News

    Bangkok Airport Back in Operation, But Economic Pain May Linger

    Multimedia

    Audio

    Bangkok's international airport is returning to normal, after protesters shut it down for eight days.  But business experts say the economic damage caused by the country's political crisis may linger for some time. VOA's Kate Pound Dawson reports from Bangkok.

    Within a few days, cargo and passengers should be flowing normally through Bangkok's international airport.  The anti-government protesters who occupied it began leaving Wednesday, after a court barred Thailand's prime minister and his party from politics.

    But business leaders in Thailand say the country's reputation has been badly damaged by the occupation, which shut traffic for eight days.

    John Koldowski, an executive with the Pacific Asia Travel Association in Bangkok, says that, although tourism has been most immediately affected, problems caused by the airport's closure spread around the country.

    "I think the ripple effect is beginning to be felt now, because the freight's affected as well.  So you're looking at produce that can't be shifted out of Thailand.  You're looking at produce that can't come into Thailand for consumption.  It's now starting to be felt right across the wider society," said Koldowski.

    Hotels struggled to accommodate stranded guests while the airport was closed. Now, they are looking ahead to see whether potential visitors have been scared away.

    Porntina Tangsajjavitoon - the communications director for the Accor Group, which has 20 hotels in Bangkok - says, so far, the damage is moderate for her company, in part because their rooms stayed filled with stranded tourists.  She says only a few bookings for the upcoming Christmas holiday have been canceled.

               
    "It's not as bad as we thought. … However, the new reservations, we'll probably have to wait and see a little more.  Of course, there are some cancellations as well," she said.

    However, other hotels are seeing a greater number of cancellations.  Some report they may see fewer than half their rooms occupied, in the coming weeks - the heart of the peak tourism season.

    Business leaders worry that the damage could be long-lasting and they are concerned because it could be weeks before a new government is installed.

    Dusit Nontanakorn, the vice chairman of the Thai Chamber of Commerce, says airport managers worked hard to get flights moving again, but more must be done now to help the business community, which already was suffering because of the global economic downturn.          
    "The private sector and the government officials really have to join hands and work together.  We cannot wait until the next government will be coming in," he said.           

    There is considerable concern that Thailand's political crisis is just on hold and has not ended.  Most members of parliament from the banned party have regrouped under another banner and they, along with coalition partners, still hold a majority of seats.  If their choice for a new prime minister - expected next week - does not satisfy the anti-government group, protesters may well be back on the streets.

    Robert Broadfoot runs Political and Economic Risk Consultancy, a Hong Kong company that assesses business risks around Asia.  
               
    "This is not the end of the crisis by any means, I don  't think.  It's just moving on to the next chapter. There's still a large number of uncertainties.  And, when it comes to businesses like tourism, this is going to be a disastrous high season," he said.

    Broadfoot says it will be hard to determine just how much damage the political crisis has done to the economy, compared with the damage caused by the global slump.  Foreign investment is likely to shrink and demand for exports will be weak, because of the worldwide financial crisis.

    He says one way the Thai government can minimize the pain and help build a foundation for future economic growth is to focus on improving its infrastructure, such as roads and schools.
               
    "Probably the best that could happen now is if they get some sort of agreement in the political process, even if they're going to get revolving-door governments, where you can push ahead with major infrastructure and other programs, at least A., to create opportunities, and B., to create the impression that the economy's not just stuck in quicksand," he said.

    Broadfoot points out one advantage to focusing on infrastructure projects is that they are not dependent on foreign investment.

    The political uncertainty and the effects of the global economic crisis have factored into the decision by international credit rating agencies to downgrade ratings in Thailand.  That means the government and businesses here will pay more to borrow money.  However, Thailand's central bank may have eased some of the pain this week, when it surprised financial markets with its largest rate cut ever. The benchmark lending rate dropped a full percentage point, to 2.75 percent.

