Bangkok blast strikes blow to tourism, pillar of ailing Thai economy

[webfact]

Thai blast strikes blow to tourism, pillar of ailing economy
JERRY HARMER, Associated Press
KELVIN CHAN, Associated Press

BANGKOK (AP) — The bomb blast that ripped through a Bangkok shrine, killing 20 and injuring dozens, is also certain to take its toll on tourism, the one bright spot in Thailand's sputtering economy.

The Southeast Asian country's tourism industry has expanded strongly over recent years, driven by rising numbers of Chinese tourists, which has helped offset the drag on growth from a decade of political instability.

In the bombing's aftermath, some foreign travel agencies cancelled group tours and the baht sank to a six-year low. The country's stock benchmark fell to its lowest since the start of the year, led by tourism-related shares.

The explosion at the shrine, which is popular with Chinese visitors, is likely to dampen their enthusiasm for Bangkok as a tourist destination. The industry has emerged stronger after every crisis the country has faced in the last decade, but the latest incident appears to mark a change by targeting tourists. That raises questions about whether the impact on tourism will be short term or a crippling blow that drives visitors away for longer.

Prime Minister Prayuth Chan-ocha called the bombing "the worst incident" to ever hit the country, saying, "this time they aimed for innocent lives. They want to destroy our economy, our tourism."

At least 20 people were killed and 125 people injured in the explosion on Monday night, authorities said. They included 2 dead and 28 wounded from China, and two dead and two wounded came from Hong Kong. At least five of the dead were Thai, and others killed or injured came from Malaysia, Singapore, Japan, Indonesia and the Philippines.

"In previous events in Thailand, at least in recent years, tourists have never been really the target. What's different this time is that it was a prime tourist area that was affected," said Mario Hardy, Bangkok-based chief executive of the Pacific Asia Travel Association.

Tourism, which accounts for 9 percent of the Thai economy and employs several million people, "will be severely impacted," Citibank analyst Jun Trinidad said in a research report.

More than 4.6 million Chinese visitors visited Thailand last year, and tourism officials expect their numbers to rise to 5.6 million in 2015. Chinese spend on average 5,500 baht ($155) a day, more than most other nationalities, and account for about a fifth of all foreign visitors, factors that make them the biggest driver of tourism growth.

"We can certainly expect a dip in the Chinese arrivals in the coming weeks," Hardy said. Tourism arrivals had been forecast to rise to as much as 30 million this year from 24.8 million in 2014 but Hardy said those projections are now unlikely to be met. He said that if the bombing turns out to be a one-off incident, tourism levels will probably return to normal in three to six months.

Morgan Stanley analysts said in a research note that tourist travel to Thailand tends to be sensitive to political upheaval. Chinese visitors have been "particularly sensitive to such instability," with their numbers falling more than average after previous episodes of conflict.

The blast came hours after the government's planning board issued a quarterly report on the economy that said growth slipped to 2.8 percent in the April-June period from 3 percent in the first quarter. "Major constraints" on expansion for the rest of the year include weak global growth amid China's slowdown and the depreciation of the yuan, which Beijing moved to devalue last week, sending many other Asian currencies lower.

The bomb went off Monday evening at the Erawan shrine at a busy central Bangkok intersection in an affluent neighborhood with upscale shopping malls and hotels such as the Grand Hyatt nearby.

Attendants at the Hindu shrine speak fluent Mandarin and Cantonese, attesting to its popularity with ethnic Chinese, which may stem partly from tales recounted by Hong Kong and Taiwanese movie stars and pop singers to fans of how their wishes were granted after paying a visit.

The explosion was one of the most popular topics Tuesday on China's Twitter-like Weibo microblog service.

Wu Jun, a car dealership employee in Nanyang, Henan, said she and a friend were planning a trip later this month but she was now thinking twice.

"After the explosion, my family has been discouraging me from going there. I also have worries about the safety in Bangkok." said Wu, 22. "What if there will be more terrorist attacks? But I am sitting on the fence now, torn with the decision if I should cancel trip or not."

Wu said she doesn't want to cancel yet because the Chinese government has not issued a travel alert, which means she won't get her money back.

The Chinese Embassy in Thailand reminded citizens to "strengthen awareness, pay attention to travel safety and arrange your travel plans accordingly." The United States, Japan, the Philippines and Australia issued similar advice. Hong Kong took stronger action, issuing a red travel warning for Bangkok, the second highest of three levels, prompting travel agencies in the Asian finance hub to cancel all package tours to Thailand until the end of the month.

Visitors already in Thailand were unnerved by the violence.

"Something very dangerous happened to people and nobody knows who it was, so yeah, it's scary," said Mirjam Rodehacke of Switzerland.

Xue Jianjun, who was traveling with his family from Shaoxing in China, said they would try to avoid places with big crowds.

"After incidents like this it's usually the safest period. I'm still pretty optimistic," he said.

Hardy said the long term impact of the explosion will depend on how the authorities manage the situation though he was optimistic of a recovery.

