Bangkok shutdown could cause $4b in damage
The announced “shutdown” of Bangkok by anti-government protesters from January 13 onwards could cause damage for businesses, tourism and investment of $4 billion, the ruling Pheu Thai Party’s economic team claimed on January 2. This is in addition to the estimated $2.1 billion that have already been lost due to earlier protests that started in November 2012.
They said a city seizure would drag the country’s accountability “down to the lowest level” and further reduce already-affected foreign investment. On the Thai stock market, foreign investors have already sold off more than $6 billion worth of shares since the protests began. Others, such as Toyota, have decided to move production bases to other countries.
Businesses are now starting to panic. Both the Federation of Thai Industries and the Thai Chamber of Commerce expressed concerns about the siege, saying that business activities such as banking, retail and tourism will be severely affected. If government agencies are not able to carry out their work, export-import activities would also come to a standstill, which would, among many other things, affect oil and medical supplies.
The two organisations recommended businesses to prepare and stockpile raw materials and fuel.
The Association of Thai Travel Agents said that tourism especially from China would be affected by an extended siege as it would happen during the Chinese New Year holiday period from January 20 to February 1. Forward bookings from Chinese tourists have already dropped significantly, the association said. Meetings, incentives, conventions and exhibitions (MICE) tourism will also likely be affected in the first quarter of 2014. Hotel occupancy rates in Bangkok have dropped up to 25 per cent in what is now supposed to be the high season.
[caption id="attachment_19403" align="alignleft" width="300"] Thailand's mass protest leader Suthep Thaugsuban[/caption] The announced "shutdown" of Bangkok by anti-government protesters from January 13 onwards could cause damage for businesses, tourism and investment of $4 billion, the ruling Pheu Thai Party’s economic team claimed on January 2. This is in addition to the estimated $2.1 billion that have already been lost due to earlier protests that started in November 2012. They said a city seizure would drag the country’s accountability "down to the lowest level" and further reduce already-affected foreign investment. On the Thai stock market, foreign investors have already sold off more...
The announced “shutdown” of Bangkok by anti-government protesters from January 13 onwards could cause damage for businesses, tourism and investment of $4 billion, the ruling Pheu Thai Party’s economic team claimed on January 2. This is in addition to the estimated $2.1 billion that have already been lost due to earlier protests that started in November 2012.
They said a city seizure would drag the country’s accountability “down to the lowest level” and further reduce already-affected foreign investment. On the Thai stock market, foreign investors have already sold off more than $6 billion worth of shares since the protests began. Others, such as Toyota, have decided to move production bases to other countries.
Businesses are now starting to panic. Both the Federation of Thai Industries and the Thai Chamber of Commerce expressed concerns about the siege, saying that business activities such as banking, retail and tourism will be severely affected. If government agencies are not able to carry out their work, export-import activities would also come to a standstill, which would, among many other things, affect oil and medical supplies.
The two organisations recommended businesses to prepare and stockpile raw materials and fuel.
The Association of Thai Travel Agents said that tourism especially from China would be affected by an extended siege as it would happen during the Chinese New Year holiday period from January 20 to February 1. Forward bookings from Chinese tourists have already dropped significantly, the association said. Meetings, incentives, conventions and exhibitions (MICE) tourism will also likely be affected in the first quarter of 2014. Hotel occupancy rates in Bangkok have dropped up to 25 per cent in what is now supposed to be the high season.
