like to acknowledge the contributions of the academic community, whose works have been cited and referenced in this paper. Their research and scholarship have provided me with a strong foundation for my study. Finally, I would like to thank my family and friends for their unwavering support, encouragement, and patience throughout the research process. Their support has been invaluable in enabling me to complete this paper. PHAM NGUYET THAO

v Table of Contents ABSTRACT ............................................................................................................................... iii ACKNOWLEDGEMENTS.........................................................................................................iv List of Images............................................................................................................................ vii List of Tables............................................................................................................................. vii List of Figures............................................................................................................................ vii Chapter 1: Introduction.............................................................................................................. 1 1.1 Background Information .............................................................................................. 1 1.2 Statement of Research Problem..................................................................................... 2 1.3 The Purpose of This Research ....................................................................................... 7 1.4 Research Questions............................................................................................................ 8 1.5 Hypotheses Proposed ......................................................................................................... 9 1.6 Research Instrument.......................................................................................................... 9 1.7 The Scope and Delimitations of the Research ...................................................................... 9 1.8 Benefits to be Derived from the Research...........................................................................10 1.9 Conceptual and Operational Definitions of Variables/Terms ..............................................10 COVID-19..........................................................................................................................10 Tourism .............................................................................................................................11 Small Business....................................................................................................................11 Business Operation .............................................................................................................12 Chapter 2: Literature Review.....................................................................................................13 2.1 Introduction .....................................................................................................................13 2.2 COVID-19 Pandemic Status in Thailand............................................................................13 2.3 Reduced Number of Foreign Tourists................................................................................15 2.4 Small Restaurant Operations.............................................................................................18 Loan Agreement.................................................................................................................21 Electricity and Water Bills..................................................................................................21 Social Security Program......................................................................................................22 Rao Tiew Duay Kan (We Travel Together)..........................................................................22 Lower Business Income Tax ................................................................................................23 2.5 Conceptual Framework.....................................................................................................23

vi Chapter 3: Methodology ............................................................................................................25 3.1 Introduction .....................................................................................................................25 3.2 Research Design................................................................................................................25 3.3 Population and Sampling Frame........................................................................................26 3.4 Sampling Selection Method ...............................................................................................28 3.5 Data Gathering Method ....................................................................................................28 3.6 Data Analysis Plan............................................................................................................29 3.7 Ethical Issues....................................................................................................................30 Chapter 4: Findings and Discussion............................................................................................31 4.1 Introduction .....................................................................................................................31 4.2 Data Analysis....................................................................................................................31 Part 1: Demographic Characteristics of Respondents and Business Operations ........................31 Part 2: Comparing Operations Before and During COVID-19 and Impact on Operations.........35 Part 3: The Impact of Fewer Foreign Customers on Small Restaurant Operations in Yaowarat: A t-test Analysis.....................................................................................................................42 Part 4: Interrelationships between Small Restaurant Operation Variables Before and During COVID-19..............................................................................................................................45 Chapter 5: Discussion ................................................................................................................48 Chapter 6: Summary, Conclusions of Research Findings and Recommendations .........................51 6.1. Summary of the Study......................................................................................................51 6.2. Conclusion of Research Findings ......................................................................................52 6.3. Limitations of the Study ...................................................................................................53 6.4. Recommendations for Future Study..................................................................................54 REFERENCES..........................................................................................................................56 APPENDIX A............................................................................................................................63

vii List of Images Image 1 The Area of Chinatown in Bangkok ................................................................................. 3 Image 2 A Detailed Map of Yaowarat Road in Chinatown............................................................ 4 Image 3 The T&K Seafood Restaurant Before COVID-19............................................................ 5 Image 4 The T&K Seafood Restaurant After COVID-19 .............................................................. 5 Image 5 The Chinatown Scala Shark Fins Restaurant.................................................................... 6 Image 6 Tourist Shopping on Yaowarat Road Before COVID-19................................................. 6 Image 7 The Photo of Yaowarat Road During COVID-19 ............................................................ 7 List of Tables Table 1 The Number of Foreign Visitors to Thailand from 2019 to 2021 by Month................... 16 Table 2 Confidence Levels and Sample Size Calculations for Research Studies......................... 26 Table 3 A Scoring Rubric for Levels of Impact ........................................................................... 27 Table 4 Demographic Characteristics of Small Restaurant Owners (N=75)................................ 32 Table 5 Information about Small Restaurant Operations ............................................................. 33 Table 6 Comparison of Operations Before and During COVID-19............................................. 35 Table 7 The Impact of Government Regulations on Restaurant Operations................................ 39 Table 8 The Impact of Fewer Foreign Customers on Restaurant Operations............................... 40 Table 9 Assessing Government Small Business Support Effectiveness during COVID-19 ........ 41 Table 10 Two Paired Samples t-test for Total Daily Customers Before and During COVID-19 42 Table 11 Two Paired Samples t-test: Percent of Foreign Customers Before/During COVID-19 43 Table 12 Two Paired Samples t-test: Average Daily Sales Before and During COVID-19 ........ 44 Table 13 Two Paired Samples t-test Comparing Take-Out and Delivery Service Availability Before and During COVID-19....................................................................................... 44 Table 14 Correlation Coefficients between Variables for Small Restaurant Operation before COVID-19 and During COVID-19 (N=75)................................................................... 46 List of Figures Figure 1 Tourist Arrivals in Thailand from June-2020 to April 2021 .......................................... 17 Figure 2 Conceptual Framework .................................................................................................. 24

1 Chapter 1: Introduction 1.1 Background Information Nowadays, the COVID-19 epidemic is a hot topic that stimulates people around the world. Results coming from the research of González (2020) indicated that the COVID-19 pandemic was caused by a severe respiratory illness of the SARS-CoV-2 virus and originated in Wuhan, China in December 2019 (González, 2020). Then the outbreak spread worldwide. It appeared in Asian countries first especially those countries that border with China such as Vietnam, Myanmar, Laos; furthermore, countries with shared maritime borders were at risk, such as Japan, Korea, Malaysia. A world health crisis had begun. According to Worldometer (Sep 2021), the total number of COVID-19 cases are increasing continuously. The report on September 2021 indicated that the world has exceeded 225 million cases, deaths exceeded 4.5 million cases and recovery exceeded 200 million cases. More specifically, Thailand has exceeded 1 million cases with deaths having reached more than 14 thousand cases. These numbers have had a serious impact on all businesses. According to Behsudi (2020), tourism is one of the world’s major economic sectors, accounting for 10 percent of total GDP on average before COVID-19 occurred (Behsudi, 2020). “Tourism-dependent countries will likely feel the negative impacts of the crisis for much longer than other economies” (CeylonToday, 2021). The recent data on daily air traffic indicated a drop of almost 80% since January 2020 for countries relying on foreign tourists (Coke-Hamilton, 2020). The latest update from the Word Tourism Organization (UNWTO) in December 2020 stated, “the decline in the first ten months of 2020 represents 900 million fewer international

