But while the debris will clear in a day or two, many of the residents fear life for them may never be the same.

Hat Yai's lifeline has been tourism and related industries for decades, and, but for a couple of relatively minor bomb attacks over the past two years, has been thought to be outside the focus of the campaign of terror in the deep South. But as cafes or streetside restaurants began to fill with Thai and foreign holidaymakers on Saturday night, five bombs erupted almost simultaneously, showering everything nearby with shrapnel and ushering in what could be a very long economic nightmare.

The deaths and injuries inflicted on Saturday night have strengthened the belief that the separatist militants were expanding their operations beyond the provincial borders of Yala, Narathiwat and Pattani, with the obvious new target being Songkhla province's economic centre.

As dawn broke over southern Thailand's largest city yesterday, crowds began to gather in the devastated strip of pubs and restaurants that is the heart of Hat Yai's nightlife. Outside the Brown Sugar Bar and Cafe a crowd of about 40 people had gathered, some gesturing wildly towards piles of debris or pools of blood, while others just stood numbly by.

"I heard the blast and I live a kilometre away," said one bystander.

Large beach umbrellas advertising popular brands of liquor hung in tatters from their poles. Street awnings were also shredded by flying shards of metal that left deep gouges in building walls.

Many residents were too afraid to go out shopping yesterday, leaving key fresh markets and department stores quiet.

"I opted to go to a lesser known food market in the suburbs instead," said Supavadee Mudliad, a 31-year-old vendor. "This is the first time I have done this. Normally, I go to the municipal area market every morning."

"I fear for my life but I don't know what to do," said Patchara Kongprathet, 24, tending her stall inside a Carrefour hyperstore. "I have invested a lot of money in my business here so I have no choice but to come and look after it.'

Along the streets, onlookers ignored police cordons and milled around other blast sites. Several charred vehicles still sat where they had burned the night before, and pieces of demolished motorcycles littered the road.

The impact on business was already being felt.

"I have not had a single passenger since 6am," said one tuk-tuk taxi driver sitting in front of the Lee Gardens Hotel, which police said was targeted by one of the bombs.

"Many of the tourists hurried to check out of the hotel," the driver said.

Back at the Brown Sugar Bar an Australian stood amongst the crowd, still wearing a hospital gown.

The distraught man, who did not give his name, said he had been only a few metres from the blast that had erupted there, and that doctors had pulled a large chunk of metal out of his shoulder which he believed had come from an exploding motorcycle.

Another foreigner lingered briefly before saying "my friend died last night" and walking off.

A Miss Teen Thailand contest, scheduled to take place in the city yesterday, was cancelled.

"We are concerned about the safety of our young participants," said Tidarat Boonsombat, the event's public relations official. "It took a lot of frantic phone calls to inform them so they wouldn't waste their time and travel expenses."