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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.

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Published by intima225, 2023-06-01 03:45:29

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

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.

43 A paired samples t-test was also conducted to compare the percentage of foreign customers in the small restaurants before and during the COVID-19 pandemic. Table 11 provides information on the t statistic and p-value for the one-tailed test, which was used to assess the statistical significance of the difference between the two periods. These findings can help us to understand how the pandemic has impacted the percentage of foreign customers who patronized these small restaurant businesses. Table 11 Two Paired Samples t-test: Percent of Foreign Customers Before/During COVID-19 Before COVID-19 During COVID-19 Mean 2.107 1.693 df 74 t Stat 4.741 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 According to Table 11 which presents a t-test for the percentage of foreign customers before and during COVID-19, the result indicates a significant difference between the two periods with a t-Stat of 4.741 (p < 0.001, one-tailed). This finding provides strong evidence that the percentage of foreign customers at these small restaurants before and during COVID-19 was significantly lower. Therefore, it can be concluded that the impact of COVID-19 during the pandemic time significantly reduced the number of foreign customers in the small restaurants. Table 12 presents the results of a t-test comparing the average daily sales before and during the COVID-19 pandemic. The data were collected using Question 12 on the survey instrument, which asked participants to report their average daily sales in the months before the pandemic and during the pandemic. The t-test was conducted to determine whether there was a significant difference in average daily sales before and during the pandemic.


44 Table 12 Two Paired Samples t-test: Average Daily Sales Before and During COVID-19 Before COVID-19 During COVID-19 Mean 2.107 1.453 df 74 t Stat 7.257 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 The t-test was conducted using a one-tailed test with a significance level of .05. The results indicated a significant decrease in average daily sales during the pandemic as compared to before the pandemic, with a t -Stat= 7.257 and p < .001, one-tailed. Lastly, Table 13 presents the results of a t-test analysis comparing the availability of take-out and delivery services before and during the COVID-19 pandemic. This data was collected and analyzed to better understand the impact of the pandemic on the food delivery service of small restaurant businesses and to identify trends in consumer behavior during this time. Table 13 Two Paired Samples t-test Comparing Take-Out and Delivery Service Availability Before and During COVID-19 Before COVID-19 During COVID-19 Mean 1.680 3.400 df 74 t Stat -18.667 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 The findings in Table 13 provide strong evidence of the significant impact of COVID-19 on the availability of take-out and delivery services, with a p-value less than 0.001. Prior to the


45 pandemic, none of the respondents reported using delivery service apps (such as Gojek, Food Panda, or Grab Food), and 47 out of 75 respondents indicated that they preferred a half dininghalf take-out approach. However, during the pandemic, there were no respondents who reported dining in at restaurants, likely due to COVID-19 restrictions, and 36 business owners reported using delivery service apps. These results highlight the drastic shift in consumer behavior and small restaurant business practices in response to the pandemic. Part 4: Interrelationships between Small Restaurant Operation Variables Before and During COVID-19. The relationships between variables for Small Restaurant Operations before COVID-19 and During COVID-19 were assessed in terms of the approximate Number of Total Daily Customers (Question 10); Percentage of Foreign Customers (Question 11); Average Daily Sales (Question 12); Availability of Take-out & Delivery Services (Question13). The following abbreviations for variables were used in the analysis and interpretation of data and results. X1 Total daily customers Before COVID-19 X2 Total daily customers During COVID-19 X1.1 Percentage Foreign Customers Before COVID-19 X1.2 Percentage Foreign Customers During COVID-19 X2.1 Average Daily Sale Before COVID-19 X2.2 Average Daily Sale During COVID-19 X3.1 Availability of Take-out & Delivery Services Before COVID-19 X3.2 Availability of Take-out & Delivery Services During COVID-19 Y Small Restaurant Operation