2 tourist arrivals compared to the same period in 2019 and translates into a loss of US $935 billion in export revenues from international tourism, more than 10 times the loss in 2009 under the impact of the global economic crisis” (Persson-Fischer & Liu, 2021). Many tourist-related enterprises have been faced with significant risks in declining economic viability because the tourism sector shows a high proportion of small - and often informal - enterprises that are more vulnerable to external shocks (Spies & Quan, 2020) The COVID-19 pandemic is a serious global crisis, the impact of the pandemic on the global economy has increased exponentially which has affected business operations both in the short and long term. Since the lockdown, many businesses were struggling and hardly able to survive. One third of small businesses were operating at loss or, if better, they were just at breaking even (McKinsey, 2020). The finding of Bartik et al. (2020) demonstrated the financial situation for small businesses are vulnerable and COVID-19 is a significant factor leading to disruptions (Bartik et al., 2020). In the article “Enduring the Pandemic: Surveys of the Impact of COVID-19 on Thai Small Businesses” (Parks, 2020) revealed that in Bangkok, Thailand, small businesses were striving to survive through this pandemic since the decrease in monthly income fell by an average of around a half for 70 percent of Thailand’s workforce, the probability of risk for shutdown small business was 11 percent (Parks et al., 2020). During COVID-19 pandemic, Asian business owner activity dropped by 26% (Fairlie, 2020). Therefore, they need to respond in a timely manner to this crisis. 1.2 Statement of Research Problem Since the appearance of coronavirus, many organizations of countries declared a state of emergency and asked the people to join hands in combating the epidemic, such as social

3 isolation, quarantine at home, travel restriction, always wearing masks, and using a hand sanitizer. The government of Thailand stated that pubs, bars, and karaoke bars in Bangkok and other provinces in the red zone must close due to the COVID-19 outbreak (Bangprada, 2021). Furthermore, the Thai government mentioned that “when the state of emergency is enforced, the center for the management of the Covid-19 outbreak will be upgraded into the center for the resolution of the Covid-19 emergency situation” Prime Minister Prayut Chan-o-cha said (Bangkok Post, 2020a). Currently, Thailand’s government is trying their best to cope with the pandemic. Moreover, “The Centre for COVID-19 Situation Administration extended the emergency decree nationwide for two months, until May 31, in a bid to curb infections. It is the 11th consecutive extension of the state of emergency since the pandemic” (National, 2021). According to Phoonphongphiphat (2021), in August the Thailand government instituted a strict night-time curfew from 9 p.m. to 4pm. and the maximum restrictions applied in a dark-red zone of 29 central provinces, including Bangkok. Restrictions were introduced to curb crowds gathering and traveling between provinces was limited, especially where high risks existed on account of high case numbers. Image 1 The Area of Chinatown in Bangkok Source: (BMA, 2007)

4 Image 2 A Detailed Map of Yaowarat Road in Chinatown Source: (Bangkok Post, 2019) The Yaowarat Road in the Chinatown area was an especially attractive place for tourism. Many small restaurant businesses were located in Yaowarat Road where foreigners and even Thai local people would love to visit to enjoy the taste of food with a variety of Chinese and Thai cuisine. Since the COVID-19 pandemic occurred, a feeling of emptiness has appeared along Yaowarat Road. Most of the restaurants were closed because of the strict stay- at- home measures for those who lived in Bangkok and also on account of the travel ban. This occurred during the beginning COVID-19, which prevented tourists from over the world coming into the country (Kirdsaeng, 2020). Even though the travel ban was slowly lifted, foreigner travelers were able to come to Thailand within the list of regulations and the Certificate of Entry (COE) they needed to obtain (Royal Thai Embassy, London, 2020). Many complicated processes were needed, as well as regulations to follow, plus the total travel costs to get into Thailand was inflated compared to the price pre-COVID-19. Thus, foreign travelers did not freely come to Yaowarat Road to enjoy the tasty food. Moreover, a business association group estimated that the impact of pandemic COVID19 would cost the tourism business at least 10 billion baht in lost revenue in 2020 (Rojanaphruk

5 & Writer, 2020). Specifically, regarding to the spread of COVID-19 at restaurants in Yaowarat Road, “Mr. Khachit Chatchawanit, Deputy Permanent Secretary for the Bangkok Metropolitan Administration (BMA) urges all restaurants in Yaowarat area to take care of personal hygiene and strictly prevent COVID-19” (Bangkok, 2021). Plus, the owner of the famous restaurant T&K Seafood said: “Before COVID-19, the customers lined up to wait for their queue. But now, every day, we just sit in front of our shop and waving to looking for the single customer” Image 3 The T&K Seafood Restaurant Before COVID-19 Source: Taken by the author (2021) Image 4 The T&K Seafood Restaurant After COVID-19 Source: Taken by the author (2021)

6 Or the owner of Chinatown Scala Shark-fins restaurant said: “There were many Chinese tourists and foreign customers came to enjoy various dishes in our restaurant. But now because of COVID-19, we don’t really have even few customers, which extremely affect my business” Image 5 The Chinatown Scala Shark Fins Restaurant Source: Taken by the author (2021) Therefore, I undertake to conduct a survey of the owners of the restaurants to find out their perceptions on the impact on their operation of fewer foreigners coming during COVID-19 and their opinion about the government restrictions, which make it hard to cope with as well as supportive programs that could help businesses survive during this difficult time. Below are the pictures illustrating the state of reality in Yaowarat Road before and after COVID-19. Image 6 Tourist Shopping on Yaowarat Road Before COVID-19 Source: (Kijthamrongworakul, 2019).

7 Image 7 The Photo of Yaowarat Road During COVID-19 Source: Taken by the author (2021). 1.3 The Purpose of This Research The purpose of the finding was to evaluate the impact of fewer foreign tourists because of the COVID-19 pandemic on the operations of small restaurants along Yaowarat Road in Bangkok. Thus, it will help food business owners somehow to find strategies to cope with the situation. This research study sought to fulfill the following specific objectives. 1. To study how extensively a drastic reduction in the number of foreign tourists because of the COVID-19 pandemic has affected the operations of small restaurants along Yaowarat Road, Bangkok. 2. To investigate the strategies that small restaurant owners along Yaowarat Road have adopted to help their businesses survive. Especially small restaurant businesses

8 1.4 Research Questions As the information above mentioned, during the pandemic there was a reduced number of foreign tourists in Thailand in general and specifically in Yaowarat Road. In order to form conclusions, the following research questions were posed: 1. How significant was the impact of fewer foreign tourists on small restaurant business operations along Yaowarat Road in Bangkok? To evaluate the situation and to enable this question to be answered, a survey questionnaire will be used to collect data on the number of customers the business owner used to serve before COVID-19 (approximate percentage of foreigner customer they had) and how it affected the business in term of customers (number of foreign customers, delivery methods, menu), revenue (daily sales), and employees. 2. Given the reduced number of foreign tourists because of COVID-19 travel restrictions, what strategies did small restaurant owners on Yaowarat Road use to help their businesses survive? For this question, data will be collected regarding the owner’s choice to use a government program (low-interest loans, reduced utility bills, lower social security contributions, We Travel Together, lower business income tax), which supported them in creating their own strategies to help businesses survive. However, other strategies may be used by business owners as well (e.g., data of their choice on food delivery method or finding a second business to support their loss, changing the menu to adopt local food, or other options).

