SET performance crimped by violence
Fresh clashes between security forces and anti-government protesters on the outskirts of Bangkok will only increase the pressure on businesses and the Thai economy, particularly the troubled tourism sector, executives say.
Government supporters stage a rally at lunchtime yesterday on Silom Road, as they have been doing daily for the past two weeks. ISSARA BOONYEN
The confrontation, which took place yesterday on Vibhavadi Rangsit Road in northern Bangkok, claimed the life of one soldier and resulted in more than a dozen injuries.
Reports of the clash spurred sharp selling in the stock market and fresh worries among business leaders.
"Tourism promotion and image-making campaigns for Thailand will be useless for the time being, as no one knows when and how the political crisis will end," said Charoen Wangananont, spokesman for the Federation of Thai Tourism Associations (Fetta).
"Thai tourism is already at the rock bottom. No matter what is about to happen, more countries are banning their people from visiting Thailand."
The Tourism Authority of Thailand's latest report stated that 10 foreign countries - Saudi Arabia, Spain, United Arab Emirates, Hong Kong, China, Vietnam, Czech Republic, Taiwan, Germany and the United Kingdom - have advised their citizens against all non-essential travel to Thailand.
The advice reflects growing concerns that widespread violence could break out during the increasingly volatile political crisis.
Thai stocks fell by 1.64% yesterday on fresh concerns about politically related violence and weak global sentiment due to the Greek debt crisis.
The Stock Exchange of Thailand index closed at 749.49 points, down 12.51, in trade worth 18.5 billion baht.
SET president Patareeya Benjapolchai said yesterday's violence would likely deter foreign investors from the local market.
"Net buying will likely slow, despite the growth in the economy, due to political factors. It's something that people are concerned about. If there was no violence, then it would be different," she said.
Voravan Tarapoom, managing director of BBL Asset Management, said foreign investors would definitely pull back from the Thai market due to the political uncertainties.
She expressed concern that further clashes between red-shirt anti-government demonstrators and other protests groups could arise, similar to last week's events when grenade attacks on Silom Road killed one person and injured more than 75.
In a bid to help alleviate the impact of the political crisis, the Commerce Ministry said yesterday that it would set aside at least 30 million baht to hold nationwide trade fairs next month which would mainly focus on small-scale retail operators at the Ratchaprasong intersection who have been affected by the red shirts' three-week occupation of the area.
The trade fairs to be held mainly in Bangkok, big cities and border provinces would allow affected retailers to participate for a minimal charge or for free.
Mr Yanyong said the authorities also pledged to co-operate with major retailers to help cut rental fees or delay rental payments for small-scale retailers who have been hit by the closure of department stores at the area.
Thanapon Tangkananan, president of the Thai Retailers Association, said the rally was costing local retail and wholesale businesses in the Ratchaprasong area about one billion baht a day in lost revenue.
He advised small-sized retailers that are not currently making sales to close their operations for the duration of the protests in the area.
The hardest hit businesses include both the staff and operators of shopping complexes, department stores, small outlets and retailers of perishable goods and general consumer products which have a limited shelf life.
"The government desperately needs to work out relief plans both during and after the protest," said Mr Thanapon. "We expect the impact to drag on for at least a year, particularly for trade and tourism, as several countries have raised their travel advisories to the highest warning level for Thailand."
Relief measures to help small entrepreneurs, employees and vendors affected by the anti-government rallies will be presented at next week's cabinet meeting.
Thailand Trade Representative president Kiat Sittheeamorn said compensation would cover small entrepreneurs, laid-off staff and part-time workers.
From : Bangkok Post
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