The political unrest in Thailand appears to finally be getting resolved, but for the country’s economy, the price has be high.
Suffer the most from the demonstrations by the United Front for Democracy against Dictatorship (UDD) has been the tourism and retail industries. Many foreign embassies have advised tourists and business travelers to stay away from Thailand, which has led to masses of hotel and travel cancellations.
Three seafood-related conferences have been postponed until later this year, including Aquaculture 2010, which moved from Bangkok to Phuket. However, despite the lack of political stability, the Thai seafood industry has not suffered greatly and the Thai economy has weathered the storm extremely well. Thailand is one of the world’s largest seafood exporters.
In local ASEAN (Association of Southeast Asian Nations) markets, Thai seafood exports have enjoyed a 67 percent increase year-on-year with a value of USD 10.5 billion, ahead of the export market from the European Union, the United States and Japan.
The Thai government recently announced new elections for November and created a “road map to reconciliation.” Included in the road map is the recognition that reform is necessary to address social and economic inequality.
“The reconciliation roadmap is constructive and covers all of the controversial issues from both sides. The private sector agrees and supports the plan,” said Payungsak Chartsuthipol, chairman of the Federation of Thai Industries (FTI).
Prime Minister Abhasit Vejjajiva has admitted he underestimated the UDD, also called the Red Shirts, and their determination to bring about change. They have accepted the government’s proposals but have not yet stopped demonstrating. The decision to dissolve the Thai Parliament is still being discussed, but the country is breathing a sigh of relief that it’s finally showing signs of stability.
Nandor von der Luehe, chairman of the Joint Foreign Chamber of Commerce in Thailand (JFCCT), said the proposed reconciliation plan is a positive development for easing political instability in Thailand.
“Overall, we are seeing positive signs," he said. “Once the red-shirt protesters are cleared out of the Bangkok district of Ratchaprasong, we can expect that there will be no additional political conflicts, and Thailand will move in a clear direction toward reconciliation.”
In the meantime, the Tourism Authority of Thailand looks for ways to bring travelers back to the “Land of Smiles,” and retailers plan a recovery from an upheaval which has cost an estimated THB 30 million (USD 1 million) in lost revenue.