9 1.5 Hypotheses Proposed The information and related research mentioned above, combining with the data from the survey questionnaire, will assist in answering two hypotheses as follows: H0: Fewer foreign tourists have not had a significant effect on small restaurant operations in the Yaowarat Road area. H1: Fewer foreign tourists have had a significant effect on small restaurant operations in the Yaowarat Road area. 1.6 Research Instrument The questionnaire survey consisted of 20 questions that captured the independent variable (Fewer Foreign Tourists after COVID-19) and dependent variable (Effect on small restaurant restaurant operation in Yaowarat Road). Small restaurant owners will be instructed to select only one option when answering questions to provide data on their perceptions. The questionnaire will be assessed for validity (IOC test from qualified experts). 1.7 The Scope and Delimitations of the Research This study is to focus on finding the perception of how fewer foreign tourists have affected small restaurant operations during the COVID-19 pandemic. The investigation will be conducted by the owners of small restaurant businesses to find out their perception of the impact. The survey population of (N=89) of small restaurant owners in Yaowarat Road will be selected from the beginning of the road to Soi 15. Participant owners (73) will be chosen as the owners of small business restaurants and will be asked to fill out the hand-out survey on June, 2021 with the data being collected after 10 minutes (Kibuacha, 2021). The survey will be translated into Thai translation to prevent a language barrier developing. The reason for choosing small

10 restaurants in Yaowarat Road was that this is an attractive area for foreign backpacks and tourists to come to enjoy the food and culture. Since the lockdown, this area has been badly affected. Thus, the owners of the small restaurants in this area are vulnerable. This study does not cover other small businesses such as souvenir shops or junk food shops, etc. The delimitation is that the study will be conducted only in the Yaowarat Road area and is therefore not representative of conditions affecting restaurants in other locations. 1.8 Benefits to be Derived from the Research The study findings can be used by the start-up of small business and other owner restaurants. Also, it can benefit tourists who want to know about the current situation of Yaowarat Road or researchers who want to know what is the impact that fewer foreign tourists caused for small restaurant operations in Yaowarat Road. Due to the lack of reliable postpandemic data, this research was limited. As soon as actual data are available, more accurate calculations can be made, and theoretical research can be verified. Thus, there are enough opportunities for further research aimed at obtaining data on the reduction of numbers of tourists on the post- pandemic impact on small restaurant businesses in Yaowarat Road, Bangkok. 1.9 Conceptual and Operational Definitions of Variables/Terms COVID-19 COVID-19 is a coronavirus called SARS-CoV-2 pandemic, the name of COVID-19 stands for "coronavirus disease 2019,” which also was considered as a global health crisis on 2019 forward (UVAHealth, 2021). This disease was considered as a pandemic: and epidemic that has spread over several countries or continents, usually affecting a large number of people (CDC, 2020).

11 Since there were many Corona cases, “an immediate national lockdown was instituted in Thailand, which protected Thailand citizens from COVID-19” (Dechsupa et al., 2020). “Countries around the world have taken drastic measures, including border closures, in an attempt to curb COVID-19” (Aljazeera, 2020). Tourism Tourism is a phenomenon involving the combining of social, cultural and economic activities when people travel to countries or places outside their common environment for their own personal interest or business (UNWTO, 2018). Those people are called tourists and tourism involves their activities, leisure and expenditure undertaken at their destination for not more than one consecutive year (Sina Mousavi et al., 2016) Attractive destinations will lead to a high demand from customers, which means they undoubtedly will spend more on their activities there (Andreis & Carioni, 2019). The findings of Amarittakul (2007) showed that international tourists were attracted to visit Chinatown at Yaowarat Road primarily to sample Chinese cuisine (Amarittakul, 2007). Also, based on our research and market interviews with hotels in the area, the number of tourists visiting Chinatown has sharply increased over the past few years. Thus, hoteliers in the area foresee that Chinatown will be reinvented over the next five years (Barnett, 2018). Small Business Small business is defined as a privately owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than a corporation or regularsized business” (ASQ, 2021). “Depending on your industry, a small business could be defined as a business with a maximum of 250 employees or a maximum of 1,500 employees” (McIntyre,

12 2020). However, there are small businesses employing with fewer than 20 people, as defined by The Australian Bureau of Statistics (ABS) (Gilfillan, 2015) (e.g., street food was born to give eaters quality, affordable and different fast food). For the purposes of this study, the maximum number of employees in order for a restaurant to be considered a “small business” is less than five to twenty employees. Business Operation Business Operation is “the work of managing the inner workings of your business so it runs as efficiently as possible. Whether you make products, sell products, or provide services, every small business owner has to oversee the design and management of behind-the-scenes work” (Kiisel, 2015). Everything that happens within a company to keep it running and generating revenue is referred to collectively as business operations (Khattak, 2019). For example, according to TopTravelFoods, Before the T & K Seafood restaurant opened, the staff were already preparing and cleaning the seafood. But once the restaurant is open, the team grills seafood at the fastest pace you can imagine. Because of this, food is served quickly (Beijers, 2021).

13 Chapter 2: Literature Review 2.1 Introduction This chapter presents a theoretical and empirical literature review (newspaper, updated reports, related journal article, regulation guidelines, etc.) regarding the significant impact with fewer tourists on small business operations along Yaowarat Road. The chapter also presents a research gap and summary of literature review. 2.2 COVID-19 Pandemic Status in Thailand According to the Ministry of Public Health on 13 January 2020, Thailand reported the first COVID-19 disease appearing in Wuhan, China. It subsequently spread out to other cities of China (World Health Organization, 2020) and then to foreign countries such as the United States, India, Korea, Japan, Thailand, etc. Patients found abroad carried the virus from Wuhan, China. The World Health Organization announced the coronavirus outbreak in 2019 and brought it international attention on January 30, 2020, with the name Coronavirus (COVID-19), which caused a severe acute respiratory syndrome by the coronavirus 2 virus (SARS-CoV-2) (Sungnak et al., 2020). As for detail, the total cases worldwide are increasing every day. There are several possible ways to spread this disease, it is carried from person to person directly, it can be carried by aerosols within 2 meters of an infected individual. This is especially the case if the person sneezes in public without a mask (CDC, 2020). This way of spreading is similar to the way flu and other respiratory infections are spread (WHO, 2020).

