Thailand economy badly hit due to violence

The Singapore companies with operations in Thailand, majority of them involved in tourism are already feeling the impact of disturbances in Thailand as travellers from Singapore, :China, Britain, France, Japan, the United States, Australia and New Zealand already being warned by their governments to steer clear of Bangkok. Business is badly hit and tourism-related sectors like serviced apartments are already seeing some cancellations.

Frasers Hospitality has put personnel at its three serviced residences in Bangkok on alert. But a spokesman said: “Our serviced apartments operations experienced only a few cancellations and these are from short-term leisure guests. Unless the volatile situation persists, we do not expect our extended-stay market to be affected in the near term.”

Ascott Group spokesperson Joan Tan said that occupancy rates for the group’s Thai properties have not been badly hit so far. Even so, as a result of the airport closure, there were “three to four cancellations per property so far”. :

Companies not directly linked to tourism are concerned too. Mr Kenny Yap, managing director of Qian Hu Corporation, which deals with exports from Thailand, said: “Currently, the operations in Thailand are still going on fine for us. But if this drags on for another two to three months, it will affect our business. As for how deep the impact is, I will not know.”

Property developer Hup Soon Global Corporations has postponed the launch of one development project specifically because of the Thai political developments.

But investors do not appear to have given up hope. Thailand’s :main stock index rose yesterday afternoon, erasing earlier losses, following speculation that a meeting between military and business leaders might end the airport occupation.