Tourism, service hardest hit by red-shirt rally

BANGKOK, 25 March 2010 (NNT) – A survery by the Center for Economic and Business Forecasting (CEBF) showed that tourism and the service sector were most affected by the long-standing red-shirt rally around the area of the capital.

The CEBF of the University of the Thai Chamber of Commerce surveyed views of the current political situation and its impacts with the country’s four main sectors including agriculture, industry, trade and tourism and service. It found that 77.4% of entrepreneurs in service and tourism sector obviously felt negative affects from the protests, while 66.7% from trade, 62.5% from agriculture and 51.7% from industry could feel the impacts too.

Operators from the tourism and service sector said that they could feel the rally taking its toll on every aspect of their businesses – decrease in revenue and export, but increase in cost and debt. Besides, 63.7% of Thai entreprenuers suggested that a dialogue between the two parties should be provided as soon as possible. Other suggestions include no violence enforeced during the protest and thinking of the mutual interest more than one’s own.

CEBF Director Thanawat Polvichai said that so far the country has lost over 7.5-14 billion baht from the political uncertainty, of which 2-5 billion baht came from the tourism and service sector. He warned that the rally could post over 21-38 billion baht if it lasts more than one month. The rally would not cause a dip in daily business transactions, but also destroy consumer confidence and reduce domestic consumption.