14 For the person infected with SARS-CoV-2, the virus will multiply quickly inside the patient body to produce millions of copies of it. Normally, the virus will stay alongside your lung and other organs, particularly in moist areas such as inside your throat and nasal cavity. Thailand is a country that has implemented an effective policy to help keep people safe and slowly return people to ordinary life during the epidemic season. In order to minimize the spread of COVID-19, we must maintain a distance from other people by avoiding physical contact directly, such as shaking hands, hugging, close communication, etc. or touching objects in public places (Nilsen et al., 2020). There are other ways to restrict the exposure as well as the transmission of COVID-19 by closing schools, shops, restaurants, bars and prohibiting crowded gatherings in public events (De Vos, 2020). Several other measures, such as social distancing, home isolation, and self-isolation also are possible preventive steps that can be taken to limit or delay the reproductive rate of SARS-CoV-2 (Aldarhami et al., 2020). There are many practices and regulations about social distancing, but we need cooperation from all people around the world to achieve satisfactory results. Thailand’s government also has active steps to handle the pandemic by strictly putting regulations on foreigners entering the country when they received the report of two of the three active COVID-19 individuals interacting with people in public, which may lead to additional wide-spread outbreaks (Wongcha-um & Thepgumpanat, 2020). Also, restrictions were placed on social activities involving church and religious gatherings in Bangkok until the situation improved (National Thailand, 2020). Later on, Bangkok announced measures to handle the COVID-19 situation on 21st December 2020 that those seafood dealers from Bangkok that interact or communicate with people in infected (Samut Sakhon province) will be tested for the COVID-19 test which included 472 fresh markets. Thailand was faced with a third wave of the

15 COVID-19 with a lockdown being imposed and extended restrictions put in place until the end of August. However, by September, the government revealed additional plans to reopen the economy after reporting a further decline in coronavirus cases. They eased the COVID-19 travel restrictions for foreign tourists (South China Morning Post, 2021). The restaurants reopened for dine-in services until 20.00 hrs without the sale and consumption of alcoholic beverages (TATNEWS, 2021), but they have to maintain a 50% capacity limit for air-conditioned restaurants. Open-air restaurants can serve up to 75% of their seating capacity. Shopping malls, hair salons, foot massage parlors and beauty clinics will also be allowed to reopen. People will also be allowed to travel between provinces (Yuda, 2021). Hopefully, with this plan, it might relieve business owners who have tried hard to survive through this pandemic. 2.3 Reduced Number of Foreign Tourists Lockdowns prevent infected people from interacting with uninfected people and carrying the infection to distant places. The International Civil Aviation Organization (2021) estimated that there was a reduction of 50 percent in domestic passenger traffic globally while international traffic fell by 74 percent or around 1.4 billion passengers (UN News, 2021). According to the Association of Thai Travel Agents (ATTA, 2020), international tourists arriving in Thailand as of 20 March 2020, before the COVID-19 struck, was approximately 5,4 million (2019), but in 2020 there was a huge drop of tourists to 565,958, which was almost 10 times compare to the period before COVID-19 occurred (Table 2.3.1)

16 Table 1 The Number of Foreign Visitors to Thailand from 2019 to 2021 by Month Month 2019 2020 2021 January 492,967 409,324 7,694 February 489,938 114,273 5,741 March 549,587 31,719 6,737 April 455,289 0 8,529 May 382,116 0 NA June 416,204 0 NA July 453,613 0 NA August 444,347 0 NA September 391,619 0 NA October 408,759 1,201 NA November 450,945 3,065 NA December 439,912 6,556 NA Total 5,375,296 565,958 28,701 (Source: Association of Thai Travel Agents) (ATTA, 2020)

17 Figure 1 Tourist Arrivals in Thailand from June-2020 to April 2021 Source: Ministry of Tourism & Sports, Thailand (Trading Economics, 2021) The COVID-19 pandemic has affected peoples’ lifestyles. And because coronavirus threatens lives and livelihoods, the governments around the world have no choice but to impose harsh lockdown precautionary rules on their citizens (Alfawaz et al., 2021). Thailand’s government took active steps to handle the pandemic by limiting foreigners entering the country when they learnt that two of the three COVID-19 cases could arise from interact with an infected person, which may lead to a second wave of the pandemic (Wongcha-um & Thepgumpanat, 2020). Furthermore, on January 2021 the Centre for COVID-19 Situation Administration (CCSA) was asked by the Ministry of Public Health to impose a twenty-eight days’ lockdown restriction to stop the continuing surge of COVID-19 infections on the Eastern provinces of Rayong, Chon Buri and Chanthaburi (Bangprapa & Nanuam, 2021) This lockdown prevented people in infected areas from interacting with uninfected people from outside and particularly restricted movement in and out of these provinces.

18 However, this lockdown regulation also prevents tourists freely traveling between provinces. “Speaking to the Bangkok Post, Anthony Lark said that a nationwide lockdown, or restrictions on domestic travel, would finish off many tourism-related businesses” (Taylor, 2020). However, the government later eased the lockdown and allowed tourists to enter Thailand under strict requirements. They must complete all the paperwork and it’s costly too. “The documents must be ready for inspection by the air operator and include: (1) a fit-to-fly health certificate, (2) a medical certificate with a laboratory result indicating that COVID-19 was not detected, using a RT-PCR method, issued within 72 hours before departure, and (3) travel health insurance that covers COVID-19 medical expenses with a minimum coverage of 100,000 USD or equivalent” (Royal Thai Embassy, 2020). According to the short update 2021, for the first quarter of 2021, the number of tourists arriving in Thailand was 20,712. This number represented a drop of 99.7% compared to 2020 (Thaiwebsites, 2021) 2.4 Small Restaurant Operations The COVID-19 pandemic caused a huge disruption among small restaurants. According to the finding, the total small businesses closing down because of COVID-19 was 43%, which represented a survey involving 5800 small businesses (Bartik et al., 2020). Specifically, in Thailand 90% of firms expected extreme revenue losses and 52% of small businesses were expected to close down if containment measures persisted according to OECD Policy Responses to COVID-19 (OECD, 2020). Other research conducted by Youth Co:Lab, an initiative of UNDP and Citi Foundation, indicated that 88% of entrepreneurs throughout the Asia Pacific mentioned that customer demand was reducing. One fourth stated that their operations had stopped permanently. According to the United Nations Conference on Trade and Development (Unctad),

