Bomb in central Bangkok kills 1 and wounds 10

(Reuters) – A bomb at a Bangkok bus stop killed one person and wounded at least 10 on Sunday after polls closed in a parliamentary by-election seen as a referendum on recent political unrest.

The bomb had been hidden near a trash bin at a bus stop on Ratchadumri Road in the heart of Bangkok’s commercial district, an area occupied by thousands of “red shirt” anti-government protesters for several weeks until an army crackdown on May 19.

There was no indication of who had planted the device or whether it was linked to a Bangkok by-election in which a ruling party candidate narrowly beat an anti-government protest leader who has been jailed since May on terrorism charges.

“Whoever did this wants to stir up the situation,” said government spokesman Panitan Wattanayagorn.

The blast killed a 51-year-old man, said Police Hospital director Jongjet Aoajenpong. Seven men and three women were wounded, including a bus driver, said the Erawan Medical Center.

It was the first deadly bomb attack in Bangkok since troops and red shirt protesters clashed over April and May. At least 89 people were killed and 1,400 wounded in the worst political violence in modern Thai history.

Thailand had been largely stable since the army crackdown.

Most protest leaders are either in detention and facing terrorism charges, or on the run. Thailand’s financial markets and economy have bounced back.

A state of emergency that allows authorities to detain people without charge, censor the press, ban public gatherings and freeze bank accounts remains in force.

“What just happened is a clear confirmation of why we need to keep an emergency decree in place in some areas,” added Panitan. “The situation isn’t completely safe and calm.”

CANDIDATE IN JAIL

The blast took place shortly after polls closed in a toughly fought by-election, the first electoral test since the end of the anti-government protests.

The opposition candidate, Korkaew Pikulthong, has been jailed since May for allegedly encouraging violence, a charge he denies. He campaigned from prison, saying he had public sympathy for being held without bail.

Korkaew, whose Puea Thai Party is closely allied with self-exiled former Prime Minister Thaksin Shinawatra, faced Panich Wikisreth, a member of Prime Minister Abhisit Vejjajiva’s ruling Democrat Party and a former deputy Bangkok mayor.

Panich won with 96,480 votes, according to unofficial early results. Korkaew came in second with 81,776.

The ruling Democrats are likely to play the results up as a symbolic victory that shows Bangkok’s 15 million people generally back Abhisit’s tough measures, said Karn Yuenyong, director of the independent Siam Intelligence Unit.

But the district often votes differently from other Bangkok areas and winning the seat makes little difference to Abhisit’s fractious six-party coalition, which has a 75-seat majority in the 480-seat parliament.

“The result is no indication the Democrats are going to win the next general election,” said Siripan Nogsuan, a political scientist at Chulalongkorn University. But the Democrats will try to use it to build political momentum, she added.

The mostly rural and urban poor red shirts, supporters of twice-elected Thaksin, say Abhisit has no popular mandate and came to power illegitimately, heading a coalition the military cobbled together after courts dissolved a pro-Thaksin party that led the previous government.

Abhisit says he was voted into office by the same parliament that picked his Thaksin-allied predecessors.

(Additional reporting by Ambika Ahuja and Panarat Thepgumpanat. Writing by Jason Szep; Editing by Jon Boyle)

Bomb in central Bangkok kills 1, wounds 10

BANGKOK, July 25 (Reuters) – A bomb at a Bangkok bus stop killed one person and wounded at least 10 on Sunday after polls closed in a parliamentary by-election seen as a referendum on recent political unrest.

The bomb had been hidden near a trash bin at a bus stop on Ratchadumri Road in the heart of Bangkok’s commercial district, an area occupied by thousands of “red shirt” anti-government protesters for several weeks until an army crackdown on May 19.

There was no indication of who had planted the device or whether it was linked to a Bangkok by-election in which a ruling party candidate narrowly beat an anti-government protest leader who has been jailed since May on terrorism charges.

“Whoever did this wants to stir up the situation,” said government spokesman Panitan Wattanayagorn.

The blast killed a 51-year-old man, said Police Hospital director Jongjet Aoajenpong. Seven men and three women were wounded, including a bus driver, said the Erawan Medical Centre.

It was the first deadly bomb attack in Bangkok since troops and red shirt protesters clashed over April and May. At least 89 people were killed and 1,400 wounded in the worst political violence in modern Thai history.

Thailand had been largely stable since the army crackdown.

