Car bombs to cause Songkhla Bt1.5-Bt2.6bn
Songkhla lost over Bt800 million in tourism revenue during the Songkran Festival, following the car bombs which led to loss of lives and injuries, according to the Bank of Thailand's Southern Regional Office.
The bombs went off at the end of March, when all were prepared for the water festival which started on April 12.
Pruettipong Srimachand, senior director at the office, said that if the business recovers in three months, the economic impact from the bomb is estimated at Bt1.5 billion. But if the impacts continue for six months, loss could amount to Bt2.6 billion.
Still, the province's overall economy remains strong, given that the hotel sector accounted for only 7.8 per cent of the economy. The agricultural and manufacturing sectors generate 31.9 per cent and 12.7 per cent, respectively, to the provincial economy.
The office also reported that the southern economy witnessed decelerating growth in the first quarter of this year, due mainly to lower output of para rubber and palm oil. On tourism, travel warnings from a number of countries on terrorism threats in the Deep South as well as the economic crisis in Europe resulted in a drop on tourist arrivals.
Pruettipong expected the agricultural and manufacturing sector to stage recovery in the second quarter, thanks to persistently high prices of para rubber and palm oil. This will spur consumption, particularly in property purchases. Hat Yai, Songkhla, was a new development centre.
