In April, 335,800 tourists passed through northern airports, a rise of 1.7 per cent on the same period last year. The year-on-year increase between 2004 and 2005 was 13.7 per cent.

The slowdown is partly due to a reduction in the number of flights to Mae Hong Son and Phitsanulok by some airlines.

The central bank attributed the slowdown in foreign tourist numbers to people postponing their visits due to concern over political uncertainties. To add to this, Thai tourists have been more cautious about their spending amid spiralling oil prices. However, tourism did show some improvement in April.

The average hotel occupancy rate for April was 45.8 per cent, marginally higher than 45.1 per cent in April last year, while the average price of a room crept up only by 1 per cent to Bt981.50.

Private consumption in the North slowed in April, with some indicators pointing to a marked contraction. Collection of value-added tax rose 15 per cent over April 2005, much lower than the 27.2-per-cent increase in March. The rise was due to a tax hike in the retail and manufacturing sectors, according to the monthly report.

In April, the number of newly registered motorcycles shrank 7.9 per cent compared to the same period last year, compared with a 3.3-per-cent fall the previous month. In addition, the number of registered motor vehicles plummeted by 8.2 per cent, compared to a 0.7-per-cent reduction in March.

Northern private investment has also slowed down compared to both March this year and April last year, due to worries about the political situation and concern over higher production costs from the rising price of building materials.

Land development licences in municipal areas plunged by 34.1 per cent in April, worse than the 18.5-per-cent drop in March. The value of imported engines and parts was down by 43 per cent compared to April 2005.

However, the amount of investment under the Board of Investment's privileges increased by 300 per cent over the same period last year, due mainly to the expansion of existing projects.

According to the Bank of Thailand report, production in industrial sectors has grown slowly in line with investment. Export production in the northern industrial zone was down by 22 per cent. Production of construction materials increased by 11 per cent, compared with a 11.3-per-cent decline in March.

Meanwhile, non-agricultural employment in March fell by 5.3 per cent compared to last year in businesses such as hotels, restaurants, and retail and wholesale outlets. But employment in the agricultural sector continued to rise, registering a 5.6-per-cent increase in the harvest season as there has been no drought.

A 6.52 million-strong labour force was recorded in the region in March, with the unemployment rate standing at 1.2 per cent.

Anoma Srisukkasem

The Nation