Most protest leaders are either in detention and facing terrorism charges, or on the run. Thailand’s financial markets and economy have bounced back.

A state of emergency that allows authorities to detain people without charge, censor the press, ban public gatherings and freeze bank accounts remains in force.

“What just happened is a clear confirmation of why we need to keep an emergency decree in place in some areas,” added Panitan. “The situation isn’t completely safe and calm.”

CANDIDATE IN JAIL

The blast took place shortly after polls closed in a toughly fought by-election, the first electoral test since the end of the anti-government protests.

The opposition candidate, Korkaew Pikulthong, has been jailed since May for allegedly encouraging violence, a charge he denies. He campaigned from prison, saying he had public sympathy for being held without bail.

Korkaew, whose Puea Thai Party is closely allied with self-exiled former Prime Minister Thaksin Shinawatra, faced Panich Wikisreth, a member of Prime Minister Abhisit Vejjajiva’s ruling Democrat Party and a former deputy Bangkok mayor.

Panich won with 96,480 votes, according to unofficial early results. Korkaew came in second with 81,776.

The ruling Democrats are likely to play the results up as a symbolic victory that shows Bangkok’s 15 million people generally back Abhisit’s tough measures, said Karn Yuenyong, director of the independent Siam Intelligence Unit.

But the district often votes differently from other Bangkok areas and winning the seat makes little difference to Abhisit’s fractious six-party coalition, which has a 75-seat majority in the 480-seat parliament.

“The result is no indication the Democrats are going to win the next general election,” said Siripan Nogsuan, a political scientist at Chulalongkorn University. But the Democrats will try to use it to build political momentum, she added.

The mostly rural and urban poor red shirts, supporters of twice-elected Thaksin, say Abhisit has no popular mandate and came to power illegitimately, heading a coalition the military cobbled together after courts dissolved a pro-Thaksin party that led the previous government.

Abhisit says he was voted into office by the same parliament that picked his Thaksin-allied predecessors. (Additional reporting by Ambika Ahuja and Panarat Thepgumpanat. Writing by Jason Szep; Editing by Jon Boyle)

Central Bangkok explosion wounds 4 people-officials

July 25 (Reuters) – An explosion wounded four people in central Bangkok on Sunday, emergency officials said, but it was unclear what caused the blast and if it was related to a closely watched special election in the Thai capital.

The explosion occurred near a busy intersection at the heart of Bangkok’s commercial district, the same area occupied by thousands of “red shirt” anti-government protesters for several weeks until an army crackdown on May 19.

“We were told by the police that there are four wounded from the incident,” said a spokesman for the Erawan Emergency Centre, adding the blast took place opposition Central World, a shopping area that was set on fire by protesters in May.

It coincided with a Bangkok by-election that is being seen as a referendum on Thailand’s recent political unrest. (Reporting by Ploy Ten Kate; Writing by Jason Szep; Editing by Mark Heinrich)

Thai c.bank says tourism recovered fast from unrest

July 20 (Reuters) – Thailand’s central bank governor said on Tuesday that tourism had recovered faster than expected after being hit hard by political unrest in Bangkok in April and May.

Tarisa Watanagase also told the Foreign Correspondents Club of Thailand that consumption and investment had also recovered and she was therefore positive on the economy in the second half. (Reporting by Orathai Sriring; Editing by Alan Raybould)

Thai govt lifts emergency in more provinces

July 20 (Reuters) – Thailand’s government said on Tuesday it was lifting a state of emergency in three provinces but it would remain in force in others including Bangkok, after being imposed in April to help authorities cope with political unrest.

The government had lifted the emergency in five provinces on July 6 when the initial period came to an end, but extended it for another three months in other areas covering a quarter of the country because it said anti-government elements still posed a threat.

The state of emergency bans political gatherings of more than five people and gives the government powers to censor the media. It also gives broad powers to the security forces, including the right to detain suspects without charge. (Reporting by Pracha Harirasapitak; Editing by Alan Raybould)

BRIEF-Thai Airways shares up on Q3 profit hopes

July 12 (Reuters) – Thai Airways International THAI.BK:

* Shares up nearly 6.0 percent to its highest since March 2008 after Kim Eng Securities said in a research note it expected the company’s earnings in the thrid quarter should pick up after a recovery of tourism.

* The company has said its second-quarter revenue should be hit by recent political unrest and the low tourist season.