46 The correlation coefficients between variables related to small restaurant operation before and during the COVID-19 pandemic are presented in Table 14 The table includes data from a sample size of 75 small restaurant owners, with a focus on identifying any significant relationships between key variables. The purpose of this table is to examine the impact of the pandemic on small restaurant operations and to explore the interrelationships between various operational factors. Table 14 Correlation Coefficients between Variables for Small Restaurant Operation before COVID-19 and During COVID-19 (N=75) X1 X2 X1.1 X1.2 X2.1 X2.2 X3.1 X3.2 Y Total daily customers Before COVID-19 (X1) 1 Total daily customers During COVID-19 (X2) 0.171** 1 Percentage Foreign customers Before COVID-19 (X1.1) -0.037** -0.156** 1 Percentage Foreign customers During COVID-19 (X1.2) -0.024** 0.097** 0.373** 1 Average Daily Sales Before COVID-19 (X2.1) -0.092** -0.080** 0.253** 0.259** 1 Average Daily Sales During COVID-19 (X2.2) -0.028** -0.036** 0.086** 0.283** 0.200** 1 Availability of Take-out & Delivery Services Before COVID-19 (X3.1) -0.166** -0.055** 0.275** 0.243** 0.433** 0.239** 1 Availability of Take-out & Delivery Services During COVID-19 (X3.2) 0.069** 0.078** -0.096** 0.027** -0.160** 0.177** 0.064** 1 Small Restaurant Operations (Y) 0.313** 0.234** 0.422** 0.557** 0.507** 0.465** 0.492** 0.161** 1 *p< .05; **p<.01 The data provided in the Table 14 relates to small restaurant operations and consists of eight variables: two variables related to the total number of customers (X1 and X2), two variables related to the percentage of foreign customers (X1.1 and X1.2), two variables related to average daily sales (X2.1 and X2.2), and two variables related to the availability of take-out and


47 delivery services (X3.1 and X3.2). The dependent variable, Y, represents the small restaurant operation. Y represents the small restaurant operation. The correlation coefficients between Y and X1, X2, X1.1, X1.2, X2.1, X2.2, X3.1, and X3.2 are all positive, indicating that small restaurant operations are positively correlated with all the other variables in the dataset. In particular, the highest correlation coefficients are between percentage of foreign customers during the COVID19 pandemic (X1.2) with the Small Restaurant Operation (Y) at a significant level of .01. This means that the small restaurant operation is most strongly influenced by the percentage of foreign customers during the COVID-19 pandemic. If the percentage customer during the COVID-19 reduced, then the Small Restaurant Operation will be decreased (r=.557) The Availability of Take-out & Delivery Services during the COVID-19 (X3.2) had lowest correlation level to Small Restaurant Operation (Y) and was significant at .01 level. If the Availability of Take-out & Delivery Services during the COVID-19 was high, it would have a relatively small effect on the Small Restaurant Operation (r=.161)


48 Chapter 5: Discussion This research studied how fewer foreign customers have impacted small restaurant businesses along Yaowarat Road. The independent variable was fewer foreign tourists after COVID-19, and the dependent variable was effects on Small Restaurant Operations, which were divided into three categories: Effects on Revenue; Effects on Employees; and Effects on Customers. The COVID-19 pandemic has caused an unparalleled worldwide crisis that has impacted millions of individuals globally. The World Health Organization (2020) has reported a substantial effect on public health, with many preventive measures put in place to limit the transmission and control the spread of the virus. These restrictions, which were implemented between 2020 and 2022, have resulted in reduced numbers of tourists, particularly in Thailand, which heavily relies on tourism, particularly at Yaowarat Road (China Town). As a result, small restaurant operations have been affected in terms of revenue, employees, and customers, with fewer foreign tourists during the pandemic. 5.1 Effect on Small Restaurant Operations in Terms of Customers The COVID-19 pandemic has had a profound impact on small restaurant operations worldwide, with a significant decrease in daily customers being reported. The reduction in daily customers is likely due to a combination of factors, including lockdowns, travel restrictions (Aldarhami et al., 2020). This study found that before the pandemic, the majority of small restaurants had between 100-300 daily customers. However, during COVID-19, a substantial reduction in the number of daily customers was reported, with over 60% of small restaurants having less than 100 customers per day, and none reaching the 300 daily customer threshold.


49 5.2 Effect on Small Restaurant Operations in Terms of Revenue The evidence also showed that many small restaurants relied heavily on foreign tourists which caused the “high daily sales” dropped deeply from 22% to 1%. These restaurants saw a significant decrease in their daily sales and revenue during COVID-19 compared with before the pandemic struck. This resulted in decreased profits for most respondents. The pandemic has highlighted the vulnerability of small businesses in Thailand, and the need for them to diversify their customer base and revenue streams. Additionally, it is important for these businesses to have financial resources in place to weather unexpected crises, such as a pandemic. As small businesses are a vital part of the Thai economy, further support from the government and other stakeholders is crucial to help them recover and sustain their operations. 5.3 Effect on Small Restaurant Operations in Terms of Employees The COVID-19 pandemic has had a significant impact on small businesses worldwide, and Thailand is no exception. The pandemic has resulted in a lack of customers for small businesses due to government lockdown regulations and inadequate financial resources to maintain employees and businesses. The survey results show that employees have been the most affected (Mean=3.81). In order to survive, small businesses were forced to lay off employees to maintain operations due to declining income, and some small restaurant owners along Yaowarat Road were unable to pay their debts. In fact, an Asia Foundation report (Parks et al., 2020) revealed that 95% of small businesses were unable to pay debts during the pandemic, which caused them to struggle to survive. Furthermore, several paired samples t-tests were conducted for before and during the COVID pandemic in terms of Total Number of Daily Customers; Percentage of Foreign