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    London’s Financial Crown at Risk as Rivals Eye Brexit Opportunitiesi
    X
    VOA News
    July 25, 2016 5:09 PM
    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video Recycling Lifeline for Lebanon’s Last Glassblowers

    In a small Lebanese coastal town, one family is preserving a craft that stretches back millennia. The art of glass blowing was developed by Phoenicians in the region, and the Khalifehs say they are the only ones keeping the skill alive in Lebanon. But despite teaming up with an eco-entrepreneur and receiving an unexpected boost from the country’s recent trash crisis the future remains uncertain. John Owens reports from Sarafand.
    Video

    Video Migrants Continue to Risk Lives Crossing US Border from Mexico

    In his speech Thursday before the Republican National Convention, the party’s presidential candidate, Donald Trump, reiterated his proposal to build a wall along the U.S.-Mexico border if elected. Polls show a large percentage of Americans support better control of the nation's southwestern border, but as VOA’s Greg Flakus reports from the border town of Nogales in the Mexican state of Sonora, the situation faced by people trying to cross the border is already daunting.
    Video

    Video In State of Emergency, Turkey’s Erdogan Focuses on Spiritual Movement

    The state of emergency that Turkish President Recep Tayyip Erdogan has declared is giving him even more power to expand a purge that has seen an estimated 60,000 people either arrested or suspended from their jobs. VOA Europe correspondent Luis Ramirez reports from Istanbul.
    Video

    Video Calm the Waters: US Doubles Down Diplomatic Efforts in ASEAN Meetings

    The United States is redoubling diplomatic efforts and looking to upcoming regional meetings to calm the waters after an international tribunal invalidated the legal basis of Beijing's extensive claims in the South China Sea. VOA State Department correspondent Nike Ching has the story.
    Video

    Video Four Brother Goats Arrive in Brooklyn on a Mission

    While it's unusual to see farm animals in cities, it's become familiar for residents of Brooklyn, New York, to see a little herd of goats. Unlike gas-powered mowing equipment, goats remove invasive weeds quietly and without adding more pollution to the air. As Faiza Elmasry tells us, this is a pilot program and if it proves to be successful, the goat gardener program will be extended to other areas of New York. Faith Lapidus narrates.
    Video

    Video Scientists in Poland Race to Save Honeybees

    Honeybees are in danger worldwide. Causes of what's known as colony collapse disorder range from pesticides and loss of habitat to infections. But scientists in Poland say they are on track to finding a cure for one of the diseases. VOA’s George Putic reports.
    Video

    Video Wall Already Runs Along Parts of US-Mexico Border

    The Republican Party’s presidential nominee, Donald Trump, gained the support of many voters by saying he would build a wall to keep undocumented immigrants and drugs from coming across the border from Mexico. Critics have called his idea impractical and offensive to Mexico, while supporters say such a bold approach is needed to control the border. VOA’s Greg Flakus has more from the border town of Nogales, Arizona.
    Video

    Video New HIV Tests Emphasize Rapid Results

    As the global fight against AIDS intensifies, activists have placed increasing importance on getting people to know their HIV status. Some companies are developing new HIV testing methods designed to be quick, easy and accurate. Thuso Khumalo looks at the latest methods, presented at the International AIDS conference in Durban, South Africa.
    Video

    Video African Youth with HIV Urge More Support

    HIV, the virus that causes AIDS, is the top killer of teens in sub-Saharan Africa. But many youths say their experience with the virus is unique and needs to be addressed differently than the adult epidemic. VOA South African Correspondent Anita Powell reports.
    Video

    Video Pop-Up Art Comes to Your Living Room, Backyard and Elsewhere

    Around the world, independent artists and musicians wrestle with a common problem: where to exhibit or perform? Traditional spaces such as museums and galleries are reserved for bigger names, and renting a space is not feasible for many. Enter ArtsUp, which connects artists with venue owners. Whether it’s a living room, restaurant, office or even a boat, pop-up events are bringing music and art to unexpected places. Tina Trinh has more.
    Video

    Video Scotland’s Booming Whisky Industry Fears Brexit Hangover

    After Britain’s vote to leave the European Union, Scotland’s government wants to break away from the United Kingdom – fearing the nation’s exports are at risk. Among the biggest of these is whisky. Henry Ridgwell reports on a time of turmoil for those involved in the ancient art of distilling Scotland’s most famous product.

    Special Report

    Adrift The Invisible African Diaspora