Damage of airport closure tuned over Bt200 bn

 Written by economist Ketsarin Tansuwanrat, the report said if the incident did not take place, the tourism revenue would be Bt595 billion, up 5.5 per cent on year, when the number of tourists would be 15.6 million, up 6.7 per cent.  

 For 2008, without the airport closure, tourist arrivals would be 14.6 million, up 1.1 per cent from the previous year, with revenue of Bt589 billion. However, the arrivals should drop to 14 million, down 3 per cent on year with revenue of Bt564 billion after the airports were closed.

 The report also said the effect spills over to related industries. And altogether, direct and indirect damage is tuned at about Bt290 billion, or 3 per cent of nominal gross domestic product. While damage of the service sector would be Bt120 billion, that of the transportation sector and the industrial sector was Bt90 billion and Bt60 billion, respectively.

 In November, hotel occupancy rate was 55 per cent, compared to 66 per cent in the same period last year. The report attributed the low occupancy rate to the room oversupplies as well as less domestic travelling. The strong baht last year also encouraged Thais to travel overseas. Each year, Thais' spending overseas was tuned at Bt180 billion.

 The economist suggested that these Thais must be encouraged to travel more within Thailand.

 Moreover, the government's success in restoring confidence in tourist safety would help lift the number of tourist arrivals and revenue target.