* At 0530 GMT, Thai Air shares were up 5.0 percent at 31.50 baht, while the main Thai index .SETI was up 0.51 ($1=32.36 Baht) (Reporting by Arada Kultawanich; Editing by Jason Szep)

BRIEF-AOT says Suvarnabhumi airport’s passengers down in Q3

July 10 (Reuters) – Airports of Thailand PCL AOT.BK

* Says number of passengers through its core Suvarnabhumi airport fell 5.8 percent to 8.63 million in the third quarter ended June, with international passengers down 1 percent and domestic passengers decreasing 10.55 percent, it said in a statement.

* Passenger numbers at the airport fell to 50,000-60,000 per day in April and May due to local political unrest, it said. The volume now rose to a normal level of 100,000 per day on average, it said.

* For nine months ended June, passenger traffic volume at the airport increased 19.5 percent to 32.2 million, with international traffic volume rising 17.25 percent and domestic traffic volume up 27.18 percent, it said.

* Majority state-owned Airports operates the country’s six main airports — Suvarnabhumi and Don Muang in Bangkok, Hat Yai, Chiang Mai, Chiang Rai and Phuket — and these handle around 90 percent of total air traffic in the country (Reporting by Viparat Jantraprap; Editing by Jeremy Laurence)

Police and protesters clash in Bangladesh general strike

(Reuters) – Bangladesh police on Sunday used tear-gas and batons to disperse thousands of anti-government protesters in the first general strike in over three years, which the opposition hopes can force early elections.

World

The strike, called by the main opposition Bangladesh Nationalist Party (BNP) and its ally Jamaat-e-Islami, halted public transport and kept most businesses shut across the impoverished country, which economists estimated could lose an overall $250 million from the stoppage.

Government offices and banks, however, remained open but with less staff than usual. The stock markets of Dhaka and Chittagong were also trading as usual and the country’s main ports were still handling cargo, officials said.

The opposition parties said the strike, in which some two dozen people were injured, was intended to draw public attention to the government’s “failures and excesses” and to give impetus to their demands for a mid-term election. Bangladesh is due to hold parliamentary elections in 2013.

Police detained around 150 activists, including several senior BNP leaders, for inciting the unrest and leading marches during the strike, during which protesters hurled bricks at the security forces and set vehicles ablaze.

The interior ministry said around 10,000 riot police and other forces were deployed in the capital Dhaka.

BATTLING BEGUMS

Sunday’s general strike was the first large-scale challenge by the BNP, led by Begum Khaleda Zia, to her rival Prime Minister Sheikh Hasina who took office in January 2009.

It was also the first strike since January 2007, when an army-backed interim government took power, ending months of political unrest.

BNP secretary general Khandaker Delwar Hossain said the strike was a show of the “people’s lack of confidence in the government.”

A day earlier, Hasina dismissed the strike, saying it was aimed at creating anarchy.

“The BNP and its stooges are out to frustrate democracy and create anarchy. But people who gave us a huge mandate in 2008 elections will foil all evil designs,” she said on Saturday.

Political analysts said the strike was the latest manifestation of the long-running discord between Hasina and Khaleda, known as the “battling begums” and who have rotated the leadership of their country since 1991. “Begum” is an honorific term for lady in Bangladesh.

The opposition accuses the government of being unable to deliver on promises that include cracking down on corruption, improving power and gas supplies, attracting investment and keeping spiraling food prices in check.

They are also angry that the government last month banned the publication of a pro-opposition daily newspaper and arrested its editor on charges of sedition and maligning the government as well as Hasina’s family.

The government says it is too early to assess its performance.

(Additional reporting by Ruma Paul)

(Editing by Miral Fahmy)

Police, protesters clash in Bangladesh general strike

DHAKA, June 27 (Reuters) – Bangladesh police on Sunday used tear-gas and batons to disperse thousands of anti-government protesters in the first general strike in over three years, which the opposition hopes can force early elections.

The strike, called by the main opposition Bangladesh Nationalist Party (BNP) and its ally Jamaat-e-Islami, halted public transport and kept most businesses shut across the impoverished country, which economists estimated could lose an overall $250 million from the stoppage.

Government offices and banks, however, remained open but with less staff than usual. The stock markets of Dhaka and Chittagong were also trading as usual and the country’s main ports were still handling cargo, officials said.

