Finance Ministry to help offset economic aftermath of anti-government protests

BANGKOK, April 19 (TNA) – The public-private joint committee’s meeting chaired by Prime Minister Abhisit Vejjajiva on Monday concluded that the Ministry of Finance is to find measures to lessen effects on the economy and well-being of entrepreneurs and employees around the capital’s commercial and shopping area at Ratchaprasong caused by the anti-government Red Shirts’ prolonged protests.

Federation of Thai Industries (FTI) chairman Santi Vilassakdanont said after the meeting that the premier wanted to be informed of how much each group of businesses and employees have been affected by the protests in Bangkok’s prime business area, Ratchaprasong intersection, so that the government could find measures to cushion the related impacts.

Prime minister Abhisit has ordered the finance ministry to find measures likely to lessen the effects from the demonstrations on each group of entrepreneurs, according to Mr Santi, adding that the ministry is expected to apply taxation measures to help those affected and the measures will be
forwarded to the joint committee’s meeting next month.

However, Mr Santi said the prime minister conceded the demonstration at Ratchaprasong intersection has caused a loss in revenues estimated about Bt200-300 million (some US$6-9 million) per day for the hotels on location, while around the same amount of money vanished from the tourism sector, and around Bt40-50 million ($1.25-1.5 million) for small- and medium-enterprises. Mr Santi added that the estimated losses have not yet included many other indirect impacts concerning the matter.

Meanwhile, Prime Minister’s Office vice-minister Puttipong Punnakan cited the private sector’s report at the meeting that organised tours to Thailand have been cancelled and around only 30 per cent of the checkin ratio were seen for the overall numbers of room availability due to the prolonged protests and April 10 clashes between the Army and protesters

An estimation says the number of foreign tourists in 2010 would drop to around 12-13 million, lower than the previously expected target of 15.5 million this year.

The sectors most affected from the continuing protests are airlines, hotels, public transport, restaurants, souvenir shops and tour guides.

The private sector estimated that if the demonstrations were prolonged to three months, the impacts would be on Thailand’s consumption to the country’s Gross Domestic Product (GDP) of Bt20-30 billion as well as on direct investments to the GDP of around Bt10-20 billion, and on tourism of Bt40-50 billion. The country’s gross domestic product (GDP) is likely to drop by 0.3-0.5 per cent (below the Fiscal Policy Office’s 2010 growth forecast of 4.5 per cent), while Finance Minister Korn Chatikavanij said his year’s GDP could shrink by 1-2 per cent. (TNA)