Banks Shuts Yala Branches After Attacks

[george]

KASIKORNBANK/BAY: Banks shut Yala branches after attacks

YALA: -- Morale as low as it can go, say business leaders / Kasikornbank and Bank of Ayudhya yesterday suspended operations at their branches in Yala following widespread attacks by insurgents on Thursday evening.

The move comes as business leaders in the southern province warn that morale in their community has hit rock bottom and the local economy could grind to a halt with this latest violent episode.

“We have closed down our only branch in the city of Yala today because of power problems. If we opened the branch, we would need to depend on a generator, which would be complicated,” said Thongchai Charoensith, a senior executive of Kasikornbank.

“If the power comes back on again on Monday, we will reopen the branch,” he said.

Bank of Ayudha closed its Yala branch at noon due to the violence the day before and said it would monitor developments before letting the branch open again, said Phongpinit Tejakhup, a senior executive of the bank.

Police described the violence as a synchronised raid, which included the bombings of a newly opened cinema complex and a hotel cafe, as well as arson attacks on another hotel, a warehouse and a row of shops. Yala, Pattani and Narathiwat, the three southernmost provinces, have been racked by violence since January last year.

“We are losing our faith in the ability of the government to handle the violence. The terrorists have been able to cause trouble even in areas where police and military personnel have fortified their positions,” said Poj Paibulkasemsuthi, chairman of the Yala Chamber of Commerce.

“Since the southern violence erupted, the local economy here has stagnated and plunged into a slump. Businesses are not making any money. Most importantly, people have lost faith in the ability of the government to contain the situation,” he said.

Yala’s businesses are planning to relocate out of the area to avoid danger before the situation deteriorates. The government should set up a fund to provide soft loans for business operators, who now have no access to capital, he added.

My House Hotel emptied following the violence on Thursday. The manager, Anuphap Huaphetch, said guests had rushed to check out of all 60 occupied rooms.

“We tried to tell them that the situation had returned to normal, but they wouldn’t listen. They have all left Yala most for Hat Yai, where they believe it is safer,” Anuphap said.

Phung Sukserisap, chairman of the Yala Federation of Industries, said businessmen and investors had pulled out of Yala for fear of disruption.

“It will take at least five years before the province recovers,” he said.

Phairoj Hengsakul, senior director of the Bank of Thailand’s southern-region office, said the hostilities had destroyed the confidence of investors as well as tourists.

They expect the southern situation to get even worse with the government unable to find any solution to the unrest, he said, whereas prior to this outburst in Yala, many had believed the situation in Southern Thailand had improved.

The constant attacks have killed off tourism and caused investment to dry up, but Phairoj said the damage to the overall economy would not be great because trade and investment in Yala were already minimal.

“Earlier, insurgents focused on destroying lives; now they are destroying assets. The situation is already bad, steadily bad. There is hardly any economic value left in the three southern provinces,” he said.

Tour-operators see their business prospects as even bleaker following the Yala bombings.

Charoen Wanananont, managing director of Kangwal Holiday Co, said the new emergency law might make some feel safe, but the latest rampage would ruin the tourism industry in the South.

“This further worsens a situation which was already grave,” he said.

Chitchai Sakornbadee, managing director of Special Journey Co, said the bombing would discourage travellers, already battered by economic problems and high oil prices, from taking a trip to the region.

“This means there is no point in depending on more income from the tourism industry.”

--The Nation 2005-07-16