Hat Yai tourism in trouble

Kasikorn Research Centre says Hat Yai’s inbound tourism, this year, could lose Bt900 million to Bt1.8 billion due to concerns over terrorist activity in Songkhla province.
The centre said two bombings in the province, 6 May, caused an immediate drop in tourism confidence.
“We have evaluated the impact of that incident on foreign tourist arrivals to Hat Yai, concluding that this disaster will probably have a short-term psychological effect, if no other violence takes place.”
The centre based its findings on two scenarios:
If the turmoil settles within the second quarter , this year, Hat Yai will probably lose Bt900 million.
Recovery would be quick. Hat Yai’s inbound tourist market would improve and recover strongly during the third quarter and through to the year-end.
The centre then projected that tourist arrivals for 2014 would be 1.2 million, inching up minimally 0.4% year-on-year. Total revenue would be around B11.1 billion, thus a 5.7% gain year-on-year.
However, if security issues continue into the third quarter, the city’s tourism will lose some Bt1.8 billion.
The bank estimated that the city would welcome around 1.1 million foreign arrivals, this year, down 7.9% year-on-year. Total tourism revenue might then be Bt10.2 billion, down 2.9% year-on-year.
Hat Yai is a popular destination for Malaysians. They represent 75% of all foreign arrivals, followed by Singaporean and Indonesians.
The city’s main appeal is its night life.
Kasikorn Research Centre is a subsidiary company of Kasikorn Bank, which conducts tourism and business research mainly on Thailand’s economy including tourism with reliable recommendations and indicators on business prospects.

Sourced: ttrweekly