19 the estimate for the tourism industry indicated that for lockdowns of four, eight, and twelve months would deliver revenue reductions of $1.17 trillion, $2.22 trillion, and $3.3 trillion respectively or between 1.5-4.2% of the world's gross domestic product (GDP) (Bangkok Post, 2020b). And specifically, in Thailand, SMEs are foremost significant drivers of the Thai economy and contribute to around half the country’s GDP. A survey on small and medium enterprises (SMEs) in Thailand in 2021 found that around 61.6 percent of SMEs experienced less income from the COVID-19 pandemic (Thailand, n.d.). Moreover, according to a report on Thailand’s COVID-19 situation by The Asia Foundation, the major disruption from this pandemic is that lack of customers on account of the regulations about lockdown forced by the government and the inadequate financial resources available to maintain employees and businesses (Bangkok Post, 2020d). Such disruptions lead the businesses into debt and to low levels of employees’ retention. From a survey of 143,403 firms unable to pay debts, 95% were small businesses. Furthermore, based on Krungsi Bank research, all businesses need 2,3 trillion Baht to pay debts and small businesses need to have 1,34 trillion Baht to completely repay debts. (Research Team, 2020). Also, the majority of small businesses experienced income declines and, in order to maintain operations, they have no choice but to lay off their employees so that their business is able to survive through this pandemic (Nxpo, 2020). According to the study SME Competitiveness Outlook 2020: COVID-19: The Great Lockdown and its Impact on Small Business (2020), the most common way to deal with COVID-19 in order to help the business survive is reducing employee numbers temporarily. Reducing employees to serve at a restaurant, functions to save employees’ salaries. An additional survival strategy for smaller enterprises is to use social media for online sales during COVID-19

20 (International Trade Center, 2020). Online sales through apps or via a website will assist owners to more easily record transactions recorded (no paperwork needed) and total orders (generate the orders to measure the food ingredient), store customer information (looking for loyal customer), assess the review rate (easily build reputation), offer a less crowded marketplace (hygiene, clean place), and provide an attractive method of delivery (convenience for customer at any location). Besides that, the customer can pay through the application or code on delivery, which prevents the risk of direct communication. In contrast, there are many businesses that have to face many challenges in this situation, but it not only stops there but small businesses such as bars, restaurants, crowded places must follow the regulations of the government. For instance, Public Health measures imposed in response to COVID-19 in Thailand function to restrict movement between provinces (Oxford Policy Management, 2020). If individuals violated the state of emergency, the penalty for that reckless act was imprisonment for up to two years or they have to pay a fine of 40,000 Baht. Especially, if the owner of the small business flouts the rules, they may be imprisoned for up to one year or face a fine of 100,000 baht (Ekvitthayavechnukul, 2021). The government regulations act as bottlenecks for all business, especially, small restaurants that serve the customers directly. Many business firms have been hit hard by COVID-19, especially where cases continue to increase every day. Such situations make small restaurants vulnerable. However, there are various programs available from the government that offer financial support to selected firms, including small business owners, enabling them to cope with the situation.

21 Loan Agreement At the end of April 2020, Thai banks through financial institutions set up some programs to help small business owners such as offering preferential loans worth 500 million baht, levying low bank interest rates (2%), along with which the government undertaking also to pay the 2% interest for the first six months for SME borrowers. However, they must be in the following group: small businesses operating within the country; not publicly listed; currently have no bank debt over 500 million baht; and not having defaulted on any loans for more than 90 days. Additionally, the Government Savings Bank (GSB), and the SME Development Bank both have their own programs with low interest rates made more attractive by loosening the criteria of eligibility for the support of small businesses. Especially, from the SME Development Bank, majority businesses in the field of tourism and restaurants can borrow up to three million baht with 3% interest for a first year (Chicarelli, 2020) Again, in March 2021, the Thai government approved bailouts worth 350 billion baht (11.2 billion dollars) to rescue domestic enterprises to reduce the economic losses due to the pandemic (Medina, 2021) Electricity and Water Bills The relevant utilities announced a 3% reduction in electricity and water charges starting from April to June 2020. For households that used less than 90 units there was no need to pay for supply. If they used between 90 units to 150 units, the first 90 units were without cost. Lastly, if they used more than 150 units, customers paid the same amount as the bill issued last April. Energy authorities are prepared to extend the reduction in monthly charges for electricity since most employees started to work from home due to a COVID-19 third wave. “The number of

22 households and small business owners who will benefit from discounted electricity prices stands at 23.7 million, or 97% of total power users, according to energy officials” (Bangkok Post, 2021a) Social Security’s Program The Social Security Office will reduce the contribution to 4% (from 5%) to help people in financial difficulty during the epidemic period. Furthermore, under Section 33, the Social Security Fund (SSF) will reduce the contribution to 2.5% from 5% for employees. Plus, under Section 39, SSF will reduce the contribution from 432 baht to 216 baht. All of these Sections will take effect from June 1 through August 31, 2021. (Bangkok Post, 2021b). Various government programs give great support to all businesses, especially small businesses in order to help them survive and get through the pandemic. Furthermore, Thailand still plans to reopen the country for foreign tourist to come to Thailand in the fourth quarter of 2021 without quarantine with local vaccination drives in Bangkok, Chiang Mai, Krabi, Ko Samui, Phang-nga, Prachuap Khiri Khan, Phetchaburi, Buriram and Pattaya (Boonkong & O’Connor, 2021). Rao Tiew Duay Kan (We Travel Together) The program of Rao Tiew Duay Kan from the government will support 40% of normal room rate for five million hotel accommodation places. This promotion will be limited to 3,000 baht per night for up to five nights. Thus, a tourist would only pay 60% of the room rate, which would encourage the tourist to travel more and spend more. The tourist will register using the Pao Tang application process and the promotion discount will be transferred by the government by 5pm every day. For flight tickets, tourists will pay 100% of the ticket first then will receive a

23 refund of 40% on 15th and the 30th of the month (Bangkok Post, 2020c). This program may help small restaurants attract more local customers to visit restaurants, which would help owners to survive even though fewer foreign customers visited during COVID-19. Lower Business Income Tax Reduction of Withholding Tax Rates (WHT) ● WHT imposed on payment for services, hire of work, certain commissions, and professional fees will be reduced from 3% to 1.5% for payments made from April 1, 2020, to September 30, 2020. The WHT will subsequently be reduced to 2% from October 1, 2020, to December 31, 2021, if the payment is made via the e-WHT system (Tilleke & Gibbins, 2020) ● Eligible small and medium enterprises (SMEs) can claim a 150% deduction for interest expenses incurred during the period of 1 April 2020 to 31 December 2020 on loans obtained under a funding initiative to provide THB 150 billion in soft loans to SMEs with an interest rate of 2% for the first two years (Tilleke & Gibbins, 2020) ● SMEs employers who meet certain requirements can deduct 300% of eligible salary costs that do not exceed THB 15,000 per month per employee paid to employees in the period from April 2020 to July 2020 for corporate income tax purposes. (KPMG, 2020) These reductions represent a part of the assistance to small businesses as well as small restaurant owners during COVID-19. 2.5 Conceptual Framework In order to evaluate the relationship between fewer foreign tourists after COVID-19 and small restaurant operations based on respondent’s (food owner) perception, two variables were

