Thai Pm Says Tsunami Poses Challenge In Years Ahea

[Darknight]

Thai PM says tsunami poses challenge in years ahead

Reuters

By Vithoon Amorn

BANGKOK, Jan 1 (Reuters) - Prime Minister Thaksin Shinawatra said on Saturday Thailand's huge losses caused by the Asian killer tsunami would pose a big challenge during his expected second four-year term after elections set for February.

In a televised New Year statement clearly intended as an election campaign speech, Thaksin said he believed a strong economic foundation built by his government in the past four years could help the country weather problems ahead.

"The tragic event near the year-end represents a great challenge to economic management and to national revival efforts next year and in the years ahead," he said.

"But this government believes that given cooperation from everyone and supportive factors that fortunately have gradually been put in place, public confidence can be restored and economic strength can be sustained."

Thaksin is widely projected to win Thailand's general election scheduled for February 6.

Giant tsunami waves that crashed into Thailand's western coast on Sunday killed at least 4,560 people and devastated dozens of luxury hotels in a region popular among European and wealthy Asian tourists.

"This is the most tragic event both for Thailand and the world as it has affected millions, killed tens of thousands in each country, and created incalculable losses in life and property."

Thaksin conceded Thailand was largely ill-prepared for a natural disaster on such a scale and its search and rescue operations for tsunami victims had been hampered by poor communications and coastal transport facilities.

But he said the government would spare no resources in rehabilitating the devastated region and its vital tourism industry once the search for tsunami victims is completed.

Phuket and five other resort provinces hit by the tsunami have contributed about one-third of Thailand's total tourism revenue. The tourism industry accounts for about 6 percent of the country's gross domestic product.

Thaksin said despite the great economic damage wreaked by the tsunami, high oil prices, and lingering security problems in Thailand's Muslim south, the economy was expected to expand at least 6.2 percent in 2004, after 6.9 percent growth in 2003