Thailand protests crushing for tourism, business and economy

“Thailand loses around three billion baht (US$85 million) a day in goods exports and imports following the closure of Suvarnabhumi and Don Mueang,” said Tanit Sorat, vice chairman of the Federation of Thai Industries.

“Export orders from other countries are likely to disappear since they cannot wait for shipment delays and will buy from our competitors.”

In the long term, he said, Thai exports will suffer as insurance companies will likely increase surcharges to compensate for political risk.

James McCormack of Fitch Ratings said foreign investors “have taken note of the political turmoil.”

Even before the airport closures, exports and investment were already suffering due to the global financial crisis and the long-running protests.

The Thai stock market has fallen about 50 percent since the People’s Alliance for Democracy began its campaign to topple the elected government in May, before taking its protests to unexpected heights last week.

Sandwiched between military-run Myanmar, one-party communist state Laos, and Cambodia — which was gripped by civil war until 1998 — Thailand had been the region’s shining light.

After a coup in 1991 and protests against military rule the following year which left dozens dead, Thailand held elections and although no premier was in the job for very long, a brittle democracy held.

Over the years Thailand turned itself into an economic success story — with the only dark spell during the 1997 Asian financial crisis — billing itself as a key tourism, production and export base.

Then in September 2006 Thaksin Shinawatra — the first premier to serve a full term — was ousted in a coup amid allegations of corruption, heralding two years of turmoil which continues to boil.

The protesters object to the election last December of Thaksin’s allies and have occupied Government House since August before overrunning the airports this week.

Nearby countries have said they are worried about the situation, with Cambodia calling for Thailand to postpone a key summit in December of the Association of Southeast Asian Nations.

But despite the escalating problems, international relations specialist Panitan said the situation should be kept in context.

“Comparing Thailand to Somalia or Darfur should not be appropriate at the moment — we are not a failed state,” he said.

1|2

SharePrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email