The opposition parties said the strike, in which some two dozen people were injured, was intended to draw public attention to the government’s “failures and excesses” and to give impetus to their demands for a mid-term election. Bangladesh is due to hold parliamentary elections in 2013.

Police detained around 150 activists, including several senior BNP leaders, for inciting the unrest and leading marches during the strike, during which protesters hurled bricks at the security forces and set vehicles ablaze.

The interior ministry said around 10,000 riot police and other forces were deployed in the capital Dhaka.

BATTLING BEGUMS

Sunday’s general strike was the first large-scale challenge by the BNP, led by Begum Khaleda Zia, to her rival Prime Minister Sheikh Hasina who took office in January 2009.

It was also the first strike since January 2007, when an army-backed interim government took power, ending months of political unrest.

BNP secretary general Khandaker Delwar Hossain said the strike was a show of the “people’s lack of confidence in the government”.

A day earlier, Hasina dismissed the strike, saying it was aimed at creating anarchy.

“The BNP and its stooges are out to frustrate democracy and create anarchy. But people who gave us a huge mandate in 2008 elections will foil all evil designs,” she said on Saturday.

Political analysts said the strike was the latest manifestation of the long-running discord between Hasina and Khaleda, known as the “battling begums” and who have rotated the leadership of their country since 1991. “Begum” is an honorific term for lady in Bangladesh.

The opposition accuses the government of being unable to deliver on promises that include cracking down on corruption, improving power and gas supplies, attracting investment and keeping spiralling food prices in check.

They are also angry that the government last month banned the publication of a pro-opposition daily newspaper and arrested its editor on charges of sedition and maligning the government as well as Hasina’s family.

The government says it is too early to assess its performance.

(Additional reporting by Ruma Paul)

(Editing by Miral Fahmy)

Scuffles in Bangladesh opposition general strike

June 27 (Reuters) – Bangladesh police wielded batons on Sunday to stop marches by thousands of anti-government protesters taking part in the first general strike in over three years, which the opposition hopes can force early elections.

The strike, called by the main opposition Bangladesh Nationalist Party (BNP) and its ally Jamaat-e-Islami, halted public transport and kept most businesses shut across the impoverished country, which economists estimated could lose an overall $250 million from the stoppage.

Sunday’s general strike was the first large-scale challenge by the BNP, led by Begum Khaleda Zia, to her rival Prime Minister Sheikh Hasina who took office in January 2009.

It was also the first strike since January 2007, when an army-backed interim government took power, ending months of political unrest.

“I warn the government not to play foul or behave undemocratically to thwart the strike that is aimed at telling the people about their misdeeds and failures,” Khaleda told reporters on Saturday, the eve of the strike.

“The people strongly support our action.”

Government offices and banks, however, remained open but with less staff than usual. The stock markets of Dhaka and Chittagong were also trading as usual and the country’s main ports were still handling cargo, officials said.

At least 25 protesters marching down the streets of the capital Dhaka were injured, and dozens detained, in scuffles with police. Some vehicles, including a public transport bus, were set ablaze by the demonstrators.

BNP and Jamaat-e-Islami said the strike was intended to draw public attention to the government’s “failures and excesses” and to give impetus to opposition demands for a mid-term election. Bangladesh is due to hold parliamentary elections in 2013.

Hasina dismissed the strike, saying it was aimed at creating anarchy.

“The BNP and its stooges are out to frustrate democracy and create anarchy. But people who gave us a huge mandate in 2008 elections will foil all evil designs,” the prime minister said on Saturday, while opening a river bridge near Dhaka.

The opposition accuses the government of being unable to deliver on promises that include cracking down on corruption, improving power and gas supplies, attracting investment and keeping spiralling food prices in check.

The are also angry that the government last month banned the publication of a pro-opposition daily newspaper and arrested its editor on charges of sedition and maligning the government as well as Hasina’s family.

The government says it is too early to assess its performance. (Editing by Miral Fahmy)

UPDATE 1-Thai Airways says unrest hit Q2 revenue

June 17 (Reuters) – Thai Airways International THAI.BK said on Thursday its second-quarter revenue and its cabin factor would be hit, mainly by recent political unrest and the tourist low season.

The national carrier expected its percentage of seats sold, or cabin factor, to be 60 percent in the April-June quarter, down from 81 percent in the first quarter, President Piyasvasti Amranand told reporters.