50 Customers; Average Daily Sales; and Take-Out and Delivery Service Availability. The study's results showed that there was a significant effect of fewer foreign tourists on small restaurant operations (p < 0.000), and so the alternative hypothesis (H1) would be accepted. This means that the decrease in the number of foreign tourists had a considerable impact on small restaurant operations in the Yaowarat Road area. Thus, the small restaurant owners in the area needed to consider adjusting their business strategies and operations to accommodate the changes brought by the decrease in foreign tourists. For example, they may need to explore new marketing strategies to attract domestic customers or change their menu to cater to the local taste buds. They may also need to look into cost-cutting measures and explore alternative revenue streams to keep their businesses afloat. Furthermore, according to the Bangkok Post, “People who are more motivated than ever to stay home and shop online created the ideal market conditions to fast-track, test, and launch new e-commerce experiences. With this massive shift to online channels, Thai consumers can now enjoy a better selection of products from all categories — both domestic and international” (2021, May 21). Therefore, take-out and delivery services have become good practices to be prepared for future pandemics or similar situations. The increased demand for food delivery during the COVID-19 pandemic, as evidenced by the spike in sales and sustained growth in 2020 and 2021, highlights the importance of having convenient and safe options for obtaining food when faced with restrictions on dine-in services. This trend underscores the need for businesses in the food industry to prioritize and invest in delivery services as part of their preparedness plans for potential future pandemics or similar crises. Overall, the study's results and the acceptance of the hypotheses provided valuable insights into the impact of the decrease in foreign tourists on small restaurant operations in the Yaowarat Road area. It will also provide valuable data that could be used to inform policy decisions aimed at supporting small businesses in the tourism industry during challenging times.


51 Chapter 6: Summary, Conclusions of Research Findings and Recommendations 6.1. Summary of the Study The study "COVID-19: Perceptions of How Fewer Foreign Tourists Impact on Small Restaurant Operations on Yaowarat Road, Bangkok" aimed to investigate how the COVID-19 pandemic and the subsequent decrease in foreign tourism have affected small restaurant operations on Yaowarat Road, Bangkok. The study identified three categories of effects on small restaurant operations, including revenue, employees, and customers. The researchers used a simple mixed methods approach, conducting in-depth interviews with few small restaurant owners on Yaowarat Road and collecting a modest amount of quantitative data using a survey. The study found that before the pandemic, the majority of small restaurants had between 100-300 customers, while during the pandemic, most small restaurants had less than 100 customers. Additionally, the percentage of foreign customers decreased from 49.3% to 9.33%. Furthermore, most restaurants experienced a decrease in daily sales, with many relying heavily on foreign tourists for revenue The t-test revealed significant differences in the Total of Daily Customer, percentage of Foreign Customers, Average Daily Sales, and availability of Take Out & Delivery Service before and during COVID-19, with p-values less than 0.000. Moreover, the Correlation Analysis indicated a decrease in daily customers and average daily sales during the COVID-19 pandemic, while the percentage of foreign customers increased. The availability of take-out and delivery services also decreased during the pandemic. The dependent variable, Y, represents the small restaurant operation and is positively correlated with all other variables, with the strongest


52 correlations seen with the percentage of foreign customers, average daily sales, and availability of take-out and delivery services during the pandemic. In response to the impact of the pandemic, most small restaurants had to adjust their business strategies and operations. For instance, many started offering take-out and delivery services, which was not common before the pandemic. Others used social media to promote their services, and some offered discounts or promotions to attract customers. However, these measures were not enough to fully offset the losses incurred due to the decrease in foreign tourists, resulting in a significant impact on revenue and employee retention. The majority of small restaurants offered foreign cuisine, with Chinese cuisine being the most popular. The restaurant owners had to adjust their operations by reducing their staff and changing their menus to suit local customers' tastes. The study also found that the restaurant owners perceived the government's support and assistance as inadequate, and they hoped for more support in the form of subsidies, tax cuts, and loans to help them survive the pandemic. 6.2. Conclusion of Research Findings The study highlights the significant impact of COVID-19 pandemic on small restaurant operations in Yaowarat Road, Bangkok, due to the decrease in foreign tourism. Also, the study provides valuable insights into the challenges faced by small restaurant businesses in Yaowarat Road, Bangkok during the COVID-19 pandemic. First, the study found that small restaurant businesses heavily relied on foreign tourists for revenue. With the decrease in foreign tourists due to travel restrictions and safety concerns, many small restaurants experienced a significant decline in daily customers and sales.


