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 Somrit Haikham, president of the association of tour guides in the province, said hotel booking has dropped by half from the same period last year as local tourists flock to beach destinations. He noted that the situation could improve if tourists from Europe and the Middle East return to Chiang Mai in May.

 "Foreign tourists are highly concerned about safety issues. They are afraid that the ongoing protests could escalate and the airport may be closed again. Hotel operators are also fretting that history will repeat itself," he said.

 Currently, from 2,000 tour guides, only 5 per cent work on permanent job contracts while the rest work on freelance basis. Their monthly income has dropped sharply to Bt7,000-Bt14,000 from Bt28,000-Bt42,000.

 Anucha Damrongmanee, accounting and finance director of Mandarin Oriental Dara Dhevi Hotel, said that if the protesters seize control of the airport, the industry would be hit definitely. The luxury hotel has also witnessed a 50 per cent drop in the number of visitors. Recently, it cut the room rate by half from Bt15,000 per night on average.