“The recent political unrest has slashed a lot of revenue we should earn in the second quarter,” Piyasvasti said, referring to anti-government protests in Bangkok from March to May which ended with a military crackdown and violence.

Early this month, the airline said it expected its second-quarter performance this year would be roughly the same as the same period of last year. [ID:nLDE6550GY]

It reported a loss of 5.4 billion baht ($167 million) in the second quarter of 2009, hit partly by political unrest and the H1N1 flu outbreak.

The company is due to announce its second-quarter results in August.

In April this year, its cabin factor was 72 percent but it dropped to 56.8 percent in May, Piyasvasti said.

“However, it is likely to pick up from July, especially on the flight to Johannesburg,” he said. South Africa is hosting the 2010 World Cup.

The airline had said in February it was aiming for a 2010 cabin factor of 75 percent, compared with 72 percent in 2009.

The national carrier expected a fund-raising plan to be completed in the third quarter, delayed from the middle of the year as initially planned, said an executive who declined to be identified.

“We are in the process of filing documents to the stock regulator,” the executive said.

Thai Airways announced the stock offer in March by selling up to 1 billion new shares to the public and shareholders, including the Finance Ministry, which owns 51 percent of the airline. [ID:nSGE62B08K]

The move is aimed at strengthening its financial position as it overhauls operations and restructures management.

At the midday break, Thai Air shares were unchanged at 26.50 baht, while the main stock index .SETI was up 0.31 percent. ($1=32.39 baht) (Reporting by Manunphattr Dhanananphorn; Writing by Arada Kultawanich; Editing by Robert Birsel)

Thai Airways says political unrest hit Q2 revenues

June 17 (Reuters) – Thai Airways International THAI.BK said on Thursday its second-quarter revenue and its cabin factor would mainly be hit by the recent political unrest and the tourist low season.

Industrials

The national carrier expected its percentage of seats sold, or cabin factor, to be 60 percent in the April-June quarter, President Piyasvasti Amranand told reporters.

The airline expected a fund-raising plan to be completed in the third quarter, said an executive who declined to be identified. ($1=32.42 baht) (Reporting by Manunphattr Dhanananphorn; Writing by Arada Kultawanich; Editing by Robert Birsel)

SE Asia Stocks-Mostly higher, Thai stocks up after rate decision

* Thai construction firms jump on rail project bidding

* Euro debt concerns plague the region

* Indonesia, Philippines up ahead of rate reviews on
Thursday

By Viparat Jantraprap

BANGKOK, June 2 (Reuters) – Thai stocks gained over 1
percent on Wednesday after the Bank of Thailand decided to keep
interest rates unchanged, which had been widely expected after
recent political unrest but still spurred late buying, analysts
said.

The Thai central bank left its main rate at a record low of
1.25 percent, in part due to concerns over the European debt
crisis, which could derail global growth.

The benchmark SET index .SETI ended up 1.18 percent but
volume was relatively thin at 13.9 billion baht ($427 million).

“The low rate helped boost buying late in the session. But
foreign inflows remain weak due to the European debt worries,
which are putting pressure on equities globally,” said Warut
Siwasariyanon, head of research at Finansia Syrus Securities.

Construction firms stood out, with Unique Engineering and
Construction UNIQ.BK jumping 12.4 percent and Sino-Thai
Engineering and Construction STEC.BK climbing 8.7 percent
after they offered the lowest bids for two separate contracts
to build part of Bangkok’s $1.60 billion “blue line” mass
transit project.

Thailand .SETI, which suffered 58.74 billion baht ($1.80
billion) of net foreign outflows in May and another 1.06
billion baht of foreign outflows on Tuesday due to political
unrest, attracted local buyers because shares were cheap,
dealers said.

It trades at 10.1 times forward price to earnings, the
cheapest in Southeast Asia, after Vietnam’s 11.1, the
Philippines’ 12.1, Singapore’s 12.1, Malaysia’s 12.9 and
Indonesia’s 12.9, according to Thomson Reuters’ Starmine.

Jitters over the euro zone’s debt crisis prompted investors
to keep cutting riskier positions, pulling down Asian stocks
outside Japan, with the MSCI Asia Ex Japan .MIAPJ0000PUS
index falling 0.62 percent by 0945 GMT. [ID:nSGE65103B]

Southeast Asian bourses ended off their day’s highs, with
Singapore .FTSTI up 0.5 percent, Indonesia .JKSE, Asia’s
second-best performer this year, up 0.33 percent, the
Philippines .PSI up 0.7 percent and Vietnam .VNI adding 0.4
percent.