53 Second, the study revealed that small restaurant businesses had to adjust their business strategies and operations to cope with the impact of the pandemic. Many small restaurants started offering take-out and delivery services, which was not common before the pandemic. Some also used social media to promote their services and offered discounts or promotions to attract customers. Third, the study found that small restaurant businesses had to adjust their menus to suit local customers' tastes. The majority of small restaurants offered foreign cuisine, with Chinese cuisine being the most popular. However, with the decrease in foreign tourists, small restaurants had to cater more to local customers. Fourth, the study highlighted the challenges faced by small restaurant businesses in retaining their employees. Many small restaurants had to reduce their staff due to the decrease in customers and revenue. Finally, the study showed small restaurant businesses’ perception of governmental support and assistance programs. Lower Social Security Contributions and the We Travel Together (Rao Tiew Duay Kan) Programs were deemed the most valuable in helping these small businesses to survive the pandemic. Furthermore, the We Travel Together (Rao Tiew Duay Kan) program is still being extended after the pandemic to help businesses recover from its effects. 6.3. Limitations of the Study This research study was conducted only among small restaurants along one part of Yaowarat Road. Due to the period of the pandemic, it was difficult for the surveyor to approach the owners due to social distancing. This resulted in lowering the number of participants who were willing to answer the questionnaire. Since the data was collected from only one


54 neighborhood in Bangkok, these results may not apply to small restaurant businesses in other parts of Thailand, or those in neighboring countries. Another limitation of the study is that the data collected was self-reported by the restaurant owners, which may have introduced some bias or inaccuracies in the responses. Additionally, the study did not take into account the perspectives of customers or employees, who may have different experiences and perceptions of the impact of the pandemic on small restaurants. Furthermore, the study only focused on the impact of decreased foreign tourism on small restaurant businesses and did not consider other factors such as changes in local consumer behavior or the effects of government policies and regulations. Future research could examine these other factors in more detail to provide a more comprehensive understanding of the challenges facing small restaurants in times of crisis. Finally, the study was conducted during a specific time period and under specific circumstances, and therefore the findings may not be applicable in the long term or in different contexts. As such, caution should be exercised when generalizing the results of this study to other situations or populations. 6.4. Recommendations for Future Study 1. For future studies, the post-recovery stories of how small restaurants are recovering from the pain of COVID-19 can be explored. 2. The results of this study showed that a reduction in the number of foreign customers caused a major impact on the small restaurants’ operations. Thus, future research could look for a way to balance Thai and foreign business customers to cope with other tragic situations similar to COVID-19.


55 3. The result of this study provides information about how restaurant managers viewed the effectiveness of government support programs. This may provide direction for what types of government intervention should be considered in similar future situations. And the restaurant owners can use the findings to comprehend the magnitude of the impact of reduced foreign customer numbers on the small restaurant industry and to identify potential approaches to alleviate the adverse consequences.


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63 APPENDIX A SURVEY QUESTIONNAIRE COVID-19: COVID-19: Restaurant Owners’ Perceptions of How Fewer Foreign Tourists Have Affected Small Restaurants Operations on Yaowarat (เยาวราช) Road, Bangkok This survey questionnaire is used for studying the perception (s) of how fewer foreign tourists have affected small toward small restaurants operation to find out the relationship between the reducing number of tourism and small restaurants operation in Yaowarat Road, Bangkok and also find out the restaurant owner’s perception about it. ***Do you agree to conduct the survey within your consent to be obtained? ❏ Agree ❏ Disagree Section I: Personal Information (Check one box for each section) Instructions: Please consider whether the following statement is relevant. 1. Gender 2. Age 3. Academic 4.Marital Status ❏ Male ❏ Female ❏ <30 ❏ 31-40 ❏ More than 41 ❏ Elementary/Lower ❏ High School/Equivalent ❏ Diploma/Equivalent ❏ Bachelor/Equivalent ❏ Higher than bachelor’s degree ❏ Single ❏ Married ❏ Widowed/Divorce/Separated


