Thailand has been adding up the economic cost of ongoing political strife in the capital which has paralysed the central city shopping and tourist areas.
According to a survey by the University of the Thai Chamber of Commerce (UTCC), the mass rallies by red shirts at Ratchaprasong intersection and Ratchadamnoen Avenue have resulted in 60-90 billion baht in lost revenue – mainly for hotels, department stores and the tourism sector.
Several hotels and shopping malls in the area have been forced to close due to the demonstrations and fears of further violence.
UTCC added that the protest would cut the country’s gross domestic product by 0.4-0.6 percent. That figure would rise to 0.6 percent to one percent lower economic growth should the protests last another three months, costing the country as much as 140 billion baht.
Thanavath Phonvichai, an economist at the university, urged the government to speed up the disbursement of economic stimulus spending and accelerate aid measures for tourism operators and small and medium-sized enterprises that have been hard hit by the protests.
Imtiaz Muqbil, a Bangkok-based journalist writing for TTR Online, said, “The red shirts’ deliberate and calculated targeting of the tourism sector has politicised, splintered and angered the industry, and will lead to further problems down the road.
“On the positive side, however, there is no doubt that Northeast and upcountry Thailand will become a major focus of marketing and promotional attention in the years ahead.
“It will also lead to stepped up efforts by individual destinations such as Samui, Phuket, Chiang Mai and others to reduce their dependence on Bangkok as a gateway and develop independent accessibility and brand-image.”
Muqbil added, “If there is one lesson to be learnt from this latest crisis, it is that complacency and perpetual optimism are no longer an option.”
Chumpol Silapa-archa, Thailand minister of tourism and sports, and Suraphon Svetasreni, governor, Tourism Authoirty of Thailand, are due to update the outlook for Thai tourism during Arabian Travel Market in Dubai on May 4.