Bucking the trend, Malaysia .KLSE drifted down 0.5
percent in thin volume, led by a 1.8 percent fall in top lender
Maybank (MBBM.KL).

In Singapore, Mapletree Logistics Trust (MAPL.SI) rose 3.1
percent to S$0.835. Broker Citi said it raised Mapletree’s
target price to S$0.91 and kept its ‘buy/low risk’ rating,
citing its growth strategy as it was acquiring three
properties.

In Jakarta, investors bought big caps after comments from
Indonesia’s central bank reinforced expectations it would leave
its key interest rate on hold at 6.5 percent on Thursday.

Among gainers, Telkom Indonesia (TLKM.JK) climbed 5.4
percent and Bank Central Asia (BBCA.JK) was up 2.8 percent.

The Philippine central bank is also expected to hold
interest rates steady at a record low of 4 percent on Thursday.

Gains in Maila were led by an 8.3 percent jump in Abolitiz
Equity (AEV.PS) and a 3.7 percent rise in Ayala Land (ALI.PS).

The main index has now risen 7.8 percent this year, Asia’s
third-best performer, after it saw net foreign inflows for
three straight sessions worth a combined $17.9 billion.

BRIEF-Siamgas keeps 2010 net profit target

May 31 (Reuters) – Siamgas and Petrochemicals PCL (SGP.BK):

* Maintains 2010 revenue/net profit growth target of at least 15 percent due to strong domestic demand and revenue contribution from Vietnam, Deputy Managing Director Jintana Kingkaew told reporters

* Barely affected by political unrest because strong demand in the provinces helped offset lost revenue

* Expects to conclude deal to buy asset in China in September ($1=32.50 Baht)

Thai govt approves relief measures after unrest

Thailand’s cabinet has approved a relief plan, including soft loans and grants, to help businesses and people affected by recent political unrest, Finance Minister Korn Chatikavanij said on Tuesday.

Loans totalling 5 billion baht ($154 million) will be extended to small and medium-sized businesses in Bangkok, Korn told reporters after a weekly cabinet meeting.

They will be offered at low interest rates of 2-3 percent per year over six years with a grace period of two years.

The “red shirt” anti-government protests were broken up by the military on May 19, sparking riots and arson that destroyed part of the country’s biggest shopping mall and closed down banks for two days.

Korn said small businesses that had suffered from arson would each receive a 50,000 baht ($1,543) grant from the government.

The government would offer a 7,500 baht grant to employees and street vendors who had lost income, Korn said.

Affected companies that had retained staff and kept paying them would also receive help, Korn said, adding details on all the measures would be decided later.

(Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Alan Raybould)

Political unrest causes match switch from Bangkok

The AFC Cup match between Thai Port and Hong Kong’s Tai Po has been moved from Bangkok to Phuket because of the political unrest in the Thai capital, the Asian Football Confederation (AFC) said.

The match in the second tier Asian club tournament had been scheduled for April 27 at Supachalasai National Stadium in Bangkok but the continuing political protests led to the switch to the holiday island.

Another tie between Thai and Hong Kong clubs, Muang Thong United and South China, on Tuesday was also moved to Phuket from Bangkok.

Thailand’s tense political standoff was nearing a climax on Thursday with anti-government protesters preparing for imminent battle in central Bangkok against tens of thousands of armed troops.

(Reporting by Nick Mulvenney in Beijing, editing by Ossian Shine.

To comment, email sportsfeedback@thomsonreuters.com)

Q+A – How badly will Bangkok violence hit Thai tourism?

An anti-government rally in Bangkok spilled over into violent clashes last Saturday in which 24 people were killed and more than 800 were injured, Thailand’s worst political violence since 1992.

There has been an immediate impact on tourism, and a recovery in the $264 billion economy, Southeast Asia’s second biggest, may be set back. Tourism accounts for 6 percent of GDP and directly employs 1.8 million people out of a population of 67 million.

Comparisons with data last year are tricky.

Tourism was dealt a blow in April 2009 by that year’s “Songkran riots”, involving the same “red shirt” group. The sector was only just recovering from a blockade of Bangkok’s airports by a rival political group in late 2008.

