Tsunami Tragedy Won't Adversely Affect Economy

[george]

Tsunami tragedy won't adversely affect economy, says FPO

BANGKOK: -- The Sunday’s tsunami tragedy is unlikely to have a significant effect on the Thai economy since the economic scale of the six wave-hit southern Andaman coastal provinces represents only 2.7% of the country’s overall economy, according to the Fiscal Policy Office.

Naris Chaisutra, director-general of FPO, said the massive tidal wave attack had inflicted damages to public facilities of Phuket, Pang-nga, Krabi, Ranong, Trang and Satun.

More importantly, it had frightened tourists and discouraged them to revisit the provinces.

According to the latest statistics, the number of local and foreign tourists, who visited the six provinces, is expected to reach 11.5 million this year.

He said he did not believe the tragedy would have an adverse impact on the economy since the economic scale accounts for only 2.7% of the country’s economy.

As well, the government and private companies had already come up with common measures to rehabilitate the afflicted provinces.

But in case the government failed to take proper measures to rebuild the affected areas, the economic growth next year would be trimmed by 0.3% per annum.

“Normally, tsunami will occur once upon a time. The government has a plan to invest in rebuilding public facilities to restore potential of tourist sites in the afflicted provinces.

“We believe tourists understand the incident as some of them return to Phuket a few days after the island was hit by the tidal waves.”

Given these factors, he said he was confident the tragedy would not have an adverse effect on the overall economy.

Pongsapan Sawetrun, deputy director-general of FPC, projected the number of tourists in the six southern province would reduce by three fourth from 11.5 million next year.

The number would decrease by half in the second quarter and by one third in the third quarter. But in the fourth quarter, the tourism should return to normal.

He believed foreign tourists would return to Thailand if their panic eased.

--TNA 2004-12-30