Blackout wiped out revenue

SURAT THANI, 11 December 2012: The Bank of Thailand estimates that last week’s blackouts on the popular tourist islands Samui and Phangan cost Bt1.2 billion in damages to the local economy.

Bank of Thailand’s branch for the South director, Preuttipong Srimalachan, said the damage was calculated on the estimated of 75,000 tourists who travel to Samui every month and spend about Bt3,200 per day.

“Spending was cut because foreigners cut their holiday short due to the three-day blackout,” he said.

There were other impacts on the local economy as banks closed, hospitals reduced some services and shops had to close.

“Since Samui is a top tourist destination, the problem with its infrastructure will affect tourists and investors’ confidence in the future.”

Whether hotel investors, the main cause of the overload on electricity supply, will reconsider their projects remains to be seen, but the island is grossly overbuilt with infrastructure failing to keep pace.

Provincial Electricity Authority had mobilised 300 technicians to repair the damaged cables and has hired three foreign engineers to study solutions after power was restored on the two islands at 0428 on 7 December.

Surat Thani Chamber of Commerce chairman, Suthat Lertmanorat, said the agency was gathering information to send to the government to seek help in improve the islands’ infrastructure to prevent such problems in the future.

“The government has to pay special attention to these two islands, while the chamber needs to extend its lobbying to more joint committees in Government and the private sectors.”

Earlier in the year, local officials interviewed by TTR Weekly warned power blackouts would become more frequent as demand outstripped supply. They also mentioned the critical shortage of water and a mountain of garbage both the direct result of a  tourism boom.

About 70% or 30,000 tourists cut short or canceled their trips because of the power disruption, causing a shortfall of at least Bt120 million in revenue per day.

“Although the power has been restored, we are not certain the tourists will return. We have to wait for a while to study the situation,” the PEA director said.

Samui Tourism Promotion Association president, Thanongsak Somwong, said the damage caused to the island was unprecedented.

Pha-ngan Tourism Promotion Association president, Wannee Thaiphanit, said power disruption added: “Almost all foreign tourists decided to leave because they were not able to communicate with the outside world.”

Greenpeace Southeast Asia coordinator, Natwipha Eewsakul, said the power failure indicates the state’s inefficiency in energy management given the centralisation of power services and sole dependence on mainland.

She quoted an earlier study by the National Research Council of Thailand on the wind speed along the coastline from Surat Thani to Songkhla provinces, which suggested that harnessing the prevailing winds could generate at least 10,000 megawatts of power.

“It is about time solar and wind energy was developed to generate electricity on the islands to lessen their reliance on power supply from the mainland and help reduce carbon dioxide emission,” she said.

Sourced: ttrweekly