SET plunges by nearly 3 per cent

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SET plunges by nearly 3 per cent
Business Reporters
The Nation


Kittiratt

Fears that protests over amnesty could turn violent, deter tourists

BANGKOK: -- Businesses are bracing for fresh political challenges, as the amnesty protests have fanned out across Bangkok and the country, which could deal a blow not only to tourism but the whole economy.

As a sign of concern, the Stock Exchange of Thailand yesterday witnessed a 2.85-per-cent plunge. The SET Index lost 40.68 points to close at 1,388.40 on turnover of Bt34.7 billion. Foreign investors were unloading shares, with their sales outpacing purchases by Bt777 million.

Deputy Prime Minister Kittiratt Na-Ranong, also the finance minister, said yesterday that the economy could be hit this quarter, the high season for the tourism industry.

The Tourism Ministry should promptly explain the situation to the international community and potential foreign visitors who may fear for their safety, he said, adding that investors offshore have also inquired about the latest political developments in this country.

Hoping for a solution soon, he said political stability would ensure that the economy would show growth in the last quarter of this year and first quarter of next year, thanks to the disbursement of Bt750 billion from the fiscal budget during October-December.

Krungthai Bank president Vorapak Tanyawong said his bank's customers have expressed concerns that the political situation could trip up tourism, which is the only industry right now that is giving impetus to economic growth, as it is now the high season. It is also the high season of lending.

While the economic impacts from the protests should not be severe, he hopes that they would not persist into next year.

"Members of the Thai Bankers' Association haven't yet discussed this issue, but everyone should have a common concern on this," he said. Sisdivachr Cheewarattanaporn, president of the Association of Thai Travel Agents, said the political demonstrations would have a chilling effect on spending by foreign travellers. Its forecast of 20-per-cent growth to Bt1.17 trillion in inbound revenue this year has been slashed to 13 per cent to Bt1.09 trillion.

The first effect would come from Japan as the most sensitive group, followed by China. The impact from Europe would become clearer over a longer time because trips are planned in advance.

Travel agencies will have to change their operations by avoiding going to the areas associated with political unrest, he said.

Piyaman Tejapaibul, president of the Tourism Council of Thailand, does not see much change to the tourism scene from the heightening political tensions because foreign tourists understand that it's the country's way to express democracy. However, the council would monitor the situation more closely.

Piyaman was in London to attend the World Travel Market, one of the world's leading hospitality events, which started yesterday. She will use this opportunity to explain the situation to travel agencies in Europe in order to raise their confidence with the country.

Despite the widespread protests, the Ratchaprasong Square Trade Association is going ahead with preparations to stage a big Bangkok countdown party and launch campaigns to attract both local and foreign tourists during the festive season.

The campaign, themed "Happiness is All Around 2014@Ratchaprasong", is targeted to generate spending of over Bt18 billion against Bt15 billion last year during its run from November 19-January 31.

Hotels in the area are looking for occupancy to reach 95 per cent during the period, convinced that the full slate of lifestyle activities would draw huge traffic. The association is aiming for more than 351,000 local and international visitors and customers per day during the promotion and over 500,000 on New Year's Eve.

Businesses in the Ratchaprasong area - where 35-50 per cent of sales comes from foreign visitors - suffered the most from the 2010 political unrest. So far this year, the area has welcomed 78 million foreign and local visitors.

Chai Sirvikorn, the association's president, said the group would keep tabs on how things unfold on a daily basis. As long as the situation does not turn violent, causing causalities and closures of streets in the area, the schedule of activities for the rest of the year would remain on track. To provide security for visitors, police will help guard the area, which is also covered by more than 1,000 surveillance cameras. Visitors can also seek help from interpreters.

Foreign shoppers would still come to the area, which is popular among the Chinese, Russians and Indians. He recalls the visits by Middle East tourists in 2010 despite the protest.

His brother Charn said businesses in Ratchaprasong would try to talk with protest leaders to learn about their movements and quickly adapt to them. Ratchaprasong is a mecca for foreign shoppers, as the area is considered relatively safe. Most of them are from China, Japan, India and Russia. The Japanese are the touchiest about safety issues.

The current demonstrations are not yet a worry, but there is more concern over management of the political turnouts and a "third party", which may worsen the situation. In fact, political protest is common in countries worldwide, but authorities here will have to know how to maintain order among the crowds.

-- The Nation 2013-11-05

[ratcatcher]

This whole problem would get a long way to being solved if one very important problem, namely Thaksin Shinawatra, was removed from the equation.

Thailand has no chance to recover as long as he breathes air.

Edited November 4, 2013 by ratcatcher

[Cuban]

A subject I follow closely - my wife and I have a bet on the outcome !

[Prbkk]

Yingluck to make URGENT announcement today, according to media. Hold on, it's going to get bumpy

[SjaakNL2013]

now you hit the ruling Thai 300 on the weak spot.... money money money

Edited November 5, 2013 by SjaakNL2013

[Prbkk]

Well, this round of selling is mostly foreigners unloading Thai stocks. SET now pretty much flat for the year. We have a technical recession, flooding, crazy rice subsidy, dodgy tourist projections, significant inflation, huge consumer debt, an overvalued currency, demonstrators in the streets and now a deadlock over amnesty. And the makings of a property bubble . Where is the upside from here?

[Thai at Heart]

The Tourism Ministry should promptly explain the situation to the international community

You reckon that the international community wants to hear how the current government is causing this by trying to whitewash the ONLY conviction for abuse of power by a Thai politician ever?

"Believe us, we are the government of good governanace and anti-corruption?"

Raging laughter in the press conference erupts...

"Oooooh, sorry, my ribs are aching, I can't stop laughing, please do continue explaining why this happening?"

I think they would be better to shut up

Edited November 5, 2013 by Thai at Heart

[SantiSuk]

Well, this round of selling is mostly foreigners unloading Thai stocks. SET now pretty much flat for the year. We have a technical recession, flooding, crazy rice subsidy, dodgy tourist projections, significant inflation, huge consumer debt, an overvalued currency, demonstrators in the streets and now a deadlock over amnesty. And the makings of a property bubble . Where is the upside from here?

So how do you explain that Thailand has fared no worse than most Asia-Pacific and emerging market exchanges this year? Nearly all are flat or down on the year.