WHAT IS THE IMMEDIATE IMPACT?

Surapol Sritrakul, president of the Association of Thai Travel Agents (ATTA), said the number of tourists coming in for Songkran, the Thai New Year from April 13-15, had slumped.

“Tourist arrivals have been cut in half basically to just 3,000-4,000 per day in April from 6,000-8,000 in the first quarter,” Surapol said.

“It’s been a very, very quiet Songkran. We are worried if this political unrest drags on for too long, it’ll just ruin everything,” he said.

The ATTA expects 14.5 million tourists this year.

The Tourism Authority of Thailand, a state agency, is sticking to its target of 15.5 million, which compares with 14.1 million last year. It said 4.6 million tourists arrived in the January-March quarter, up from 3.6 million last year.

Shares in national carrier Thai Airways lost 5.4 percent on Friday, on top of Monday’s 14 percent plunge. Airports of Thailand, the biggest airport operator, shed 4.9 percent. The main stock market index fell 3.25 percent.

Kasian Watanachaopisut, secretary-general of the Thai-Chinese Tourism Alliance Association, said 100 charter flights from China and 10 from Hong Kong to celebrate Songkran had been cancelled.

“Last year there were 1-1.2 million Chinese visiting Thailand, but this year we may hope for only 700,000 — if the situation returns to normal quickly.”

WHAT ABOUT SHOPS AND HOTELS?

Reservations at hotels in Bangkok’s upmarket Rachaprasong shopping district, occupied by the protesters for nearly two weeks, have dropped sharply, operators say.

Hotelier Central Plaza said occupancy at its Centara Grand at Central World — in the middle of the mall district occupied by the red shirts — had dropped 30 percent after Asian visitors cancelled and seminars and other events were postponed.

“Customers are either cancelling their bookings or being transferred to our other hotels around town,” said Ronnachit Mahattanapreut, the hotel’s Senior Vice President for Finance.

The “red shirts” have occupied a district full of five-star hotels and plush malls since April 3, forcing several top stores to close, among them Central World, the second-largest shopping complex in Southeast Asia.

Minor International said it had far fewer guests than normal at its Four Seasons Hotel with a “low single digit” occupancy rate. “As regards cancellations, it can’t get much worse,” said Rainer Stampfer, the general manager.

“It’s terrible but there’s nothing we can do about it.”

Streets near Bangkok’s Khao San Road, a magnet for budget tourists, saw some of the worst violence on Saturday. Media said many tourists checked out quickly and around 80 shops closed, although the calm that returned to the city over Songkran seems to have persuaded some to return.

HOW HAVE CONFERENCES BEEN AFFECTED?

Central Plaza Hotel says it has lost 4-5 million baht a day since the occupation of the shopping district, the result of cancelled bookings for hotel rooms and business events at its hotel at Central World.

Thailand Convention and Exhibition Bureau says the protests had prompted the cancellation of some business events scheduled for April.

HOW MUCH WILL THIS AFFECT THE ECONOMY?

Consumer confidence fell in March, when the “red shirt” rally began.

Investment bank Morgan Stanley calculates economic growth this year could be cut by 0.2 percentage point due to the impact on tourism. A bigger hit of up to 0.6 percentage points of GDP could come from a further loss of consumer confidence.

The government has forecast 4.5 percent growth this year. Finance Minister Korn Chatikavanij told Reuters that, after all that had happened, he would not be disappointed if the economy did manage growth of 4.5 percent.

The Asian Development Bank forecast on Tuesday the economy would grow 4 percent this year, although bank officials said that might be revised, depending on the outcome of the crisis.

The central bank says politics is becoming a bigger factor in deciding whether to raise interest rates. Its next policy meeting is on April 21 but, even before the latest events, most economists had not expected an increase until the meeting after that in June, if not later.

The protests, including the occupation of the shopping district, are expected to cost the economy up to 2 billion baht ($62 million) per day, the University of the Thai Chamber of Commerce predicts.

