Thai tourism sector impacted by political crisis

28 May 2010  2187 | World Travel News

Thailand's political turmoil has had immediate effect on the country's important tourism sector, which accounts for six per cent of GDP.

Figures show revenue from the sector will be down nearly US$4 billion this year.  As Bangkok's residents begin to recover from last week's violence, there are more prayers than ever at the world famous Erawan Shrine.

It escaped any damage even though it is right across the street from the now destroyed Central World shopping mall.  The shrine remained open throughout the duration of the redshirt protests, but there were no dancers. Now they're back - a sure sign that things are returning to normal."

But images of the capital as a war zone have chased away tourists from this once prime destination.  15 per cent of the Thai workforce is employed in the sector and they are struggling.  One Thai worker says: "This year has been the worst ever. Occupying the airport didn't even cause as much damage as this time."

A male souvenir vendor says: "My income has decreased 100 percent and has gone down to zero. I can't even make enough to pay the rent." Another female souvenir vendor adds: "Now, almost no tourists come at all."

Occupancy rates at hotels and serviced apartments are stuck at around 30 per cent across the board, but bookings have started to pick up once again.

Majinder Kaur, general manager, Phachara Suites, Frasers Hospitality, says: "Tourists are just waiting to come back. They are just waiting for countries to lift the ban.

"Our clientele includes business executives who have to be in Thailand anyway because they are working here, medical tourists because they are here for treatment ?The holidaymaker will be a bit slower to bounce back."

The image of Bangkok as a place for fun, food and shopping may be shattered for the foreseeable future.  One tuk tuk driver says: "A few years ago, foreigners were rushing to catch tuk tuks. They liked to go to big malls like MBK, Siam Center, or Siam Square. But now, I have no customers, because most of the major malls were affected."

Although Thailand's tourism industry has made quite a few comebacks from various disasters, this time around, the pain looks set to remain.

The Tourism Authority has cut its target for arrivals this year to 13 million from 15.5 million people and slashed its revenue target by a fifth to US$14.8 billion.
 
Sourced=channelnewsasia

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