"One thing that Thailand is good at is bouncing back," Hardy said. "The tourism resilience here is very good."
___

AP journalists Penny YiWang in Bangkok, Elaine Kurtenbach in Tokyo, Teresa Cerojano in Manila, Philippines, and Rod McGuirk in Canberra, Australia, contributed to this report.


-- (c) Associated Press 2015-08-20

[Jimlove]

Prime Minister Prayuth Chan-ocha called the bombing "the worst incident" to ever hit the country, saying, "this time they aimed for innocent lives. They want to destroy our economy, our tourism."

You already did that your self with your greed and non safety .... You made the bed, now lie in it ...

[sweatalot]

looking for motives?

find out who will take advantage of a worsening economic situation in the country

[Tywais]

"Wu said she doesn't want to cancel yet because the Chinese government has not issued a travel alert, which means she won't get her money back."

Appears they have but it is from HK security bureau, not sure if it applies to mainland China. Though Red (level 2) is no guarantee of travel refunds whereas Black (highest level or extreme threat) is more likely to.

Bangkok ‘red’ alert doesn’t go far enough, Hong Kong travel industry says in wake of deadly bomb attack

The Hong Kong Travel Industry Council today urged the government to raise the "black" travel alert – the highest security warning – for Thailand in the wake of a deadly bomb blast in Bangkok that claimed at least 21 lives.

A "red" travel alert for the kingdom’s capital was issued by the Security Bureau at 11am while an "amber" alert issued on July 3 last year – two months after the Thai military seized power in a coup – remains in force for the rest of the country.

However, the council’s executive director Joseph Tung Yao-chung said the red alert –– the second level of a three-tier system which calls for tourists to adjust travel plans and avoid non-essential travel due to a “significant threat” to safety – does not go far enough.

“Frankly we hope the alert could be raised to black,” Tung said. He explained that even with the red alert, tour agencies and tourists would experience difficulty in getting refunds for cancelled trips.

More here - scmp.com

[Fat Haggis]

And in other threads they are stating no impact on tourism..

[Thaddeus]

When the people in uniforms are purely self serving individuals, care little for ordinary Thai citizens and care even less about the safety of tourists, this ticking time bomb was primed a very long time ago.

Reap, Sow.

[bangkokfrog]

"the worst incident" to ever hit the country, saying, "this time they aimed for innocent lives. They want to destroy our economy, our tourism."

Don't most of the bombings in the far South target innocent lives? So what's the difference? It seems to me that the real issue for our dear PM is the economic impact, not the loss of innocent lives.

[Oziex1]

Without tourism what do they have, this may have been discussed previously with statements to the effect that Thailand isn't solely reliant on the tourist dollar, may be so but why so much talk and so much anxiety over the income from tourism. Is all just it easy money for the ruling and or criminal class.

A ruined economy a country avoided by tourists a destabilised country, ripe for a new order.

Perhaps my comment is a little conspitorial, I hope so as I would be horrified to see a series of attacks of this nature, particularly as the authorities have no idea on what to do about it.

[Guest]

This thread already has a theme "You reap what you sow."

Can someone please draw a few straight lines from one to the other?

Who is "They"

what did "They" sow.

What did "They" reap?

Let's see if anyone can do that, without making this an attack .. on me and this posting, but for once, backing up this ridiculous "logic" with ... (wait for the punchline) ... FACTS

Waiting...

[thaibeachlovers]

Without tourism what do they have, this may have been discussed previously with statements to the effect that Thailand isn't solely reliant on the tourist dollar, may be so but why so much talk and so much anxiety over the income from tourism. Is all just it easy money for the ruling and or criminal class.

A ruined economy a country avoided by tourists a destabilised country, ripe for a new order.

Perhaps my comment is a little conspitorial, I hope so as I would be horrified to see a series of attacks of this nature, particularly as the authorities have no idea on what to do about it.

The last time I saw a figure, tourism accounts only for 6% of the economy, hardly a "pillar".

However, given the millions of Thais involved in tourism ( though poorly paid ) from the food cart selling to Khao San backpackers, through entertainers in tourist areas, to hotel staff, a significant drop in tourists would be catastrophic for employment, probably causing severe social disruption.

To look on the bright side though, if they had to work harder to attract tourists, it would be a good thing for us visitors to LOS.

[robblok]

And in other threads they are stating no impact on tourism..

I have yet to see a Thai official come out with bad news on anything. Its always positive there was even a minister that lied on figures and later said it was a white lie. Thais don't like saying negative things or admitting that things can get bad.

[Gifford]

Just as risky visiting London, New York, or any big city really. I won't be cancelling my trip to Thailand, I won't give it a second thought. You can't spend your life in fear,

[toybits]

The bombing is a heinous crime. But lets also consider this. How many more foreigners die from vehicular accidents in Thailand? That figure in itself should make the foreign tourist shudder... but they still come.

[Jessi]

And in other threads they are stating no impact on tourism..