64 5. How long the restaurant has been in operation ❏ Less than 2 years ❏ 2 - 5 years ❏ More than 5 years 6. How long the restaurant has owned the restaurant ❏ Less than 2 years ❏ 2-5 years ❏ More than 5 years Section II: Questions about small restaurants operations Instruction: Please check the most suitable answer(s) to each of the following items. 7.The time your restaurant opens ❏ Only Breakfast ❏ Only Lunch ❏ Only Dinner ❏ Whole day ❏ Others_________________ 8. Number of employees working at your restaurant ❏ Less than 5 ❏ 5- 15 employees ❏ 16-20 employees 9. Menu Selections ❏ Focus mainly on Thai Cuisine: (e.g., Tom Yam Kung, Som Tam, Pad Thai, etc.) ❏ Focus mainly on foreign Cuisine (Check all that apply) ❏ Chinese cuisine ❏ Indian cuisine ❏ Western cuisine ❏ Other__________________ (please specify)


65 10.The approximate number of total daily customers 1. Before COVID-19 2. During COVID-19 ❏ Less than 100 ❏ Less than 100 ❏ Between 100-300 customers ❏ Between 100-300 customers ❏ More than 300 ❏ More than 300 11. What percentage of customers were foreign? 1. Before COVID-19 2. During COVID-19 ❏ 25% or less ❏ 25% or less ❏ 26 – 50% ❏ 26 – 50% ❏ 51% or more ❏ 51% or more 12. How much is your average daily sales? 1. Before COVID-19 2. During COVID-19 ❏ Low average daily sales ❏ Low average daily sales ❏ Medium average daily sales ❏ Medium average daily sales ❏ High average daily sales ❏ High average daily sales 13. Availability of Take-out and Delivery Services Before COVID-19 During COVID-19 ❏ Dining at restaurant only ❏ Dining at restaurant only ❏ Half dining and half take out ❏ Half dining and half take out ❏ Take-out only ❏ Take-out only ❏ Using delivery service application (Gojek, Food Panda, Grab, etc.) ❏ Using delivery service application (Gojek, Food Panda, Grab, etc.) 14. What strategies have you used to compensate for the loss of customers? (Check all that apply) ❏ Changed the menu to attract more customers. ❏ Used an application(s) to attract more orders from customers. ❏ Added more take-out options. ❏ Added more delivery services. ❏ Opened another business/job to make up for the lost income ❏ Others__________________ (please specify)


66 Section III: Questions about impact (please check only one) 15. To what extent have the following government regulations impacted your business operations? Please check the impact level for each regulation. 1. In-house Dining Limits (Social Distancing) 2. Early Closing Hours (Curfews) 3. In-country Travel/ Movement Restrictions 4. Foreign Tourist Entry Restrictions ❏ No impact ❏ No impact ❏ No impact ❏ No impact ❏ Slight impact ❏ Slight impact ❏ Slight impact ❏ Slight impact ❏ Moderate impact ❏ Moderate impact ❏ Moderate impact ❏ Moderate impact ❏ Major impact ❏ Major impact ❏ Major impact ❏ Major impact ❏ Tremendous impact ❏ Tremendous impact ❏ Tremendous impact ❏ Tremendous impact 16. To what extent have fewer foreign customers impacted the business in terms of revenue? ❏ No impact ❏ Slight impact ❏ Moderate impact ❏ Major impact ❏ Tremendous impact 17. To what extent have fewer foreign customers impacted the business in terms of employees? ❏ No impact ❏ Slight impact ❏ Moderate impact ❏ Major impact ❏ Tremendous impact 18. To what extent have fewer foreign customers impacted the business in terms of the total daily customers? ❏ No impact ❏ Slight impact ❏ Moderate impact ❏ Major impact ❏ Tremendous impact


67 19. How important has home delivery been to your business during COVID-19? ❏ Not important at all ❏ Minor importance ❏ Moderate importance ❏ Major importance ❏ Tremendous importance 20. How helpful have the following government support programs been to your small business during COVID-19? Please indicate the level of helpfulness by checking one answer for each program. 1. Low-interest Loans to Small Businesses 2.Reduced Utility Bills (Electricity & Water) 3.Lower Social Security Contributions 4.We travel together (Rao Tiew Duay Kan) 5.Lower Business Income Taxes ❏ Not helpful at all ❏ Not helpful at all ❏ Not helpful at all ❏ Not helpful at all ❏ Not helpful at all ❏ Helped a little ❏ Helped a little ❏ Helped a little ❏ Helped a little ❏ Helped a little ❏ Helped somewhat ❏ Helped somewhat ❏ Helped somewhat ❏ Helped somewhat ❏ Helped somewhat ❏ Helped a lot ❏ Helped a lot ❏ Helped a lot ❏ Helped a lot ❏ Helped a lot ❏ A tremendous help ❏ A tremendous help ❏ A tremendous help ❏ A tremendous help ❏ A tremendous help


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