24 considered in the conceptual framework. Fewer foreign tourists after COVID-19 are the independent variable and the effect on small restaurant operations is dependent variable as illustrated in Figure 2. Figure 2 Conceptual Framework Effects on Small Restaurant Operations Fewer Foreign Tourists during COVID-19 Effects on Employees Effects on Revenue Effects on Customers

25 Chapter 3: Methodology 3.1 Introduction This independent study utilized a quantitative research approach. The small restaurants either rent their premises or are privately owned. If the space is rented to operate their business, the business owner must pay a fixed amount every month to the landlord. In addition, the business owner must pay an approximate amount for operation cost. Lastly, the restaurant owner is directly dealing with customers who came to enjoy their food. Therefore, this study sought to capture the opinions of small restaurant owners about the impact of fewer foreign tourist numbers on their operation during the COVID-19 pandemic. The results of these findings may be useful for researchers who want to conduct further post-pandemic COVID-19 research. The findings may help to evaluate what the relationship is between a reduction in foreign tourists and the financial impact on small restaurant operations and help to identify strategies that helped business owners to survive during COVID-19. 3.2 Research Design A survey questionnaire was used for data collection. It was distributed to restaurants at Yaowarat Road (from the beginning of the road to Soi 15) in person during June. The owners of the small restaurants participated in providing the data. The results were analyzed and combined with information from secondary sources from other authors. The research considered two variables, an independent variable (fewer Foreign Tourists after COVID-19) and a dependent variable (effect on small restaurants operations). The data was used to determine whether a reduction in the number of tourists had a significant impact on small restaurant operations along Yaowarat Road, Thailand.

26 3.3 Population and Sampling Frame The population surveyed for this research were the people who either owned or rented small restaurants along Yaowarat Road (N = 89). I went to Yaowarat Road three times on the 1st , 7 th and 17th of April 2021 and counted the small restaurants shops from the beginning of the road to Soi 15, which is known for a dense variety of cuisines. Sample Size Formula Sample Size= (1.96) 2×(0.5×(1−0.5)) (0.05) 2 1+( 1.96×(0.5×(1−0.5)) (0.05)2×89 ) = 73 Table 2 Confidence Levels and Sample Size Calculations for Research Studies Confidence Level Standard Deviation Z-score 80% 0.20 1.28 85% 0.15 1.44 90% 0.1 1.65 95% 0.05 1.96 99% 0.01 2.58 Source: Sample size calculator for research study (Voxjar, 2020) Table 3 presents a scoring rubric for levels of impact based on the average score range which provides a standardized way of measuring and comparing the impact across different situations. The rubric has five levels of impact, including tremendous impact, major impact,

27 moderate impact, slight impact, and no impact at all. The average score range for each level of impact is as follows: Table 3 A Scoring Rubric for Levels of Impact Average Score Range Level of Impact 4.01-5.00 Tremendous Impact 3.01-4.00 Major Impact 2.01-3.00 Moderate Impact 1.01-2.00 0.00-1.00 Slight Impact No Impact at All There were approximately 73-75 small restaurants active per day in the area selected. The sample included all participants who were owners/renters of restaurants along Yaowarat Road (n = 73) The participants were asked to answer questions regarding: (a) Gender; (b) Age; (c) Academic training; (d) Material Status; (e) Owner of small restaurants in Yaowarat Road. The owners of all small restaurants in the area were selected to be included in the study. The survey was distributed by handing it out to the owners at their restaurant under the 2021 COVID-19 social distance guidelines. Respondents were asked to participate voluntarily and were assured that the researchers did not request or obtain their private information from the survey. The survey questionnaires were designed in both languages, Thai and English with Section I: Demographic Information; Section II Estimates of Foreign Tourist Decline after COVID-19; and Section III Financial Impact on the Small Restaurants Operations. A total of fifteen questions were asked.

28 3.4 Sampling Selection Method The 89 surveys were given to the restaurant owners or food vendors on Yaowarat Road. Before the survey was given out, the researcher confirmed with the owners that the information was for a survey and their identity would not be disclosed. Seventy-five respondents completed the survey, which was sufficient to answer all the stated research questions. My co-helper distributed the survey questionnaire in person to small restaurant owners on Yaowarat Road, and then helped to collect the completed forms about ten minutes later. My friend lived on Yaowarat Road for almost 8 years, which made it easier for us to approach the local restaurants. He was in charge of distributing the surveys and collecting them. Besides that, he is a great help with suggesting the idea of giving away small gifts (hygienic masks, hand wash, and spray alcohol) to participants. We were able to get 75 valid surveys along Yaowarat Road and in the small Sois that intersect Yaowarat Road (expanded the area a bit, but still part of the Yaowarat Road neighborhood). 3.5 Data Gathering Method We worked on the surveys for about 2 and half weeks. The first week, it took him 4 days to distribute the surveys, and he got an average of 9 surveys per day. The second week, it took him 3 days, with an average of 11 surveys collected per day. And the last half week, he accumulated additional data until we had 75 valid surveys. The study involved only a quantitative approach in the collection of data to find out the relationship between the reduction in tourist numbers and the viability of small restaurant

29 operations. All the information related to answering the research questions was collected through a survey questionnaire (see Appendix A). The surveys were submitted after the respondents had filled in all the required information. Section I, with four questions, dealt with personal information such as gender, age, academic, and marital status. Section II was about the reduction in numbers of tourists, involving six questions. And lastly, Section III included six questions related to the small restaurant business operations. The owners participating in the survey were asked to check only one answer for each survey question. 3.6 Data Analysis Plan As mentioned above, this research required use of quantitative data collective techniques via survey questionnaires to gather the information that was needed to answer the research questions. The first question was what was the respondent’s perception about the reduction in the numbers of tourists on the viability of the small restaurant’s operation? The second question was that given the reduced number of foreign tourists because of COVID-19 travel restrictions, what strategies were small restaurant owners in the Yaowarat Road area using to help their businesses survive? In order to answer those questions, the data gathered was analyzed through the use of two applications – Microsoft Excel and statistical analysis using SPSS. Microsoft Excel was used mostly as a major data analysis method to calculate means and to draw graphs, tables, etc. Other methods used to describe various points of view and suggestions were summarized, classified, and organized in the form of tables. Statistical analysis (SPSS) was used to analyze collected data from the survey questionnaires. Answers to these surveys were converted into numbers to enable analysis. The information helped to decide whether we should accept or reject the

30 hypotheses stated in the beginning of the study. Statistical tools for data analysis that were used for this study were: • Descriptive statistics (Mean and Standard Deviation scores) • Percentages • Paired Sample t-tests • Pearson correlation. All the data from the 75 out of 78 surveys (3 errors) were entered one by one into an Excel spreadsheet; after this was done, the frequencies of all the variables were produced. 3.7 Ethical Issues The participants voluntarily participated in this study; permission from the small business owners along Yaowarat Road from the beginning of the road to Soi 15 was obtained before data collection began. Ethical concerns related to the study’s design and survey content were also reviewed and approved by the MBA Committee. The findings of the study may benefit relevant audiences as well as the participants, and no harm or damage will be done in any form. Honesty and confidentiality were the necessary preconditions for the conduct this research study.

