Blow to tourism far worse than in 2008

The outlook for Thailand?s tourism industry is now even bleaker after Wednesdsay?s riots, with the industry now braced for worse losses than from the yellow-shirt airport blockade in late 2008.

?I think it will take time to revive the image of Thailand and build confidence among foreign tourists. The impact is worse than the airport closures in late 2008,? said Kongkrit Hiranyakit, president of the Tourism Council of Thailand.

He now expects Thailand to only attract 13 million foreign tourists this year, a drop from an earlier projection of up to 16 million.

At the start of this year, the outlook for Thai tourism brightened with global and local economic rebound. The target of 16 million visitors was a 23% rise from last year, when the sector plunged into a deep slump. But the forecast was trimmed to between 12.7 million and 14 million visitors after a deadly clash between red-shirt protesters and the military on April 10.

The second revision to 13 million follows the seizure of protest areas by the military, which triggered violence and arson in Bangkok on Wednesday. ?A lot of foreign tourists have already cancelled their trips as they don?t feel safe to come to Thailand. The business losses are beyond our expectation now,? said Mr Kongkrit.

The Thai tourism industry is already estimated to have lost 66 billion baht and the toll is forecast to hit 120 billion baht.

Chumpol Sipa-archa, the tourism and sports minister, said the government would launch a rehabilitation plan for the whole country to contain the impact of unrest and regain the confidence of foreign tourists, organisations and businesses.

Finance Ministry Korn Chatikavanij will play a vital role in implementing a rehabilitation plan, which will include the tourism industry, said Mr Chumpol. The Tourism Authority of Thailand is currently estimating damage and introducing emergency plans.

The tourism ministry is seeking financial support from the SME Bank of 5 billion baht to help tourism entrepreneurs and 1.6 billion to restore the industry?s battered image.

Mr Chumpol conceded that the rehabilitation plan ? due to run from June to September ? may be unable to win back visitors for the high season in the last quarter of the year. Political violence and arson attacks have demolished the country?s tourism image, he said.

Akapol Sorasuchart, the president of Thailand Convention Exhibition Bureau, had said previously that the agency expected to lose 13 billion baht in revenue due to the clash on April 10. But the likely cost of the unrest has now risen further.

Sourced=Bangkok-Post