Crisis Builds As Visitors To Hat Yai Slump

[george]

Crisis builds as visitors to Hat Yai slump

Foreign arrivals shrink nearly 50% on violence fears

HAT YAI: -- This commercial and tourism centre of the South is facing its “worse-ever” economic crisis as shock waves spread out from the violence in the predominantly Muslim border provinces.

“Hat Yai has faced two major downturns in recent years caused by the floods of 2001 and last year’s Sars outbreak, however, neither is comparable to this one,” Supawadee Siridhara, public relations manager of JB Hotel, said last week.

Because security officials have caught only a scattering of militants – not to mention none of the masterminds – this crisis of confidence will etch “much deeper” damage on the local economy, she said.

Since early this year, violence in the nearby provinces of Pattani, Yala and Narathiwat has claimed more than 400 lives.

Tourists entering the country from the southern immigration checkpoints have dropped drastically from 163,813 in January to 85,455 in June. July began to see a pick-up with 119,008 arrivals.

In March, at least 26 people – mostly Malaysians – were injured when a bomb exploded outside a karaoke bar in Narathiwat’s Sungai Kolok district. The terrorist incident has left a severe psychological impact on foreign tourists.

Located about a one-and-a-half hour drive from violence-plagued Pattani province, the streets of Hat Yai – famous as

a “paradise” for shopping,

food and vibrant entertainment – were once chock full of tourists mostly from Malaysia and Singapore. They look almost empty today.

Supawadee said her hotel had taken a big hit as groups abruptly cancel their reservations.

“The biggest group, which booked 400 rooms for a meeting related to the international Aids conference in July, cancelled out just two weeks before the event,” she said, adding that the organisers had decided to move to Phuket instead.

Another group of 90 participating in a business caravan travelling from southern China down to Singapore cancelled its booking just a few hour before check-in time in early May, only days after 106 Muslim militants were killed in a clash with security forces.

Apichai Aranyig, assistant director of the Tourism Authority of Thailand’s (TAT) southern office, said small and big businesses had equally suffered as travellers decide to skip Hat Yai, pointing out that the situation was extremely bad after the April 28 bloodbath.

Si Binrim said sales of package tours to southern provinces at his place of work, Blueship Travel Co, had dropped about 30 per cent, especially to Songkhla, Phuket, Samui, Pattani and Yala. Tourists from Malaysia and Singapore are down by about 70-80 per cent.

Phongphet Jirasukprasert said daily receipts at his Naiyaw porridge shop had declined about 30-40 per cent as foreign tourists have all but disappeared.

Vendors at the famous Tan Yong Market also feel the pinch. The market’s manager said a few traders had already shut down their stalls.

Apichai said the TAT had tried to salvage Hat Yai’s economy by pouring in big money to organise a huge fair early last month, with foreign agencies invited to open booths. The hope was that the event could prove that the city is safe and economic life could go on as usual.

However, it would be hard to restore confidence while shootings and bombings go on almost daily in adjacent provinces.

The Bank of Thailand’s southern branch reported in June that the economy of the region was exacerbated in the second quarter as a direct result of the unrest.

However, overall tourist arrivals through immigration checkpoints in the South had increased over last year, which was low due mainly to the Sars outbreak and Iraqi war, the report said.

Ahmed Hamid, 50, a Malaysian government official, and his wife were among the few who braved the nearby troubles to holiday in Hat Yai.

“It’s not a surprise to me. It’s an old story,” he said. “I’m sure that the Thai government will secure this area tightly. Otherwise, they’ll lose a lot of money.”

Some businesses, however, are benefiting from the crisis. Residential developers and landlords are rubbing their hands in glee as people flee the turbulence in the border provinces to buy or rent homes here.

--The Nation 2004-09-13

[Nam Kao]

Reap what you sew Islam

[taxexile]

Reap what you sew Islam

hat yai traders are mostly non-islam.

they are the ones hurting.

[sriracha john]

I'm surprised there's still a problem in the South. I just don't understand how it's possible. Afterall, didn't Thaksin promise to solve the problems in the South "within 30 days" four months ago?

[dekestone]

Was in Hat Yai on Sunday and it seemed normally busy in the tourist/shopping areas. To me it didn't seem nearly as bad as during the SARS crisis; then you saw virtually no Malaysians in the city.

Anyway, as someone who lives in the South, I am more afraid of drunken, trigger-happy Thai cops than terrorists. But having said that, I realize that in Songkhla province (which includes Hat Yai city) things are not nearly as serious as further south: Yala, Pattani, Narithiwat. Songkhla town is still the same sleepy old place it's always been. Hope it stays that way.

[Sphere]

I'm surprised there's still a problem in the South. I just don't understand how it's possible. Afterall, didn't Thaksin promise to solve the problems in the South "within 30 days" four months ago?

He probably meant 30 "working" days.