(Editing by Alan Raybould)

BRIEF-Krung Thai Bank to aim for double-digit loan growth

BANGKOK, April 9 (Reuters) – Krung Thai Bank PCL KTB.BK:

Financials

* Plans sometime in the middle of this year to raise 2010 loan growth target to “double digits” due to strong growth in the first quarter, President Apisak Tantivorawong told reporters after a shareholders meeting

* Present loan growth target was 7 percent

* Expects first quarter revenue to be better than the same period last year because the bank gave net loans of about 70 billion baht ($2.2 billion), which was its target for the whole year

* No impact from domestic politics yet, but will monitor whether political unrest affects its business in the second quarter ($1=32.28 Baht)

Political protests hurt Thai consumer confidence

(Reuters) – Consumer confidence in Thailand fell in March, depressed by political unrest that could seriously damage the economy if it turns violent, and further weakness is likely in April, according to a university survey on Thursday.

World

The University of the Thai Chamber of Commerce said its consumer confidence index fell to 69.8 in March, the lowest since November, from 70.9 in February and a 21-month high of 71.9 in January.

Confidence had been rising since the middle of 2009 thanks to a recovery in the economy after a brief recession, but the latest flare-up in a five-year political crisis has dealt it a blow.

Prime Minister Abhisit Vejjajiva declared a state of emergency on Wednesday to control a four-week rally by supporters of ousted former premier Thaksin Shinawatra aimed at forcing early elections.

“Clearly the confidence index is likely to fall sharply in April as the political protest drags on. The economy will be affected if it turns violent,” university economist Thanavat Polvichai told a news conference.

“The protest has hurt tourism and spending and more damage is expected if it continues,” Thanavat said.

Confidence hit its lowest in over seven years in May last year, a month after the same “red shirt” protest movement sparked the country’s worst street violence in 17 years.

The protesters have occupied since Saturday a Bangkok district full of upmarket shopping malls and five-star hotels, such as the Grand Hyatt, operated by Erawan Group.

That has hurt the retail, restaurant and tourist sectors and persuaded some foreign visitors to stay away.

The tourist industry accounts for about 6 percent of the $264 billion economy, Southeast Asia’s second-largest, and directly employs 1.8 million people.

The economy grew 3.6 percent in the final quarter of 2009 from the previous quarter, its highest growth rate in 10 years.

Finance Minister Korn Chatikavanij told Reuters on Wednesday the protests might cause growth this year to be “significantly” worse than the ministry’s 4.5 percent forecast. [ID:nSGE636016].

The World Bank forecast on Wednesday that Thailand’s economy would grow 6.2 percent this year [ID:nSGN002342]. Private economists have forecast growth of 4-5 percent after a contraction of 2.3 percent in 2009.

Despite the political problems, consumer spending in some areas is still good: there were record orders for 27,878 cars at the two-week Bangkok Motor Show that ended this week.

($1=32.32 Baht)

Thai Hot Stocks-Political unrest hurts market; SVI up

BANGKOK, April 8 (Reuters) – Thailand’s benchmark stock
index .SETI was down 0.93 percent at 805.08 at 0405 GMT on
Thursday after the government declared a state of emergency in
the capital. [ID:nSGE636016]

However, other Southeast Asian markets were also lower and
Thailand was moving broadly in line with them.

“The rising tensions will dampen market sentiment in the
short term, but we expect the SET to continue to move higher as
investors focus on strong first-quarter earnings growth and the
global economic recovery,” broker Kim Eng Securities said.

“In April 2009, the Thai equity market continued to rally
despite the state of emergency at that time. Fund flows into
the SET should continue,” it said.

Stocks on the move included:

BANPU (BANP.BK), SIAM COMMERCIAL BANK (SCB.BK) DOWN

The biggest coal miner, Banpu, was down 1.23 percent at 642
baht while Siam Commercial Bank, the third biggest bank, fell
1.9 percent to 91 baht. The two stocks go ex-dividend on
Friday.

Banpu is paying an interim dividend of 8 baht for the
second half of 2009. Siam Commercial Bank will pay a dividend
of 2.5 baht for the full year of 2009.

0407 GMT

SVI SVI.BK BUCKS TREND

The provider of electronics manfacturing services rose 4.8
percent to 2.2 baht, having hit 2.26 baht, the highest since
Oct. 15, as analysts rated the stock a ‘buy’, citing its cheap
valuations and probable good earnings growth this year.

0408 GMT

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– For Thailand’s IPO diary click on

– For Thailand’s stock exchange news click on [TH-SET]

– For Thailand corporate earnings: [TH-RES-RTRS]

– For Thailand economic forecast: [POLL-ECI-TH-RTRS]
($1=32.35 Baht)
(Reporting by Viparat Jantraprap; Editing by Alan Raybould)