Yes but that is "The Spin Factory" at work

[Jim walker]

23 countries have now given travel warnings to anyone traveling to Thailand the Thais dont care much for safety a prime example is the underground if someone carrying a bag triggers the alarm its just one glimpse into a dark bag and on your way now they might think about tipping out the bag and look for the item that set of the alarm everyone is happy enough to wait a couple of minutes and knowing they are safe by this process, and if people are in such a hurry as not to have time for a proper safety check they would have left earlier. many people with a family will now be heading to a safer country for a holiday Vietnam or her neighbours if its an Asian holiday planned.

[petercool]

A troll post removed

[PattayaPhom]

Not being a drinker and on a rare night out with a friend visiting....120 Baht for a small Heinekin in a skanky 2 up 2 down townhouse maskerading as a bar with a few girls that are only interested in faceache and line...is it any wonder tourism is down...too expensive and moody rude people everywhere..the bombs are the icing on the cake.

[phantomfiddler]

Prime Minister Prayuth Chan-ocha called the bombing "the worst incident" to ever hit the country, saying, "this time they aimed for innocent lives. They want to destroy our economy, our tourism."

You already did that your self with your greed and non safety .... You made the bed, now lie in it ...

You have to be joking ! The man saved the country from imminent (that means "soon") civil war and brought much needed stability to the country.

[wabothai]

I would like to see the figures on last minute tourist travel to Thailand.

The impact only shows next year.

Most people have already booked their travels for the coming season.

Travel agents do not make it a habbit of showing the dark side of Thailand.

Or do they even know? I doubt it.

[crazykopite]

These bombings have nothing to do with the economy that I am afraid has been in decline since the military coup due to the very poor management of running the country. For to long the BOT has popped up the fading economy and things are set to worsen. Military are soldiers who serve and protect there country they know nothing about running an economy I have yet to see a democratic country that thrived under military control , the sooner Thailand returns to a democratic government with no military interference the better for the country.

[crazykopite]

Prime Minister Prayuth Chan-ocha called the bombing "the worst incident" to ever hit the country, saying, "this time they aimed for innocent lives. They want to destroy our economy, our tourism."

You already did that your self with your greed and non safety .... You made the bed, now lie in it ...

You have to be joking ! The man saved the country from imminent (that means "soon") civil war and brought much needed stability to the country.

What planet are you living on or better still what have you been smoking !!

[Alwyn]

Prime Minister Prayuth Chan-ocha called the bombing "the worst incident" to ever hit the country, saying, "this time they aimed for innocent lives. They want to destroy our economy, our tourism."

You already did that your self with your greed and non safety .... You made the bed, now lie in it ...

BOSH!!! Say it like it is!

[samuibeachcomber]

Prime Minister Prayuth Chan-ocha called the bombing "the worst incident" to ever hit the country, saying, "this time they aimed for innocent lives. They want to destroy our economy, our tourism."

You already did that your self with your greed and non safety .... You made the bed, now lie in it ...

You have to be joking ! The man saved the country from imminent (that means "soon") civil war and brought much needed stability to the country.

I agree with you

[Alwyn]

Prime Minister Prayuth Chan-ocha called the bombing "the worst incident" to ever hit the country, saying, "this time they aimed for innocent lives. They want to destroy our economy, our tourism."

You already did that your self with your greed and non safety .... You made the bed, now lie in it ...

You have to be joking ! The man saved the country from imminent (that means "soon") civil war and brought much needed stability to the country.

what? The only reason there were any problems was because of his lapdog Suthep running around causing mayhem. What on earth have you been drinking today?

[Jingthing]

So are tourists cancelling in droves, or not?

[timendres]

Just as risky visiting London, New York, or any big city really. I won't be cancelling my trip to Thailand, I won't give it a second thought. You can't spend your life in fear,

So true. But, sadly, many people do live their lives in fear.

[MaeJoMTB]

Tourism accounts for 9% of the Thai economy ???????

Wasn't it always 2-3% in the past?

[Fat Haggis]

And in other threads they are stating no impact on tourism..

I have yet to see a Thai official come out with bad news on anything. Its always positive there was even a minister that lied on figures and later said it was a white lie. Thais don't like saying negative things or admitting that things can get bad.

Yeah totally get that Rob... "sorry to inform you Mrs X but your son was killed in an tragic jet ski accident today... have we told you that the beach was the cleanest in all of Thailand, and tourist numbers are up ? "

[Sirbergan]

Prime Minister Prayuth Chan-ocha called the bombing "the worst incident" to ever hit the country, saying, "this time they aimed for innocent lives. They want to destroy our economy, our tourism."

You already did that your self with your greed and non safety .... You made the bed, now lie in it ...

You have to be joking ! The man saved the country from imminent (that means "soon") civil war and brought much needed stability to the country.

That's my kind of humor, thanks for the laugh!

[terminatorchiangmai]

Tourism accounts for 9% of the Thai economy ???????

Wasn't it always 2-3% in the past?

Maybe even 1 % and not important for the economy.

Thailand could do very well without tourism.