Tens of thousands of protesters demanding new elections prepared for a rally at no-go zones across Bangkok on Tuesday in defiance of government threats to arrest and imprison demonstrators.

Streams of “red shirt” activists plan to move out in a convoy of motorcycles and pickup trucks for a provocative parade likely to frustrate Prime Minister Abhisit Vejjajiva as pressure mounts on him to take action and put a swift end to the 25-day protest.

The movement, which broadly backs ousted former premier Thaksin Shinawatra, briefly occupied Thailand’s election watchdog on Monday while tens of thousands ignored eviction deadlines and rallied for a third day at a plush shopping district lined with luxury hotels and department stores.

However, a protest that is broadening, intensifying and showing no signs of fizzling out has not dampened the mood of foreign investors who have pumped more than $1.6 billion into Thailand’s stock market since Feb. 22.

Shares in some hotels and shopping malls took a hit early on Monday but the overall bourse rebounded to finish up almost 1 percent in line with other regional markets. Tuesday was a public holiday.

The mass rally has lasted longer than many expected and leaves Abhisit with a dilemma about how to respond: anger Bangkok’s middle classes and parts of his own government by doing nothing, or risk confrontation by forcibly moving protesters defying the law but yet to resort to violence.

UNENVIABLE POSITION

Abhisit’s government on Monday effectively asked a court to decide, but judges reminded the premier that he had the power to use a tough Internal Security Act to evict the protesters himself and did not need a court order [ID:nSGE63406A].

Analysts said Abhisit was now in an unenviable position.

“A lot of Abhisit’s legitimacy is based on the notion that he is a stabilising force for Thailand. This puts him in a very difficult position,” said Andrew Walker, a Thailand researcher at Australia National University.

“If he cracks down and there is violence, the image of stability is shattered. There is also the risk of protest action breaking out in the provinces in response to a Bangkok crackdown.”

The “red shirts” plan to rally on major roads and through Bangkok’s key tourism, embassy and banking districts on Tuesday.

The mostly rural movement has recruited followers among migrant workers and working classes in the capital, to the annoyance of business elites and urban middle classes, underlining the social divide that has caused foreign businesses to reconsider long-term investment in the country.

Many analysts say the protests are fuelled by feelings of disenfranchisement, a widening gap between rich and poor and popular belief that unelected, powerful elites are colluding with the army or top judges to bring down governments elected by the majority, two of which were led or backed by Thaksin.

The protesters see the urbane, Oxford-educated Abhisit as a symbol of elite domination of Thai politics, accusing him of being a stooge for a powerful military who they claim masterminded his rise to power, sponsoring political defections to enable him to win a parliamentary vote in December 2008.

The “red shirts” have rejected Abhisit’s offer to dissolve parliament within nine months — a year ahead of schedule — accusing him of lacking sincerity and clinging on to power without a public mandate.

Analysts believe a resumption of stalled talks between Abhisit and protest leaders is the only way out of a standoff that could turn violent, stifling economic recovery and curtailing a recent surge in capital inflows.

“Abhisit needs to push for a third round of talks, behind closed doors. This is his best option and should be his first option,” said Nakharin Mektraira, political scientist at Bangkok’s Thammasat University.