This Article is From May 21, 2010

Thailand counts its colossal losses

Bangkok:
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Bangkok seems to be slowly inching back towards some sort of normalcy, but the scars aren't going to fade too quickly. As parts of Bangkok came back to normal on Friday, the worst hit by the violence is the tourism industry.

"Ladies and gentlemen, we have restored order in the capital of Bangkok, and the provinces of Thailand. We have been able to do this with the cooperation of government officials, volunteers and of course the people of Thailand," said Abhisit Vejjajiva, Thai Prime Minister.

"They say the situation is very bad, I am not sure of what's going on. Some Europeans have cancelled. They don't like this situation mostly. Some Asian people come, but not too much. Just five per cent," said Alamin, travel agent.

Many Indian tourists have also cancelled - or postponed their visits. Last year, six lakh Indians came to Thailand.

"India is a very important market for Thailand.We get about six lakh Indian visitors every year. This year we are certain we are going to lose a big chunk of these visitors," said Satish Sehgal, Advisor to Thai Commerce Minister, President India-Thailand Business Council.

The Thai tourism authority has slashed its target for this year by nearly three million - a huge hit, because tourism accounts for six per cent of Thailand's GDP, and at least 15 per cent of the workforce.

The Red shirts chose their targets carefully. All symbols of wealth and power - banks, shopping malls and hotels.

And apart from an immediate setback to tourism, there are fears things could get worse for the economy, if the unrest simmers.

"If this is a signal of worse times to come, and if you buy into the scenario that things will get worse not better, then an investor who is making an investment decision now will think twice because they have places like Vietnam and Indonesia to choose from," said Nirmal Ghosh, Straits Times.

Although Bangkok has a history of military coups, and gun battles, residents say the past week's events are unprecedented.

"Many people need to come in because the heart of Thai people is not bad. I think there will be no problem next time," said a Bangkok resident.

In due time, the Thais may well be able to put a number of on the economic cost of this violence, but the bigger battle will be to overcome what's now clearly a deep political divide, before more damage is done. 
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