31 Chapter 4: Findings and Discussion 4.1 Introduction An important objective of this research was to study the impact of fewer foreign tourists on small restaurant operations in terms of Revenue, Employees, and Customers. The sample group for this study was the owners of small restaurants along Yaowarat Road, Bangkok. The results of the research are presented according to the following order. The Research Results are presented in the following order: Part 1: The demographic characteristics of respondents and business operations. Part 2: Comparison the Operations Before and During COVID-19 and the impact on its operation. Part 3: The Impact of Fewer Foreign Customers on Small Restaurant Operations in Yaowarat: A T-test Analysis Part 4: Interrelationships between Small Restaurant Operation Variables before and during COVID-19: Correlation Analysis of Daily Customers, Percentage of Foreign Customers, Daily Sales, and Take-out/Delivery Services. 4.2 Data Analysis Part 1: Demographic Characteristics of Respondents and Business Operations Table 4 shows that a majority of the 75 owners (or the manager who was authorized for the operations) were male (66.7%), with 33 more than 41 years’ old (44%). Most respondents had a Diploma/Equivalent (54%), and most of them were married.

32 Table 4 Demographic Characteristics of Small Restaurant Owners (N=75) Demographic Characteristics of Small Restaurant Owners N Percent 1. Gender - Male - Female 50 25 66.67 33.33 2. Age - Less than 30 years’ old - Between 31-40 years’ old - More than 41 years’ old 17 25 33 22.67 33.33 44.00 3. Educational Level - Elementary/Lower - High School/Equivalent - Diploma/Equivalent - Bachelor/Equivalent - Higher than bachelor’s degree 2 8 54 11 0 2.67 10.67 72.00 14.67 0 4. Marital Status - Single - Married - Widowed/Divorced/Separated 33 40 2 44.00 53.33 2.67

33 To know more information about restaurant operations, Table 5 shows how long each restaurant had been in operation and owned/managed by the current operators, along with the daily meals served, number of employees, and categories of menu selections. Table 5 Information about Small Restaurant Operations Information about Small Restaurant Operations N Percent 5. The operation times - Less than 2 years - Between 2-5 years - More than 5 years 28 29 18 37.33 38.67 24.00 6. Ownership time length - Less than 2 years - Between 2-5 years - More than 5 years 28 33 14 37.33 44.00 18.67 7. The time restaurant opens - Breakfast - Lunch - Dinner - Whole day 7 7 44 17 9.33 9.33 58.67 22.67 8. The number of employees working at the restaurant - Less than 5 - From 5 to 15 employees - From 15 to 20 employees 23 37 15 30.67 49.33 2.00

34 9. Menu Selections - Thai Cuisine - Foreign Cuisine + Chinese cuisine + Indian Cuisine + Western Cuisine 35 40 36 3 1 46.67 53.33 90.00 7.50 2.50 The most common ownership length time was between 2-5 years (38.67%), and the number of employees at about half of the restaurants was from 5 to 15 employees (49.33%) indicating that they are small businesses. Of these, most restaurants were open only for dinner in the evening (58.67%), while a few were open during breakfast and lunch time (9.33% respectively). For menu selections, a majority (53.33%) of restaurants offered Foreign Cuisine, the most popular of which was Chinese Cuisine (90%). Most restaurants in Yaowarat Road serve Chinese food because Yaowarat Road is also called “China Town”. It’s typically a neighborhood with a high concentration of Chinese residents, immigrants, and businesses. As a result, the restaurants in this area cater to the local community and tourists by offering Chinese cuisine, which is familiar and popular among the population. It reflects the local community's cultural heritage and culinary traditions, and it is popular among both locals and visitors to the area. Normally customers liked to visit Yaowarat Road to enjoy the atmosphere as well as the food at the restaurants, and some customers might take out or use delivery service at their convenience. To present a comparison of various aspects of restaurant operations before and during the COVID-19 pandemic. Table 6 provides information on the approximate number of total daily

35 customers, the percentage of customers who were foreigners, the average daily sales, the availability of take-out and delivery services, and the strategies used to compensate for the loss of customers. Part 2: Comparing Operations Before and During COVID-19 and Impact on Operations Table 6 Comparison of Operations Before and During COVID-19 10. The approximate number of total daily customers 1. Before COVID-19: - Less than 100 - Between 100-300 customers - More than 300 2. During COVID-19: - Less than 100 - Between 100-300 customers - More than 300 18 35 22 47 28 0 24.00 46.67 29.33 62.67 37.33 0 11. The percentage of foreign customers 1. Before COVID-19: - 25% or less - From 26 to 50% - 51% or more 2. During COVID-19: - 25% or less - From 26 to 50% - 51% or more 15 37 23 30 38 7 20.00 49.30 30.70 40.00 50.67 9.33

36 12. The average daily sales 1. Before COVID-19: - Low average daily sales - Medium average daily sales - High average daily sales 2. During COVID-19: - Low average daily sales - Medium average daily sales - High average daily sales 14 39 22 42 32 1 24.00 52.00 29.33 56.00 42.67 1.33 13. The availability of take-out and delivery services 1. Before COVID-19: - Dining at the restaurant - Half dining and half take out - Take-out - Using delivery service apps (Gojek, Food Panda, Grab Food, etc.) 2. During COVID-19: - Dining at restaurant - Half dining in and half take out - Take-out - Using delivery service app (Gojek, Food Panda, Grab Food, etc. 26 47 2 0 0 6 33 36 34.67 62.67 2.66 0 0 8.00 44.00 48.00

37 14. The strategies used to compensate for the loss of customers - Changed the menu to attract more customers - Used the application(s) to attract more orders from customers - Added more take-out options - Added more delivery services - Opened another business/job make up for the lost income - Others____ 9 31 25 10 0 0 12.00 41.33 33.33 13.33 0 0 In terms of total daily of customers before COVID-19, the majority of restaurants (46.67%) served a total of 100-300 customers per day, based on approximate daily customer counts. About one-fourth (24%) of restaurants had less than 100 customers per day. However, during COVID-19, there was a significant reduction in the number of daily customers, as 62.67% of small restaurants had less than 100 customers and unsurprisingly, no restaurants reached the 300 daily customer threshold. The results for the percentage of foreign customers showed the percentage of restaurants with 25% or less foreign customers significantly increased when compared to before the COVID-19 pandemic. Plus, a significant decrease in the percentage of restaurants with 51% or more foreign customers during COVID-19 suggests that businesses may have been struggling to attract foreign customers during this time, potentially due to travel restrictions or a general decrease in international travel. This likely had implications for restaurant businesses that rely heavily on foreign customers, such as those along Yaowarat Road.

