Tourism hotels face huge losses from unrest 40% of rooms already cancelled

THA president Prakit Chinamourphong said many tourists and businessmen had decided to avoid turbulence since the government declared a state of emergency on September 2.

There are reports that US jewellery traders have cancelled plans to attend Bangkok Gems & Jewellery Fair, which is taking place this week, as well as 1,000 incentive trav¬ellers from Sunrise Insurance Company in China deciding to abandon travel plans.

Prakit said the Food and Hotel Exhibition 2008, which is scheduled for Bangkok next week, might not reach expecta¬tions because many planners from neighbouring countries were still considering the situation, although most exhibitors have confirmed their attendance as they had paid in advance.

According to Charoen Wangananont, president of the Thai Travel Agents Association (TTAA), about 50,000 Chinese visitors have cancelled travel plans to Bangkok for a long week¬end in fear of the political uncer¬tainty in the capital.

About 30 charter flights from China have already been cancelled after tourists decided to travel to other countries.

Charoen said Thailand was set to lose Bt30 billion to Bt40 billion during the upcoming October long weekend in China following the declaration of a state of emergency and concern over political turbulence.

"The hotel business alone has already received a 40 percent cancellation of total bookings for the rest of this year," said Prakit.

Charoen said Thailand was facing huge losses from these cancellations as Chinese travellers have high purchasing power. Not only had tourism been affected but also other related businesses including shopping, healthcare and recreation.

He added that the tourism sector would like to sue the government for lacking the efficiency to solve the conflict and causing a domino effect for businesses, in particular tourism operators.

The association pointed out that tourism income would fall by 10 per cent in the fourth quarter this year. Normally, the fourth quarter, the high season for travel, generates the highest revenue of about Bt400 billion, which is 45 per cent of the total annual income for the tourism sector.

However, THA and TTAA believe the business could return to nearly normal if the operators and government bodies adopt more marketing strategies and activities to reclaim sensitive markets such as Japan, China, Taiwan and Australia.

The Tourism Authority of Thailand, the Association of Thai Travel Agents and some key tourism associations are planning roadshows overseas.