Bill Heinecke, a Minor group owns two hotels in Phuket speaks for Time Magazine that Phuket and Hua Hin were among the many places in Thailand where tourists were never in any danger and there were no problems during the anti-government protests.

In a story headlined “Protests Not Expected to Hurt Thai Economy”, the magazine notes that fallout from the civil unrest is expected to be limited, with most economic analysts predicting a year of strong growth. Indeed, the Bank of Thailand announced on May 27 that GDP would still grow between 4.3% and 5.8% for the year, not far off the forecast by the World Bank before the violence began.

Exports are the primary driver of the Thai economy. They are expected this year to contribute a record-breaking 60-65% of GDP, nearly double their contribution in the late 1990s.

Tourism, as a major infrastructure for industry growth, has yet to achieve a double-digit percentage in what it brings to GDP. In 2008, a boom year for Thai tourism, the sector contributed less than 8%. This year, by all accounts, it is expected to deliver something a bit over 6%, about one-tenth of the contribution of exports.

Time refers for the bloodshed takes place in Thailand during their low-tourism season as a “Small blessing” for their tourism industry noting that that industry executives are now put again their hopeful confidence in the country for it can be restored as a holiday destination before the start of October high season.

With confidence in Phuket damaged far less than has been the case in Bangkok and the north of the country, it is not unreasonable to assume that Phuket will play a leading role in restoring tourism’s national health over the months ahead.

News by Phuket Gazette