38 With fewer foreign customers during COVID-19, the average daily sales during COVID-19 also dramatically declined. Before COVID-19, only 18.67% of the small restaurants had low average daily sales; however, during COVID-19, a majority of 56% of small restaurants had “low” average daily sales, and a very small percentage (1.33%) had “high” average daily sales. With the Availability of Take-out and Delivery Services survey result shows that before COVID-19, at 62.67%of restaurants, about half of the customers dined on the premises, and about half picked up takeout food. Only a small percentage (2.67%) used the takeout option only. None of the customers used applications to book their food. However, during COVID-19, almost half of the customers (48%) used a delivery service application (Gojek, Food Panda, Grab Food, etc.) to order their food, and no customers dined only at the restaurant (0%). In addition, to cope with the COVID situation, restaurants used strategies used to compensate for the loss of on-site customers. The largest number (41.33%) of owners used delivery service applications (Gojek, Food Panda, Grab Food, etc.) to attract more orders; 33.33% added more take-out options, and a smaller number (13.33%) added more delivery services to attract more customers. Somewhat surprisingly, none opened another business or took another job to make up for the lost income. Table 7 presents the impact of government regulations on restaurant operations, and how significantly their businesses were affected by these regulations, specifically in terms of in-house dining limits (social distancing), early closing hours (curfew times), in-country travel/movement restrictions, and foreign tourist entry restrictions. The table provides the mean and standard deviation (S.D.) for each impact, as well as an overall average for the level of impact.

39 Table 7 The Impact of Government Regulations on Restaurant Operations The Impact of Government Regulations Mean S.D. Level of the Impact 1. In-house Dining Limits 3.75 0.44 Major Impact (Social Distancing) 2. Early Closing Hours 3.78 0.62 Major Impact (Curfew Times) 3. In-country Travel/ 3.71 0.61 Major Impact Movement Restrictions 4. Foreign Tourist Entry Restrictions 3.69 0.64 Major Impact Average 3.73 0.58 Major Impact According to the items in Table 7, the average mean score of all regulations related to small restaurant operations were at the major impact level (M=3.73). The early closing hours had the largest impact on business operations during COVID-19 (M=3.78) because many small restaurants sold most of their meals during nighttime. Customers had previously enjoyed dining and socializing with the crowd atmosphere along Yaowarat Road, and foreign entry restrictions also had a major impact (M=3.69). However, this effect was slightly less compared to the others because the Yaowarat Road businesses also serve local customers, too. The level of impact of fewer foreign customers on restaurant operations, specifically in terms of revenue, employees, and total daily customers is presented in Table 8. The mean scores and standard deviation (S.D.) for each impact, as well as an overall average for the level of impact.

40 Table 8 The Impact of Fewer Foreign Customers on Restaurant Operations Area of Operations Mean S.D. Level of Impact Item 16 Revenue 3.80 0.64 Major Impact Item 17 Employees 3.81 0.59 Major Impact Item 18 Total Daily Customers 4.04 0.60 Tremendous Impact Average 3.88 0.61 Tremendous Impact The mean for each impact ranged from 3.80 to 4.04, indicating that fewer foreign customers had a major to tremendous impact on all areas of restaurant operations. The standard deviations ranged from 0.59 to 0.64, suggesting that there was some variation in the impact of fewer foreign customers across different small restaurants. The overall average for the level of impact is 3.88, indicating that fewer foreign customers had a tremendous impact on restaurant operations overall. This suggests that the decrease in foreign customers had a significant and widespread impact on small restaurant businesses during the COVID-19 pandemic. Table 9 presents an assessment of the effectiveness of government support programs for small businesses during the COVID-19 pandemic. The table provides the mean and standard deviation (S.D.) for each government program, as well as an overall average for the level of helpfulness.

41 Table 9 Assessing Government Small Business Support Effectiveness during COVID-19 Government Program Mean S.D. Level of Helpfulness Item 20.1 Low-Interest Business Loans 1.77 0.53 Slight Help Item 21.2 Reduced Utility Bills 1.80 0.57 Slight Help Item 20.3 Lower Social Security Contributions 2.72 1.07 Moderate Help Item 20.4 We Travel Together (Rao Tiew Duay Kan) 2.85 0.78 Moderate Help Item 20.5 Lower Business Income Taxes 2.31 0.57 Moderate Help Average 2.29 0.70 Moderate Help With the results presented in Table 9, the respondents agreed that some programs might have moderate help, namely the We Travel Together Program (Rao Tiew Duay Kan) (M=2.85; SD=0.78), and Lower Social Security Contributions (M=2.72; SD=1.07). The overall average for the level of helpfulness was 2.29, which indicated that the government support programs were perceived as moderate helpful to small businesses during the COVID-19 pandemic. This suggests that while the programs did provide some assistance to small restaurant businesses, they might not have been sufficient to fully mitigate the negative effects of the pandemic.

42 Part 3: The Impact of Fewer Foreign Customers on Small Restaurant Operations in Yaowarat: A t-test Analysis A t-test shows the significance of the impact of fewer foreign customers on the operations of small restaurants on Yaowarat Road in the term of approximate number of total daily customers (Question 9); Percentage of Foreign Customers (Question 10); Average Daily Sales (Question 11); and Availability of Take-out & Delivery Services (Question 13). Table 10 presents the results of a t-test conducted to compare the total daily customers before and during COVID-19. The t-Statistic is 7.288, indicating that the difference in the total daily customers before and during COVID-19 is significant at the 99% level of confidence (p < 0.001). Table 10 Two Paired Samples t-test for Total Daily Customers Before and During COVID-19 Before COVID-19 During COVID-19 Mean 2.053 1.373 df 74 t Stat 7.288 P(T<=t) one-tail 0.000 t Critical one-tail 1.666 P(T<=t) two-tail 0.000 t Critical two-tail 1.993 Out of the 75 small restaurants, 18 reported having less than 100 customers before COVID-19, while 35 restaurants reported having less than 100 customers during COVID-19. The p-value for the one-tailed test was 0.000, which is less than the 0.05 threshold. This provides strong evidence to reject the null hypothesis that there is no difference in the number of total daily customers before and during COVID-19. Thus, the results suggest that the pandemic has significantly affected the number of daily customers in small restaurant businesses.