Thailand risks losing 200,000 visitors after blasts, TAT fears
THE country could lose up to 200,000 foreign visitors and Bt10.16 billion in tourism revenue this year, the head of the Tourism Authority of Thailand said yesterday, after a series of deadly blasts in tourist towns last week.
The wave of attacks in places including the seaside town of Hua Hin and the island of Phuket is the biggest challenge to an industry that has weathered more than a decade of instability and bounced back from violence over recent years.
Meanwhile, the Stock Exchange of Thailand’s index closed at 1,549.11 yesterday, down 0.23 per cent from the previous closing on Thursday.
TAT governor Yuthasak Supasorn said the attacks could result in long-term losses in terms of tourist revenue and arrivals, mainly from other Asian countries.
“By year-end, there could be about 100,000 to 200,000 travel cancellations,” he said in a statement. “That would cost about Bt5.08 billion to Bt10.16 billion.”
Tourism accounts for 10 per cent of Thai gross domestic product and is one of the few bright spots in an economy that has struggled under the stewardship of a military-led government that seized power in a bloodless coup two years ago.
The Kingdom had been expecting a record 32 million visitors in 2016, with expected revenue of Bt2.41 trillion.
Tim Leelahaphan, Maybank Kim Eng Securities’ Thailand economist, said the tourism sector would probably not be severely affected by the bomb blasts that hit seven provinces last week.
“We cannot say the situation has fully stabilised. Economically, however, it is not the tourist high season, while other destinations will continue to attract tourists,” he said.
He noted that the Erawan Shrine bombing in Bangkok on August 17 last year had only a short-term adverse impact, with tourism affected by no more than one month.
National Economic and Social Development Board secretary-general Porame-tee Vimolsiri said last week’s bombings should not affect economic growth as everything was getting back to normal quickly, while tourism seemed not to be affected yet.
Vichai Assarasakorn, vice chairman of the Board of Trade of Thailand and the Thai Chamber of Commerce, said after soliciting opinions from provincial chambers of commerce nationwide that most were still confident in the Thai economy and not worried by the events.
GDP is still expected to grow by 3 per cent this year, while the acceptance of the draft charter in the August 7 referendum should ensure that the junta will keep its promise and set up a general election next year. As a result, consumers and foreigners will have confidence in the country’s economic growth, he said.
