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BUSINESS BRIEF Vol. No. 3, Issue No. 2 • Mid-February/March 2014 Read new business briefs everyday at www.BBBrief.com
2/21/14 11:49
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Teflon Thailand feeling the strain By Hank Vilmes
The protracted political conflict in Thailand’s capital is putting a strain on the Kingdom’s usually resilient economy. More than twenty people have died, and at least seven hundred have been
Inside General Interest 2 Government/Economy 3 Finance/Investment 4 Production 5 Real Estate 6 Retail/Services 8 Tourism 10 IT/Comms 11 The Calendar 14
injured since protests began in Bangkok at the end of November 2013. But as the conflict enters its fourth month, questions are starting to be asked by analysts, investors, business owners, and even by consumers, who realize that the longer this situation continues, the worse off the economy will be. Of course, this is not the first time that anti-government protests have shut down parts of the capital. In 2008, the People’s Alliance for Democracy (PAD), commonly know as the ‘Yellow Shirts,’ occupied Bangkok’s two airports for eight days. And in 2010, the United Front of Democracy Against
Dictatorship (UDD), or ‘Red Shirts,’ occupied parts of Bangkok for over three months, resulting in ninety-one deaths and more than two thousand injured. The economic effects of these two protests were significant, but each time, the Thai economy bounced back.
Many countries have issued warnings to avoid travel to Thailand. According to an industry analyst, Chinese tourists now account for 20% of tourism in Thailand, significantly more than in the past, and they seem to be more sensitive to political unrest. With the protests continuing through Chinese New Year in late January and early February, the effects were immediate, with many tour operators in Hong Kong and Mainland China cancelling all tours to Thailand.
According to the Thai News Agency (TNA), the current political protests have caused businesses to lose over 490 billion baht (US$15.07 billion) in revenue. These losses cut across various in- Last month, the Thai Hotel Assodustries, but certainly tourism and ciation reported that occupancy its affiliated sectors (hotels, air- rates in Bangkok were only 50%, lines, restaurants, and retail) have been hardest hit. Story continues on Page 13
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