Banyan Tree shows concerns in Thai politics

"The political turmoil in Thailand which resulted in street demonstrations in Bangkok and also closure of Phuket Airport over a weekend in August has affected travel to the country in the third quarter. This was compounded by the fact that 3rd quarter is the shoulder season of the year," Ho KwonPing, executive chairman of Banyan Tree, said in a statement issued on Thursday.

"We are closely monitoring the Thai political situation and given the increased deterioration of the global financial situation, we are approaching the high season at the end of this year more cautiously."

In September, anti-government protesters blocked Phuket International Airport and many countries issued travel warnings on fear of escalating violence.

Operating profit for the nine months was 17 per cent ahead to S$82.9 million, largely driven by its Hotel Residences segment.

The group said the outlook is unclear  given the increased deterioration of the global financial situation and a period of great uncertainties. The political turmoil in Thailand, if protracted, may have a significant impact on the group, especially if accessibility to its properties are hindered or travel advisories are issued by countries of our key guest markets.

"We are closely monitoring the Thai political situation and the general global outlook as we approach the high season at the end of the year. As of now, the hotel's on the book ("OTB") rooms revenue for 4th quarter for Banyan Tree/Angsana Resorts outside Thailand is still healthy at 45 per cent higher than the same period last year," Ho said.

OTB for hotels in Thailand however is 19 per cent lower and overall OTB is 4 per cent higher than the same period last year.